Understanding how stock interest rates work is more vital now that rates are rising. Lenders have flexibility in pricing a HELOC or home equity loan, but your rate will depend on your credit score, the amount of debt you have, and the amount of your loan or line relative to the value of your home. Shop a few lenders to find your best interest rate deal.
More information: Find out how HELOC and home equity loan interest rates work and what you can expect to pay
HELOC and Home Equity Loan Rates: Friday, June 12, 2026
The average HELOC rate is 7.25%according to the real estate analysis firm Curinos. The 2026 HELOC minimum was 7.19% in mid-March and then again in May. The national average home equity loan rate is 7.86%. The 2026 HEL low was 7.36%, seen in March and just last month.
Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value (CLTV) ratio of less than 70%.
More information: Here are our picks for the best HELOC lenders
How Lenders Determine HELOC and HEL Interest Rates
Home equity interest rates work differently than mortgage rates. Second mortgage rates are based on an index rate plus a margin. This index is usually the preferential rate, which remains at 6.75%. If a lender added 0.75% as margin, the HELOC would have a variable rate of 7.50%.
A home equity loan may have a different margin because it is a fixed interest product.
Lenders have flexibility with the pricing of a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you have, and the size of your line of credit compared to the value of your home. Shop a few lenders to find your best interest rate deal.
Learn more about how fixed rate HELOCs work
Look for introductory low HELOC rate offers
Today, FourLeaf Credit Union offers a 5.99% HELOC APR for 12 months on lines up to $500,000. This is an introductory rate that will convert to a variable rate in one year.
When shopping for lenders, keep both rates in mind. And as always, compare the fees, payment terms and minimum withdrawal amount. The withdrawal is the amount of money a lender requires you to initially withdraw from your equity.
The best home equity loan lenders may be easier to find because the fixed rate you earn will last the entire repayment period. That means just one rate to focus on. And you will receive a lump sum, so there are no withdrawal minimums to consider.
HELOC and Home Equity Loan Rates Today: Frequently Asked Questions
What is a good interest rate for a HELOC right now?
Rates vary significantly from lender to lender. You may see rates from 6% to 18%. It really depends on your creditworthiness and your diligence as a buyer. Currently, the national average for an adjustable rate HELOC is 7.25%, and for a fixed rate home equity loan, it is 7.86%. Those are the rates to match or beat.
Is it a good idea to get a HELOC or home equity loan right now?
Interest rates fell through most of 2025. They are expected to remain stable through much of 2026. So, yes, it’s a good time to get a second mortgage. And with a HELOC or HEL, you can use the cash withdrawn from your equity for things like home improvements, repairs, and upgrades. Or almost anything else.
What is the monthly payment on a $50,000 home equity line of credit?
If you take out the entire $50,000 on a home line of credit and pay an interest rate of 7.25%, for example, your monthly payment over the 10-year draw period would be about $302. That sounds good, but remember that the rate is usually variable, so it changes periodically and your payments will increase over the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are better if you borrow and pay off the balance in a much shorter period of time.