As of mid-February 2026, national average HELOC rates hover around 7.23% to 7.32%, while home equity loan rates average approximately 7.44% to 7.92%, reflecting stabilization near multi-year lows following Federal Reserve rate cuts in late 2025. Borrowers with strong credit profiles can secure offers below 7%, and sometimes as low as the mid-6% range or even introductory rates under 5%, by shopping multiple lenders, improving credit metrics, and negotiating terms. Key strategies include comparing variable vs. fixed options, minimizing fees, and leveraging low loan-to-value ratios to unlock the most competitive pricing in this environment.
Current Landscape of HELOC and Home Equity Loan Rates
Home equity borrowing remains attractive for U.S. homeowners in February 2026, with rates holding steady near their lowest points in over three years. The Federal Reserve maintained its target range at 3.50%-3.75% following its January meeting, after a series of cuts in the second half of 2025 that eased borrowing costs across variable-rate products like HELOCs.
HELOCs, which function as revolving lines of credit tied closely to the prime rate (currently around 6.75% plus a lender margin), show national averages in the low- to mid-7% range. Home equity loans, offering fixed rates for lump-sum borrowing, sit slightly higher due to their predictability.
HELOC Rates Overview
Variable-rate HELOCs dominate the market, with averages reflecting recent modest fluctuations. For borrowers with excellent credit (typically 780+ FICO) and conservative combined loan-to-value (CLTV) ratios (often 70% or lower), the best offers dip notably below averages.
Recent surveys indicate:
National average HELOC rate: Approximately 7.23% (per Curinos data) to 7.32% (per Bankrate surveys of major lenders).
Range of available rates: From lows around 6.20% up to higher teens for weaker profiles.
Some lenders advertise promotional or introductory rates as low as 4%-5% for initial periods, though these convert to standard variable rates afterward.
Top competitive offers include lines with APRs starting at 6.20% for certain credit lines up to $400,000, or around 6.24% for extended draw/repay structures.
Home Equity Loan Rates Overview
Fixed-rate home equity loans provide payment certainty, appealing for debt consolidation or major projects. Averages trend higher than HELOCs but remain competitive.
Typical ranges by term:
| Loan Term | Average Rate | Rate Range Observed |
|---|---|---|
| 5-year | 7.92% | 5.49% – 10.37% |
| 10-year | 8.09% | 6.25% – 10.50% |
| 15-year | 8.09% | 6.25% – 10.75% |
National average for home equity loans: Around 7.44% (for top-tier applicants) to 7.92% overall.
Factors Influencing Your Rate
Several elements determine the rate you receive:
Credit Score : Excellent scores (740+) often yield rates 1-3% lower than fair credit profiles. Borrowers with 780+ FICO see the most favorable pricing.
Loan-to-Value (LTV) and Combined LTV (CLTV) : Lower ratios (e.g., 60%-80%) unlock better rates. Higher equity in your home signals lower risk to lenders.
Debt-to-Income Ratio (DTI) : Keeping DTI below 43% (ideally under 36%) strengthens applications.
Lender Margin and Index : HELOCs are typically prime + margin (0.50%-2.00%). Fixed loans incorporate broader market conditions.
Loan Amount and Structure : Larger lines or loans sometimes qualify for tiered discounts; promotional periods or fixed-rate lock options add value.
Strategies to Secure the Best Rate Offer
To maximize savings:
Shop Aggressively : Compare at least 3-5 lenders, including national banks, credit unions, and online platforms. Rates can vary by 1%+ between offers.
Boost Your Credit Profile : Pay down debts, correct errors on reports, and avoid new inquiries before applying.
Negotiate : Use competing offers to push for rate reductions, fee waivers, or better terms.
Consider Fixed-Rate Options : Many HELOCs allow converting portions to fixed rates for stability.
Minimize Closing Costs : Seek no-closing-cost or low-fee products; factor in origination fees, appraisal costs (often $300-$500), and annual fees.
Time Your Application : Rates respond to Fed signals; monitor economic indicators for potential further softening.
Leverage Relationships : Existing bank customers may receive loyalty discounts (0.25% or more).
Comparing HELOC vs. Home Equity Loan
Potential Rate Examples by Profile
| Feature | HELOC | Home Equity Loan |
|---|---|---|
| Rate Type | Variable (prime-based) | Fixed |
| Access to Funds | Revolving draw period | Lump sum |
| Flexibility | Draw as needed, repay/re-borrow | One-time disbursement |
| Typical Rate Range | 6.2%-8%+ (avg ~7.3%) | 6.5%-9%+ (avg ~7.9%) |
| Best For | Ongoing/variable needs | Fixed projects, predictability |
Excellent credit, low LTV: HELOC ~6.5%-7.0%; Home equity loan ~7.0%-7.5%.
Good credit, moderate LTV: HELOC ~7.5%-8.5%; Home equity loan ~8.0%-9.0%.
Fair credit: Higher rates, limited options.
Homeowners should evaluate total costs, including potential rate adjustments on HELOCs, against their financial goals.
Disclaimer : This is for informational purposes only and not personalized financial, investment, or legal advice. Rates fluctuate and depend on individual qualifications; consult professionals for your situation.