What Is a Good HELOC Rate Right Today?
As of July 13, 2026, a competitive HELOC rate is at or below roughly 7.25%, and anything under 7% is excellent.
HELOC rates in 2026 are roughly a full percentage point below where they were in mid-2025, and dramatically below the 9%–10% levels of 2024. The Federal Reserve left the federal funds rate unchanged at its June 17, 2026 meeting, with the next decision scheduled for July 28–29, 2026. Because HELOCs are priced off the prime rate, that hold is why HELOC averages have moved only a few basis points week to week.
| Benchmark | Rate | Source & Date |
|---|---|---|
| National average HELOC (variable) | 7.23% | Curinos, July 13, 2026 |
| National average HELOC (survey of 10 largest banks/thrifts, $30K line) | 7.43% | Bankrate, July 8, 2026 |
| National average fixed-rate home equity loan | 7.36% – 8.08% | Curinos / Bankrate, July 2026 |
| Average rate actually offered on a $100,000 HELOC | 7.94% | LendingTree, June 2026 |
| WSJ Prime Rate (the index most HELOCs use) | 6.75% | Federal Reserve / FRED, July 2026 |
| 2026 low for HELOC rates | 7.19% | Curinos, mid-May 2026 |
| Same week one year earlier | 8.31% | LendingTree, June 2025 |
To get the best rate on a HELOC in 2026, you will need to do quite a bit of shopping. You should talk to large national banks, community banks, credit unions, and online home equity lenders with NMLS license #’s. The Home Equity Mart will introduce you to trusted lenders that have access to many home equity credit line programs with competitive HELOC interest rates, so we may be able to assist you.
How HELOC Rates Are Actually Set in 2026
Your HELOC rate is not a single number a lender invents. It is built from two parts:
Prime Rate + Lender Margin = Your HELOC Rate
The prime rate is currently 6.75%. It moves only when the Federal Reserve moves the federal funds rate — prime has historically sat about three percentage points above it. The margin is what the lender adds based on your credit score, combined loan-to-value (CLTV) ratio, debt-to-income ratio, line size, and lien position.
A worked example:
- Prime rate: 6.75%
- Your margin (750 FICO, 65% CLTV): 0.50%
- Your HELOC rate: 7.25%
A borrower with a 660 score and 85% CLTV might carry a 3.00% margin on the same day — a 9.75% rate on the identical product. The spread between the best and worst margin is almost always larger than the spread between lenders’ base pricing. That is why improving your file before you apply usually beats shopping harder after.
Published lender ranges in 2026 run from roughly 6% at the low end to as high as 18% at the ceiling, depending on borrower profile.
Interest Rate vs. APR on a HELOC: Why the Difference Matters
This is where most rate shopping goes wrong.
- Interest rate = what you pay to borrow, applied to your drawn balance.
- APR = the interest rate plus certain lender costs, expressed as an annualized figure.
On a closed-end mortgage, APR is the honest comparison number. On a HELOC, it is trickier: because a HELOC is an open-end line under Truth in Lending (Regulation Z), the disclosed APR frequently excludes many fees a mortgage APR would capture. Two lenders can advertise the same APR while one charges a $75 annual fee, a $450 early-closure fee, and an appraisal, and the other charges nothing.
What to do instead: ask every lender for the all-in cost — the rate, the margin, the lifetime cap, the floor, and every fee, in writing — and compare those side by side. Do not rank offers on the advertised APR alone. Compare rates on a HELOC and cash out refinance.
HELOC Closing Costs in 2026
HELOC closing costs generally run 2% to 5% of the credit line, which for most borrowers lands in the $2,000 to $5,000 range on a traditional bank HELOC. Typical line items:
| Cost | Typical range |
|---|---|
| Application fee | $0 – $100 |
| Appraisal (full, drive-by, or automated valuation) | $0 – $700 |
| Title search / title insurance | $100 – $1,000+ |
| Origination fee | 0% – 1% of the line |
| Recording fee | $25 – $250 |
| Annual / maintenance fee | $0 – $100 per year |
| Early closure fee (if closed within 24–36 months) | $0 – $500 |
The 2026 reality: a large share of competitive lenders now waive most or all of these. Bank of America advertises no application fee, no annual fee, and no closing costs on its HELOC. FourLeaf Federal Credit Union covers closing costs on lines up to $500,000 and charges no application, appraisal, or origination fee. If a lender wants $3,000 to open your line, ask them to match a no-cost competitor before you accept.
The catch to read for: “no closing cost” almost always comes with a recapture clause — close the line within 24 to 36 months and the waived costs get billed back to you.
Introductory and Teaser HELOC Rates in 2026
Promotional rates are back, and some are genuinely below prime. FourLeaf Federal Credit Union has been advertising a 5.99% introductory rate for 12 months on lines up to $500,000, converting afterward to a variable rate starting as low as 6.75%. Bank of America runs a six-month introductory variable rate, then transitions to prime plus a margin, with stackable discounts: 0.25% for autopay from a Bank of America deposit account, 0.25% for a HELOC in first lien position, and 0.10% for every $10,000 drawn at account opening, up to a 1.50% maximum.
Three questions to ask about any teaser rate:
- How many months does it last — six, twelve, or twenty-four?
- What is the exact index-plus-margin rate the day it expires? (Not “as low as.” The number you will pay.)
- Is there a minimum initial draw required to earn the promo rate — and will you owe interest on money you did not need?
A 5.99% teaser that converts to prime + 3.00% (9.75%) is a worse ten-year deal than a flat 7.25% with no promo at all.
Best HELOC Lenders and Rate Structures in 2026 (
Every NMLS ID below is verifiable at NMLS Consumer Access. Confirm any lender’s license before you share financial documents.
| Lender | NMLS ID | Rate structure | What stands out | Watch for |
|---|---|---|---|---|
| Bank of America, N.A. | 399802 | Prime + margin; 6-mo. intro rate | $0 application, annual, and closing costs; up to 85% LTV; fixed-rate conversion option; stackable discounts | 660 minimum score; does not offer fixed home equity loans |
| TD Bank, N.A. | 399800 | Prime + margin | High borrowing limits; rate-lock option; autopay and checking-account discounts | Limited to its East Coast footprint |
| Fifth Third Bank, N.A. | 403245 | Prime + margin | Equity Flexline lets you lock a fixed rate on part or all of the balance | Regional availability |
| Truist Bank | 399803 | Prime + margin; long intro period | One of the longer introductory rate windows in the market; second homes eligible | HELOCs unavailable in many states |
| PenFed Credit Union | 401822 | Prime + margin | Available in all 50 states and D.C.; up to three fixed-rate advances during the draw period | Membership required (open to all U.S. residents) |
| Spring EQ, LLC | 1464945 | Fixed and variable options | Home equity specialist; 640 minimum FICO; up to 90% CLTV on a primary residence | Minimum initial draw requirements apply |
| Figure Lending LLC | 1717824 | Fixed rate per draw | Fastest funding in the market — approval in minutes, funding in days | Requires you to draw the full line at origination |
| Better Mortgage Corporation | 330511 | Prime + margin | One Day HELOC™ approval; covers primary, second, and investment properties | Fully digital; no branch support |
| Rate (Guaranteed Rate, Inc.) | 2611 | Fixed | Digital closing; funding in as few as five days; lends on investment properties | Fixed structure means no revolving redraws in some products |
Chase Home Lending (NMLS #399798) has been reintroducing a HELOC product in 2026 after pausing originations — worth a call if you already bank there.
Methodology: lenders were selected based on published 2026 rate structures, fee disclosures, geographic availability, and third-party rate surveys from Bankrate, NerdWallet, and LendingTree. Home Equity Mart received no compensation for inclusion in this table. Terms change frequently; verify directly with each lender.
What Credit Score Do You Need for the Best HELOC Rate in 2026?
| FICO score | Typical outcome |
|---|---|
| 760+ | Lowest available margins; best-in-market pricing |
| 700 – 759 | Broadly approvable at competitive rates; the Bankrate national survey assumes a 700 score |
| 660 – 699 | Approvable at most major banks, but expect a materially wider margin |
| 620 – 659 | Limited to specialist and portfolio lenders; expect a higher rate and lower CLTV cap |
| Below 620 | Non-QM or portfolio lenders only; substantial equity required |
Note that the headline averages you see quoted are not for everyone: Curinos calculates its 7.23% average using applicants with a 780+ score and a CLTV under 70%. If your file does not look like that, budget for a higher number.
Are HELOC Rates Going Up or Down for the Rest of 2026?
Nobody can promise a direction, and any site that does should be treated with suspicion. What can be said factually:
- The Fed held rates steady on June 17, 2026; the next FOMC decision is July 28–29, 2026.
- Prime sits at 6.75%, and HELOC pricing moves with it — roughly one-for-one, and usually within one to two billing cycles of a Fed move.
- HELOC averages have traded in a narrow band all year, with a 2026 low of 7.19% in mid-May and a slight drift upward since.
- Curinos projects home equity originations to grow by up to 3% in the first half of 2026.
Practical takeaway: if the Fed cuts, your variable HELOC rate falls automatically — no refinance needed. That asymmetry is the strongest argument for a variable HELOC over a fixed home equity loan in a flat-to-falling rate environment. If the Fed holds or hikes, a fixed home equity loan or a fixed-rate conversion feature protects you. Do not try to time the Fed. Borrow when you have a defined use for the money.
Is HELOC Interest Still Tax Deductible in 2026?
Yes — but only for qualifying uses, and this is where a lot of online content is now wrong.
The Tax Cuts and Jobs Act rule limiting the deduction to funds used to buy, build, or substantially improve the home securing the loan was originally set to expire after 2025. It did not. The One Big Beautiful Bill Act (Public Law 119-21), signed July 4, 2025, made those rules permanent. Articles claiming that 2026 interest is deductible regardless of how you spend the money are relying on an expiration that never happened.
What that means for you in 2026:
- Deductible: a kitchen remodel, a roof replacement, an addition, a major systems upgrade on the home securing the line.
- Not deductible: credit card consolidation, tuition, medical bills, a car, a vacation.
- Cap: interest is deductible on combined mortgage debt up to $750,000 ($375,000 married filing separately).
- Requirement: you must itemize on Schedule A. If your standard deduction is larger, the benefit is zero.
This is general information, not tax advice. Confirm your situation with a CPA or tax professional and see IRS Publication 936.
Why Homeowners Are Choosing HELOCs in 2026
According to the RefiGuide. the American mortgage holders hold roughly $11 trillion in tappable home equity, near historic highs, though slightly off the $11.6 trillion mid-2025 peak. Meanwhile, outstanding HELOC balances reached $446 billion in Q1 2026, the sixteenth consecutive quarterly increase (Federal Reserve Bank of New York).
The reason is the rate-lock effect. Millions of homeowners carry first mortgages from 2019–2021 at 3% or below. Refinancing that away to access cash would be financially irrational. A HELOC leaves the first mortgage untouched and prices only the borrowed amount at today’s rates, roughly 7.25% versus credit card averages north of 20%. Many homeowners are choosing a HELOC to consolidate debt in 2026.
How to Get the Best HELOC Rate: A Checklist
- Pull your credit before you apply. Every 20-point improvement can move your margin.
- Lower your CLTV. Under 70% unlocks the best-tier pricing at most lenders.
- Apply to three or more lenders inside a 14-day window so the inquiries score as a single event.
- Ask for the margin, not the rate. The rate changes with prime; the margin is yours for the life of the line.
- Get the lifetime cap and floor rate in writing.
- Stack the discounts — autopay, existing deposit relationship, first-lien position, initial draw.
- Confirm the fee schedule: annual fee, inactivity fee, minimum draw, early closure fee.
- Ask whether you can convert to a fixed rate later, and what it costs.
Frequently Asked Questions for Best HELOC Rates
What is considered a good HELOC rate in July 2026?
Anything at or below the 7.23%–7.43% national average range is competitive, and under 7% is excellent. Borrowers with 760+ scores and CLTVs under 70% see the lowest margins.
Does a HELOC have closing costs?
Often, but not always. Expect 2%–5% of the line at lenders that charge them, and $0 at lenders like Bank of America and FourLeaf that waive them. Ask about recapture clauses if costs are waived.
Do HELOC rates change monthly?
Most HELOCs are variable and adjust with the prime rate, typically within one or two billing cycles of a Federal Reserve move. Fixed-rate HELOCs and fixed-rate conversion features exist but are less common.
Is a home equity loan cheaper than a HELOC in 2026?
Not currently. As of July 2026, the fixed home equity loan average (7.36%–8.08%) sits above the variable HELOC average (7.23%–7.43%). You pay a premium for payment certainty. The HELOC is a second mortgage loan that you can use to take out some cash for things you need, such as home renovations or paying off credit card debt.
Ready to Compare Real HELOC Offers?
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References
- Bankrate. (2026, July 8). Current BankRate HELOC rates in July 2026.
- RefiGuide. (2026, July 4). Best HELOC interest rates in 2026. https://www.bankrate.com/home-equity/home-equity-loan-rates/
- Internal Revenue Service. (n.d.). IRS_ Real estate (taxes, mortgage interest, points, other property expenses).
- Yahoo Finance. (2026, July 13). Yahoo- HELOC and home equity loan rates today, Monday, July 13, 2026.
Disclaimer: Home Equity Mart is a lender-matching service, not a lender. We are not compensated for editorial placement in this comparison. Rates below are national survey averages and are not offers of credit.
Updated : HEM Editorial Team | July 2026 | Fact-Checked ✓