Updated 27 March 2026
HELOC vs Home Equity Loan Rates
HELOCs average 9.18% (variable). Home equity loans average 8.73% (fixed). Credit unions are 0.5-1.5% cheaper than banks across the board.
Current Rates by Lender Type
| Lender Type | HELOC Rate | Home Equity Loan Rate | Notes |
|---|---|---|---|
| National average | 9.18% | 8.73% | As of Q1 2026. Source: Bankrate weekly survey. |
| Credit unions (best) | 7.5-8.5% | 7.0-8.0% | Credit unions consistently offer 0.5-1.5% lower rates than banks. |
| Major banks | 8.5-10.0% | 8.0-9.5% | Chase, Wells Fargo, Bank of America. Rate depends on LTV and credit. |
| Online lenders | 8.0-9.5% | 7.5-9.0% | Figure, Better, Spring EQ. Often competitive on HELOANs. |
What Determines Your Rate
Credit score
1-2% rate difference760+: best rates. 700-759: +0.25-0.5%. 680-699: +0.5-1.0%. Below 680: +1.0-2.0% or denial.
Loan-to-value (LTV)
0.5-1% differenceLTV under 80%: best rates. 80-85%: slightly higher. 85-90%: significantly higher. Over 90%: most lenders decline.
Debt-to-income ratio
Rate tier or denialUnder 36%: best rates. 36-43%: acceptable but higher tier. Over 43%: difficult to qualify.
Property type
0-0.5% differencePrimary residence: best rates. Second home: +0.25-0.5%. Investment property: +0.5-1.0% (if available at all).
Loan amount
VariesSome lenders offer better rates on $50K+. Others have minimums of $10K-$25K. Very large loans ($250K+) may get custom pricing.
The #1 rate hack: check your credit union first.
Credit unions consistently beat banks by 0.5-1.5% on home equity products because they are non-profit. Many credit unions are open to anyone in a geographic area or industry. Check ncua.gov to find credit unions you are eligible to join. The rate savings on a $50K HELOC at 1% lower = $500/year.