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HELOC and home equity loan rates today, Tuesday, July 28, 2026: How to choose between a HELOC and a home equity loan

If you are not able to move to a new home or refinance to tap the equity you have built up in your house, you may be considering a home equity loan or a home equity line of credit. But beyond interest rates, how should you decide between a HELOC and a home equity loan? The answer often comes down to how you plan to use the money and whether you want borrowing terms that stay predictable from month to month.

HELOC and home equity loan rates: Tuesday, July 28, 2026

The average adjustable HELOC rate is 7.23%, according to real estate data analytics company Curinos. The 2026 low for HELOC rates was 7.19%, last recorded in mid-May.

The national average rate on a fixed-rate home equity loan is 7.36%, up from its 2026 low of 7.31% in late June.

Both rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.

How HELOC interest rates work

Most HELOCs are variable-rate products, which means their interest rates are tied to an external benchmark. When that benchmark rises or falls, the rate on your HELOC generally moves in the same direction.

HELOCs are typically tied to the prime rate, the baseline rate banks charge their most creditworthy customers.

Lenders also assess the risk each borrower presents and add a margin to protect themselves. Borrowers viewed as riskier generally receive larger margins, while less risky borrowers may receive smaller ones. Factors such as your credit score, debt-to-income ratio (DTI), and loan-to-value ratio (LTV) are all part of that assessment.

How home equity loan interest rates work

A home equity loan and its rate work like a HELOC in some respects and like a traditional primary mortgage in others.

As with a HELOC, the prime rate usually affects home equity loan rates, and lenders add a margin to the rate. Both HELOC and home equity loan rates are also loosely influenced by the Federal Reserve's federal funds rate and broader economic conditions.

However, like many first mortgages, home equity loans are typically fixed-rate products, meaning the interest rate stays the same for the full term. Fixed-rate HELOCs do exist, but they are much less common.

Learn more: HELOC and home equity loan interest rates: How they work and what you can expect to pay

How to qualify for a HELOC or home equity loan

Specific requirements vary by lender, but in general, home equity loans and HELOCs require a borrower to:

• Have a FICO credit score of 680 or higher
• Show a history of good credit and proof of sufficient monthly income
• Obtain an appraisal to determine the home's current market value
• Have at least 15% to 20% equity in the house
• Have a debt-to-income ratio of 43% or less
• Show proof of in-force homeowners insurance

Lenders may also charge origination fees and other closing costs on a HELOC or home equity loan. When shopping, ask about application fees, annual charges, early account closure fees, and any other one-time or ongoing costs. Comparing multiple lenders can help you find the lowest interest rate and the fewest fees, which matters because the best headline rate is not always the cheapest loan overall.

Read more: Home equity line of credit (HELOC) vs. home equity loan: What's the difference, and which is right for you ?

HELOC and home equity loan rates FAQs

What is a good interest rate on a HELOC or a HEL right now?

Rates can vary widely from one lender to another. You may see rates from nearly 6% to as high as 18%, depending on your creditworthiness and how diligently you shop. The national average for a HELOC is 7.23%, and 7.36% for a home equity loan. Those figures can serve as a guide when comparing second mortgage lenders.

Is it a good idea to get a HELOC or a home equity loan right now?

For homeowners with low primary mortgage rates and substantial equity in their homes, it may be worth considering a HELOC or a home equity loan now. Rates are at their lowest levels in years, and you do not give up the favorable primary mortgage rate you earned when you bought your house. Cash drawn from home equity can be used for home improvements, repairs, upgrades, or virtually anything else.

What is the monthly payment on a $50,000 home equity line of credit?

If you withdraw the full $50,000 from a home equity line of credit and pay a 7.25% interest rate, your monthly payment during the 10-year HELOC draw period would be about $302. That may sound attractive, but the rate is usually variable, so it changes periodically, and payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs and home equity loans are best when you borrow and repay the balance over a much shorter period.

Is now a good time to take out a HELOC?

It can be a good time to get a HELOC, especially if you do not want to lose the low rate on your first mortgage. Learn how the housing market could affect your decision.

How do fixed-rate HELOCs work, and which lenders offer them?

HELOCs usually charge variable rates, but fixed-rate HELOCs are available from certain lenders. Learn how a fixed-rate HELOC works.

Is a HELOC a good idea? Pros and cons to consider.

A home equity line of credit can help many homeowners, but it is not right for everyone. Before taking one out, consider the pros and cons.

The best HELOC lenders of June 2026

The best HELOC lenders offer flexible payment options, allow high CLTV ratios, and more. Read through the top picks to find the best HELOC lender for you.

HELOC vs. personal loan: Which should you choose?

HELOCs and personal loans are both strong financing options for home improvements or other large expenses. Learn which is the better fit for your situation.

How much can you borrow with a HELOC?

The amount you can borrow with a HELOC depends on your home value, your outstanding mortgage balance, and the lender. Learn how to calculate how much HELOC money you can get.