According to Home Depot executives this week, many Americans are delaying expensive home improvement projects as the war with Iran drags on, elevating prices on just about everything. But if you’re borrowing from your home equity with plans to move forward with a home renovation, you can take solace in the fact that equity rates are at or near their 2026 lows.
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, May 22, 2026
The average HELOC rate is 7.21%, according to real estate analytics firm Curinos. The 2026 HELOC low was 7.19% in mid March. The national average rate on a home equity loan is 7.36%, tied with the 2026 low first seen in mid-March.
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%.
Here are our picks for the best HELOC lenders.
How lenders determine HELOC and HEL interest rates
Home equity interest rates work differently from mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which remains at 6.75%. If a lender added 0.75% as a 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 pricing on 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 carry, and the amount of your credit line compared to the value of your home. Shop a few lenders to find your best interest rate offer.
Learn about how fixed-rate HELOCs work
Look for low introductory HELOC rate offers
Today, FourLeaf Credit Union is offering a HELOC APR (annual percentage rate) of 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate in one year.
When shopping for lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.
The best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.
HELOC and home equity loan rates today: FAQs
What is a good interest rate on a HELOC right now?
Rates vary significantly from one lender to the next. You may see rates from 6% to as much as 18%. It really depends on your creditworthiness and how diligent you are as a shopper. Currently, the national average for an adjustable-rate HELOC is 7.21%, and for a fixed-rate home equity loan, it’s 7.36%. Those are the rates to meet or beat.
Is it a good idea to get a HELOC or a home equity loan right now?
Interest rates fell for most of 2025. They are expected to remain steady for much of 2026. So yes, it’s a good time to get a second mortgage. And with a HELOC or a HEL, you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Or just about 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 line of credit on your home and pay a 7.25% interest rate, for example, your monthly payment during 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 during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period of time.
