HELOC and home equity loan rates today, May 12, 2026: Compared to last year, rates are down meaningfully

Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure.

Comparing the 2025 average rates for a home equity loan and home equity line of credit (HELOC) to the 2026 averages so far this year, rates are down quite a bit. The average rate on a home equity loan in 2025 was 7.61%, according to Curinos, a real estate analytics firm. So far this year, home equity loan rates are averaging 7.44%. The average HELOC rate in 2025 was 7.86%, whereas the average so far this year is 7.21%.

This embedded content is not available in your region.

Learn the differences between a HELOC and a home equity loan

HELOC and home equity loan rates Tuesday, May 12, 2026

According to real estate analytics firm Curinos, the average adjustable-rate HELOC is 7.21%, down three basis points from one month ago. The 52-week HELOC low was 7.19% in mid-March. The national average rate on a fixed-rate home equity loan is 7.36%, down one basis point from last month, and tied with the 2026 low we observed 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%.

HELOC or home equity loan: How to decide

Choosing between a HELOC and a home equity loan is easy when you consider what you're using it for. A HELOC allows you to draw cash from your approved line of credit, pay it off, then tap it again. A home equity loan gives you a lump sum.

With 30-year and 20-year mortgage rates still above 6%, homeowners with home equity and a favorable primary mortgage rate well below that may feel frustrated by not being able to access the growing value in their home. For those who are unwilling to give up their low home loan rate, a second mortgage in the form of a HELOC or HEL can be an appealing solution.

Learn how to use home equity to build wealth

HELOC and home equity loan interest rates: What to look for

Home equity interest rates work differently than primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is down to 6.75%. If a lender added 0.75% as a margin, the HELOC would have a variable rate beginning at 7.50%.

A home equity loan may have a different margin because it is a fixed-interest product.

Lenders have flexibility with pricing on second mortgage products, such as HELOCs or home equity loans, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit you're drawing compared to the value of your home.

Most importantly, HELOC rates can include below-market "introductory" rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.

Again, because a home equity loan has a fixed rate, it's unlikely to have an introductory "teaser" rate.

Learn about home equity and how it works

How to find the best home equity lender

The best HELOC lenders offer:

- Low fees

- A fixed-rate option

- And generous credit lines

A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.

You should also find and consider a lender offering a below-market introductory rate. For example, FourLeaf Credit Union is currently offering a HELOC APR of 5.99% for 12 months on lines up to $500,000. That introductory rate will convert to a variable rate as low as 6.75% in one year, with a “prime rate for life” thereafter.

Beware of steep minimum draws on HELOCs

Also, pay attention to the minimum draw amount of a HELOC. The draw is the amount of money a lender requires you to immediately take from your equity. Some banks will allow no, or small, initial draw requirements. Lenders that are not part of a bank with customer deposits are likely to require a large draw at closing.

Home equity loans have a unique benefit: fixed interest rates

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 there are no draw minimums to consider.

And as always, compare any annual fees or other charges, and the fine print of repayment terms.

Home equity rates today: FAQs

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

Rates vary significantly from one lender to the next. You may see rates from nearly 6% to as much as 18%. It really depends on your creditworthiness and how diligent you are as a shopper. The national average for a HELOC is 7.21%, and 7.36% for a home equity loan. Those can serve as a guide when shopping rates from 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 significant equity in their homes, it's likely a good idea to consider a HELOC or a home equity loan now. First off, rates are the lowest in years. And you don't give up that great primary mortgage rate that you earned when you bought your house.

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 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 and HELs are best if you borrow and repay the balance within a much shorter period.