Updated March 10, 2026
Today's Best Home Equity Rates
HELOC and home equity loan rates for tapping your home's equity.
HELOC
8.50%
Home Equity Loan
8.75%
Rate Trends
HELOC
Home Equity Loan
Lender Comparison
Home Equity Rates — Lender Comparison
| Lender | Rate ↑ | APR ⇅ | |
|---|---|---|---|
FigureFeatured | 7.75% | 7.95% | Apply Now |
Bethpage FCUFeatured | 7.99% | 8.15% | Apply Now |
Spring EQFeatured | 8.25% | 8.45% | Apply Now |
Bank of America | 8.40% | 8.55% | Apply Now |
TD Bank | 8.50% | 8.65% | Apply Now |
U.S. Bank | 8.65% | 8.80% | Apply Now |
Understanding Home Equity Rates
What Affects Home Equity Rates
Home equity rates are influenced by the prime rate (for HELOCs), your credit score, loan-to-value ratio, and the amount of equity in your home. HELOC rates are variable and tied directly to the prime rate, while home equity loan rates are fixed. Your combined loan-to-value ratio (mortgage + equity loan) must typically stay below 80-85%.
HELOC vs Home Equity Loan
A HELOC is a revolving line of credit with a variable rate and a draw period (usually 10 years) followed by a repayment period (10-20 years). You only pay interest on what you borrow. A home equity loan is a lump-sum loan with a fixed rate and fixed monthly payments — similar to a second mortgage.
APR Explained for Home Equity
For home equity loans, the APR includes the fixed interest rate plus closing costs. For HELOCs, the APR reflects only the variable interest rate because closing costs vary and the draw amount is flexible. Some HELOCs advertise introductory rates that jump after 6-12 months, so compare the ongoing APR, not just the intro rate.
Historical Context
Current home equity rates reflect the broader interest rate environment shaped by Federal Reserve policy. Rates have been adjusting as the market prices in expectations for future Fed actions. Comparing rates from multiple lenders remains the best strategy for finding the lowest rate for your situation.
How to Get the Best Home Equity Rate
HELOCs have variable rates; home equity loans have fixed rates — choose based on your needs.
You typically need at least 15-20% equity to qualify for a HELOC.
Interest on home equity debt may be tax-deductible if used for home improvements.
Be cautious — your home is the collateral, and failure to repay could lead to foreclosure.
Compare introductory rates on HELOCs, as they often jump after 6-12 months.
Get Notified When Home Equity Rates Drop
Set a custom threshold and receive instant alerts when home equity rates fall below your target. Never miss the perfect rate window.
Calculate What These Rates Mean for You
Frequently Asked Questions
What is the difference between a HELOC and a home equity loan?
A HELOC (Home Equity Line of Credit) works like a credit card with a variable rate and a draw period where you can borrow as needed. A home equity loan provides a lump sum with a fixed rate and fixed monthly payments. Choose a HELOC for flexibility and a home equity loan for predictable payments.
How much equity do I need for a HELOC?
Most lenders require at least 15-20% equity in your home to qualify for a HELOC. The combined loan-to-value ratio (your mortgage balance plus the HELOC) typically cannot exceed 80-85% of your home's appraised value.
Is home equity loan interest tax-deductible?
Home equity loan and HELOC interest may be tax-deductible if the funds are used to buy, build, or substantially improve the home that secures the loan. Interest on funds used for other purposes (debt consolidation, vacations, etc.) is generally not deductible. Consult a tax professional for your specific situation.
What are the risks of using home equity?
The primary risk is that your home serves as collateral. If you cannot make payments, the lender can foreclose on your home. Additionally, HELOC variable rates can increase over time, and taking on more debt against your home reduces your equity cushion.
How long does it take to get a HELOC?
The traditional HELOC process takes 2-6 weeks, including application, appraisal, and closing. Some online lenders like Figure have streamlined the process to as few as 5 business days by using automated valuations instead of in-person appraisals.
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Rates shown are for informational purposes only and do not constitute a loan offer or financial advice. All rates are subject to change without notice. Last updated: March 10, 2026.