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Home Equity Loans

Best HELOC rates: What they look like today and how to find one

May 06, 2026

Written by

Natasha Etzel

Reviewed by

Jill Cornfield

Key takeaways:

HELOC rates are variable in most cases, moving with the prime rate. As of early 2026, the national average has been hovering around 7–8% APR.
Your credit score, home equity, and debt-to-income ratio all affect the rate you're offered, not just market conditions.
The most reliable way to find a competitive rate is to get quotes from at least three lenders and compare APRs (not just interest rates).
If you get a fixed-rate HELOC, you’re protected from future interest rate fluctuations.

Your home equity has real value, and today's HELOC rates may make it more accessible than you think. Here's how to find a good rate and know when you've found it.

A HELOC, or home equity line of credit, is a way to borrow against your home. Rates can be variable or fixed. Variable rates could change occasionally, or even many times before your loan is fully repaid.

What are current HELOC rates?

HELOC rates are variable in most cases, meaning your rate could change. As of early 2026, the national average HELOC rate has been hovering around 7–8% APR.

Advertised rates reflect a best-case borrower: a high credit score, a smaller loan, and strong income. The rate you're quoted personally may differ, and that's normal. What matters is knowing what's driving the number and whether there's room to improve it.

A home equity line of credit gives you access to a revolving credit line based on the equity in your home. If approved, you can borrow, repay, and borrow again, during the draw period and repay it over time, paying interest only on what you owe.

What determines your HELOC rate

Several factors shape the rate a lender offers you.

Your credit score

Borrowers with scores above 740 tend to receive the most competitive HELOC rates. Many lenders will approve applicants with scores in the 620–660 range, but typically at higher rates. Before applying, it's worth pulling your credit report and correcting any errors. Even small discrepancies could affect what you're offered.

Your home equity and loan-to-value ratio

Lenders typically allow you to borrow up to 80–85% of your home's value, minus what you still owe on your existing mortgage. The more equity you have relative to what you owe, the less risk you represent, and that generally works in your favor when it comes to rates. This ratio is called your combined loan-to-value ratio, or CLTV.

Your debt-to-income ratio

Your debt-to-income ratio (the percentage of your monthly gross income that goes toward debt payments) is another factor lenders weigh. Most look for a DTI at or below 43%. A lower DTI may help you secure a more favorable rate. You can use a debt-to-income ratio calculator to see where you stand before you apply.

Variable vs. fixed rate

Most HELOCs carry a variable rate that adjusts over time with the prime rate. Some lenders offer a fixed-rate HELOC option, or allow you to lock in a fixed rate on a portion of your balance. Fixed rates offer more payment predictability, but could have tradeoffs such as a higher rate. Neither option is right for everyone. It depends on your timeline and how you feel about rate uncertainty.

Where to find competitive HELOC rates

The type of lender you choose can meaningfully affect the rate you receive.

Banks are widely available and familiar and may offer rate discounts to existing customers. They're a reasonable starting point, but not automatically the most competitive option.
Credit unions frequently offer lower rates than banks. Membership is required, and availability varies by state, but they're worth including in your comparison if one is accessible to you.

Online lenders often move faster than traditional institutions and may offer more competitive rates.Regardless of which type of lender you start with, it's a good idea to shop around. And when you compare, look at the APR—not just the interest rate. APR includes lending fees and gives a more accurate picture of your total borrowing cost.

A home equity line of credit is one of several borrowing options available to homeowners; compare multiple options to find the right fit for your situation.

How to get the best HELOC rate

A few steps could meaningfully improve the rate you're offered:

Check your credit report and dispute any errors before applying
Pay down existing debt to lower your DTI ratio
Know your home's approximate value and calculate your available equity
Get quotes and compare APRs, not just interest rates
Ask each lender about available discounts, such as autopay or existing-customer pricing
Ask specifically about rate caps on variable HELOCs, as this tells you how high your rate could go in a worst-case scenario

When you're ready to explore your options, you can find out if you prequalify through Achieve Loans to verify what rates may be available to you.

Author Information

Written by

Natasha Etzel

Natasha is a contributing writer for Achieve. She has been a financial writer for nearly a decade. She excels at providing realistic strategies to help readers improve their knowledge and change their financial situations.

Reviewed by

Jill Cornfield

Jill is a personal finance editor at Achieve. For more than 10 years, she has been writing and editing helpful content on everything that touches a person’s finances, from Medicare to retirement plan rollovers to creating a spending budget.

Home Equity Loans

Frequently asked questions about best HELOC rates

A competitive HELOC rate in early 2026 is generally in the range of 7–8% APR for well-qualified borrowers, based on national survey data. Your personal rate will depend on your credit score, how much equity you have, and the lender, so comparing multiple offers is the most reliable way to know whether you're getting a good deal.

In most cases, a credit score of 740 or higher puts you in range for the most competitive HELOC rates. Many lenders will approve borrowers with scores as low as 620, but the rate offered will typically be higher. If your score is below 700, paying down credit card balances and catching up on any late payments may help.

Achieve Loans have a fixed interest rate that’s set when you get your loan and never changes for the life of the loan. Most HELOCs have variable rates that adjust with the prime rate. Some lenders offer a fixed-rate HELOC or the ability to lock in a fixed rate on a portion of your balance. Variable rates can go down as well as up. If payment predictability matters to you, ask lenders specifically about fixed-rate options.

In many cases you can. If you have competing offers, lenders may be willing to match or improve on each other’s rates. Bringing documented quotes from other lenders gives you a starting point for that conversation. Also, be sure to find out how to qualify for any available discounts.

Home equity loans typically carry fixed rates that are slightly higher than the introductory rates on variable HELOCs. The tradeoff is predictability: your payment stays the same for the life of the loan. Variable-rate HELOCs offer more flexibility, but come with rate uncertainty over time. The right choice depends on how you plan to use the funds and how comfortable you are with a payment that may change.