HELOC and home equity loan rates hit 2026 lows as second-lien premiums persist
Real estate analytics firm Curinos reports that borrowing costs for home equity lines of credit and fixed-rate loans have reached their lowest levels this year, driven by steady rate expectations and competitive lender activity.
On 15 May 2026, the national average rate for Home Equity Lines of Credit (HELOCs) stood at 7.21%, while the average rate for fixed-rate home equity loans was recorded at 7.36%. According to real estate analytics firm Curinos, these figures represent the lowest levels for both products in 2026, having first been observed in mid-March. The data reflects applicants with a credit score of at least 780 and a combined loan-to-value ratio below 70%.
These rates remain approximately one percentage point higher than 30-year conforming fixed-rate purchase loans. This premium reflects the additional risk lenders assume with second-lien mortgages, which sit behind primary debt in the capital stack. Home equity loans typically carry higher rates than HELOCs due to their extended fixed-rate nature, whereas HELOC rates are generally variable, calculated as an index rate plus a margin.
The underlying index for HELOCs 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.
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. 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. It can be a good time to get a HELOC, especially if you don't want to lose the low rate on your first mortgage. Learn how the housing market could affect your decision. Home equity lines of credit (HELOCs) usually charge variable rates, but you can find fixed-rate HELOCs with certain lenders. Learn how a fixed-rate HELOC works. The best home equity loan lenders offer perks such as low fees, no appraisals, and high borrowing limits. Find out which lender is best for a home equity loan. HELOCs are changing as nonbank lenders reshape the market. Learn how minimum draw requirements affect borrowers and how to find a flexible HELOC. A home equity line of credit (HELOC) can help many homeowners, but it’s not right for everyone. Before you take one out, consider the pros and cons. Chase Home Lending is finally re-introducing its home equity line of credit (HELOC) product. Learn how Chase's new HELOC works and whether it's a good fit for you.
FourLeaf Credit Union is currently offering an introductory HELOC APR of 5.99% for 12 months on lines up to $500,000, which converts to a variable rate thereafter. Chase Home Lending is re-introducing its home equity line of credit (HELOC) product. Interest 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.
