HELOC and home equity loan rates today, Monday, August 17, 2026: A 19-basis-point differential

As of Monday, August 17, 2026, the gap between the average home equity loan rate and the average HELOC rate stands at 19 basis points, according to Curinos, a real estate data analytics firm. However, selecting the appropriate option depends not solely on rates but also on intended usage.

The average adjustable-rate HELOC is currently 7.16%, marking a new 2026 low, while the national average rate on a fixed-rate home equity loan sits at 7.35%, slightly higher than its 2026 low of 7.31% in late June. Both rates are contingent upon applicants possessing a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of under 70%.

HELOCs are variable-rate products, with interest rates linked to an external benchmark such as the prime rate. When this benchmark rate changes, so too does the rate on your HELOC. Lenders typically incorporate a margin to offset potential risk. Riskier borrowers will face larger margins, while less risky borrowers will receive smaller ones, all assessed based on factors like credit score, debt-to-income ratio (DTI), and loan-to-value ratio (LTV).

A home equity loan and its interest rate operate similarly to a HELOC in certain respects and resemble a traditional primary mortgage in others. The prime rate influences both HELOC and home equity loan rates, with lenders adding a margin to account for risk. Both HELOC and home equity loan rates are also indirectly influenced by the Federal Reserve's federal funds rate and broader economic conditions, although like many primary mortgages, home equity loans are generally fixed-rate products with the same interest rate throughout the loan term. Fixed-rate HELOCs do exist but are less common.

Lenders may charge origination fees and other closing costs for HELOCs or home equity loans. It is advisable to inquire about all potential application fees, annual charges, early account closure fees, and other one-time or recurring expenses before making a decision. Shop around with multiple lenders to secure the lowest interest rate and the fewest fees.

While rates vary significantly among lenders, ranging from nearly 6% to as high as 18%, the national average for a HELOC is 7.16%, and for a home equity loan, it is 7.35%. These figures can serve as a reference point when comparing rates from different second mortgage lenders. For homeowners with low primary mortgage rates and substantial equity in their homes, considering a HELOC or a home equity loan at this time may be advantageous.

Rates are currently at their lowest in years, and you retain the beneficial rate on your initial mortgage. HELOCs and home equity loans can be utilized for home improvements, repairs, upgrades, or virtually any financial need. However, since the HELOC rate is typically variable, your monthly payments will increase during the repayment period.