HELOC and home equity loan rates today, Monday, August 24, 2026: A 19-basis-point differential

On Monday, August 24, 2026, the difference in rates between home equity loans and HELOCs stands at 19 basis points, as reported by Curinos, a real estate data analytics company. However, the decision between the two products extends beyond mere rates, with the intended use of funds playing a key role in determining the most suitable loan.

The average HELOC rate is now 7.16%, marking a new low for 2026, while the fixed-rate home equity loan average is 7.35%, a slight increase from its 7.31% low in late June. Both rates are contingent upon a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%. Most HELOCs are variable-rate options, with interest rates linked to external indices.

Typically, HELOCs follow the prime rate, the baseline rate banks charge their most creditworthy customers. Lenders assess risk by examining factors like credit score, debt-to-income ratio (DTI), and loan-to-value ratio (LTV), adding a margin to account for risk. For borrowers with low primary mortgage rates and substantial equity, now could be an opportune time to explore HELOCs or home equity loans, given the historically low rates.

However, it's essential to consider the pros and cons of each option, as well as potential fees and repayment terms, before making a decision.