What are today's HELOC and home equity loan interest rates?
HELOCs and home equity loans offer homeowners an affordable way to borrow money now. Here are the rates for each.
Home equity loans and home equity lines of credit (HELOCs) provide homeowners with a means to borrow at relatively low interest rates, currently significantly lower than alternative options. As of July 9, 2026, the average home equity loan rate stands at 6.98%, while the average HELOC rate is 7.04%. However, these figures represent nationwide averages, with actual offers influenced by factors such as location, lender, and credit profile.
To secure the best rates and terms, homeowners should compare rates from various lenders. Both HELOCs and home equity loans leverage the homeowner's equity as collateral, but they function differently. Home equity loans provide a lump sum with fixed interest rates and immediate repayment, while HELOCs offer a revolving line of credit with variable interest rates and interest-only payments during an initial period.
Tax deductions may be available if the funds are used for IRS-eligible home improvements. Given the current favorable interest rate environment, homeowners should carefully assess their borrowing needs and budget before choosing between a home equity loan or a HELOC.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
