HELOC and home equity loan rates today, Wednesday, September 2, 2026: Why locking in a low rate matters

Choosing between a HELOC or a home equity loan hinges on your borrowing plan. For a lump sum, a home equity loan may be preferable. For extended access, a HELOC could be the better fit. The average adjustable HELOC rate stands at 7.16%, a 2026 low, according to Curinos. Meanwhile, the average fixed-rate home equity loan rate is 7.35%, slightly higher than its June low.

Both rates apply to applicants with a minimum credit score of 780 and a maximum loan-to-value ratio of less than 70%. Most HELOCs are variable-rate, tied to an external interest rate like the prime rate. Home equity loan rates are similarly influenced by these factors, but they often remain fixed throughout the loan term. The decision between the two isn't solely based on interest rates.

Borrowers should consider how they intend to use the funds and their ability to manage variable rates for HELOCs. Keep in mind that both types of loans incur various fees, and shopping around for the best rates and lowest fees is crucial.