HELOC and home equity loan rates today, Monday, September 14, 2026: A 33-basis-point differential

As of September 14, 2026, the gap between the average home equity loan rate and the average HELOC rate stands at 33 basis points, according to Curinos, a real estate data analytics firm. This stark difference in rates necessitates a more nuanced approach when deciding which loan to opt for. The optimal choice hinges not only on the lower rate but also on the intended use of the funds.

Presently, the average adjustable-rate HELOC stands at a 2026 low of 7.09%, while the national average fixed-rate home equity loan hits 7.42%, up from a June low of 7.31%.

Both rates assume applicants possess a minimum credit score of 780 and maintain a combined loan-to-value ratio (CLTV) below 70%. Most HELOCs are variable-rate products, with interest rates fluctuating in sync with an external benchmark. Typically tied to the prime rate, the base rate banks charge their most creditworthy customers, HELOCs incorporate a margin to compensate lenders for the inherent risk associated with each borrower.

Factors like credit score, debt-to-income ratio (DTI), and loan-to-value ratio (LTV) play a crucial role in this assessment. A riskier borrower typically faces a larger margin, whereas those deemed less risky will enjoy a smaller margin.

Notably, while both HELOC and home equity loan rates are influenced by the Federal Reserve's federal funds rate and broader economic conditions, they diverge in their repayment structures. Like traditional mortgages, home equity loans generally remain fixed-rate products throughout the loan term. Conversely, HELOCs are predominantly adjustable-rate, albeit with some lenders offering fixed-rate options.

Factors such as credit history, income verification, home appraisal, and potential fees like origination fees or annual charges factor into the loan application process. Shopping around for the lowest interest rate and minimal fees is advisable to secure the best deal.