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Average HELOC rate slips to 7.16%, while fixed home equity loans rise
Curinos data shows both rates are calculated on applicants with at least a 780 credit score and under 70% CLTV, and HELOCs typically move with the prime rate.
Homeowners looking to tap equity are weighing home equity lines of credit against fixed-rate home equity loans, with today’s average rates differing by structure. According to Yahoo Finance, the average HELOC adjustable rate is 7.16%, a new 2026 low, while the national average rate on a fixed-rate home equity loan is 7.35%, slightly above its late-June low of 7.31%.
Both figures are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio below 70%, the article notes. HELOCs are generally variable-rate products, meaning their interest rates adjust as an external benchmark changes.
Yahoo Finance reports that HELOCs are commonly tied to the prime rate, with lenders adding a margin based on borrower risk. The margin can vary according to factors such as credit score, debt-to-income ratio, and loan-to-value ratio, while fixed-rate home equity loans typically keep the same rate for the full term.
The story also highlights that lenders may charge origination fees and other closing costs for both HELOCs and home equity loans, and advises borrowers to ask about all possible application fees when comparing offers.