Best HELOC Rates in 2026: Where to Find the Lowest Rates

Current average HELOC rate: 7.44% (as of February 2, 2026)

Good news if you're shopping for a HELOC: rates are at their lowest point in three years. The Fed held rates steady at its January 27-28 meeting, and average HELOC rates have settled well under 8%.

But "average" doesn't mean you'll get 7.44%. Your actual rate depends on your credit score, home equity, and which lender you choose. The spread between lenders is significant—some offer intro rates as low as 4.99%, while others charge 9%+.

Here's how to find the best HELOC rate for your situation.

Today's Best HELOC Rates: Top Lenders

Important: These rates change frequently. Always get personalized quotes—the rate you qualify for depends on your specific profile.

What Affects Your HELOC Rate

Your rate isn't random. Lenders look at five main factors:

1. Credit Score

This is the biggest factor. The difference between a 680 and 780 score can mean 1-2% in rate—thousands of dollars over the life of your HELOC.

The move: Check your credit report before applying. Dispute errors, pay down credit card balances, and wait 30 days if you've recently applied for other credit.

2. Loan-to-Value Ratio (LTV)

LTV measures how much of your home's value you're borrowing against. Lower is better.

Formula: (Current mortgage + HELOC amount) ÷ Home value = Combined LTV

The move: If you're close to 80%, borrowing less might get you a better rate—and lower payments.

3. Lender Margin

Here's where lenders really differ. HELOCs are typically priced as Prime Rate + Margin. The Prime Rate (currently 8.5%) is the same everywhere. The margin is what lenders add on top.

• Low margin: Prime + 0% to Prime + 0.5%
• Average margin: Prime + 0.5% to Prime + 1.5%
• High margin: Prime + 2% or more

A 1% difference in margin = $1,000/year on a $100,000 HELOC. Over 10 years, that's $10,000.

The move: Ask lenders directly: "What's your margin over Prime?" Compare this number across lenders.

4. Loan Amount

Some lenders offer better rates for larger HELOCs (over $50,000 or $100,000). Others have sweet spots for smaller amounts. Ask about rate tiers.

5. Relationship Discounts

Already bank with the lender? Have a checking account, mortgage, or investments with them? Many offer 0.25-0.5% rate discounts for existing customers.

How to Get the Best HELOC Rate: 6 Steps

Step 1: Check Your Credit Score (Free)

Before you apply anywhere, know where you stand. Use Credit Karma, your bank's free score, or AnnualCreditReport.com.

If your score is below 720, consider waiting 2-3 months to improve it. The rate savings will be worth the wait.

Step 2: Shop Multiple Lenders

This is the most important step most people skip.

HELOC rates vary significantly between lenders—we're talking 1-2% differences for the same borrower profile. Get at least 3-4 quotes.

Where to get quotes:

• Your current bank (relationship discount potential)
• A local credit union (often lowest margins)
• An online lender like Figure (fast process)
• A regional bank in your area

Step 3: Compare APR, Not Just Rate

The advertised rate isn't the whole picture. Some lenders charge:

• Origination fees (0.5-1% of loan)
• Annual fees ($50-100/year)
• Early closure fees (if you close within 2-3 years)
• Inactivity fees (if you don't use the line)

Ask for the total cost over 5 years, assuming you borrow $X. This makes apples-to-apples comparison easy.

Step 4: Ask About Intro Rates

Many lenders offer promotional rates for the first 6-12 months—sometimes as low as 4.99%. If you plan to borrow and pay down quickly, an intro rate can save hundreds.

Just know what the rate becomes after the intro period. A 4.99% intro that jumps to 9.5% isn't as good as a flat 7% with no intro.

Step 5: Lower Your LTV If Possible

If you're at 82% LTV and the lender's best rates kick in at 80%, consider requesting a smaller credit line. Getting a $95,000 line at 7.5% beats a $100,000 line at 8.5%.

Step 6: Negotiate

Yes, you can negotiate HELOC rates. Once you have multiple quotes, ask your preferred lender: "Bank X offered me 7.25%. Can you match or beat that?"

Lenders have flexibility, especially for strong borrowers. The worst they can say is no.

Fixed-Rate vs Variable-Rate HELOCs

Most HELOCs have variable rates tied to the Prime Rate. But some lenders offer fixed-rate options:

When fixed makes sense:

• You're borrowing a large amount for a long-term project
• You believe rates will rise significantly
• You value payment predictability over savings

When variable makes sense:

• You'll pay down the balance relatively quickly
• Rates are likely to stay flat or drop
• You want the lowest possible starting rate

Some lenders let you convert portions of your variable HELOC to fixed rate. Ask about this feature.

How Long Will These Rates Last?

The Fed's next meeting is in March 2026. Most economists expect rates to hold steady through mid-2026, with potential cuts later in the year if inflation stays contained.

What this means for you: No need to panic-rush, but current rates are good by recent standards. If you've been waiting for rates to drop, this is a reasonable time to move.

Rate Shopping Timeline

Here's a realistic timeline for getting the best rate:

Total time: 5-7 weeks from start to funded HELOC.

The Bottom Line

Today's average HELOC rate of 7.44% is the lowest in three years—a good time to tap your home equity if you need it.

But your rate depends on your credit, your equity, and which lender you choose. The difference between shopping around and taking the first offer can easily be 1% or more—thousands of dollars over the life of your HELOC.

Take time to compare. Your future self will thank you.

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Frequently Asked Questions

What is a good HELOC rate right now?

As of February 2026, anything under 7.5% is a good rate. The current national average is 7.44%. Excellent credit borrowers (780+) with low LTV ratios can often get rates in the 6.5-7% range.

Are HELOC rates going down in 2026?

Rates have already dropped from their 2024-2025 highs. Most forecasts expect rates to hold steady or drop slightly through 2026 as the Fed maintains or cuts rates. However, rate predictions are never guaranteed.

What credit score do I need for the best HELOC rates?

A credit score of 780 or higher typically qualifies you for the best rates. Scores between 720-779 get good (but not optimal) rates. Most lenders require at least 640-680 to qualify at all.

How much does a HELOC cost per month?

During the draw period (first 10 years), most HELOCs require interest-only payments. On a $50,000 balance at 7.5%, that's about $313/month. During repayment, payments increase significantly as you pay principal plus interest.

Should I get a HELOC now or wait for rates to drop?

Current rates are favorable compared to the past three years. If you need the funds soon, there's no strong reason to wait. If you're not in a hurry, you could wait to see if rates drop further—but there's no guarantee they will.