Current HELOC Rates
— May 2026
Today's national average HELOC rate is 8.25% APR. The best available rate is 7.49% from Figure Home. Rates update daily — sourced directly from lender disclosures and Federal Reserve data.
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National average HELOC rate
8.25%
Variable APR · Prime + avg margin · May 2026
Best available rate
7.49% APR
— Unchanged
Fed prime rate
7.50%
— Held steady
Avg lender margin
+0.75%
30-day rate change
+0.12%
Rising
Min credit score
620 (720+ for best rate)
Max LTV (standard)
85%
Avg rate
8.25%
Best rate
7.49%
Prime rate
7.50%
30-day change
↑ +0.12%
12 lenders · updated daily
Today's HELOC rate comparison
Sourced from lender disclosures & CFPB data · rates as of May 9, 2026
Sort by:
Lender
Rate (APR)
Rate type
7-day change
Max LTV
Min credit
Rating
FH
Figure Home★ Best rate
Online lender
7.49%
Variable
— No change
95%
640
PF
PenFed CU
Credit union
7.75%
Variable
−0.05%
90%
700
3F
Third Federal
Credit union
7.99%
Variable
— No change
80%
660
TD
TD Bank
National bank
8.00%
Variable
— No change
89%
660
FL
Flagstar Bank
Regional bank
8.10%
Both
−0.10%
89%
620
BofA
Bank of America
National bank
8.25%
Variable
+0.10%
85%
620
USB
U.S. Bank
National bank
8.30%
Variable
— No change
80%
680
WF
Wells Fargo
National bank
8.40%
Variable
+0.15%
85%
620
RB
Regions Bank
Regional bank
8.45%
Both
+0.10%
80%
640
CX
Connexus CU
Credit union
8.49%
Variable
— No change
90%
640
SE
Spring EQ
Online lender
8.99%
Fixed
+0.20%
95%
640
DV
Discover
Online lender
9.24%
Variable
+0.25%
90%
620
No lenders found
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Best rate today
7.49%
Figure Home · 95% LTV · 640+ credit
National average
8.25%
Across all lender types · May 2026
Avg bank rate
8.30%
Big 4 banks · standard terms
Avg credit union
8.08%
0.22% below avg bank rate
12-month historical data
HELOC rate trend — May 2025 to May 2026
HELOC rates have fallen 0.48% over the past 12 months, tracking three Fed rate cuts. The prime rate now sits at 7.50% after being held steady since January 2026.
Avg HELOC rate vs Fed prime rate
May 2025 – May 2026 · Monthly averages
Avg HELOC rate
Fed prime rate
Fed cut event
Rates shown are national monthly averages. Individual rates vary by lender, credit score, LTV, and loan amount. Not a prediction of future rates.
Rate cap structure
Periodic cap
Limits how much your rate can rise in any single adjustment period — typically 2% per year.
Lifetime cap
The maximum your rate can ever reach over the life of the HELOC — typically 18% or start rate + 6%.
Floor rate
The minimum rate you pay even if the prime rate falls below it — usually equal to the margin (e.g. 0.75%).
6 rate factors ranked by impact
What affects your HELOC rate
Not all factors are equal. Here is what moves the needle most — and what you can actually do about it before you apply.
Highest impact
Credit score
Your credit score is the single biggest factor lenders control. A 720+ score earns the best margin (prime +0.50%). A 640 score may see prime +1.75% — that's over $130/month more on a $150K HELOC.
Tip: Pay bills on time for 12 months and reduce credit utilisation below 30% to boost your score before applying.
High impact
LTV ratio
Your combined loan-to-value (CLTV) directly affects both approval odds and rate. Under 80% CLTV earns the best terms. Above 90% triggers higher margins and some lenders decline entirely.
Tip: Making extra mortgage payments now can push your CLTV under 80% and unlock significantly better HELOC terms.
Medium impact
HELOC draw amount
Most lenders offer better rates on larger draws. A $250K HELOC may price 0.10–0.25% lower than a $25K line. Some lenders have minimum draw requirements of $10K–$25K to qualify for the advertised rate.
Tip: If you need $40K but qualify for $100K, asking for the higher limit may actually lower your rate on what you draw.
Medium impact
Property type
Primary residences get the lowest rates and highest LTV limits. Second homes face slightly tighter terms (+0.25–0.50%). Investment properties see the highest margins and are limited to 70–75% CLTV with a 740+ credit requirement.
Tip: If you are using a second home as your primary residence, document this — many lenders will price it as a primary.
Medium impact
Lender type
Credit unions average 0.20–0.40% lower than big banks. Online lenders like Figure Home offer rates at Prime +0.00% but have stricter underwriting. Shopping 3+ lenders can save 0.50%+ on your margin.
Tip: Always get a quote from at least one credit union. Membership is often open to anyone who pays a small fee.
Lower impact
Fed prime rate
Every HELOC rate moves with the Fed funds rate via the prime rate. When the Fed cuts, your rate drops automatically within 1–2 billing cycles. Three 0.25% cuts since mid-2025 have already reduced rates by 0.48%.
Tip: Use our rate stress-test slider to see how your payment changes if the prime rate rises 1% or 2% after you open the HELOC.
Biggest win
Improve your credit score
Going from 660 to 720 can cut your margin by ~0.75% — saving $94/month on a $150K HELOC.
Second biggest
Reduce your CLTV
Getting CLTV under 80% unlocks the best tier at most lenders. Pay down mortgage or wait for home value to rise.
Always do this
Shop 3+ lenders
Comparing at least 3 lenders — including a credit union — routinely saves 0.25–0.50% on the margin for the same borrower.
7 credit score tiers · live payment calculator
HELOC rates by credit score
Your credit score determines your lender margin — the amount added on top of the prime rate. Use the calculator to see exactly what your score means for your monthly payment.
Credit score
Rate (APR)
Margin
Pmt $50K
Pmt $100K
Pmt $150K
Qualification
760–850
Exceptional
7.75%
+0.25%
$323
$646
$969
✓ Easiest
720–759
Excellent
8.00%
+0.50%
$333
$667
$1,000
✓ Easy
680–719
Very good
8.25%
+0.75%
$344
$688
$1,031
✓ Standard
640–679
Good
8.75%
+1.25%
$365
$729
$1,094
✓ May qualify
620–639
Fair
9.25%
+1.75%
$385
$771
$1,156
⚠ Harder
580–619
Poor
10.00%
+2.50%
$417
$833
$1,250
✗ Usually declines
Below 580
Very poor
N/A
N/A
—
—
—
✗ Does not qualify
Your payment estimator
Your credit score
700
540620680
720760850
Very good · 8.25% APR
HELOC draw amount
Monthly draw payment
$688
Interest-only · draw period
Your rate
8.25%
Annual interest
$8,250/yr
Reach 720+ and save ~$21/mo on this draw amount.
How to improve your score
Pay on time, every time. Payment history is 35% of your FICO score — one late payment can drop it 50–100 points.
Reduce utilisation below 30%. Paying down revolving balances can raise your score 20–50 points within 1–2 billing cycles.
Avoid new accounts before applying. Each hard inquiry drops your score 5–10 points. Hold off 6–12 months beforehand.
Dispute errors on your report. 1 in 5 reports contain an error. Check free at AnnualCreditReport.com.
Side-by-side rate & feature comparison
HELOC vs other home equity options
Rates are only part of the decision. Here is how HELOCs compare to home equity loans and cash-out refinances across every dimension that matters.
This page
HELOC
Revolving credit line · variable rate
Avg rate today
8.25%
Revolving line — draw, repay, re-borrow
Interest-only during draw period (low payment)
Keeps your current mortgage rate
Low closing costs ($0–$500 typical)
Variable rate — moves with prime rate
Tax deductible if used for home improvements
✓ Best for: ongoing expenses, renovations, emergency fund backup, flexible needs
Home Equity Loan
Lump sum · fixed rate
Avg rate today
8.50%
Lump sum only — one disbursement
Fixed rate — predictable payment forever
Keeps your current mortgage rate
Moderate closing costs ($1K–$3K)
P+I payments from day one — builds equity
Tax deductible if used for home improvements
✓ Best for: one-time large purchases with a known amount, debt consolidation
Cash-Out Refinance
Replaces mortgage · lump sum
Avg rate today
7.10%
Lump sum — replaces your existing mortgage
Fixed or variable rate available
Resets your mortgage rate and term
High closing costs ($4K–$8K typical)
P+I payments — good if current rate is high
Mortgage interest deduction applies
✓ Best for: lowering your mortgage rate while accessing large equity amount
Feature
HELOC
Home Equity Loan
Cash-Out Refi
Avg rate (May 2026)
8.25% APR
8.50% APR
7.10% — Lowest
How funds are received
Revolving line
Lump sum
Lump sum
Interest rate type
Variable (prime + margin)
Fixed rate
Fixed or variable
Closing costs
$0–$500 (low)
$1K–$3K
$4K–$8K (high)
Draw funds flexibly
✓ Revolving
✗ One-time
✗ One-time
Keeps current mortgage rate
✓ Yes
✓ Yes
✗ Resets rate
Draw period payment type
Interest-only
Principal + interest
Principal + interest
Interest tax deductible
If home use
If home use
Mortgage interest
Approval & funding time
2–6 weeks
2–6 weeks
30–45 days
Min credit score (typical)
620+
620+
620+
Choose a HELOC when…
You need funds on an ongoing or unpredictable basis
You want to keep your current low mortgage rate intact
You prefer low interest-only payments during the project
You want flexibility to draw, repay, and re-borrow
You want minimal upfront closing costs
Choose a home equity loan when…
You need a specific, known lump-sum amount upfront
You prefer a fixed, fully predictable monthly payment
You want to keep your existing mortgage rate
You are consolidating higher-rate debt at a fixed rate
Choose cash-out refi when…
Your current mortgage rate is higher than today's rates
You need a large lump sum and want the lowest rate possible
You can absorb the higher closing costs ($4K–$8K)
You plan to stay in the home long enough to break even
The mechanics behind your rate
How HELOC rates work
Unlike fixed-rate loans, HELOC rates move with the market. Understanding the prime rate, lender margin, and rate caps helps you predict your future payment and shop smarter.
7.50%
Fed prime rate
Set by the Fed · May 2026
+
0.75%
Lender margin
Varies by credit & lender
=
8.25%
Your HELOC rate
Variable APR · today
Your rate changes automatically whenever the Fed moves the prime rate — usually within 1–2 billing cycles. Only the margin is negotiable and locked at closing.
The Federal Reserve prime rate
The base that every HELOC rate is built on
The prime rate is a benchmark interest rate set by major U.S. banks, and it moves in lockstep with the Federal Reserve federal funds rate. When the Fed raises rates to fight inflation, the prime rate rises — and so does your HELOC rate. When the Fed cuts, your rate drops automatically.
The prime rate is currently 7.50% after three 0.25% cuts since mid-2025. Most economists expect 1–2 more cuts in 2026, which could push the prime to 7.00–7.25%.
The prime rate is currently 7.50% after three 0.25% cuts since mid-2025. Most economists expect 1–2 more cuts in 2026, which could push the prime to 7.00–7.25%.
Current prime rate
7.50%
12-month change
−1.00% (3 cuts)
Rate update lag
1–2 billing cycles
Next FOMC meeting
June 17–18, 2026
The lender margin
The part you can negotiate and shop
The margin is the fixed percentage your lender adds on top of the prime rate. It is set at closing and does not change for the life of the HELOC — only the prime rate moves. Your margin reflects your credit score, LTV, loan amount, and lender type.
Shopping multiple lenders for the lowest margin is the single most impactful thing you can do. A 0.50% lower margin saves $625/year on a $125K HELOC.
Shopping multiple lenders for the lowest margin is the single most impactful thing you can do. A 0.50% lower margin saves $625/year on a $125K HELOC.
Best margin (720+ score)
Prime + 0.25%
Good margin (680–719)
Prime + 0.75%
Fair margin (640–679)
Prime + 1.25–1.75%
Saving (0.50% lower margin)
$625/yr on $125K
Rate caps — your protection
Limits on how high your rate can go
Most HELOCs include rate cap protections written into the loan agreement. These caps limit how much your rate can rise — per adjustment period and over the full life of the loan. Always verify the caps before signing.
Periodic cap (per year)
Typically 2%/yr max rise
Lifetime cap
18% or start rate + 6%
Floor rate (minimum)
Usually equal to margin
Rate adjustment frequency
Monthly or quarterly
Variable vs fixed-rate HELOC
Most HELOCs are variable — but some are not
The standard HELOC is variable-rate — your rate moves every month or quarter with the prime rate. Some lenders offer a fixed-rate HELOC or allow you to lock a portion of your balance at a fixed rate.
Variable rate (standard)
Starts lower than fixed
Payment changes with prime rate
Benefits from Fed rate cuts
More lenders offer this option
Fixed-rate HELOC
Rate locked at draw time
Predictable payment always
Usually 0.25–0.50% higher
Fewer lenders offer this
What happens when the Fed moves rates
Typical sequence — 4 to 8 weeks total
1
Fed announces rate change
FOMC votes to raise or cut the federal funds rate at one of 8 annual meetings.
Day 0
2
Prime rate adjusts immediately
Major banks update the prime rate (fed funds + 3%) the same day as the Fed announcement.
Same day
3
Lender processes your HELOC
Your lender recalculates your new rate (prime + your margin) on your next billing cycle.
2–4 weeks
4
Your statement reflects new rate
Your next monthly statement shows the updated rate and new minimum interest-only payment.
4–8 weeks
Stress-test your rate before you borrow
Use our calculator to model your payment at today's rate plus 1%, 2%, and 3%. If you can comfortably afford the highest scenario, you are in a safe position to proceed.
Negotiate your margin — it is fixed forever
The prime rate you cannot control, but your lender margin is negotiable. Ask lenders to match a competitor's margin. Even 0.25% lower saves hundreds per year over a 10-year draw period.
Always check your rate caps in writing
Before signing, confirm the periodic cap (max rise per year), lifetime cap (absolute maximum), and floor rate (minimum you pay even if rates fall) are all written into the loan agreement.
8 questions answered
HELOC rate FAQs
The most common questions about HELOC rates, answered by our editorial team and reviewed by Michael Jensen, CFP®.
FAQPage schema · Google rich results eligible
The national average HELOC rate in May 2026 is 8.25% APR. The best available rate is 7.49% from Figure Home for borrowers with 640+ credit scores and up to 95% LTV. Rates vary significantly by lender, credit score, and LTV — credit unions average around 8.08%, while big banks average closer to 8.30%.
See full lender comparison
MJ
Reviewed by Michael Jensen, CFP®
Most HELOCs are variable-rate products tied to the prime rate, which itself tracks the Federal Reserve federal funds rate. When the Fed raises or cuts rates, the prime rate adjusts the same day, and your HELOC rate typically follows within 1–2 billing cycles. Your lender margin (the fixed percentage added on top) does not change — only the prime rate component moves.
Fed futures markets as of May 2026 price in 1–2 additional rate cuts this year, which would push the prime rate from 7.50% down to 7.00–7.25% and bring average HELOC rates below 8.00%. However, rate forecasts are uncertain — the Fed could hold rates steady or reverse course if inflation re-accelerates. This is not financial advice.
MJ
Reviewed by Michael Jensen, CFP®
Most lenders reserve their lowest margin (prime + 0.25% to +0.50%) for borrowers with scores of 720 or higher. A score of 760+ unlocks the absolute best terms. Scores below 640 still qualify at many lenders but will see margins of prime +1.25% to +1.75% — adding $130–$175/month in interest on a $150K draw. Improving your score before applying is the single highest-ROI action you can take.
See rates by credit score tier
MJ
Reviewed by Michael Jensen, CFP®
Your combined loan-to-value ratio (CLTV) — your total mortgage balance plus the HELOC limit, divided by your home value — is the second biggest rate factor. Under 80% CLTV unlocks the best tier. At 80–90% CLTV, expect margins 0.25–0.50% higher. Above 90%, most lenders either decline or add 0.50–0.75% to the margin. A small amount of extra principal payments on your mortgage can often push you into a better tier.
Today, the average HELOC rate (8.25% variable) is slightly lower than the average home equity loan rate (8.50% fixed). However, the comparison is not that simple: HELOC rates can rise if the Fed raises rates, while home equity loan rates are locked forever. If you expect rates to fall further, a variable HELOC benefits you. If you want certainty, the fixed home equity loan provides it at a modest premium.
See full product comparison
The four highest-impact actions to get the best HELOC rate are:
1. Improve your credit score to 720+ before applying — this alone can lower your margin by 0.50–1.50%.
2. Reduce your CLTV below 80% by paying down your mortgage or waiting for your home value to rise.
3. Shop at least 3 lenders — always include a credit union in your comparison, as they average 0.20–0.40% lower margins than banks.
4. Negotiate the margin directly — ask each lender to beat the best offer you have received. Many will.
1. Improve your credit score to 720+ before applying — this alone can lower your margin by 0.50–1.50%.
2. Reduce your CLTV below 80% by paying down your mortgage or waiting for your home value to rise.
3. Shop at least 3 lenders — always include a credit union in your comparison, as they average 0.20–0.40% lower margins than banks.
4. Negotiate the margin directly — ask each lender to beat the best offer you have received. Many will.
MJ
Reviewed by Michael Jensen, CFP®
For a variable-rate HELOC, the APR and interest rate are usually the same because HELOCs typically have no origination points built into the rate. However, if your lender charges upfront fees (origination, appraisal, title), the true APR is higher than the stated interest rate when you account for those costs. Always ask lenders to disclose the full APR including fees for an accurate comparison.
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Put today's rates to work
Now that you know the rates, use our free calculators to see exactly what a HELOC means for your home and budget.
Start here
HELOC Calculator
Enter your home value and mortgage balance to see your maximum HELOC limit, LTV ratio, and monthly draw payment — at today's 8.25% avg rate.
Draw & repay
Payment Calculator
Calculate your exact draw period and repayment period monthly payments. Model interest-only vs amortizing and stress-test at +1%, +2%, +3% rate scenarios.
4 factors
Eligibility Calculator
Check your LTV ratio, DTI ratio, credit score tier, and home equity all at once. See your overall eligibility assessment and which lenders are most likely to approve you.
Side-by-side comparison
HELOC vs Cash-Out Refinance Calculator
Not sure which is right? Enter your numbers once and get a side-by-side cost comparison — total interest, break-even point, and which option saves more over your time horizon.