Markets· August 17, 2026 at 10:00 a.m.
Home Equity Loans and HELOC Rates Reach New Lows in August 2026: Choosing Between the Two
Key takeaways
- Average HELOC rate drops to 7.16%
- National average rate for fixed-rate home equity loans at 7.35%
- Both rates based on applicants with a minimum credit score of 780 and a maximum CLTV of less than 70%
In the real estate market of August 2026, homeowners are considering home equity loans or Home Equity Lines of Credit (HELOC) to leverage their property's built-up value. The average adjustable rate for HELOCs has dropped to a new low of 7.16%, according to Curinos, while the national average rate for fixed-rate home equity loans stands at 7.35%.
Both rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%. Most HELOCs are variable-rate products, while home equity loans are typically fixed-rate.
To qualify for either loan, borrowers must have a FICO credit score of 680 or higher, show a history of good credit and sufficient monthly income, obtain an appraisal, have at least 15% to 20% equity in the house, have a debt-to-income ratio (DTI) of 43% or less, and provide proof of in-force homeowners insurance. Lenders may charge origination fees and other closing costs.
When shopping for a HELOC or home equity loan, it's essential to compare rates from multiple lenders, as they can vary significantly. The national average for a HELOC is 7.16%, and 7.35% for a home equity loan.
