Borrowers with strong credit face a 7.86% fixed rate on home equity loans versus 7.25% for HELOCs as of June 22, 2026.
Home equity loan rates stand at 7.86% for fixed-term loans, 61 basis points above the average 7.25% adjustable rate for home equity lines of credit. The rates apply to applicants with a credit score of at least 780 and a combined loan-to-value ratio below 70%.
With first-mortgage rates remaining elevated, homeowners seeking to tap into home equity may opt for second mortgages rather than refinancing. The Federal Reserve estimates total homeowner equity at $34 trillion, offering a potential source of liquidity for those reluctant to forfeit low existing mortgage rates.
Borrowers must weigh the structure of their funding needs, as home equity loans provide a lump sum while HELOCs allow for ongoing access to funds.