Average HELOC and home equity loan rates differ by just 2 basis points, narrowing borrower choices based on product structure rather than cost.
Home equity line of credit (HELOC) and home equity loan rates stand nearly identical, separated by only 2 basis points. The average HELOC adjustable rate is 7.23%, while the fixed-rate home equity loan averages 7.36% for borrowers with strong credit profiles and low loan-to-value ratios.
HELOC rates hit a 2026 low of 7.19% in mid-May, while home equity loan rates bottomed at 7.31% in late June. Both products target applicants with credit scores of at least 780 and combined loan-to-value ratios below 70%.
The minimal rate differential shifts borrower focus toward product flexibility, as HELOCs typically adjust with the prime rate while home equity loans offer fixed payments.