As of mid-September 2026, home equity loan rates in the United States typically range from the mid-6% to mid-8% area for qualified borrowers, with national averages landing between roughly 7.4% and 8.1% depending on the data source and borrower profile. These fixed-rate second mortgages remain a popular way for homeowners to access equity for renovations, debt consolidation, education, or other large expenses while keeping their primary mortgage intact.
Current Home Equity Loan Rates (September 2026)
National averages as of early-to-mid September 2026:
- Fixed-rate home equity loans: Approximately 7.42% (Curinos data for strong-credit borrowers with CLTV under 70%) to 8.13% (Bankrate survey of larger lenders for typical $30,000 loans).
- By term (Bankrate survey examples):
- 5-year: Around 8.13% (range roughly 5.90%–10.25%)
- 10-year: Around 8.28%
- 15-year: Around 8.22%
Strong-credit applicants (780+ FICO) with low combined loan-to-value (CLTV) ratios can often secure rates starting in the mid-to-high 6% range at competitive lenders. Some credit unions and banks advertise starting rates as low as 5.875%–6.75% for shorter terms under favorable conditions.
HELOC rates for comparison (variable): National averages hover around 7.09%–7.53%, with some sources showing a 2026 low near 7.09%. HELOCs are typically tied to the prime rate plus a margin.
Home Equity Loan vs. HELOC
| Feature | Home Equity Loan | HELOC |
|---|---|---|
| Rate type | Fixed | Usually variable |
| Disbursement | Lump sum | Revolving line of credit |
| Payments | Fixed principal + interest | Often interest-only during draw period |
| Best for | One-time large expenses | Ongoing or uncertain needs |
| Rate risk | Locked in | Can rise if rates increase |
Both products use your home as collateral, so default risk includes potential foreclosure. Rates on both are generally far lower than credit cards or unsecured personal loans.
Factors That Affect Your Home Equity Loan Rate
Lenders primarily evaluate:
- Credit score — Excellent scores (740–780+) unlock the lowest rates; many lenders prefer 680+ minimum.
- Combined loan-to-value (CLTV) — Lower is better (ideally under 70–80%). Most lenders cap total borrowing at 80–85% of home value.
- Loan amount and term — Shorter terms often carry slightly lower rates.
- Income, debt-to-income ratio, and employment stability
- Relationship discounts — Autopay, existing accounts, or credit union membership can shave 0.25% or more.
- Property type and location
How to Secure the Lowest Home Equity Loan Rate in 2026
- Check your credit reports and scores; correct errors and pay down revolving debt if possible.
- Calculate your available equity and aim for a lower CLTV.
- Shop multiple lenders — banks, credit unions, and online lenders. Prequalify where possible with soft credit pulls.
- Compare APR (not just the interest rate) and total fees.
- Consider shorter terms if your budget allows — they usually cost less in interest.
- Ask about relationship discounts and rate locks.
- Get a current appraisal if required, as home values influence how much you can borrow.
Top competitive lenders in recent surveys often include Third Federal, Regions Bank, Fifth Third, TD Bank, and various credit unions, with starting APRs in the mid-to-high 6% range for strong applicants.
Pros, Cons, and Alternatives
Advantages: Fixed payments, relatively low rates compared with unsecured credit, potential tax deductibility of interest if used for home improvements (consult a tax advisor).
Drawbacks: Your home is collateral; closing costs may apply; fixed lump sum means you pay interest on the full amount immediately.
Alternatives: HELOC (for flexibility), cash-out refinance (if you can improve your primary mortgage rate), personal loan, or 0% intro APR credit cards for smaller amounts.
Bottom Line
In September 2026, home equity loan rates average roughly 7.4%–8.1% nationally, with well-qualified borrowers frequently able to secure rates in the mid-to-high 6% range. These fixed-rate products remain one of the more affordable ways to borrow larger sums using home equity. Rates move with broader interest-rate conditions and individual qualifications, so comparing personalized offers from several lenders is essential.
Always verify current rates, fees, and terms directly with lenders, as they change frequently. Consider your full financial picture—including the risk of using your home as collateral—before proceeding.
