Educational content only. Home-equity borrowing carries foreclosure risk. Rates and lender terms verified April 2026; confirm specifics with licensed professionals before applying. Learn about risks.
HEL vs HELOC

As of April 17 2026

7.37%
HEL avg (15yr)
7.07%
HELOC avg
6.75%
Prime rate
6.85%
30yr fixed

Next review: May 2026. Last verified: April 17 2026.

HELOC and Home Equity Loan Rates (April 2026)

Rate data sourced from Curinos, Bankrate weekly survey, and individual lender disclosures. Averages represent national data for borrowers with a 740+ credit score on a primary residence. Your rate will depend on credit score, LTV, and lender. Last verified April 17, 2026.

Rate Table by Product (April 2026)

ProductAvg RateTypical RangeNote
HEL 10yr avg7.15%6.50-8.75%Shorter term, lower rate
HEL 15yr avg7.37%6.75-9.00%Most popular term
HEL 20yr avg7.65%7.00-9.50%Lower monthly, more total interest
HELOC intro rate5.99%5.99-6.99%Intro periods, 6-12mo (Bethpage, FourLeaf)
HELOC ongoing avg7.07%6.25-10%+Variable, prime + margin
30yr fixed mortgage6.85%6.50-7.50%Freddie PMMS week of Apr 17 2026
Cash-out refi avg6.95%6.60-7.75%Full first mortgage replacement
Prime rate6.75%-Lowered Dec 10 2025 from 7.00%
Fed funds upper3.75%-Held at March 2026 FOMC

Prime Rate: How HELOC Rates Are Set

HELOC rates are not independently set by lenders. They are a formula: HELOC rate = prime rate + your margin. The prime rate itself is set by commercial banks, historically tracking the federal funds rate plus approximately 3%. When the Fed moves the federal funds rate, the prime rate moves in lockstep, and your HELOC rate follows within the same billing cycle.

Prime Rate History (Last 24 Months)

8.50%
Mar 2024
8.00%
Sep 2024
7.50%
Nov 2024
7.00%
Dec 2024
6.75%
Dec 2025
6.75%
Apr 2026

How Margin Works -- and How to Negotiate It

Your margin is set at origination and does not change for the life of the HELOC. Lenders base it on your credit score, LTV, and relationship. Typical ranges:

Credit TierTypical MarginExample Rate (Prime 6.75%)
740+ (Excellent)+0.00% to +1.00%6.75% - 7.75%
680-739 (Good)+1.00% to +2.00%7.75% - 8.75%
620-679 (Fair)+2.00% to +4.00%8.75% - 10.75%

Negotiation tip: get 2-3 competing quotes, mention the competitor margin, and ask for a relationship discount (typically 0.25% for auto-pay, 0.25% for an existing deposit account). Margins are often negotiable.

Payment Scenarios at Various Balances

Monthly payment comparison for HEL (fixed) and HELOC (interest-only draw / P+I repayment) at April 2026 average rates. A stress column shows what happens if prime rises 125bp to 8.00%.

BalanceHEL 15yr
(7.37%)
HELOC Draw
(7.07%)
HELOC Repay
(7.07%, 15yr)
HELOC Stress
(Prime +1.25%)
$25,000$230$148$225$264
$50,000$459$295$450$529
$75,000$689$443$675$793
$100,000$919$589$900$1,057
$150,000$1,378$884$1,350$1,586

HELOC repayment assumes 15-year amortisation at same rate as draw. Stress column: prime rises from 6.75% to 8.00%, HELOC rate increases by 1.25%.

Rate Stress Calculator

Enter your HELOC balance and current rate to see how payment changes with rate moves.

$
%
Rate -0.25%
$284/mo
Save $10/mo
Current Rate
$295/mo
7.07% interest-only
Rate +1.00%
$336/mo
+$42/mo
Rate +2.00%
$378/mo
+$83/mo

Lender Rate Snapshot (April 2026)

Representative advertised rates for 740+ credit, primary residence. Verify directly with each lender.

LenderTypeStarting APROriginationClosing CostsBest For
FigureHELOC6.25%4.99% first drawNone beyond originationSpeed, digital UX
AvenHELOC6.99%4.9% first drawNone beyond originationFlexibility, Lowest Rate Guarantee
SoFiHEL + HELOC~7.25%NoneNo lender feesHigh LTV, existing customers
RocketHEL~7.50%VariesStandardBrand trust, large loans
DiscoverHEL~7.99%NoneNoneNo closing costs, fair credit
Bethpage/FourLeafHELOC5.99% introNoneNone up to $500kNo-cost HELOC, large lines
PenFedHELOC~7.50%NoneSome feesLarge lines, military discount
Third FederalHELOC~7.25%NoneNoneRate-match guarantee, rate shoppers
Bank of AmericaHELOC~7.99%NoneNoneExisting BofA depositors
LowerHELOC~7.50%ChargedStandardDigital close + fixed-rate option

Note: Figure and Aven advertise no closing costs but charge a first-draw origination fee (4.99% and 4.9% respectively). This fee applies to the initial draw amount only. See Closing Costs for the full breakdown.

FOMC Calendar 2026

The Fed funds rate drives prime, which drives your HELOC rate. FOMC meets roughly every 7 weeks. As of April 2026, markets are pricing one to two more cuts in 2026 depending on inflation data.

Jan 27-28
Held
Mar 17-18
Held
Apr 29-30
Upcoming
Jun 17-18
Upcoming
Jul 29-30
Upcoming
Sep 16-17
Upcoming
Oct 28-29
Upcoming
Dec 16-17
Upcoming