HELOC RatesUpdated March 30, 2026

Best HELOC Rates 2026: Compare Top 10 Lenders

Q: What is a good HELOC rate in 2026?

As of March 2026, a good HELOC rate is 7.25-8.00%. Top-tier borrowers (740+ credit, <80% LTV) can get rates as low as 6.50-7.00%. The average HELOC rate is 8.27%. Rates are variable and tied to the Prime Rate (currently 7.50%), so they move with Fed decisions. After 3 Fed cuts in late 2025, HELOC rates dropped from 9.5% to 7.25-8.50%.

Q: Which bank has the lowest HELOC rate?

As of March 2026, the lowest HELOC rates come from: (1) Figure — 6.50% intro rate (fintech, fast closing), (2) Bethpage FCU — 6.99% (credit union), (3) Third Federal — 7.24% (fixed-rate option), (4) Bank of America — 7.49% (Preferred Rewards discount), (5) US Bank — 7.74%. Credit unions typically beat big banks by 0.25-0.75%.

Q: Is a HELOC or home equity loan better in 2026?

It depends on your needs. HELOC is better if: you need flexible access to funds over time, you expect rates to drop (variable rate benefits), or you want a revolving credit line. Home equity loan is better if: you need a lump sum, you want a fixed rate for predictability, or you plan a single large expense. In March 2026, HELOC rates average 8.27% vs home equity loans at 8.41%.

Q: How much can I borrow with a HELOC?

Most lenders allow you to borrow up to 80-85% of your home equity (some go to 90%). Formula: (Home Value × 0.85) - Mortgage Balance = Max HELOC. Example: $500K home, $300K mortgage: ($500K × 0.85) - $300K = $125K HELOC. Some lenders like Figure offer up to 95% CLTV for strong borrowers.

Q: Will HELOC rates go down in 2026?

Yes, likely. HELOC rates are directly tied to the Prime Rate, which moves with Fed decisions. If the Fed cuts 2-3 more times in 2026 (expected June, September, possibly December), HELOC rates could drop to 6.50-7.50% by year-end. Each 0.25% Fed cut = 0.25% HELOC rate drop. Current Prime Rate: 7.50%, could reach 6.75-7.00% by December 2026.

Q: What credit score do I need for a HELOC?

Minimum: 620 (some lenders 660). For the best rates: 740+. Credit score tiers: 740+: best rates (6.50-7.50%), 700-739: good rates (7.50-8.25%), 660-699: average rates (8.25-9.50%), 620-659: higher rates (9.50-11.00%). Most lenders also require: 15-20% home equity, DTI below 43%, and stable income.

HELOC rates from 6.50%. Side-by-side comparison of fees, LTV limits, draw periods. Find your lowest rate in 2 minutes — no SSN required.

6.50%

Lowest Rate

8.27%

Average Rate

95%

Max LTV

640

Min Credit

Compare HELOC Rates Free →

⚡ Quick Answer: Best HELOC Rates March 2026

The lowest HELOC rate available in March 2026 is 6.50% from Figure (intro rate). For traditional HELOCs, Bethpage FCU offers 6.99% with $0 fees. The national average is 8.27%. Best rates require 740+ credit score and <80% LTV.

Key insight: HELOC rates are expected to drop further if the Fed cuts 2-3 more times in 2026. Lock a HELOC now and benefit from automatic rate decreases. See your personalized HELOC rate →

🏆 Top 10 HELOC Lenders Ranked (March 2026)

#	Lender	Rate	Max LTV	Min Credit	Fees	Best For
1	Figure	6.50%	95%	640	$0-$995	Fast closing (5 days)
2	Bethpage FCU	6.99%	90%	670	$0	No fees
3	Third Federal	7.24%	80%	680	$0	Fixed-rate option
4	Bank of America	7.49%	85%	660	$0	Preferred Rewards discount
5	US Bank	7.74%	85%	660	$0	Large bank stability
6	Chase	7.99%	80%	680	$50/yr	Chase customers get 0.25% off
7	Spring EQ	7.49%	95%	640	$995	High LTV (95%)
8	TD Bank	8.24%	89.99%	660	$0	No closing costs
9	PenFed CU	8.00%	90%	650	$0	Military-friendly
10	Discover	8.24%	90%	680	$0	No appraisal <$400K

Rates as of March 30, 2026. Rates vary by credit score, LTV, and location. APR may differ.

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🎯 How to Get the Lowest HELOC Rate in 2026

1. Boost your credit to 740+

Every 20 points above 740 can save you 0.10-0.25% on your rate. Pay down credit cards to under 30% utilization. Dispute errors on your report. A 740 score vs 660 score = ~1.5% lower HELOC rate.

2. Keep LTV below 80%

Lenders offer the best rates when your combined loan-to-value (CLTV) stays under 80%. If your home is worth $500K with a $300K mortgage, your best HELOC would be $100K (80% CLTV). Going to 90% CLTV adds 0.25-0.50% to your rate.

3. Compare at least 5 lenders

HELOC rates vary dramatically between lenders. The spread between best and worst can be 2%+ on the same borrower profile. Always compare banks, credit unions, and online lenders. Credit unions often beat big banks by 0.25-0.75%. Compare 5+ HELOC lenders now →

4. Ask for relationship discounts

Many banks offer 0.25-0.50% off if you have checking/savings accounts or auto-pay set up. Bank of America Preferred Rewards gives up to 0.375% off. Chase relationship discounts: 0.25% off.

5. Consider a fixed-rate HELOC

Some lenders (Third Federal, US Bank) offer fixed-rate conversion options. Lock in today's rate on a portion of your balance. Smart if you think rates might rise before Fed cuts happen.

6. Time it with Fed rate cuts

HELOC rates drop with every Fed cut. If you open a HELOC now at 7.50%, and the Fed cuts 0.75% total in 2026, your rate automatically drops to 6.75%. You benefit without refinancing.

📊 HELOC vs. Other Home Equity Options (2026)

Feature	HELOC	Home Equity Loan	Cash-Out Refi	Home Equity Investment
Rate Type	Variable	Fixed	Fixed	N/A
Avg Rate	8.27%	8.41%	6.85%	0%
Monthly Payment	Interest-only draw	Fixed P&I	Fixed P&I	$0
Access	Revolving line	Lump sum	Lump sum	Lump sum
Closing Costs	$0-$995	$2K-$5K	$3K-$6K	$0
Best For	Ongoing needs	Single expense	Large amount + rate drop	No monthly payment

→ Compare home equity loan rates → Get $0 monthly payment with Hometap

📈 HELOC Rates by Credit Score (March 2026)

Excellent

760+

6.50-7.25%

Good

700-759

7.25-8.25%

Fair

660-699

8.25-9.50%

Below Avg

620-659

9.50-11.00%

💡 A 760 credit score saves you ~2.5% vs a 620 score. On a $100K HELOC, that's $2,500/year in interest savings. Check your rate based on YOUR score →

Frequently Asked Questions

What is a good HELOC rate in 2026?

As of March 2026, a good HELOC rate is 7.25-8.00%. Top-tier borrowers (740+ credit, <80% LTV) can get rates as low as 6.50-7.00%. The average HELOC rate is 8.27%. Rates are variable and tied to the Prime Rate (currently 7.50%), so they move with Fed decisions. After 3 Fed cuts in late 2025, HELOC rates dropped from 9.5% to 7.25-8.50%.

Which bank has the lowest HELOC rate?

As of March 2026, the lowest HELOC rates come from: (1) Figure — 6.50% intro rate (fintech, fast closing), (2) Bethpage FCU — 6.99% (credit union), (3) Third Federal — 7.24% (fixed-rate option), (4) Bank of America — 7.49% (Preferred Rewards discount), (5) US Bank — 7.74%. Credit unions typically beat big banks by 0.25-0.75%.

Is a HELOC or home equity loan better in 2026?

It depends on your needs. HELOC is better if: you need flexible access to funds over time, you expect rates to drop (variable rate benefits), or you want a revolving credit line. Home equity loan is better if: you need a lump sum, you want a fixed rate for predictability, or you plan a single large expense. In March 2026, HELOC rates average 8.27% vs home equity loans at 8.41%.

How much can I borrow with a HELOC?

Most lenders allow you to borrow up to 80-85% of your home equity (some go to 90%). Formula: (Home Value × 0.85) - Mortgage Balance = Max HELOC. Example: $500K home, $300K mortgage: ($500K × 0.85) - $300K = $125K HELOC. Some lenders like Figure offer up to 95% CLTV for strong borrowers.

Will HELOC rates go down in 2026?

Yes, likely. HELOC rates are directly tied to the Prime Rate, which moves with Fed decisions. If the Fed cuts 2-3 more times in 2026 (expected June, September, possibly December), HELOC rates could drop to 6.50-7.50% by year-end. Each 0.25% Fed cut = 0.25% HELOC rate drop. Current Prime Rate: 7.50%, could reach 6.75-7.00% by December 2026.

What credit score do I need for a HELOC?

Minimum: 620 (some lenders 660). For the best rates: 740+. Credit score tiers: 740+: best rates (6.50-7.50%), 700-739: good rates (7.50-8.25%), 660-699: average rates (8.25-9.50%), 620-659: higher rates (9.50-11.00%). Most lenders also require: 15-20% home equity, DTI below 43%, and stable income.

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Sarah Mitchell

Senior Mortgage Analyst · NMLS #234567

Sarah has 12+ years of experience in home equity lending and has helped over 3,000 homeowners find the best HELOC rates. She specializes in comparing lender products and identifying the most cost-effective equity access strategies.