HELOC Rates Today (March 2026): Current Home Equity Line Rates

Track current HELOC rates and understand how to get the best rate on your home equity line of credit.

Current HELOC Rates

Rates as of March 2026. Updated weekly.

Credit Score Current Rate Rate Type
760+ 8.00% Variable
720-759 8.50% Variable
680-719 9.00% Variable
660-679 9.50% Variable
620-659 10.00%+ Variable

Current Prime Rate: 8.50% Typical HELOC Formula: Prime - 0.50% to Prime + 1.50%

HELOC Rate Components

Component Current Value
Prime Rate 8.50%
Margin (lender add-on) -0.50% to +1.50%
Your HELOC Rate 8.00% - 10.00%

How Your Rate Is Calculated

Your HELOC rate = Prime Rate + Margin

Example Calculation Rate
Best case 8.50% - 0.50% 8.00%
Average 8.50% + 0.25% 8.75%
Higher risk 8.50% + 1.50% 10.00%

HELOC Rates by Lender Type

Lender Type Typical Rate Pros Cons
Credit Unions 8.00-8.75% Lowest rates, low fees Membership required
Online Lenders 8.25-9.00% Convenient, competitive Less personal service
National Banks 8.50-9.50% Convenience Often higher rates
Regional Banks 8.25-9.25% Relationship discounts Limited availability

HELOC vs Home Equity Loan Rates

Feature HELOC Home Equity Loan
Current Rate 8.00-10.00% 8.25-9.50%
Rate Type Usually variable Usually fixed
Borrowing Draw as needed Lump sum
Payment Interest-only option P&I from start
Best For Ongoing needs One-time expense

How Much Can You Borrow?

Most lenders allow 80-85% combined LTV (loan-to-value):

Home Value Mortgage Balance Available Equity (80% LTV)
$400,000 $250,000 $70,000
$500,000 $300,000 $100,000
$600,000 $350,000 $130,000
$750,000 $400,000 $200,000
$1,000,000 $500,000 $300,000

Formula: (Home Value × 80%) - Mortgage Balance = Available HELOC

Monthly Payment Examples

Interest-only payments during draw period:

Amount Borrowed Rate Monthly Interest
$25,000 8.50% $177
$50,000 8.50% $354
$75,000 8.50% $531
$100,000 8.50% $708
$150,000 8.50% $1,063

During repayment period (P&I, 15-year term):

Amount Rate Monthly P&I
$50,000 8.50% $492
$75,000 8.50% $739
$100,000 8.50% $985

HELOC Rate Factors

Factor Impact on Rate
Credit score ±0.50-1.50%
Loan-to-value Lower LTV = lower rate
Debt-to-income Lower DTI = lower rate
Property type Primary residence best
Draw amount Higher draws may get better rates
Autopay discount -0.25% to -0.50%

Prime Rate History (Affects HELOC Rates)

Date Prime Rate Typical HELOC Rate
March 2026 8.50% 8.50-9.50%
December 2025 8.50% 8.50-9.50%
June 2025 8.25% 8.25-9.25%
December 2024 8.50% 8.50-9.50%
June 2024 8.50% 8.50-9.50%
December 2023 8.50% 8.50-9.50%
December 2022 7.50% 7.50-8.50%
December 2021 3.25% 3.25-4.25%

HELOC Terms to Understand

Term Typical What It Means
Draw period 5-10 years When you can borrow
Repayment period 10-20 years When you must repay
Interest-only Draw period Pay only interest, not principal
Variable rate Standard Rate changes with prime
Rate cap Varies Maximum rate increase
Minimum draw $0-$10,000 Minimum to borrow at once

Getting the Best HELOC Rate

Before You Apply

Action Potential Benefit
Boost credit to 760+ 0.50-1.00% lower rate
Lower DTI Better approval, lower rate
Increase home equity Better LTV ratio
Pay down first mortgage More available equity

When Shopping

Strategy Savings
Compare 3-5 lenders Find lowest margin
Check credit unions Often best rates
Ask about discounts Autopay, relationship
Negotiate fees Many waive closing costs
Look for intro rates Some offer fixed intro period

HELOC Fees to Watch

Fee Typical Cost Can Negotiate?
Application fee $0-$100 Yes
Appraisal $300-$500 Limited
Origination $0-$500 Yes
Annual fee $0-$100 Yes
Closing costs $0-$2,000 Yes
Early termination $250-$500 Ask

Many lenders offer no-closing-cost HELOCs

Fixed-Rate HELOC Options

Some lenders offer fixed-rate conversion:

Feature Details
How it works Convert portion of balance to fixed rate
Rate premium 0.50-1.00% higher than variable
Best for Large, predictable expenses
Example Lock $50K at 9.00% fixed while rest stays variable

HELOC Rate Outlook

Factor Impact on Future Rates
Federal Reserve policy Most direct impact
Inflation trends Affects Fed decisions
Economic growth Stronger = higher rates
Housing market Affects lender risk appetite

Current outlook: Rates expected to remain relatively stable in 2026 with modest potential for decreases if inflation continues declining.

Qualification Requirements

Requirement Typical Minimum
Credit score 620 (680+ for best rates)
Home equity 15-20%
Debt-to-income Under 43%
Income proof Documented, stable
Property type Primary residence

Related: HELOC Guide | Home Equity Loan Rates | Home Equity Calculator

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