Home Equity Loan Rates Today (March 2026): Current Rates & Comparison

Compare current home equity loan rates and understand how they differ from HELOCs.

Current Home Equity Loan Rates

Rates as of March 2026. Updated weekly.

Credit Score 10-Year Rate 15-Year Rate 20-Year Rate
760+ 8.00% 8.25% 8.50%
720-759 8.50% 8.75% 9.00%
680-719 9.00% 9.25% 9.50%
660-679 9.50% 9.75% 10.00%
620-659 10.00%+ 10.25%+ 10.50%+

Home Equity Loan vs HELOC Rates

Feature Home Equity Loan HELOC
Current Rate 8.25-9.50% 8.00-10.00%
Rate Type Fixed Variable (usually)
How You Receive Lump sum Draw as needed
Payment Same monthly payment Changes with balance/rate
Best For One-time large expense Ongoing/uncertain needs
Rate Risk None Rates could rise

Monthly Payment Calculator

Fixed-rate home equity loan payments:

10-Year Term @ 8.50%

Loan Amount Monthly Payment Total Interest
$25,000 $310 $12,146
$50,000 $620 $24,292
$75,000 $929 $36,438
$100,000 $1,239 $48,584
$150,000 $1,859 $72,876

15-Year Term @ 8.75%

Loan Amount Monthly Payment Total Interest
$25,000 $249 $19,803
$50,000 $498 $39,606
$75,000 $747 $59,409
$100,000 $996 $79,212
$150,000 $1,493 $118,818

20-Year Term @ 9.00%

Loan Amount Monthly Payment Total Interest
$25,000 $225 $28,925
$50,000 $450 $57,850
$75,000 $675 $86,775
$100,000 $900 $115,700
$150,000 $1,350 $173,550

How Much Can You Borrow?

Most lenders allow 80-85% combined LTV:

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

Formula: (Home Value × 80%) - Mortgage Balance = Max Home Equity Loan

Home Equity Loan Rates by Loan Amount

Loan Amount Typical Rate Notes
$10,000-$24,999 9.00-10.00% Higher rates, small loan
$25,000-$49,999 8.50-9.50% Standard rates
$50,000-$99,999 8.25-9.00% Better rates
$100,000+ 8.00-8.75% Best rates, larger loans

Rates by Loan Purpose

Purpose Rate Impact Notes
Home improvement Best rates Tax-deductible interest possible
Debt consolidation Standard rates Saves vs. credit card rates
Education Standard rates Consider federal loans first
Major purchase Standard rates Compare to other financing
Emergency Standard rates Build emergency fund instead

Closing Costs

Fee Typical Amount Can Negotiate?
Application fee $0-$100 Yes
Origination 0-1% of loan Yes
Appraisal $300-$500 Limited
Title search $100-$300 No
Credit report $25-$50 No
Recording $50-$150 No
Total $500-$2,000

Note: Some lenders offer no-closing-cost options with slightly higher rates.

Home Equity Loan vs Cash-Out Refinance

$100,000 needed, current mortgage: $300,000 at 5.50%

Home Equity Loan

Feature Value
New loan $100,000 @ 8.50%
Keep existing mortgage $300,000 @ 5.50%
Payment 1 (mortgage) $1,703
Payment 2 (equity) $1,239
Total Payment $2,942

Cash-Out Refinance

Feature Value
New loan $400,000 @ 7.00%
Payment $2,661
Closing costs $8,000-$12,000
Total Payment $2,661

Analysis: Refinance has lower payment but replaces your 5.50% rate with 7.00%. Home equity loan preserves cheap first mortgage. Better choice depends on how long you keep the loan.

Qualification Requirements

Requirement Typical Minimum
Credit score 620 (680+ for best rates)
Home equity 15-20% minimum
Combined LTV 80-85% maximum
Debt-to-income Under 43%
Income Documented, stable
Property Primary residence

Tax Implications

Use of Funds Interest Deductible?
Home improvement Yes (up to $750K total mortgage debt)
Debt consolidation No
Education No
Other personal No

Example: $100K home equity loan for new roof at 8.50%:

  • Annual interest: ~$8,000
  • Tax bracket: 24%
  • Tax savings: ~$1,920/year
  • Effective rate: ~6.46%

Getting the Best Rate

Strategy Potential Savings
Credit score 760+ 0.50-1.00% lower rate
Shop 3-5 lenders Find best offer
Credit union Often lowest rates
Relationship discount 0.25-0.50% off
Autopay 0.25% off
Larger loan amount Better rate tiers

Home Equity Loan Rate History

Period Average Rate
March 2026 8.75%
2025 Average 8.85%
2024 Average 8.70%
2023 Average 8.45%
2022 Average 6.30%
2021 Average 5.85%
2020 Average 5.95%

When to Choose a Home Equity Loan

Best Uses

Situation Why Home Equity Loan Works
Major renovation Lump sum needed, fixed payment
Debt consolidation Lower rate than credit cards
One-time large expense Predictable repayment
Rate-sensitive borrower Locked rate, no surprises

Avoid If

Situation Better Alternative
Need ongoing access HELOC instead
Variable amount needed HELOC instead
Small amount (<$10K) Personal loan may be cheaper
Planning to sell soon May not recover costs
Tight budget Risk losing home

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

Tags: