U.S. — Fixed-rate home equity loans also saw movement during this period. As of September 4, 2026, the average home equity loan interest rate was 8.14%, according to Money. By September 7, the rate settled at 7.35%.

This figure is up from its 2026 low of 7.31% in late June. The difference between the average home equity loan rate and the average HELOC rate is 19 basis points, according to Curinos. This gap represents a rise of 0.19 percentage points from the HELOC low to the fixed-rate loan average.

These products function differently for borrowers. Home equity loans typically have fixed interest rates and provide borrowers with a lump sum of money. In contrast, HELOCs typically have variable interest rates and provide borrowers with a revolving line of credit.

HELOC payments are required only on the amount of credit used, not the full approved line of credit. HELOCs typically require interest-only payments during an initial draw period. The HELOC repayment period typically begins after 10 or 15 years. Fixed-rate HELOCs exist but are less common than variable-rate HELOCs.

A sample calculation illustrates the cost structure. A $50,000 HELOC withdrawal at a 7.25% interest rate results in a monthly payment of approximately $302 during a 10-year draw period. HELOC interest rates are typically tied to the prime rate.

Lenders add a margin to HELOC and home equity loan rates based on borrower risk assessment. Borrower risk assessment for HELOCs and home equity loans considers credit score, debt-to-income ratio, and loan-to-value ratio. HELOC and home equity loan rates are influenced by the Federal Reserve's federal funds rate.

Both loan types carry specific risks and potential benefits. HELOCs and home equity loans use the home as collateral. Failure to make payments on a HELOC or home equity loan can result in foreclosure.

Interest paid on HELOCs and home equity loans may be tax-deductible if the funds are used for IRS-eligible home repairs and renovations. The average homeowner equity level is over $300,000.

Other consumer lending products show different trends. Personal loan interest rates have remained around 12% for several months. Credit card interest rates recently declined from a record high of 23%.

Timeline

The national average rate on a fixed-rate home equity loan is 7.35% as of September 7, 2026, according to Curinos. The national average adjustable HELOC rate reached a 2026 low of 7.16% as of September 7, 2026, according to Curinos.

The 7.35% average home equity loan rate reported by Curinos is up from its 2026 low of 7.31% in late June. The 7.16% average HELOC rate reported by Curinos is a 2026 low.

What's New

The national average fixed-rate home equity loan rate was 7.35% as of September 7, 2026, according to Curinos.

General qualification requirements for HELOCs and home equity loans include a FICO credit score of 680 or higher. General qualification requirements for HELOCs and home equity loans include a debt-to-income ratio of 43% or less. General qualification requirements for HELOCs and home equity loans include having at least 15% to 20% equity in the home. General qualification requirements for HELOCs and home equity loans include proof of in-force homeowners insurance.

How Sources Differ

Sources differ on the average home equity loan rate.

Why It Matters

The decline in HELOC rates to a 2026 low of 7.16% occurs while the average homeowner equity level remains over $300,000. This combination affects borrowing capacity for home improvements and other major expenses. Because HELOCs and home equity loans use the home as collateral, failure to make payments can result in foreclosure.

The rates are influenced by the Federal Reserve's federal funds rate and lender margins based on borrower risk assessment. Interest paid on these loans may be tax-deductible if the funds are used for IRS-eligible home repairs and renovations. The distinction between the 7.16% adjustable HELOC rate and the 7.35% fixed-rate home equity loan rate provides borrowers with options depending on their preference for payment stability versus potential rate fluctuations.