U.S. HELOC and Home Equity Loan Rates Hold Near 2026 Lows as Truist Tops Lender Ranking

The average cost of tapping home equity in the United States remains close to its lowest point of 2026, offering homeowners a relatively inexpensive way to finance large expenses without disturbing their primary mortgages. On Sunday, May 31, the real estate analytics firm Curinos placed the nationwide average annual percentage rate for home equity lines of credit (HELOCs) at 7.21%, only two basis points above the 7.19% floor reached twice earlier this year. Fixed-rate home equity loans (HELs) averaged 7.36%, matching the year’s low recorded in mid-March.

Truist Cited as Best HELOC Lender

In a recent lender comparison, Truist received the designation of best HELOC provider. The recognition was based on several product features: credit lines up to $1 million, borrower choice between interest-only or revolving payments during the draw period, and the option to convert a portion of outstanding balances to fixed rates across five available terms. The analysis also factored in fee structures and overall flexibility.

Why Equity Borrowing Is Attractive in 2026

Thirty-year fixed mortgage rates hover near 6%, well below the levels recorded in the first half of the decade. Many owners refinanced at even lower rates earlier in the 2020s and are reluctant to sacrifice those terms through a cash-out refinance. For that large group, a second-lien product—either a HELOC or a HEL—can unlock accumulated equity without altering the primary mortgage.

Unlike first-lien mortgages, rates on second-lien products are determined by adding a margin to a benchmark such as the prime rate. The current prime rate stands at 6.75%, according to the Federal Reserve. A lender that applies a 0.75-percentage-point margin would therefore offer a 7.50% variable rate. Because margins differ by institution, credit profile, and combined loan-to-value (CLTV) ratio, shopping across multiple lenders can yield significant savings.

Rate Structures and Repayment Terms

Average national HELOC figures often include introductory teaser rates that last six to 12 months before converting to adjustable pricing. After the introductory window, the rate typically resets to the prime rate plus the agreed margin, which may result in a noticeable payment increase. Fixed-rate HELOC conversion options—such as those promoted by Truist—allow borrowers to lock in a portion of the balance under predetermined terms, reducing exposure to future hikes.

HELs, by contrast, carry one fixed rate for the life of the loan and disburse funds as a lump sum at closing. While the absence of a draw period eliminates ongoing access to equity, it also removes the uncertainty associated with fluctuating rates and variable payments.

Qualification Standards

The Curinos survey bases its averages on applicants with credit scores of at least 780 and CLTV ratios below 70%. Lenders weigh additional factors, including existing debt obligations and requested credit limits. As a result, real-world offers ranged from just under 6% to around 18% in recent sampling, illustrating the importance of comparing programs, fee schedules, and promotional terms.

Illustrative Cost Scenarios

HELOCs typically feature a 10-year draw period followed by a 20-year repayment term, effectively mirroring a 30-year amortization if balances remain outstanding. A borrower who withdraws $50,000 at a 7.25% variable rate would see an interest-only payment of roughly $302 per month during the draw phase. Should the benchmark rate rise, monthly obligations would increase proportionally.

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Because HELs begin amortizing immediately, a $50,000 loan at 7.36% over 15 years would generate a fixed monthly payment near $464. While the payment is higher than the initial outlay on a comparable HELOC, the amount is fully amortized and protected from rate volatility.

Key Advantages and Potential Risks

HELOC products provide revolving access to equity, enabling borrowers to withdraw, repay, and redraw funds up to an established ceiling. This flexibility can suit home improvement projects, medical expenses, or other sporadic needs. Variable rates, however, introduce uncertainty, and borrowers must be confident they can manage higher payments if market conditions shift.

HELs appeal to homeowners who prefer predictability. The lump-sum structure is well suited to one-time projects or debt consolidation, and the fixed rate simplifies budgeting. Borrowers, though, must weigh closing costs and the immediate commencement of principal and interest payments.

Market Outlook

With both HELOC and HEL averages sitting near 2026 lows, industry analysts describe the current environment as favorable for qualified borrowers. Homeowners with substantial equity and low primary mortgage rates can access capital while preserving historically advantageous first-lien terms. As always, the decision between a HELOC and an HEL hinges on intended use, tolerance for rate changes, and repayment planning.

Lenders continue to adjust margins in response to competition, credit risk, and funding costs. Prospective borrowers are encouraged to obtain multiple quotes, scrutinize introductory provisions, and review fee disclosures before committing to a product. Although today’s averages are attractive, the variable-rate nature of most HELOCs means that payment obligations could rise if benchmark rates trend upward in the coming quarters.