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Home equity loan rates in 2026 are higher than they were a few years ago. But they are still below credit card rates. For many homeowners, a home equity loan is a cost-effective way to borrow.
Here’s what you can expect to pay — and how to get the best rate.
Current Home Equity Loan Rates
| Term | Average Rate (May 2026) | Range |
|---|---|---|
| 5-year fixed | 8.50% | 7.80% – 9.50% |
| 10-year fixed | 8.65% | 8.00% – 9.75% |
| 15-year fixed | 8.90% | 8.25% – 10.00% |
| 20-year fixed | 9.10% | 8.50% – 10.25% |
Rates as of May 2026. Your actual rate depends on credit score, LTV, loan amount, and lender.
What Factors Affect Your Rate?
Five things drive your home equity loan rate:
- Credit score: The biggest factor. 760+ gets the best rates. Below 660 and you’ll pay significantly more.
- Loan-to-value (LTV): Borrowing less than 80% of your home’s value puts you in a stronger position.
- Loan amount: Smaller loans sometimes carry higher rates. Borrowing $50,000+ usually gets better pricing.
- Loan term: Shorter terms usually have lower rates.
- Lender: Rates vary widely. Always compare at least 3 lenders.
Best Home Equity Loan Lenders 2026
| Lender | Starting APR | Max LTV | Loan Range |
|---|---|---|---|
| Discover | 7.99% | 90% | $35K – $300K |
| TD Bank | 8.25% | 89.9% | $10K – $500K |
| Spring EQ | 8.49% | 95% | $25K – $500K |
| U.S. Bank | 8.55% | 80% | $15K – $750K |
| Regions Bank | 8.60% | 80% | $10K – $250K |
Home Equity Loan vs HELOC vs Cash-Out Refi
- Home equity loan: Fixed rate, lump sum, predictable payments. Best for one-time large expenses.
- HELOC: Variable rate, draw as needed. Best for ongoing needs or a financial safety net.
- Cash-out refi: Replaces your mortgage. Best when today’s rates are lower than your current rate.
See the full comparison: HELOC vs Home Equity Loan: Which Is Better in 2026?
How to Get the Best Rate
- Check your credit score first. Dispute any errors before applying.
- Pay down other debts to lower your DTI. Use the DTI calculator to see where you stand.
- Get quotes from at least 3 lenders. Credit unions often beat big banks.
- Ask about rate lock options and any fee waivers.
- Compare the APR, not just the interest rate — the APR includes fees.
How Much Will Your Payments Be?
At 8.65% for 10 years, here are estimated monthly payments:
- $25,000 loan: ~$312/month
- $50,000 loan: ~$624/month
- $100,000 loan: ~$1,248/month
Use the mortgage payment calculator to run your own numbers.
Frequently Asked Questions
Are home equity loan rates fixed?
Yes. Home equity loans have fixed rates. Your payment will not change over the life of the loan.
How is a home equity loan different from a second mortgage?
A home equity loan IS a second mortgage. The terms are often used interchangeably. It is a loan secured by your home equity, behind your primary mortgage.
Can I deduct home equity loan interest?
Only if you use the funds to buy, build, or improve your home. Personal expenses do not qualify. Consult a tax professional.
What is a good home equity loan rate?
In May 2026, a good rate is anything under 8.50% for a 10-year term. Rates below 8% are excellent. Your credit score and LTV are the main drivers.
How long does it take to get a home equity loan?
Typically 2 to 4 weeks. It involves an application, appraisal, title search, and underwriting.