7 Best HELOC Lenders & Best Rates for 2026

Home equity might be one of your biggest untapped resources right now. The national average monthly HELOC rate is 7.25% as of January 2026, down significantly from recent highs.⁽¹⁾ If you’ve built up equity in your home, a HELOC could be an affordable way to fund renovations, consolidate debt or handle unexpected expenses.
Here’s what you need to know about the best HELOC lenders available right now, plus how to get the lowest rate possible.

See the best HELOC rates available to you today

Use our tool to see estimated rates from top lenders based on your location and financial details. Select whether you’re looking for a home equity loan, HELOC or cash-out refinance.

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7 Best HELOC Lenders

• Best overall: U.S. Bank
• Best for low fees and discounts: Bank of America
• Best for rate flexibility: PNC Bank
• Best for low introductory rates: FourLeaf Federal Credit Union
• Best HELOC marketplace: LendingTree
• Best for Fast Funding: Figure
• Best Rate Lock Option: BMO

Methodology: How we choose the best HELOC lenders

Finder’s lending experts analyze more than 25 HELOC lenders to choose and update our top picks for HELOC lenders.

Each lender is weighed across 10 key metrics:

• Annual fee
• Credit limits
• Minimum and maximum APR
• Introductory rates
• Discounts
• Closing costs
• Customer reviews
• Requirements
• Turnaround
• Regional footprint

We also factor in extra features like the ability to lock in a fixed rate and the willingness to lend against second homes.

We regularly update our best picks as HELOC products change, disappear or emerge in the market and to reflect the most competitive products available.

What is a HELOC?

A HELOC (home equity line of credit) is a revolving line of credit secured by your home. Unlike a home equity loan that gives you a lump sum, a HELOC works more like a credit card. You can borrow what you need, when you need it, up to your credit limit.

You’ll typically get a 10-year draw period where you can access funds and make interest-only payments, followed by a 20-year repayment period where you pay back both principal and interest. Since your home is collateral, HELOC rates are much lower than credit cards or personal loans. But there’s a risk: If you can’t keep up with payments, you could lose your home.

Current HELOC rates: What to expect in 2026

As of mid-January 2026, the average HELOC rate is 7.25%, down significantly from 2024’s highs. The prime rate is currently 6.75%, and most lenders add a margin of 0.50% to 1% on top of that.⁽¹⁾

Your actual rate depends on your credit score, loan amount, home equity and the lender’s margin. Borrowers with credit scores above 740 typically get the best rates. HELOC rates are variable, meaning they’ll fluctuate with the prime rate, usually quarterly.

The Federal Reserve cut rates three times in 2025. While the Fed’s projections suggest one or two more cuts in 2026, the timing remains uncertain, with market expectations pointing to possible cuts in the spring and fall.⁽²⁾ That means rates should stay relatively stable in the near term, making now a good time to lock in a HELOC if you need one.

Who should get a HELOC?

A HELOC makes sense if you:

• Have at least 15–20% equity in your home
• Have a credit score of 680 or higher
• Need flexible access to funds over time (like for ongoing home renovations)
• Want to preserve your low primary mortgage rate rather than refinancing
• Have a steady income to handle payments, even if rates rise

When to skip the HELOC

A HELOC might not be your best bet if:

• Your credit score is below 620 (you’ll face higher rates and fees)
• You need a one-time lump sum (a home equity loan might be better)
• You’re uncomfortable with variable rates
• You’re worried you’ll overspend with access to a credit line
• Current rates feel too high for your situation

If you’re concerned about closing costs or tapping into home equity, consider a personal line of credit instead.

How to get the lowest HELOC rate

• Compare multiple lenders. Don’t just check big banks, credit unions and online lenders often have competitive rates and better terms.
• Boost your credit score. The best rates go to borrowers with scores of 740+. Before you apply, avoid opening new credit cards or taking on new debt.
• Lower your debt-to-income (DTI) ratio. Most lenders want to see a DTI of 47% or lower. Pay down existing debt if you can.
• Consider a larger line. The lowest rates are often reserved for borrowers opening lines of $25,000 to $100,000 or more. But only do this if it makes financial sense, as you’ll pay interest on what you borrow.
• Look for relationship discounts. If you’re already a customer at Bank of America, U.S. Bank or another major lender, ask about rate discounts for existing customers.
• Check the rate cap. Even with a great starting rate, your HELOC rate can rise with the market. Most lenders cap rates around 18%, but some offer lower caps. Ask about this up front.
• Consider paying off your primary mortgage. If you have the means, paying off your mortgage can sometimes get you a better HELOC rate, since the lender takes the first lien position.

HELOC vs. Home equity loan

Both let you borrow against your home’s equity, but they work differently.

HELOCs give you a line of credit to draw from as needed. Rates are variable, and you typically make interest-only payments during the draw period. Best for ongoing expenses or projects where costs are spread over time.

Home equity loans give you all the money up front in a lump sum. Rates are fixed, and you start repaying principal and interest immediately. Best for one-time expenses like a major renovation or debt consolidation.

If you value flexibility and want to borrow only what you need, a HELOC is probably the better choice. If you prefer predictable payments and need all the money now, go with a home equity loan.

Dive deeper: HELOC vs. home equity loan: Eligibility, rates and how you get your money

How HELOC rates work

HELOC rates are almost always variable. Lenders calculate your rate by adding a margin (a fixed percentage based on your creditworthiness) to the prime rate. For example, if the prime rate is 6.75% and your margin is 0.75%, your HELOC rate is 7.50%.

When the prime rate changes, your rate changes too, usually monthly or quarterly. That means your payments can go up or down throughout the life of your HELOC. If the prime rate rises from 6.75% to 8%, your rate would jump from 7.50% to 8.75% — and your monthly payment increases accordingly.

Most lenders set a floor rate (usually around 3% to 3.25%) and a ceiling rate (often 18%). Even if the prime rate drops to 2%, you won’t pay less than the floor. And even if it spikes to 20%, you won’t pay more than the ceiling.

Watch out for introductory rates

Some lenders offer low fixed rates for the first six to 12 months to attract borrowers. These rates often require you to draw a large amount up front, and any rate discounts you’ve earned, like autopay discounts, won’t apply until the intro period ends.

Fixed-Rate HELOC Options

To protect yourself from rate swings, many lenders let you convert part or all of your HELOC balance to a fixed-rate HELOC. You’ll typically pay a slightly higher rate than the current variable rate, but your payment stays predictable for the life of that portion.

PNC, U.S. Bank and Bank of America all offer this option, though fees and terms vary. Most lenders limit how many fixed-rate conversions you can do and charge a fee for each conversion. It’s a good middle ground if you want flexibility but also some payment stability.

The Bottom Line

With HELOC rates hovering around 7.25%, homeowners with equity have a relatively affordable way to access cash without touching their primary mortgage. The key is shopping around, understanding the fees and making sure you can handle payments even if rates rise.

U.S. Bank and Bank of America stand out for their low fees and rate discounts, while PNC offers unique flexibility with its rate-lock feature. If you need funds fast, Figure’s worth a look, and LendingTree makes it easy to compare multiple offers at once.

Before you apply, run the numbers. Know how much you need, what you can afford in monthly payments and what your backup plan is if rates rise. A HELOC is a tool — use it wisely, and it can save you money. Use it carelessly, and it could put your home at risk.

Frequently Asked Questions

• What credit score do I need for a HELOC?

  Most lenders require a minimum credit score of 620, though you'll get the best rates with a score of 740 or higher. If your score is below 620, expect higher rates or consider alternatives like a personal loan.

• How much can I borrow with a HELOC?

  Most lenders let you borrow up to 80–90% of your home's value minus what you owe on your mortgage. For example, if your home is worth $400,000 and you owe $250,000, you could access up to $70,000 (at 80% LTV). Credit limits typically range from $25,000 to $500,000, with some lenders, like Bank of America, going up to $1 million.

• Do I have to pay closing costs on a HELOC?

  Not always. U.S. Bank, Bank of America and BMO don't charge closing costs up front. PNC and Bethpage Federal Credit Union waive closing costs if you keep the line open for three years. Some lenders charge closing costs ranging from $500 to several thousand dollars, depending on your credit line size.

• What happens if I can't make my HELOC payments?

  You risk losing your home since your property secures the HELOC. Late payments are reported to credit bureaus after 30 days, which damages your credit score. After 90–120 days of missed payments, lenders can begin foreclosure. Contact your lender immediately if you're struggling — many offer hardship programs before resorting to foreclosure.

• Can I pay off my HELOC early?

  Yes, but watch for early closure fees. U.S. Bank charges 1% of the loan value (max $500) if you close within 30 months. PNC requires you to keep the line open for 36 months to avoid repaying closing costs. You can pay down your borrowed balance anytime without prepayment penalties — just check your lender's terms before closing the line completely.