Compare HELOC Rates From Top Lenders | Mortgages
Compare Top HELOC Mortgage Lenders
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Comparing quotes from competing lenders can help you find a great HELOC interest rate, but your credit remains the most significant factor in the rate you’re offered. Here are some tips to ensure you get the best rate you can.
Check your credit. Make sure your credit score is as strong as it can be by targeting areas for improvement and checking your credit reports for errors. “Lenders look for a consistent and on-time track record of paying bills and debts, and assurance that the homeowner can take on the additional debt,” says Kyle Enright, president of lending at Achieve.
Shop around. Check with multiple lenders and compare options. The specifics of each HELOC vary from lender to lender, so read the terms carefully and fully understand what is being offered and how it works. “For something more out of the box where a borrower might not qualify for a standard HELOC, talk to a mortgage broker who has the ability to deal with more flexible lenders,” says Steve Hill, lead mortgage broker at SBC Lending.
Compare APRs. Check the annual percentage rate, or APR, on different HELOCs to ensure you’re getting an apples-to-apples comparison of the costs. APR represents the total cost of borrowing, including fees – not just the interest rate. Lenders may charge a variety of fees for HELOCs such as application, origination, appraisal, closing, inactivity, prepayment and even membership fees. Banks and credit unions tend to offer the best overall rates on HELOCs, but you could still find – or even negotiate – better rates elsewhere.
Qualifying for a HELOC
You’ll need sufficient equity in your home to qualify for a HELOC, usually at least 15% to 20%. Lenders typically allow you to borrow up to 85% of the value of your home, including what you still owe on your mortgage.
Credit requirements vary from lender to lender, but you’ll typically need a credit score of at least 660 to qualify for a HELOC. It may be possible to qualify for a HELOC with a lower credit score if you have substantial equity in your home or if you’re using the funds for a certain qualifying purpose, such as debt consolidation, but a higher score will help you get the best rates and terms.
Lenders also generally look for a debt-to-income ratio of 50% or less.
View today’s mortgage rates for a wide variety of products and find the best rates for your needs. Save thousands of dollars over the life of your loan.
Pros
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Tap into home equity without affecting existing mortgage rate
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Repay and borrow for several years without repeatedly taking out loans
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Flexibility with how funds can be used
Cons
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May require minimum draws
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Lenders may charge extra fees
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Typically have variable rates, so monthly payment may vary
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You risk losing your home if you can’t make the payments
- Home equity loan. The home equity loan can make budgeting easier because it’s a simpler product and comes with a fixed rate. You receive a lump sum and repay it in equal monthly installments. In both instances, your home is collateral for the loan.
- Cash-out refinance. With a cash-out refinance, you take a new, larger mortgage to replace your existing loan and receive cash equal to the difference. Cash-out refinancing usually comes with a lower interest rate but significantly higher loan fees.
- Reverse mortgage. A reverse mortgage converts your home equity into a lump sum monthly payment to you or a line of credit. You must repay the loan when you no longer live in the home. Interest and fees are added to your balance each month. This means your balance increases over time instead of decreasing as in a traditional loan. You must be 62 or older to take out a reverse mortgage, and you must own your home free and clear or have only a small mortgage balance.
- Personal loan. A personal loan is a fixed-rate loan that, unlike the other options, doesn’t require your home to serve as collateral. Personal loans don’t require a home appraisal, title insurance or escrow fees, and you may be able to get one in just a few days. However, without the security of your home backing the loan, personal loans have higher interest rates than home equity loans.
Average Mortgage Rates, Daily
Data as of: 10/24/2026
Rates data is based on a borrower with good credit, a conforming loan amount (at least $200,000 but less than the national conforming loan amount), and a loan-to-value ratio of less than 80% (For purchase loans, this corresponds to a down payment of 20% or more). © Zillow, Inc., 2006-2016. Use is subject to Terms of Use
Most HELOCs have a variable interest rate that fluctuates based on broader economic conditions and Federal Reserve monetary policy. However, some lenders offer fixed-rate HELOCs or allow you to convert your variable-rate balance into a fixed-rate product.
You can pay off a HELOC early, but some lenders charge a prepayment penalty or early termination fee. Lenders typically require interest-only payments during the draw period and apply additional payments to the balance. Be sure to check the terms of your HELOC to see whether any fees would be assessed for paying it off early.
The interest you pay on a HELOC may be tax deductible if the funds are being used toward improving your home or buying or building a new primary residence, according to the IRS. However, if the funds are used for other purposes, like consolidating debt, the interest would not be tax deductible.
