Banking
HELOC Rates Today: Prime Rate and Home Equity Borrowing Costs
Almost every US home equity line of credit is priced at the bank prime rate plus a lender margin, so prime is the number to watch. Fixed mortgage rates are shown alongside it, because a cash-out refinance is the main alternative when you need a large lump sum.
| Series | Latest | Prior | Year over year | As of |
|---|---|---|---|---|
| Bank prime loan rate | 6.75% | 6.75% | -0.75 pts | 2026-08-13 |
| 30-year fixed mortgage rate | 6.67% | 6.69% | +0.09 pts | 2026-08-13 |
| 15-year fixed mortgage rate | 5.96% | 6.01% | +0.25 pts | 2026-08-13 |
Source: Federal Reserve Board (H.15), via FRED; Freddie Mac, via FRED.
Prime rate versus fixed mortgage rates
The bank prime loan rate drives HELOC pricing; fixed mortgage rates price the cash-out refinance alternative.
Source: Federal Reserve Board (H.15), via FRED; Freddie Mac, via FRED. Latest observation 2026-08-13.
Run your own numbers
Averages tell you whether an offer is competitive. The calculator tells you what it costs you.
Open the HELOC calculatorYour rate is prime plus a margin
A lender quoting 'prime + 1.5%' means your rate moves every time prime moves, which happens within days of a Federal Reserve target rate change. The margin is fixed for the life of the line and depends on your credit score, combined loan-to-value and the size of the line.
Introductory rates are common — a discounted fixed rate for the first six to twelve months, after which the variable prime-plus-margin pricing takes over. Compare the post-intro rate, not the teaser.
The draw-to-repayment payment jump
During the draw period, usually 10 years, you pay interest only on what you have borrowed. A $50,000 balance at 8.5% costs about $354 a month.
When repayment begins, principal is added. Over a 20-year repayment that same balance costs roughly $434 a month, and over 10 years about $620. Plan for the higher figure before you draw.
HELOC, home equity loan or cash-out refinance
A HELOC suits staged spending — a renovation paid in phases — because you only pay interest on what you draw. A fixed-rate home equity loan suits a known lump sum where payment certainty matters more than flexibility.
A cash-out refinance replaces your whole mortgage, which rarely makes sense if your existing rate is well below current fixed rates. Compare the blended cost, not just the headline rate on the new money.
Tapping home equity? Get real quotes first
Margins, caps and fees vary widely between lenders. Compare offers before you put your home behind a variable-rate line.
Get matched with a lenderMethodology
The bank prime loan rate comes from the Federal Reserve H.15 selected interest rates release via FRED, updated daily. Fixed mortgage benchmarks come from Freddie Mac's Primary Mortgage Market Survey via FRED, updated weekly.
Prime is the base for most HELOC pricing but is not itself a HELOC rate. Your rate is prime plus a lender margin, subject to floors and lifetime caps set in your agreement.
Figures are national benchmarks, not offers, and can change without notice.
Frequently asked questions
What determines HELOC rates?
Most HELOCs are priced at the bank prime rate plus a lender margin. Prime tracks the Federal Reserve's target rate, so HELOC payments move when the Fed moves. The current prime rate is in the table above.
Is a HELOC cheaper than a personal loan?
Generally yes, because your home secures it. That is also the risk: missed payments on a HELOC can lead to foreclosure, which is not the case with unsecured borrowing.
How much equity do I need for a HELOC?
Most lenders cap combined loan-to-value at 80% to 85% of the appraised value, so you usually need at least 15% to 20% equity left after the line is drawn.
What happens when the HELOC draw period ends?
The line closes to new borrowing and the balance amortises over the repayment period, usually 10 to 20 years. The payment jumps because it now includes principal, not just interest.
Should I use a HELOC to pay off credit cards?
It lowers the rate but converts unsecured debt into debt secured by your home. It only makes sense with a firm payoff plan and no risk of rebuilding the card balances.
Think Bigger Today keeps its editorial standards independent of commercial relationships. This review was written by our team using publicly available information, including regulatory filings and published rate sheets. the named company did not review, approve or endorse it, and is not responsible for its accuracy. Companies that work with us commercially get no preferential coverage, scoring or placement. This page may link to our free matching service, for which we can be paid a referral fee — that fee never decides what we publish, and you may or may not be matched with the named company. Figures can change without notice; always confirm the current terms with the provider. Nothing here is financial, legal or tax advice.