7 Best Home Equity Loan Rates and Lenders of 2026

As of July 2026 (learn more about best home equity loan lenders of 2026: 6 ranked by rate, terms, and fees) (learn more about best home renovation loan lenders of 2026: 7 options compared) (learn more about what is a cash-out refinance and how does it work?), the average home equity loan rate is about 7.57% and the average HELOC rate is about 7.50%. Borrowers with credit scores of 780 or higher are seeing home equity loan offers starting near 6.50% to 6.75%, while most homeowners land between 7% and 8% (learn more about 7 best mortgage refinance lenders of 2026: ranked by rate, fees, (learn more about 8 best mortgage refinance companies of 2026) (learn more about how to lower your car insurance premium: 12 proven tactics) and approval speed). The strongest lenders right now are Navy Federal, Bank of America, PNC, Truist, Aven, local credit unions, and rate marketplaces — and the single biggest determinant of your rate is how many of them you actually ask.

Home equity rates have eased from their peak, and homeowners are sitting on record equity balances. That combination is why equity borrowing is picking up in 2026. Below are seven places worth a quote, plus the difference between a home equity loan and a HELOC, and what actually moves your rate.

1. Navy Federal Credit Union — Best for High LTV

Navy Federal lends up to 95% of your home''s value, which is well above the 80% to 85% most banks cap at. For a homeowner who needs to reach further into their equity, that ceiling matters more than a quarter point on the rate. Membership is limited to military members, veterans, and their families.

Best for: Eligible military families who need to borrow above 85% loan-to-value.

2. Bank of America — Best for Low Fees

Bank of America is consistently competitive on HELOC costs, covering many of the closing costs that other lenders pass through and offering relationship discounts to existing customers. On a $75,000 line, avoided fees can outweigh a small rate difference.

Best for: Existing customers and anyone prioritizing low upfront cost.

3. PNC Bank — Best for Lower Credit Scores

PNC considers HELOC applicants with credit scores starting around 600, which is meaningfully more flexible than the 680 to 700 minimums common elsewhere. Expect a higher rate at that score, but access matters when the alternative is a credit card at 22%.

Best for: Borrowers rebuilding credit who still have solid equity.

4. Truist — Best Overall Bank HELOC

Truist earns strong marks across the board in 2026 lender rankings for competitive pricing, a workable online process, and fixed-rate conversion options that let you lock part of a variable line. If you want one bank that does most things well, this is the shortlist entry.

Best for: Homeowners who want a straightforward, well-rounded HELOC.

5. Aven — Fastest Approval

Aven runs a digital-first process built around speed, with approvals and access measured in days rather than weeks. The trade-off is a narrower product set and tighter property requirements. If a contractor is waiting on a deposit, speed has real value.

Best for: Time-sensitive projects and borrowers comfortable with a fully online process.

6. Local Credit Unions — Best Rates Overall

Credit unions consistently post the lowest advertised home equity rates in the market, often a half point or more below national banks, because they return earnings to members rather than shareholders. The catch is that pricing is regional and you have to qualify for membership, which is usually easy.

Best for: Almost everyone. Get a credit union quote before you sign anywhere else.

7. Rate Marketplaces — Best for Comparison Shopping

Marketplaces let you compare multiple offers from one application. Recent marketplace data showed average HELOC offers around 7.94% on $100,000 lines, which is useful as a benchmark even if you borrow elsewhere. Confirm whether an inquiry is soft or hard before you submit.

Best for: Establishing a baseline before you negotiate.

Home Equity Loan vs. HELOC

The products look similar and behave very differently.

Home equity loan: One lump sum, a fixed rate, and a fixed monthly payment for the life of the loan. Averaging about 7.57% in July 2026. Best when you know the exact amount you need — a roof, a consolidation payoff, a single renovation.

HELOC: A revolving line you draw from as needed, typically variable rate, averaging about 7.50%. Draw periods usually run 10 years, followed by repayment. Some lenders offer introductory rates as low as 5.99% for the first year, which reset afterward. Best for staged projects or a standby reserve.

The rate gap between the two is narrow right now, so the decision should turn on how you will use the money and whether you can absorb a payment that moves.

What Determines Your Rate

Credit score. Scores of 740 and above earn the best pricing. Below 700, expect roughly 1 to 2 percentage points more.

Loan-to-value. Combined LTV under 80% gets the best rates. The higher you go, the more risk the lender prices in.

Debt-to-income. Most lenders want total monthly debt below 43% of gross income.

How many quotes you pull. Rate shopping is the highest-return hour in the process. Rates on identical loans routinely differ by a full point between lenders in the same market.

How to Get the Best Rate

1. Pull your credit reports and fix errors before applying — disputes take weeks.
2. Get an estimate of your home''s current value so you know your real LTV.
3. Collect at least three quotes, including one credit union.
4. Compare APR, not just the rate — APR includes fees.
5. Ask about intro rates, and confirm exactly what the rate becomes afterward.
6. Ask whether the lender waives appraisal or closing costs, and whether waived fees are clawed back if you close the line early.

The Bottom Line

With home equity loans averaging around 7.57% and HELOCs around 7.50% in July 2026, well-qualified borrowers are finding offers in the mid-6s. Start with a local credit union, add Navy Federal if you are eligible, and compare against Bank of America, PNC, or Truist. Choose a fixed home equity loan for a known one-time expense, and a HELOC when your spending will happen in stages.

Rates shown are national averages as of July 2026 and change frequently. Your rate depends on your credit, equity, and lender. This is educational information, not a loan offer or financial advice.