NEW YORK, NY — Homeowners weighing a cash-out move against keeping a low first-mortgage rate are seeing a split in second-lien pricing. On Tuesday, Sept. 1, 2026, the national average adjustable HELOC rate fell to 7.16%, which Curinos said is a new low for 2026. The national average fixed-rate home equity loan rose to 7.35%, just above its 2026 low of 7.31% reached in late June.
Both figures are based on borrowers with a minimum 780 credit score and a combined loan-to-value ratio under 70%. That means the advertised averages are aimed at strong applicants, not every homeowner. The two products may look close on rate, but they work differently once a borrower starts drawing money and paying it back.
What Curinos Reported
Curinos, a real estate data analytics company, published the national averages and tied them to common benchmark assumptions. The HELOC rate is variable and typically moves with an outside rate, usually the prime rate. Lenders then add a margin based on the borrower’s risk profile, including credit score, debt-to-income ratio and loan-to-value ratio.
Home equity loans work more like a traditional mortgage. They usually carry a fixed rate for the life of the loan, although fixed-rate HELOCs do exist in smaller numbers. Curinos said the average home equity loan rate is 7.35% for this week’s snapshot, while the HELOC average stands at 7.16%, giving rate shoppers a narrow spread to compare.
Why The Gap Matters
The rates are being shaped by the prime rate, the Federal Reserve’s federal funds rate and broader economic conditions. In practice, the difference between a HELOC and a home equity loan is not only about the starting rate. A HELOC can change over time, while a home equity loan gives the borrower the same rate throughout the term. That difference can matter for households that want predictable payments versus those that may borrow in stages.
The comparison also reflects where each product sits today. The HELOC average is now at a fresh 2026 low, while the home equity loan average has moved only slightly above its late-June bottom. For borrowers, that leaves the decision shaped by loan structure, not just the headline rate. Lenders still use margins, credit checks and property value assessments to set the final offer.
What Borrowers Should Check
Most lenders require at least a 680 FICO score, proof of income, a home appraisal, homeowners insurance and roughly 15% to 20% equity. A debt-to-income ratio of 43% or less is another common benchmark. Fees can also change the cost of borrowing, including origination charges, application fees, annual charges and early closure fees.
Curinos notes that some lenders are advertising rates from nearly 6% to as high as 18%, depending on credit and shopping. For a $50,000 HELOC at 7.25%, the example monthly payment during the 10-year draw period would be about $302, though variable rates can change that figure. Consumers can compare offers directly through lenders and public rate trackers such as Curinos or the lender disclosures that list the exact assumptions behind each quote.
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