HELOC and Home Equity Loan Rates on September 21, 2026: A 33-Basis-Point Differential
On Monday, September 21, 2026, the average HELOC adjustable rate is reported at 7.09%, a new low for 2026 according to Curinos. Meanwhile, fixed-rate home equity loans have an average of 7.42%. The difference between these rates stands at 33 basis points. This gap suggests that borrowers should consider more than just the interest rate when choosing between HELOCs and home equity loans; their intended use for funds is also a key factor. HELOCs are variable-rate products typically tied to the prime rate, meaning they can fluctuate with broader economic conditions such as changes in the Federal Reserve's federal funds rate. In contrast, fixed-rate home equity loans offer consistent rates over time but may be less common and influenced by similar macroeconomic factors. Lenders assess borrower risk using credit scores, debt-to-income ratios, and loan-to-value ratios to determine interest margins. To qualify for either product, borrowers generally need a FICO score of at least 680, proof of income, sufficient home equity (15-20%), homeowners insurance, and acceptable DTI. Lenders may also charge fees such as origination or annual charges.
Topics: HELOC home equity loan interest rates lending