US Home Equity Loan Averages Hit 7.4% on Sept. 22
National averages for secured home borrowing stand at 7.4% for loans and 6.8% for HELOCs as of September 22, 2026.
Key points
- National average home equity loan rates are 7.4% as of September 22, 2026.
- HELOC averages stand at 6.8%, offering a reusable credit line structure.
- Secured home equity borrowing typically costs less than unsecured personal loans.
National average home equity loan rates sit at 7.4% as of September 22, 2026. This figure reflects data from the Mortgage Research Center.
Home equity line of credit averages run slightly lower at 6.8%. These rates apply to owner-occupied properties with strong credit scores.
Secured debt pricing remains competitive
Lenders price secured debt lower than unsecured personal loans. The house serves as collateral, reducing the risk for the creditor.
Borrowers can access significantly more capital than through personal loans. Home equity limits often exceed the standard $100,000 cap found in unsecured markets.
Two distinct repayment structures exist
A home equity loan provides a single lump sum upfront. Borrowers then repay this amount through fixed monthly installments over time.
A HELOC offers a reusable credit line similar to a credit card. Interest accrues only on the funds actually drawn during the active period.
HELOCs feature a draw period followed by a mandatory repayment phase. The draw window can last up to ten years depending on the lender.
Missed payments threaten home ownership
Failure to repay these debts puts the property itself at direct risk. Lenders hold the legal right to foreclose and sell the home.
Fortune notes that individual rates vary based on credit and equity levels. Borrowers with lower FICO scores or higher loan-to-value ratios face higher costs.
