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Best home equity line of credit (HELOC) rates for February 2024

Updated February 27, 2024
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What are today's average HELOC rates?

LOAN TYPE AVERAGE RATE AVERAGE RATE RANGE
HELOC 9.10% 8.51% – 10.17%

To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. The rates shown above are calculated using a loan or line amount of $30,000, with a FICO score of 700 and a combined loan-to-value ratio of 80 percent.

Note: The above APRs are current as of February 21, 2024. The exact APR you might qualify for depends on your credit score and other factors, such as whether you're an existing customer or enroll in auto-payments.

HELOC rates continue downward trend

HELOC rates steady at 9%

The average rate on a home equity line of credit (HELOC) was 9.1 percent as of Feb. 21, according to Bankrate’s survey of large lenders, a slight change from 9.09 percent the previous week.

HELOCs come with variable interest rates, which change based on the prime rate, in turn tied to Federal Reserve policy. At its Jan. 31 meeting, the Fed announced it would maintain its current target rate in order to further rein in inflation. The central bank meets again in mid-March.

HELOC rates can also change because one or more home equity lenders markets an especially generous rate. That’s one reason why it often pays to search around for HELOC offers, at least for a lower introductory rate.

The share of equity-rich properties in the U.S. (those with 50 percent equity or more) fell in the fourth quarter of 2023, according to ATTOM. Still, homeowners hold sizable amounts of equity, on average.

“There are increasing signs suggesting that the extended period of prosperity in the U.S. housing market may be showing signs of easing,” said Rob Barber, CEO of ATTOM. “Similar things were happening early last year before the market surged in the spring. But the softening of equity follows a dip in resale profits last year for the first time in more than a decade as prices have stopped soaring through the roof.”

Even as rates are high, HELOCs are still more attractively priced compared to unsecured personal loans, which averaged a rate of 11.93 percent this week. If you’re looking to finance a renovation and have equity to tap, a line of credit could be less expensive than a home improvement loan. It’d also save you from a cash-out refinance, which could mean giving up a low rate on your mortgage in exchange for a new one.

A line of credit isn’t the only way to leverage your home’s equity. Another option: home equity loans, or second mortgages, which come with fixed interest rates. As of Feb. 21, the 10-year home equity loan rate averaged 8.89 percent and 15-year home equity loan rate averaged 8.88 percent, according to Bankrate’s survey.

How to get the best HELOC rate

When shopping for a HELOC, look for a competitive interest rate, repayment terms that meet your needs and minimal fees. Loan details presented here are current as of the publication date. Check the lenders’ websites for more current information. The top lenders listed below are selected based on factors such as APR, loan amounts, fees, credit requirements and broad availability.

Before you start shopping for a HELOC, make sure you meet lenders’ requirements. Then, take some time to improve your credit score. If you carry a big credit card balance, pay it down. If your auto loan note is almost done, you might pay it off a month or two early. You might also make a few additional mortgage payments to increase your home equity.
 
Once everything is in order, shop around. To find the best HELOC rate, compare multiple lenders — a rule of thumb is to get quotes from at least three. Remember, the rate is important, but it’s not the only factor you should consider. Competing HELOC rates are likely to be close, so be sure to also scrutinize fees and terms to get a sense of the APR, and make sure you’re not comparing apples to oranges.

Best home equity line of credit (HELOC) rates in February 2024

LOAN TYPE LOAN AMOUNT LOAN TERM CURRENT APR BEST FOR
Up to $500,000 10-year draw, 20-year repay 6.99% Fixed-rate options
$15,000–$1 million 10-year draw, 20-year repay Starting at 6.99% Low fees
$10,000–$1,000,000 10-year draw, 20-year repay Starting at 8.49% Good credit
$15,000–$400,000 5–30 years Starting at 8.10% Fast funding
Starting at $5,000 10-year draw, 15-year repay Not specified Low loan amounts
$15,000–$350,000 10-year draw, unspecified repay Not specified Quick approval
$25,000–$500,000 10-year draw, 20-year repay Starting at 8.625% Flexible membership requirements
$10,000–$1 million 5-30 years (except in TN, where terms are 5-20 years) Not specified Borrowing options
Starting at $25,000 Not specified Not specified In-person service
Starting at $5,000 15 years 5.99% Fast Approvals
$20,000-$400,000 Up to 30 years 7.90% Fixed-rate HELOC
$25,000-$500,000 5-30 years Not Specified Online Lender

Note: The above APRs are current as of February 14, 2024. The exact APR you might qualify for depends on your credit score and other factors, such as whether you're an existing customer or enroll in auto-payments.

Bethpage Federal Credit Union: Best home equity line of credit with a fixed-rate option

Bethpage Federal Credit Union logo
Rating: 3.5 stars out of 5
3.5
Bankrate Score

Overview

Bethpage is a credit union that serves over 400,000 members. The credit union offers mortgage loans, refinance loans and HELOCs. Its HELOCs have zero fees.
 
 
Lender
Bethpage Federal Credit Union
Interest Rates
6.99% APR
Approval Time
Not specified
Max LTV Ratio
Not specified
Minimum Credit Score
Not specified
Available Term Lengths
10-year draw period with a 20-year repayment period
Line of Credit Amount
Up to $1,000,000
Fees
If you close your HELOC within 36 months, you'll need to repay the closing costs you would've paid. Hazard insurance and flood insurance may be required.

Bank of America: Best home equity line of credit for low fees

Bank of America  logo
Rating: 4.2 stars out of 5
4.2
Bankrate Score

Overview

Bank of America offers HELOCs in all 50 states and Washington, D.C., and nixes a lot of fees that other banks charge. You can also shave 0.25 percent off your rate when you set up automatic payments from a Bank of America checking or savings account, up to 0.75 percent off for making an initial withdrawal and up to 0.375 percent off for being a Preferred Rewards client.
 
 
Lender
Bank of America
Interest Rates
Starting at 6.99% APR
Approval time
5-7 weeks
Max LTV Ratio
85%
Minimum Credit Score
Unavailable
Available Term Lengths
10-year draw period with a 20-year repayment period
Line of Credit Amount
Starting at $15,000 to $1,000,000
Fees
Early closure fee of $450, plus taxes and fees, apply to accounts closed within 36 months

Flagstar Bank: Best home equity line of credit for good credit

Flagstar Bank logo
Rating: 3.6 stars out of 5
3.6
Bankrate Score

Overview

Flagstar Bank offers HELOCs that feature flexible withdrawal methods and affordable rates for those who can qualify. If you’re looking for a HELOC that offers attractive terms and you have a solid credit rating, you should check it out.
 
 
Lender
Flagstar Bank
Interest Rates
Starting at 8.49% APR
Approval Time
3-5 days
Max LTV Ratio
89.99%
Minimum Credit Score
680
Available Term Lengths
10-year draw period with a 20-year repayment period
Line of Credit Amount
$10,000 to $1,000,000
Fees
The annual fee is $75 (waived the first year), and borrowers may have to pay back closing fees if the account is closed within 36 months. Some loans require title insurance, government taxes and fees at closing.

Figure: Best home equity line of credit for fast funding

Figure logo
Rating: 4.3 stars out of 5
4.3
Bankrate Score

Overview

Figure is an online lender that offers HELOCs in 41 states and Washington, D.C. Its rates include an origination fee of up to 4.99 percent and discounts for enrolling in autopay and joining one of it partner credit unions. Its HELOC works a bit like a home equity loan in the beginning: You get the full loan amount (minus the origination fee) with a fixed rate. As you pay off the line of credit, you can borrow funds again up to the limit. These draws will get a different interest rate.
 
 
Lender
Figure Lending LLC
Interest Rates
Starting at 8.10%
Approval Time
As little as 5 minutes
Max LTV Ratio
Not specified
Minimum Credit Score
Not specified
Available Term Lengths
5 to 30 years
Line of Credit Amount
$15,000 to $400,000
Fees
Pay an origination fee of up to 4.99% of your initial draw

Citizens: Best home equity line of credit for low amounts

Rating: 4 stars out of 5
4
Bankrate Score

Overview

Established in 1828, Citizens now has 1,000 branches spread across 11 states in the New England, Mid-Atlantic and Midwest regions. If you’re looking to borrow a small amount and you prefer banking in person, Citizens is a solid choice.
 
 
Lender
Citizens
Interest Rates
Not specified
Approval Time
As little as 2-3 minutes
Max LTV Ratio
Not specified
Minimum Credit Score
Not specified
Available Term Lengths
10-year draw period with 15-year repayment period
Line of Credit Amount
Minimum $5,000, but lines over $200,000 are available and have the lowest rates
Fees
There’s a $50 annual fee during the draw period (waived in the first year) and a $350 prepayment fee if you close your HELOC within 36 months.

Lower: Best home equity line of credit for quick approval

Lower logo
Rating: 4 stars out of 5
4
Bankrate Score

Overview

Lower, a fintech company that was founded in 2018, analyzes data to recommend the best loan for each borrower's financial situation. Lower offers mortgages, refinance loans, home equity loans and HELOCs.
 
 
Lender
Lower
Interest Rates
Not Specified
Approval Time
Not specified
Max LTV Ratio
95%
Minimum Credit Score
Not specified
Available Term Lengths
10-year draw period, unspecified repayment period
Line of Credit Amount
$15,000 to $350,000
Fees
There's an origination fee of 1% on each HELOC transaction.

PenFed Credit Union: Best home equity line of credit with flexible membership requirements

Rating: 4.5 stars out of 5
4.5
Bankrate Score

Overview

Pentagon Federal Credit Union, or PenFed, serves 2 million members in all 50 states, Washington, D.C., and military bases in Guam, Puerto Rico and Okinawa. This credit union offers competitive rates on its HELOCs, along with other financial services, including credit cards, checking accounts, savings accounts, mortgages and auto loans.
 
 
Lender
PenFed Credit Union
Interest Rates
Starting at 8.625% APR
Approval Time
Not specified
Max LTV Ratio
85%
Minimum Credit Score
680
Available Term Lengths
10-year draw period with a 20-year repayment period
Line of Credit Amount
$25,000 to $500,000
Fees
$99 annual fee, waived if $99 in interest was paid during the preceding 12-month period; $30 returned loan payment, check or ACH fee; $20 lien processing fee; late fee of 5% of past due amount, with $20 minimum.

PNC: Best home equity line of credit for flexible borrowing options

PNC logo
Rating: 3.2 stars out of 5
3.2
Bankrate Score

Overview

PNC offers HELOCs, mortgage refinancing products and mortgage products. Its products and services vary by location, so you'll need to input your ZIP code on the website to see the rates and terms available to you.
 
 
Lender
PNC
Interest Rates
Not Specified
Approval Time
Not specified
Max LTV Ratio
89.9%
Minimum Credit Score
Not specified
Available Term Lengths
5-30 years (except in TN, where terms are 5-20 years)
Line of Credit Amount
Not Specified
Fees
PNC does not specify any typical fees on its website, but it does charge $100 every time you convert some of your HELOC into a fixed-rate option.
Additional Requirements
PNC does not offer details about additional requirements.

TD Bank: Best home equity line of credit for in-person service

TD Bank logo
Rating: 4.1 stars out of 5
4.1
Bankrate Score

Overview

TD Bank is a great option if you live along the East Coast and prefer to bank in person. With that said, you can also bank by phone, online or via mobile app.
 
 
Lender
TD Bank
Interest Rates
Not specified
Approval Time
2.5 days
Max LTV Ratio
90%
Minimum Credit Score
660
Available Term Lengths
Not specified
Line of Credit Amount
Starting at $25,000
Fees
There’s a $50 annual fee on loans over $50,000 and a $99 origination fee. The 2% termination fee (max $450) applies if you pay the line of credit off and close it within 24 months. You will also have to pay closing costs on lines over $500,000.

Connexus Credit Union: Best home equity line of credit for fast approvals

Connexus Credit Union logo
Rating: 3.5 stars out of 5
3.5
Bankrate Score

Overview

Established in 1935, Connexus offers auto loans, personal loans, student loans, credit cards, banking products and more. Connexus’ HELOC rates are on par with those of other financial institutions on this list, and its approval speeds really shine.
 
 
Lender
Connexus
Interest Rates
5.99% APR
Approval Time
within 30 days of applying
Max LTV Ratio
Not specified
Minimum Credit Score
640
Available Term Lengths
15-year draw period with a15-year repayment term
Line of Credit Amount
Starting at $5,000
Fees
Depending on loan terms and property location, closing costs can range from $175 to $2,000.

Guaranteed Rate Best home equity line of credit with a fixed rate

Rating: 3.3 stars out of 5
3.3
Bankrate Score

Overview

Established in 2000 and headquartered in Chicago, Guaranteed Rate is one of the largest mortgage lenders in the U.S., with more than 850 branches. In 2022, the lender rolled out a fixed-rate home equity line of credit (HELOC) complementing its array of financing options.
 
 
Lender
Guaranteed Rate
Interest Rates
Starting at 7.90% APR
Approval Time
5-10 minutes
Max LTV Ratio
90% - 95%
Minimum Credit Score
620
Available Term Lengths
Two-year to five-year draw period, up to 30-year repayment period
Line of Credit Amount
$20,000-$400,000 (Minimum of $25,001 in Alaska)
Fees
Guaranteed Rate charges a 1.5 percent origination fee for a HELOC. This is deducted from the line of credit, however; you don’t need to bring any money to closing.

Spring EQ: Best home equity line of credit for online servicing

Spring EQ logo
Rating: 3.2 stars out of 5
3.2
Bankrate Score

Overview

Even if you have an average credit score, Spring EQ can help you tap into your home equity with flexible loan terms to fit most borrower profiles. An online lender, it scores strongly for the ease and efficiency of its all-digital experience.
 
 
Lender
Spring EQ
Interest Rates
Not disclosed
Approval Time
Same day, funding in average of 18 business days
Max LTV Ratio
95%
Minimum Credit Score
680
Available Term Lengths
5-30 years
Line of Credit Amount
$25,000-$500,000
Fees
Spring EQ does not disclose its fees, but you may be on the hook for an administration fee, credit report and flood certification fees, document prep fees, title report fees, notary or title fees, recording fees and an appraisal fee.

Methodology

To determine a home equity lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10% 
  • Borrower experience: Rate transparency - 45%; convenience - 35%; customer service - 10%; fixed-rate options - 10%

Learn more about our methodology.

What is a home equity line of credit, or HELOC?

HELOC is a variable-rate home equity product that works like a credit card — you have access to a credit line that you can draw from and pay back as needed. HELOC rates are tied to a benchmark interest rate. As the prime rate moves up or down, so does your HELOC rate. Payments vary depending on the interest rate and how much money you have used.
 
 

How does a HELOC work?

With a HELOC, you’re given a line of credit that’s available for a set time frame (known as the draw period), usually up to 10 years. While most HELOCs have an interest-only draw period, you can make both interest and principal payments to pay off the line of credit faster.

When the line of credit’s draw period expires, you enter the repayment period, which can last up to 20 years. You’ll pay back the outstanding balance that you borrowed, as well as any interest owed. A lender may allow you to renew the credit line.

How do I qualify for a HELOC?

In addition to estimating your home equity, lenders look at your credit history, credit score, income and other debts. Most lenders require a combined loan-to-value ratio (CLTV) of 85 percent or less, a credit score of 620 or higher and a debt-to-income (DTI) ratio below 43 percent to approve you for a home equity line of credit.

Pros and cons of HELOCs

HELOCs combine relatively low interest rates with the flexibility to borrow what you need when you need it. If you need money over an unpredictable period of time, a line of credit is ideal. However, there are always risks when you take out a loan, especially one that's secured by your home. Here are some of the key considerations for getting a HELOC.

PROS

  • Checkmark

    Lets you tap home equity without disturbing the primary mortgage (nice if you’ve locked in a low rate).

  • Checkmark

    Typically lower upfront costs than home equity loans.

  • Checkmark

    Lower interest rates than with credit cards.

  • Checkmark

    Usually low or no closing costs.

  • Checkmark

    Interest charged only on the amount of money you use.

CONS

  • Close X

    Lenders may require minimum draws.

  • Close X

    Interest rates can adjust upward or downward.

  • Close X

    Lenders may charge a variety of fees, including annual fees, application fees, cancellation fees or early closure fees.

  • Close X

    Late or missed payments can damage your credit and put your home at risk.

HELOC vs. home equity loan

While HELOCs and home equity loans are similar in some ways, they have a few distinct differences. These are some of the key factors you should consider when deciding between a HELOC and a home equity loan.

HELOCS HOME EQUITY LOANS
Interest Rates Variable Fixed
APRs Slightly lower Slightly higher
Funds disbursement Line of credit Lump sum
Repayment terms First 5-10 years: Interest-only payments Last 10-20 years: interest and principal 10-30 years of fixed payments
Best for Ongoing home improvement projects, college tuition payments, medical expenses Debt consolidation, large home improvement projects, major purchases

Other alternatives to a HELOC

A HELOC is not the right choice for every borrower. Depending on what you need the money for, one of these alternative options may be a better fit:

HELOC vs. cash-out refinance

cash-out refinance replaces your current home mortgage with a larger home loan. The difference between the original mortgage and the new loan is disbursed to you in a lump sum. The main difference between a cash-out refinance and a HELOC is that a cash-out refinance requires you to replace your current mortgage, while a HELOC leaves your current mortgage intact; it adds an additional debt to your finances.

HELOC vs. reverse mortgage

With a reverse mortgage, you receive an advance on your home equity that you don't have to repay until you leave the home. However, these often come with many fees, and variable interest accrues continuously on the money you receive. These are also only available to older homeowners (62 or older for a Home Equity Conversion Mortgage, the most popular reverse mortgage product, or 55 and older for some proprietary reverse mortgages).

HELOC vs. personal loan

Personal loans may have higher interest rates than home equity loans, but they don't use your home as collateral. Like a home equity loan, they have fixed interest rates and disburse money in a lump sum.

FAQs about home equity lines of credit

Home equity lenders reviewed by Bankrate

Why trust Bankrate?

At Bankrate, our mission is to empower you to make smarter financial decisions. We’ve been comparing and surveying financial institutions for more than 40 years to help you find the right products for your situation. Our award-winning editorial team follows strict guidelines to ensure our content is not influenced by advertisers. Additionally, our content is thoroughly reported and vigorously edited to ensure accuracy.

When shopping for a HELOC, look for a competitive interest rate, repayment terms that meet your needs and minimal fees. Loan details presented here are current as of the publication date. Check the lenders’ websites for more current information. The top lenders listed below are selected based on factors such as APR, loan amounts, fees, credit requirements and broad availability.