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There are few cost-effective ways to borrow money in today’s economy. Personal loans, long a reliable way to help make ends meet, now come with interest rates over 12% on average and possibly higher for those without good credit. Credit card interest rates, meanwhile, are comfortably over 20%, near a record high, and are unlikely to decline at any point soon. Neither, then, provides an affordable way to borrow money now, especially if you need a large, five-figure amount.
Homeowners, however, have two cost-effective options worth exploring right now: home equity lines of credit (HELOCs) and home equity loans. Home equity levels in 2025 reached a record high, giving the average homeowner hundreds of thousands of dollars to leverage. And interest rates on both products are comfortably under 10% now, making either much cheaper than a personal loan or a credit card. If used for eligible home repair projects, the interest paid on either may also be tax-deductible. In other words, HELOCs and home equity loans offer homeowners two of the most affordable ways to borrow now (and may continue to in the future).
Before getting started, however, it helps to know what the interest rates are for both products. Below, we’ll detail what to know right now.
See how much home equity you could borrow with a HELOC or loan online now.
What are today’s HELOC interest rates?
The average HELOC interest rate is 7.24% as of February 18, 2026, according to Money. If borrowers shop around online now, however, they may be able to find even lower rates. That said, it’s important to note that HELOC interest rates are variable, meaning that they will change monthly for borrowers based on market conditions.
But while that may have been a significant drawback in the rising interest rate environment of recent years, it could be a positive feature now that interest rates are declining again. And with online marketplaces listing rates, lenders, terms and more in all one location, it may be easier than ever to compare your HELOC options now.
See how low your current HELOC rate offers are here.
What are today’s home equity loan interest rates?
The average home equity loan interest rate is 6.96% as of February 18, 2026, according to Money. That makes a home equity loan not only your cheapest way to borrow home equity right now but also one of the least expensive ways to borrow money overall. Unlike a HELOC, this rate is fixed, meaning that borrowers won’t need to worry about any adverse changes that could cause their rate and payment to rise again.
Still, home equity loan borrowers won’t be able to exploit today’s cooling rate climate the way they would with a HELOC, either, as they’ll need to refinance their loan (and pay refinancing closing costs) to lock in a lower rate in the future. Carefully consider both options, then, and look beyond today’s rates to best determine which product makes the most sense for you now and in the future.
The bottom line
The average HELOC interest rate is 7.24% as of February 18, 2026, while the median home equity loan interest rate stands at just 6.96%. With these being averages, however, and rates changing based on repayment terms, you may be able to secure more competitive rates by shopping around online now. Just remember, no matter which product you choose, to only borrow an amount that you can easily afford to repay. With your home serving as collateral in these exchanges, you must be able to make payments as agreed to in order to avoid foreclosure risks.