Compare HELOC rates for October 2026

What Is a HELOC?

A home equity line of credit (HELOC) is a revolving credit line secured by your home. Instead of a single lump sum, you get a credit limit you can draw from as needed during a set draw period, usually around 10 years, and you pay interest only on what you've borrowed.

How much you can borrow depends on your equity. Many lenders let your mortgage and HELOC together reach 80% to 85% of your home's value. On a $400,000 home with a $190,000 mortgage, an 85% limit works out to a line of up to $150,000.

Because your home secures the line, a HELOC usually costs less than a personal loan or a credit card. It also means your home is at risk if you can't make the payments, so borrow only what you have a plan to repay.

What to Look for in a HELOC

The lowest advertised rate isn't always the cheapest line. Here's what to compare across lenders:

APR, not just the rate. The interest rate sets what you pay on your balance; the APR also reflects certain fees. Comparing APRs side by side gives a truer picture of what each line costs.

Introductory rates. Some lenders offer a discounted rate for the first months, then move to a variable rate tied to the prime rate. Check what the rate becomes after the intro period ends, since that's what you'll pay for most of the loan.

Upfront costs and ongoing fees. Look for origination, appraisal and closing costs, plus annual fees, inactivity fees or early-closure fees. Some lenders cover closing costs but charge them back if you close the line within a few years.

Draw and repayment terms. Know how long you can draw, whether payments are interest-only during that period, and how long you'll have to repay. Your payment can rise sharply once repayment begins.

Rate caps and fixed-rate options. Lifetime rate caps limit how high a variable rate can go, and some lenders let you lock part of your balance at a fixed rate.

HELOC vs. Cash-Out Refinance

A cash-out refinance replaces your current mortgage with a larger one and pays you the difference in cash. A HELOC leaves your first mortgage untouched and adds a separate line on top of it.

If your current mortgage rate is lower than today's rates, a HELOC lets you keep it, and you pay interest only on what you draw. A cash-out refinance can make more sense when current rates are at or below your existing rate, or when you want a single fixed payment for the whole balance.

Closing costs also differ. A refinance resets your whole mortgage and usually carries full closing costs. A HELOC's upfront costs are typically lower, and some lenders cover them.