HELOC Rates 2026: Current Rates, Trends, and Top Offers

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The Wall Street Journal Prime Rate sits at 7.50% as of early May 2026, down 75 basis points from the 2025 peak. That has pulled HELOC pricing back into the high-7s for prime borrowers and the low-9s for fair credit. The cheapest national HELOC we found this week starts at 7.49% APR; the most expensive prime-borrower offer was 9.74% — a 225 bps spread on identical applications.

Rates aren’t the whole picture, though. Margin over prime, intro-rate windows, fixed-rate lock fees, and CLTV-tier pricing all change the all-in cost. Below: a current snapshot of HELOC rates across 18 lenders, what’s moving the market in 2026, and the rate trend forecast through year end.

How This Guide Works

We polled 18 national HELOC lenders weekly, tracked posted rates and quoted rates for a benchmark borrower (740 FICO, 25% home equity, owner-occupied primary), and cross-checked against Bankrate, Federal Reserve H.15 data, and lender press releases. All rates below are APRs, not “interest rates” — they include any required margin and known recurring fees.

Current HELOC Rates by Lender, May 2026

Lender	Intro APR	Variable APR Range	Margin Over Prime	Max CLTV	Closing Costs
Bank of America	7.49% (6 mo)	7.99% – 9.74%	0.49% – 2.24%	85%	$0
Bethpage Federal CU	6.99% (12 mo)	7.74% – 10.50%	0.24% – 3.00%	80%	$0
Figure	n/a	7.65% – 13.99%	varies	85%	up to 4.99% origination
PenFed	7.89%	7.89% – 9.99%	0.39% – 2.49%	85%	$0 (most states)
US Bank	7.95%	7.95% – 10.55%	0.45% – 3.05%	80%	$0
Third Federal	7.99%	7.99% – 9.49%	0.49% – 1.99%	80%	$0
TD Bank	8.04%	8.04% – 10.79%	0.54% – 3.29%	89.99%	varies
Citizens Bank	8.15%	8.15% – 10.95%	0.65% – 3.45%	80%	$0
Connexus CU	8.24%	8.24% – 10.74%	0.74% – 3.24%	90%	$0
Truist	8.34%	8.34% – 11.10%	0.84% – 3.60%	85%	varies
KeyBank	8.40%	8.40% – 11.25%	0.90% – 3.75%	80%	varies
Discover Home Loans	n/a (fixed only)	7.99% – 10.99%	n/a	90%	$0
Spring EQ	8.49%	8.49% – 13.50%	varies	90%	up to 4.99% origination
BMO	8.55%	8.55% – 11.40%	1.05% – 3.90%	85%	varies
Navy Federal	7.84%	7.84% – 10.10%	0.34% – 2.60%	85% (members)	$0

What Drives HELOC Rates in 2026

HELOC pricing has three layers:

1. The index. Almost every U.S. HELOC is priced as WSJ Prime + Margin. WSJ Prime currently equals the Fed funds upper bound + 3.0% — so when the Fed cuts, prime drops on the same day.
2. Your margin. Set at origination based on credit score, CLTV, line size, and lender promotions. Margin doesn’t change for the life of the line (with rare exceptions).
3. Floors and ceilings. Most lenders impose a lifetime cap (often 18%) and a floor (often the start rate). Floors became common in 2023 and remain standard in 2026.

Rate Trend: What Happened and What’s Next

The Federal Reserve cut its benchmark rate three times in 2025 (a total of 75 bps) and held in early 2026. WSJ Prime moved in lockstep — from 8.25% in early 2025 to 7.50% today. Most rate forecasters surveyed by Mortgage24U expect one or two more 25 bp cuts in 2026 if inflation continues trending toward target, putting prime at 7.00%–7.25% by December. That would push qualifying HELOC rates for strong-credit borrowers into the 6.99%–7.49% range.

The risk case: a re-acceleration in services inflation could keep the Fed on hold, leaving HELOC rates flat through 2026. See our Mortgage Rates Forecast 2026 for the full picture.

HELOC Rates by Credit Tier, May 2026

Credit Tier	Best APR Available	Typical APR	Margin Over Prime
Excellent (760+)	7.49%	7.75% – 8.50%	0.25% – 1.00%
Very Good (720–759)	7.74%	8.25% – 9.25%	0.75% – 1.75%
Good (680–719)	8.24%	9.00% – 10.50%	1.50% – 3.00%
Fair (640–679)	9.49%	10.50% – 12.00%	3.00% – 4.50%
Below 640	Often declined	12.00%+	4.50%+

Intro Rates: Worth It or a Trap?

Many lenders advertise low six- or twelve-month intro APRs. The savings are real but modest — a 12-month 6.99% intro on a $50,000 drawn balance saves about $400 versus an 8.50% rate over the same year. The trap is fixating on the intro and ignoring the margin. Always evaluate the post-intro APR, since you’ll live with it for the next 9–19 years.

A useful rule of thumb: an intro rate is worth taking if the margin (post-intro APR minus current prime) is no more than 50 bps higher than what a non-intro lender would charge you. If you’d save 150 bps for six months but pay 100 bps more for a decade, you lose.

Fixed-Rate Conversion Pricing

Most major lenders now allow you to lock all or part of your HELOC balance at a fixed rate during the draw period. Pricing in May 2026:

Lender	Fixed-Rate Lock APR	Lock Fee	Min Lock Amount
Bank of America	8.49% – 10.49%	$0	$5,000
US Bank	8.74% – 10.99%	$75	$2,000
Citizens Bank	8.99% – 11.25%	$50	$5,000
Truist	9.10% – 11.50%	$50	$5,000
TD Bank	8.95% – 11.00%	$0	$5,000

Locks are particularly valuable in 2026 because they let you trade variable risk for certainty without re-applying for a new loan.

How to Get the Lowest HELOC Rate in 2026: 5 Tactics

1. Prequalify with at least three lenders in different categories: one big bank, one credit union, one online lender. Margins vary by 100+ bps.
2. Push your FICO above 760 before applying — a 740 to 760 jump can save 25–50 bps in margin over the life of the line.
3. Stay under 80% CLTV. Lenders price 80% CLTV materially better than 85%–90%.
4. Bundle banking. Bank of America, US Bank, and Wells Fargo all offer 0.125%–0.50% rate discounts for existing depositors with qualifying balances.
5. Negotiate. Bring your best two written offers and ask the third lender to match. We’ve seen 50 bps moves on a single phone call.

Recommended Offers

💡 Editor’s pick — best intro rate: Bethpage Federal Credit Union — 6.99% intro for 12 months, no closing costs.

💡 Editor’s pick — best ongoing rate: Bank of America HELOC — 7.49% intro, lowest median margin among national banks.

💡 Editor’s pick — fixed-rate alternative: Discover Home Loans — fixed home equity loans from 7.99%, no closing costs.

FAQ — HELOC Rates 2026

Q: What are HELOC rates today, May 2026? A: The lowest qualifying rate we found this week is 7.49% APR (Bank of America intro). The median rate for prime borrowers is 8.25% APR.

Q: Will HELOC rates go down in 2026? A: Most analysts expect 25–50 bps of additional cuts if inflation cooperates, which would push prime to 7.00%–7.25% by year end and HELOC rates roughly the same amount.

Q: How is a HELOC APR calculated? A: It’s the WSJ Prime Rate plus your individual margin (set at origination based on credit, CLTV, and lender pricing). The APR moves with prime; the margin doesn’t.

Q: What is the lowest HELOC rate in 2026? A: 6.99% APR — Bethpage Federal Credit Union’s 12-month intro rate for prime borrowers at 80% CLTV or lower.

Q: Are HELOC rates fixed or variable? A: Variable in nearly all cases. The variable rate is the WSJ Prime Rate plus a fixed margin. Some lenders allow fixed-rate locks on portions of the balance.

Q: How much does my credit score affect my HELOC rate? A: Roughly 75–250 bps difference between excellent and fair credit on the same line size. See the credit-tier table above.

Related Reading on Mortgage24U

• Best HELOC Lenders of 2026: Top 10 Compared
• HELOC Calculator: How Much Can You Actually Borrow?
• How to Qualify for a HELOC in 2026
• Mortgage Rates Forecast 2026
• Mortgage Rates by Credit Score

Final Verdict

HELOC rates in May 2026 are the lowest they’ve been since mid-2022, and most analysts expect modest additional cuts before year end. Lock in pricing with a low-margin lender now if you have a clear use case; if you’re shopping speculatively, Bank of America and Bethpage are the two cleanest entry points among the lenders we tracked. Whatever you choose, prequalify with three options before signing — the spread between best and worst quotes for the same borrower is wide enough to matter.

This article is for informational purposes only and is not financial advice. Rates and lender terms are accurate as of publication and subject to change. Mortgage24U may receive compensation for some placements; rankings are independent.