Homeowners looking to borrow against the value of their homes are seeing some relief. The average adjustable home equity line of credit rate has fallen to 7.09%, its lowest level of 2026, according to financial-services data firm Curinos.
A home equity line of credit, better known as a HELOC, lets homeowners borrow against the equity they have built in their property without replacing their existing mortgage. That can be especially useful for someone who already has a low fixed mortgage rate and does not want to refinance the entire loan simply to access cash.
A HELOC works somewhat like a credit card. Instead of receiving all the money at once, homeowners receive a credit limit and can borrow from it as needed during what’s known as the draw period. Interest is generally charged only on the amount actually borrowed. Once the draw period ends, borrowers enter the repayment period and can no longer take additional money from the line. The Consumer Financial Protection Bureau says repayment periods commonly last 10 or 20 years.
There is an important catch: HELOC rates are usually variable. That means the interest rate — and potentially the monthly payment — can rise or fall over time. And unlike a credit card or unsecured personal loan, a HELOC is backed by the borrower’s home. If the borrower cannot make the required payments, the lender could ultimately foreclose on the property.
Homeowners should also compare more than the advertised interest rate. HELOCs can carry application, appraisal, closing, annual or early-cancellation fees, depending on the lender. The rate a homeowner receives can also depend on credit history, income, debt, the home’s value and how much equity the homeowner has accumulated.
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Lower HELOC rates can make home equity more attractive as a source of cash, particularly for homeowners who do not want to give up a low-rate first mortgage. But borrowing against a home turns accumulated equity into debt secured by the property. A lower rate can reduce the cost of borrowing, but it does not reduce the importance of having a solid plan for paying the money back.
