What is a good HELOC rate right now?

"Good" depends on your credit score, your equity and the margin the lender adds to prime. Here is how to tell whether an offer is competitive.

Reviewed by Shawn Way, NMLS #1007298★ 4.9 from 111 reviewsUpdated October 28, 2026

A good rate is a good margin

Nearly every variable HELOC is priced the same way: your rate = prime + margin. Prime is the same for every borrower at every lender, so it can't make one offer better than another. The margin is the part that varies, and on most lines it stays fixed for the life of the loan. That makes the margin the number to compare. See what a HELOC margin is for more on how lenders set it, and the prime rate today for where the index stands.

Lenders set margins mostly by credit score and combined loan-to-value (CLTV). Here are typical market margins and the rates they produce with prime at 7.00%:

How these ranges are set: the middle half of starting rates on 551 primary-home HELOCs that Shawn Way's team funded from August 2026 through October 2026, each expressed as a spread over the prime rate when it closed and added to today's prime. They cover fixed and variable lines and all loan sizes, and update monthly. Historical results, not an offer or a quote; your rate depends on your credit, equity, line size, property and state. Prime 7.00%, as of October 28, 2026.

If your offer lands inside the range for your tier, it's a normal offer. If it's at the bottom of the range, it's a good one. If it's above the range, ask why, or shop it. Your score is the biggest lever; see what credit score you need for a HELOC.

How to judge a HELOC offer

Look at four things, in this order. On a fixed-rate HELOC, compare the rate and the total fees together: a lower rate with a 4% origination fee can cost more than a higher rate with no fee, and HELOC APRs don't include fees.

• The margin. Ask for it in writing as "prime + X." A difference of 0.50 point on the margin is a difference of 0.50 point on every dollar you borrow for as long as you have the line.
• Intro rate vs. fully indexed rate. Many lenders advertise a low introductory rate for 6 or 12 months. After that the rate resets to prime + margin, called the fully indexed rate. That reset rate is what you'll pay for most of the loan.
• Fees. Origination fees, appraisal fees, annual fees, early-closure fees and minimum-draw requirements all add cost. A "no closing cost" line may recapture those costs if you close it within a few years. See HELOC closing costs.
• Caps and floors. A lifetime cap limits how high your rate can go. A floor sets a minimum rate even if prime falls. A high floor can cancel the benefit of a low margin when rates drop. See HELOC rate caps and floors.

Our HELOC offer checker lets you enter an offer's terms and see how it compares with the typical range for your credit tier.

Example: low margin vs. teaser rate

This example assumes prime at 7.00% and a $100,000 balance, interest-only, with prime unchanged. These are illustrative numbers, not offers.

• Offer A: prime + 0.25, or 7.25%, with no intro rate. Monthly interest: $100,000 × 7.25% ÷ 12 = $604.17.
• Offer B: 4.99% intro rate for 6 months, then prime + 1.00, or 8.00%. Intro interest: $100,000 × 4.99% ÷ 12 = $415.83 a month. After the intro: $100,000 × 8.00% ÷ 12 = $666.67 a month.

During the 6 intro months, Offer B saves $188.34 a month, or about $1,130 total. After that it costs $62.50 a month more than Offer A. The intro savings are used up in about 18 more months ($1,130 ÷ $62.50). From roughly month 24 on, Offer A is cheaper, by $750 a year. If you plan to carry a balance for more than two years, the lower margin wins.

What gets you a better rate

• Higher credit score. Crossing into the next tier usually lowers the margin.
• Lower CLTV. Borrowing less against the home, for example staying at or below 80% combined, often earns a better margin.
• Primary residence. Lines on second homes and investment properties usually price higher.
• Relationship discounts. Some lenders cut the margin for autopay or a deposit account. Check whether the discount stays if you close that account.

Your rate will move with prime

A good rate today is not a fixed rate. When the Fed changes its target range, prime follows, and so does every variable HELOC tied to it. The next Fed meeting is December 9, 2026. Your home secures the line, so borrow an amount whose payment you could handle if rates rise. Current typical ranges are on our HELOC rates page.

To see your own numbers, get your HELOC rate from Shawn. Rates shown on this page are typical market ranges, not an offer.

Questions people ask

Is prime plus 1 a good HELOC rate?

Prime plus 1 can be a good HELOC rate, depending on your credit score. It falls within the typical range for scores of 720 to 759, but with 760 or higher you can usually do better, often prime + 0.50 or less.

Is a HELOC rate at prime a good deal?

Yes. A margin of zero is at the bottom of the typical range and usually goes to borrowers with high scores and low CLTV. Check the floor and fees to be sure the total cost holds up.

Should I take a HELOC with a low intro rate?

Only if the margin after the intro period is also competitive. The intro rate lasts months; the margin lasts years.

What is a fully indexed HELOC rate?

A fully indexed HELOC rate is the index plus your margin, the rate you pay once any intro period ends. With prime at 7.00%, a prime + 0.75 line is fully indexed 0.75 point above prime, whatever the intro rate was.

Can I negotiate my HELOC margin?

Often, yes. Showing a competing written offer with a lower margin is the most effective way to ask.

More in HELOC guides

• Credit score for a HELOC
• HELOC closing costs and fees
• How long a HELOC takes
• Does a HELOC require an appraisal?
• Is HELOC interest tax deductible?
• Fixed-rate HELOC options
• Can you pay off a HELOC early?
• How to refinance a HELOC

All HELOC guides →