On January 5, 2026, the reported average rate was 7.44% for a HELOC and 7.59% for a home equity loan, according to figures attributed to Curinos by Yahoo Finance. These are historical benchmarks—not rates available today—and reflect applicants with a credit score of at least 780 and a combined loan-to-value ratio below 70%. Your offer may differ substantially.
January 5, 2026 home equity rate snapshot
| Product | Reported average | Profile and source |
|---|---|---|
| HELOC | 7.44% | Curinos figure reported by Yahoo Finance for January 5, 2026; applicants with a minimum 780 credit score and maximum combined loan-to-value ratio below 70%. |
| Home equity loan | 7.59% | Curinos figure reported by Yahoo Finance for January 5, 2026; applicants with a minimum 780 credit score and maximum combined loan-to-value ratio below 70%. |
The underlying Curinos dataset and its full methodology were not independently available; the figures and borrower assumptions are reported in Yahoo Finance’s dated article. Treat them as a snapshot for a strong borrower profile, not as an offer or a universal national rate.
Why published averages do not always match
Different surveys can produce different averages because they may cover different dates, lenders, borrower profiles, and loan sizes. Bankrate, for example, reported January 7, 2026 survey averages of 8.22% for HELOCs and 7.97% for five-year home equity loans, based on a $30,000 line or loan amount. That is a separate survey from the January 5 Curinos-reported snapshot; the numbers should not be combined to infer a market change. See Bankrate’s January 7 report.
For later context, the Bankrate Monitor HELOC series published on FRED recorded 7.29% on September 30, 2026. Its weekly survey covers 10 large institutions in 10 large U.S. markets and uses a stated profile of 700 FICO, a $30,000 line, 80% LTV, an existing single-family primary residence, and no existing relationship or automatic payment. It is a HELOC measure, not a like-for-like update to both January Curinos figures. Details and series history are available from FRED’s Bankrate Monitor series.
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How a HELOC differs from a home equity loan
HELOC: reusable credit, usually variable-rate
A home equity line of credit lets you borrow repeatedly up to an approved limit. Repaying what you borrowed restores available credit. HELOCs usually have adjustable rates, so the interest cost and payment can change as the rate or balance changes.
Home equity loan: lump sum, fixed or adjustable
A home equity loan provides a specific amount in one disbursement. Its rate may be fixed or adjustable. Because you receive the funds as a lump sum, it may suit a known one-time expense; a line can offer flexibility for costs drawn over time. Which is preferable depends on the contract and how you expect to borrow and repay.
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Both products use the home as collateral. The Consumer Financial Protection Bureau explains that if you already have a mortgage, either product is a second mortgage with payments due in addition to the first. Read the CFPB’s comparison of home equity loans and HELOCs.
Why your quoted rate may differ from the average
A published average cannot predict an individual offer. Lenders may weigh your creditworthiness, income and other finances, home value, equity, requested amount, lien position, property type, and location. Valuation methods can also matter. The relevant factors are described by Bankrate and in interagency home equity lending guidance hosted by the Federal Reserve.
Compare written offers using the same requested amount, property assumptions, and timing. Otherwise, a lower-looking rate may reflect different assumptions rather than a better deal. Do not treat a benchmark as a promise of eligibility.
What to compare in actual offers
- Rate type and introductory terms: Check whether the rate is fixed or variable, whether a promotional period applies, and what happens when it ends.
- APR and fees: Compare the annual percentage rate and lender charges. Ask about minimum draws, annual or inactivity fees, and early-closure charges; these vary by lender and are not universal.
- Access and repayment periods: For a HELOC, identify how long you may draw funds and when repayment begins. Check whether payments during any period cover interest only or also reduce principal.
- Payment scenarios: Estimate payments at your planned balance and at a higher rate. Ask when the required payment could rise and whether principal repayment will cause a step-up.
- Rate limits: Review the contract’s rate cap and floor, if any. Do not assume every HELOC has a cap that limits increases.
- Total cost: Consider the cost if you make only minimum or interest-only payments, not just the initial payment or advertised rate.
Plan for HELOC rate and payment risk
Federal Reserve-hosted interagency guidance warns that HELOCs generally do not have caps limiting rate increases and that rising rates can significantly increase payments. A lender’s underwriting and your contract determine the actual terms; the guidance does not guarantee what a particular agreement provides. Before signing, inspect the agreement and ask the lender to show how payments could change after a rate increase and when principal repayment starts.
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A useful affordability check is to test the payment at a higher rate and at the balance you might actually carry—not only at an introductory rate or a low initial draw. If that scenario would strain your budget, consider whether a fixed-rate structure or a smaller borrowing amount better fits your needs.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Check the benchmark date before using a rate
The CFPB/FFIEC rate-spread tool notes that two sets of Average Prime Offer Rates were published for the week of January 5, 2026; a second set, published January 9, replaced selected fixed-term values in the calculator. APOR is used for mortgage disclosure and rate-spread calculations, not as a direct HELOC quote. The notice is at FFIEC/CFPB’s rate-spread tool. For any rate figure, verify its observation date, borrower assumptions, and product before comparing it with an offer.
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