In February 2026, home equity loans (HELs) remain a popular way to tap home equity for home improvements, debt consolidation, major expenses, or education—offering fixed rates and predictable payments. Unlike variable-rate HELOCs, HELs provide a lump sum with fixed terms (typically 5–30 years).
Current national averages sit around 7.44–7.90% APR for strong-credit borrowers (e.g., 780+ score, low CLTV <70–80%). Top lenders offer starting rates in the 6.2–6.8% range for qualified applicants, influenced by the prime rate (~6.75%) plus margins. Rates are lower than personal loans but higher than primary mortgages due to second-lien status.
This 2026 guide highlights the best home equity loan rates and lenders based on February data from Bankrate, Forbes Advisor, NerdWallet, LendingTree, CNBC Select, Yahoo Finance, and others. Key factors: starting APRs, loan amounts/terms, fees, credit requirements, and customer experience. Rates vary by credit, LTV (loan-to-value), location, and equity. Always get personalized quotes—prequalification (soft pull) helps compare without impact. Shop multiple lenders; small differences save thousands.
Understanding Home Equity Loans in 2026
- How they work — Borrow 80–90% of equity (home value minus mortgage); fixed lump sum, fixed rate/payments.
- Pros — Lower rates than unsecured debt, potential tax-deductible interest (if used for home improvements), longer terms.
- Cons — Risk of foreclosure if defaulted; closing costs (2–5% of loan), appraisal fees.
- Requirements — Credit ~620–680+, sufficient equity (typically 15–20% left after loan), stable income, low DTI.
- Current trends — Rates stable/moderately declining with Fed easing; averages down slightly from late 2025 highs.
Note: HELs suit fixed needs; HELOCs better for ongoing/flexible borrowing (rates ~7.23% average).
Key Factors to Consider
- APR — Includes fees; compare total cost.
- Loan Amounts/Terms — $10k–$750k+; 5–30 years.
- Fees — Origination, appraisal, title (~$500–$5,000+); some no-closing-cost options.
- Credit & LTV — Better scores/LTV = lower rates.
- Closing Time — 30–60 days typical.
- Availability — Nationwide vs. regional/credit unions.
Best Home Equity Loan Rates & Lenders in February 2026
Standout options from current data:
1. Rate (Rate Mortgage) — Best for Low Rates & Competitive Offers
Bankrate top HELOC/HEL pick. Starting ~6.20% APR (HEL/HELOC hybrid). Amounts $20k–$400k, up to 30 years. Strong digital process.
Pros: Often lowest advertised rates, fast closings.
Cons: Varies by state/qualifications.
Best for: Rate shoppers with good credit.
2. Third Federal Savings and Loan — Best for Low Rates & Guarantees
Frequently lowest (Bankrate, WSJ, CNBC). Starting ~6.39–6.79% APR. Amounts $10k–$300k, 5–30 years. Lowest Rate Guarantee (beat competitors or $1,000).
Pros: Competitive fixed rates, strong terms.
Cons: Regional focus (stronger in some areas).
Best for: Fixed-rate seekers.
3. Police and Fire Federal Credit Union / Regions Bank — Best Credit Union/Regional Low Rates
Bankrate highlights ~6.74–6.75% starting. Flexible terms.
Pros: Low rates for eligible/members.
Cons: Membership/eligibility required.
Best for: Qualifying borrowers wanting sub-7%.
4. Achieve — Best Mentioned for Low Starting Rates
WSJ lists ~6.24% starting. High LTV options.
Pros: Competitive for strong profiles.
Cons: May require excellent credit.
Best for: High-equity borrowers.
5. PNC Bank — Best Overall Lender (Money.com)
Strong reviews, competitive rates (~7% range), flexible options.
Pros: Nationwide, good service.
Cons: Not always lowest.
Best for: Balanced experience.
6. Rocket Mortgage — Best for Customer Service & Accessibility
CNBC top for service; fixed HELs $45k–$500k. Competitive rates.
Pros: Digital ease, high satisfaction.
Cons: Fees may be higher.
Best for: Online/convenience-focused.
7. Navy Federal Credit Union — Best for Military & High Limits
Forbes/CNBC favorite for eligible. Competitive rates, up to 100% LTV in some cases.
Pros: Member perks, no/low fees.
Cons: Military/family eligibility.
Best for: Veterans/service members.
Other notables: TD Bank (flexible terms), U.S. Bank (high limits), Connexus (no-appraisal options), Better Mortgage (digital/low fees).
Comparison Table: Top Home Equity Loan Rates February 2026
| Lender / Option | Starting APR (Approx.) | Loan Amounts | Terms (Years) | Key Features | Best For |
|---|---|---|---|---|---|
| Rate | ~6.20% | $20k–$400k | Up to 30 | Competitive, digital | Lowest rates |
| Third Federal | ~6.39–6.79% | $10k–$300k | 5–30 | Rate guarantee, fixed | Guarantees & value |
| Police/Fire FCU | ~6.74% | Up to $600k | 5–20 | Credit union low | Eligible members |
| Regions Bank | ~6.75% | $10k–$250k | 10–20 | Regional strength | Mid-range |
| Achieve | ~6.24% | Varies | Varies | High LTV | Strong credit |
| PNC Bank | ~7% range | Varies | Varies | Overall service | Balanced |
| Rocket Mortgage | Competitive | $45k–$500k | 10–20 | Customer service, digital | Convenience |
| Navy Federal | Competitive | High limits | Varies | Military perks | Veterans |
(Averages: National ~7.44–7.90% for excellent credit/low CLTV; best offers sub-7% possible.)
Tips to Get the Best Home Equity Loan Rate
- Shop Multiple — Compare 3–5 quotes; use aggregators (Bankrate, LendingTree).
- Boost Profile — Improve credit, lower DTI, increase equity.
- Consider Credit Unions — Often lower rates (membership easy).
- Lock Rate — If rates rise; fixed protects.
- Minimize Fees — Ask about no-closing-cost options (higher rate trade-off).
- Use for Deductible Purposes — Home improvements may qualify for tax benefits.
- Prequalify — Soft pull for estimates.
Common Mistakes to Avoid
- Not shopping (rates vary 1–2%+).
- Borrowing too much (higher risk/fees).
- Ignoring total costs (focus on APR).
- Skipping appraisal/closing review.
- Using for non-essential spending.
Alternatives
- HELOCs — Variable rates (~7.23% average), flexible draw.
- Cash-Out Refinance — Replace primary mortgage if rates favorable.
- Personal Loans — Unsecured, higher rates.
- 401(k) Loans — If available, no credit check.
Frequently Asked Questions (FAQ)
What’s the average home equity loan rate in February 2026?
~7.44–7.90% national; best offers ~6.2–6.8% for excellent credit/low LTV.
How to get the lowest rate?
Strong credit (740+), low CLTV (<80%), shop credit unions/lenders like Third Federal/Rate.
Home equity loan vs. HELOC?
HEL: Fixed lump sum/rate. HELOC: Revolving line, variable rate.
Closing costs?
2–5% typical; some lenders waive or roll in.
Tax deductible?
Often yes for home improvements; consult advisor.
Conclusion: Tap Equity Wisely in 2026
The best home equity loan rates in the USA for February 2026—led by Rate (~6.20%), Third Federal (~6.39–6.79%), and credit unions like Police and Fire (~6.74%)—offer attractive fixed borrowing amid stable rates. Favorites like Rocket Mortgage (service) and PNC (overall) provide strong alternatives.
Get prequalified today—compare APRs, fees, and terms. Use equity responsibly for value-adding purposes, and consult professionals for personalized fit.
Informational only—not financial advice. Rates/terms change; verify with lenders. Data reflects February 2026 sources.
