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Home Equity Loan?
Searching for the best mortgage rates? Home equity rates are near 3-year lows as the Fed continues cutting. Compare today's top-rated lenders — free, with no impact on your credit score.*
#1 Pick — See Rates as of Feb 28, 2026
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6.95%*
Avg. home equity rate
$212K
Avg. tappable equity
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*Rates as of Feb 28, 2026. Sources: Bankrate national survey, CBS News, Money.com. Home equity loan avg. 6.95% (Money, Feb 20, 2026). Rates vary by lender, credit score, and LTV.
What Bankrate Mortgage Rates Actually Are
Bankrate is a financial publisher and comparison site — not a mortgage lender. They survey lenders nationwide and publish average rates (currently 6.01% for a 30-year fixed per Freddie Mac, week ending Feb 19, 2026). You cannot get a loan directly from Bankrate.
If you're searching for "Bankrate wholesale mortgage rates," that isn't a specific product either. Wholesale mortgage rates are rates offered by lenders (like United Wholesale Mortgage) through brokers, not directly to consumers. Bankrate publishes educational content about wholesale lenders but doesn't offer wholesale rates.
If you're a homeowner looking to access your equity, home equity products may be a smarter option than refinancing your entire mortgage. With a home equity loan or HELOC, you keep your existing low-rate first mortgage and borrow against your equity separately — at rates near 3-year lows.
Compare today's top-rated home equity lenders below — free, with no impact on your credit score.
The Real Cost of Not Using Your Equity
Illustrative example: what happens when you keep $50,000 in credit card debt instead of consolidating with a home equity product.
Credit Cards at 22% APR
$11,000
Interest paid per year on $50,000
Home Equity Loan at 6.95% APR
$3,475
Interest paid per year on $50,000
That's $7,525 more in your pocket — every year. Over 5 years, you'd save $37,625 in interest.
Illustrative example only. Credit card APR based on the Federal Reserve's Q4 2025 average (22.76%). Home equity loan rate based on Money.com national survey (Feb 2026). Actual rates vary by lender, credit score, and other factors.
The Fed held rates steady Jan 28, 2026 at 3.50%-3.75% after cutting 175 basis points since Sept 2024. Analysts (Goldman Sachs, BlackRock, Morningstar) expect 1-2 additional cuts in 2026, which could push home equity rates lower. Sources: Federal Reserve, Freddie Mac PMMS, Bankrate, CBS News (Feb 2026).
Based on avg. home equity loan rate per Money.com (Feb 2026). Actual payment depends on rate, term, and lender fees.
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Understanding Home Equity Products
Reviewed by a team of financial journalists with over 50 years of combined experience in mortgage and personal finance reporting.
Home Equity Loan (HEL)
- Fixed rate — predictable monthly payments
- Lump sum disbursement at closing
- Interest may be tax deductible if used for home improvements
- Avg. rate: 6.95% (Money.com, Feb 2026)
Best for: Debt consolidation, large renovations, one-time expenses
Home Equity Line of Credit (HELOC)
- Variable rate — drops automatically when Fed cuts
- Draw as needed during draw period (like a credit card)
- Interest may be tax deductible if used for home improvements
- Avg. rate: 7.31% (Bankrate, Feb 2026)
Best for: Ongoing projects, flexible spending, riding rate cuts down
The Smart Strategy for 2026
What financial experts recommend for homeowners who need equity access now
Keep your low primary mortgage rate
If you locked in a rate below 5% during 2020-2021, a cash-out refinance would replace it at today's ~6% rates. A home equity product keeps your first mortgage untouched — you borrow against your equity separately.
Open a HELOC now while rates trend lower
HELOC rates have dropped to 3-year lows, averaging 7.31% per Bankrate (Feb 2026). With a variable rate, you'll automatically benefit from any additional Fed rate cuts expected in 2026 — no refinancing needed, no closing costs.
Refinance everything later when rates drop further
Once mortgage rates reach 5% or lower, consolidate your first mortgage and HELOC into a single low-rate refinance. This approach preserves your existing rate now while positioning you to benefit from future cuts.
Why acting sooner may save you money
The Fed has cut rates 175 basis points since September 2024, with analysts forecasting 1-2 more cuts in 2026. Goldman Sachs and Barclays project cuts in September and December 2026, targeting 3.00%-3.25%. With Fed Chair Powell's term expiring May 2026 and Kevin Warsh nominated as successor, the policy window is shifting. Locking in a HELOC now positions you to capture the downside without waiting.
Sources: Goldman Sachs Outlook 2026, iShares/BlackRock Fed Forecast, Morningstar, CNBC (Feb 2026)
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Frequently Asked Questions
Questions homebuyers ask before comparing rates
01 What are Bankrate mortgage rates?
Bankrate is a financial comparison website — not a lender. They survey hundreds of lenders nationwide and publish average mortgage rates (the 30-year fixed averaged 6.01% as of Feb 19, 2026 per Freddie Mac). You cannot get a mortgage directly from Bankrate. To get an actual rate quote, you need to apply with individual lenders. The lenders listed above offer competitive rates and allow you to check rates without impacting your credit score.
02 What are wholesale mortgage rates?
Wholesale mortgage rates are rates offered by lenders (like United Wholesale Mortgage) through independent mortgage brokers, not directly to consumers. They're typically lower than retail rates because wholesale lenders have lower overhead — they don't maintain branches or loan officers. However, you need to work with a licensed mortgage broker to access wholesale rates. Bankrate publishes educational content about wholesale lenders but does not offer wholesale rates directly.
03 Why consider a home equity product instead of refinancing?
If you locked in a primary mortgage rate below 5% during 2020-2021, a cash-out refinance would replace it at today's ~6% rates — costing you thousands more per year in interest. A home equity loan or HELOC lets you keep your low-rate first mortgage and borrow against your equity separately. With home equity rates near 3-year lows (6.95% HEL, 7.31% HELOC as of February 2026), it's often the smarter financial move.
04 Should I get a HELOC or a home equity loan?
A HELOC offers more flexibility — you draw funds as needed and the variable rate drops automatically when the Fed cuts rates. A home equity loan gives you a lump sum at a fixed rate for predictable payments. In 2026's declining-rate environment, many experts favor HELOCs because they capture rate decreases without refinancing costs. If you need a specific amount for a single project, a fixed-rate home equity loan provides payment certainty.
05 Is now a good time to get a home equity loan or HELOC?
Current rates are near 3-year lows, with the average HELOC at 7.31% and home equity loans at 6.95% as of February 2026. The Fed has cut rates 175 basis points since September 2024, and analysts (Goldman Sachs, Morningstar, BlackRock) expect 1-2 additional cuts in 2026. HELOC rates would automatically decrease with further cuts. The average homeowner has $212,000 in tappable equity, according to ICE Mortgage Monitor.
06 How much equity do I need to qualify?
Most lenders require at least 15-20% equity in your home. For example, if your home is worth $400,000 and you owe $200,000, you have 50% equity ($200,000). Lenders typically allow you to borrow up to 80-85% of your home's value minus your remaining mortgage balance. A credit score of 620-680 is the typical minimum, though the best rates go to borrowers with 740+.
07 Is home equity loan interest tax deductible?
Yes, if you use the funds to buy, build, or substantially improve the home that secures the loan. Under current tax law, you can deduct interest on up to $750,000 of total mortgage debt (including your first mortgage and home equity loan combined). This is a significant advantage over personal loans and credit cards, where interest is not deductible. Consult a tax professional for your specific situation.