Updated: November 5, 2025
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Your HELOC's APR determines your monthly payments and total borrowing cost. The national average HELOC APR is 6.64%. Aven, PNC Bank and TD Bank offer the best rates, with APRs starting at 7.99%, 8.22% and 8.34%.
Your total cost depends on rate discounts and fees beyond APR. Compare terms from multiple lenders to find the HELOC that matches your budget and borrowing needs.
In our research, MoneyGeek assessed each HELOC lender using a rubric that measured APR ranges, annual fees and affordability, among other things, to guide homeowners to the top choices.
Our analysis, completed in March 2024, evaluates banks, lenders and financial companies that partner with federally insured institutions across the United States. Our approach includes entities offering the most competitive rates, catering to a broad spectrum of homeowners seeking the best HELOC options.
Aven's HELOC, with APRs from 7.99% to 15.49% for borrowers with a minimum credit score of 620, is a standout choice for homeowners. Aven offers a credit card backed by your home's equity, providing a nifty 2% unlimited cashback on purchases and a 0.25% rate cut for autopay, without origination, annual fees or prepayment penalties. Its product is a hybrid HELOC that functions similarly to a credit card but is reported as a HELOC to credit bureaus. Drawbacks include a maximum line limit of $250,000 and a one-time 2.5% fee for direct cash out to a bank. The card usually arrives in 10 business days. Unlike some lenders, Aven doesn't offer hardship assistance, which could be a concern during financial bumps.
Pros
Cons
PNC Bank is a standout for homeowners seeking a flexible HELOC with competitive rates from 8.22% to 14.5%. They allow customers to switch from variable to fixed rates and offer a 0.25% rate reduction for autopay from a PNC account. Borrowers benefit from fee reimbursements including valuation and property search, have the opportunity to borrow up to $1 million and get support during financial hardships. The intuitive online tracker streamlines the application process. However, a $50 annual fee applies and borrowers in California and New York must pay origination fees. Some information, such as minimum credit scores and detailed repayment terms, is not disclosed upfront.
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TD Bank offers HELOCs with APRs ranging from 8.34% to 12.69%. It's a solid choice, granting a fixed rate option and a 0.25% rate discount for those with a TD bank checking account. These features can lead to stable payments and potential savings. Nevertheless, TD Bank limits its HELOC availability to 16 states and keeps some pivotal details under wraps like minimum credit score. Minimum borrowing starts at $25,000, coupled with a $50 annual fee. These factors might limit options or slightly increase the cost for some borrowers.
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As of October 2024, the average HELOC interest rate nationwide is 6.15%. This rate measures your interest cost. The national average APR of 6.64% represents your total borrowing cost, including lender fees and expenses over the loan term. APR captures your overall expenses most accurately.
Your HELOC rate depends on your location, credit score and loan-to-value (LTV) ratio. The table below shows how these factors influence your rates and APRs.
| HELOC (10 year) | 6.71% | 6.96% |
| HELOC (15 year) | 6.71% | 6.96% |
| HELOC (20 year) | 6.71% | 6.96% |
Home equity lines of credit (HELOCs) usually have variable rates, meaning your interest rate can change over time. Some lenders offer fixed-rate HELOCs, but these are rare. Understanding rate factors helps you secure better terms and lower costs.
Your credit score, debt-to-income (DTI) ratio and home equity affect your HELOC rates. A stronger financial profile secures lower rates.
The prime rate and federal funds rate, set by banks and the Federal Reserve, directly impact HELOC rates. Changes in these rates shift HELOC interest rates.
Inflation rates and employment figures influence the economy's health, affecting the rates lenders charge for HELOCs.
Loan demand affects interest rates. Higher demand raises rates, while lower demand creates better rates for borrowers.
International events affecting the global economy also impact HELOC rates in the U.S. as lenders react to changes in global financial stability and market conditions.
A competitive HELOC rate saves you money throughout your loan term. You can improve your chances of securing favorable rates.
Pull your credit report and dispute any errors. Higher credit scores earn lower rates, so work on improving yours before applying.
Pay down existing debts before applying. A lower DTI ratio proves you can handle additional debt, which qualifies you for better rates.
More equity means less risk for lenders. Make extra mortgage payments to increase your equity, which strengthens your application.
Get quotes from at least three lenders, including banks, credit unions and online options. Rates and fees vary between lenders.
Present competing quotes to negotiate better rates or lower fees. Lenders compete for qualified borrowers, especially those with strong credit.
A co-signer with good credit and income can help you qualify for lower rates. Remember that co-signers share equal responsibility for repayment.
Track the prime rate and economic indicators. Apply when rates drop to lock in lower borrowing costs.
Compare HELOC lenders when your financial profile is strongest. Strong credit, manageable debts and substantial home equity give you negotiating power. Lenders compete for qualified borrowers, which helps you secure the best rates and lowest fees.
— Timothy Manni, Mortgage and Real Estate Consultant
We've answered common questions about securing competitive HELOC rates.
A good HELOC rate depends on your credit score, debt level and home equity. The national average HELOC APR is 6.64%. Compare rates and fees from multiple lenders.
Yes, lenders may adjust rates or fees to secure your business, especially if you present competitive offers from other lenders.
HELOC rates fluctuate every month, often linked to the Prime Rate, which adjusts according to the Federal Reserve's interest rate determinations.
The lender may initiate foreclosure to recover the borrowed amount. Contact your lender early if you're facing financial difficulties.
Some lenders let you switch from variable rates to fixed-rate HELOCs during the loan term, but this is rare. HELOCs are usually variable-rate products.
Yes, you can refinance a HELOC for a better rate, especially if your credit score has improved or market rates have dropped since you got it.
HELOCs come with fees, including application, appraisal and sometimes annual fees. Understanding the HELOC closing costs helps you assess the total loan cost.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
