Key findings
- National average HELOC APR: 7.43% (Bankrate, July 15, 2026) — down roughly 90 basis points year-over-year despite the Federal Reserve holding rates flat all of 2026.
- Cheapest states (tied at 6.90%): Iowa, North Dakota, and South Dakota. Twelve Midwest and South states cluster at or below 6.95%.
- Most expensive states: Hawaii (7.45%), Alaska (7.35%), New York (7.30%). Three Northeast states plus one Pacific and one Mountain outlier make the top 5.
- Total spread across all 50 states: 55 basis points. Small relative to purchase mortgages, but meaningful on large balances.
- Regional averages: Midwest 6.97%, South 7.05%, West 7.15%, Northeast 7.22%. A 25-bp regional swing.
- HELOC vs. fixed home-equity-loan spread compressed to 2 basis points on July 13, 2026 — the tightest we've seen in a decade. Historically the variable HELOC has been 100–150 bps cheaper.
- The Fed held all six meetings so far in 2026. All of the year-over-year rate improvement was earned in the three second-half 2025 cuts (75 bps total).
Methodology
State-level HELOC averages are drawn from a Curinos snapshot re-aggregated at StateLoanRates.com (May–July 2026 timestamp; assumes 780+ FICO and CLTV ≤ 70%). National figures are from Bankrate (July 15, 2026; assumes 700 FICO / 80% CLTV / $30K line) and cross-referenced against LendingTree ($100K HELOC customer average), Money.com, Forbes Advisor, and Experian.
Rate-comparison figures for 30-year fixed and 15-year fixed mortgages are from Freddie Mac's Primary Mortgage Market Survey (July 16, 2026). Federal Reserve prime rate and target funds range are from H.15 Selected Interest Rates. Regional averages are computed from the state-level table using U.S. Census Bureau region definitions and are original to this study.
Individual lender pricing and state availability were verified against public product pages of Bank of America, PNC, Third Federal, U.S. Bank, TD Bank, Figure, Aven, Chase, Citizens, KeyBank, and Connexus Credit Union.
National context: rates are down, but flat since March
The U.S. Prime Rate has been 6.75% since December 2025 — the Federal Reserve cut a total of 75 basis points across three second-half 2025 meetings, then held rates unchanged at all six 2026 meetings so far. Consensus expectations (Polymarket and Forbes Advisor tracking) put the odds of another hold at the July 28–29, 2026 meeting well above 50%.
Because HELOCs price as Prime + margin, they moved down almost mechanically as the Fed cut. Bankrate's national HELOC average has been essentially flat through July 2026 (2-basis-point weekly moves), sitting near the year's high after edging up from spring lows. Bankrate's forecast is a "generally flat rate environment for the balance of 2026," averaging near 7% for HELOCs and 8% for fixed home-equity loans.
Rate comparison across mortgage products (mid-July 2026)
| Product | Rate | Source |
|---|---|---|
| 15-year fixed mortgage | 5.93% | Freddie Mac PMMS, July 16 |
| 30-year fixed mortgage | 6.55% | Freddie Mac PMMS, July 16 |
| 30-year cash-out refinance | ~6.79% APR | Bankrate, July 18 |
| HELOC (variable) | 7.43% | Bankrate, July 15 |
| Home equity loan (fixed) | 8.08% | Bankrate, July 15 |
The ordering — 15-year fixed cheapest, fixed home-equity loan most expensive — reflects both lien position and rate structure. The interesting anomaly is the collapsing HELOC-vs-home-equity-loan spread. Historically, a variable HELOC has been 100–150 basis points cheaper than a fixed home-equity loan; on July 13, 2026, Yahoo Finance recorded a 2-basis-point difference. Borrowers can now lock a fixed rate for almost no premium — a legitimate reason to prefer the fixed product if you plan to hold the balance for years.
Year-over-year: 90 basis points cheaper than a year ago
In July 2025, Prime sat at 7.50%. The three Fed cuts across September, October, and December 2025 dropped it to today's 6.75%. That -75 bps prime move flowed almost directly into HELOC pricing:
- Bankrate national HELOC average: ~8.3%–8.5% (summer 2025) → 7.43% (July 15, 2026) = roughly -90 bps YoY.
- LendingTree $100K HELOC customer average: 8.31% (June 2025) → 7.94% (June 2026) = -37 bps YoY. (Smaller move reflects LendingTree's broader credit mix.)
Practical impact on a $50,000 HELOC balance: the -75 bps prime move saves roughly $31/month in interest, or about $375/year.
The 50-state table
Data source: Curinos snapshot re-aggregated at StateLoanRates.com. Rates are "best-borrower" figures (780+ FICO, CLTV ≤ 70%) and will run 15–20 bps below what a typical borrower with 700 FICO and 80% CLTV sees on Bankrate's national average.
| State | Avg APR | Notes |
|---|---|---|
| Alabama | 6.95% | |
| Alaska | 7.35% | Excluded by Chase, PNC, Connexus, several national lenders |
| Arizona | 7.10% | |
| Arkansas | 6.95% | |
| California | 7.15% | Largest lender pool |
| Colorado | 7.10% | |
| Connecticut | 7.25% | |
| Delaware | 7.20% | |
| Florida | 7.05% | Homestead protections |
| Georgia | 7.05% | |
| Hawaii | 7.45% | Highest in U.S.; excluded by Chase, PNC, Figure, Aven, Connexus |
| Idaho | 7.15% | |
| Illinois | 7.10% | |
| Indiana | 6.95% | |
| Iowa | 6.90% | Tied lowest in U.S. |
| Kansas | 6.95% | |
| Kentucky | 6.95% | |
| Louisiana | 7.10% | Excluded by PNC |
| Maine | 7.20% | |
| Maryland | 7.15% | Excluded by Connexus |
| Massachusetts | 7.25% | Aven not available |
| Michigan | 7.00% | |
| Minnesota | 7.05% | |
| Mississippi | 6.95% | Excluded by PNC |
| Missouri | 6.95% | |
| Montana | 7.20% | |
| Nebraska | 6.95% | |
| Nevada | 7.10% | Excluded by PNC |
| New Hampshire | 7.20% | |
| New Jersey | 7.25% | |
| New Mexico | 7.05% | |
| New York | 7.30% | Figure & Aven not available |
| North Carolina | 7.05% | |
| North Dakota | 6.90% | Tied lowest in U.S. |
| Ohio | 7.00% | |
| Oklahoma | 6.95% | |
| Oregon | 7.15% | |
| Pennsylvania | 7.10% | |
| Rhode Island | 7.20% | |
| South Carolina | 7.05% | Excluded by Chase |
| South Dakota | 6.90% | Tied lowest; excluded by PNC |
| Tennessee | 7.00% | |
| Texas | 7.10% | Unique constitutional rules — see below |
| Utah | 7.10% | |
| Vermont | 7.20% | |
| Virginia | 7.10% | |
| Washington | 7.15% | |
| West Virginia | 7.05% | Aven not available |
| Wisconsin | 7.00% | |
| Wyoming | 7.15% |
Top 10 lowest-rate states
| Rank | State | Avg APR |
|---|---|---|
| 1 (tie) | Iowa | 6.90% |
| 1 (tie) | North Dakota | 6.90% |
| 1 (tie) | South Dakota | 6.90% |
| 4 (tie) | Alabama | 6.95% |
| 4 (tie) | Arkansas | 6.95% |
| 4 (tie) | Indiana | 6.95% |
| 4 (tie) | Kansas | 6.95% |
| 4 (tie) | Kentucky | 6.95% |
| 4 (tie) | Mississippi | 6.95% |
| 4 (tie) | Missouri | 6.95% |
Nebraska and Oklahoma are also at 6.95%, tied for the same rank.
Top 10 highest-rate states
| Rank | State | Avg APR |
|---|---|---|
| 1 | Hawaii | 7.45% |
| 2 | Alaska | 7.35% |
| 3 | New York | 7.30% |
| 4 (tie) | Connecticut | 7.25% |
| 4 (tie) | Massachusetts | 7.25% |
| 4 (tie) | New Jersey | 7.25% |
| 7 (tie) | Delaware | 7.20% |
| 7 (tie) | Maine | 7.20% |
| 7 (tie) | Montana | 7.20% |
| 7 (tie) | New Hampshire | 7.20% |
Rhode Island and Vermont also at 7.20%.
Regional averages
Computed from the state table using Census Bureau region definitions:
| Region | States | Avg APR |
|---|---|---|
| Midwest | IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI (12) | 6.97% |
| South | AL, AR, DE, FL, GA, KY, LA, MD, MS, NC, OK, SC, TN, TX, VA, WV (16) | 7.05% |
| West | AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, WY (13) | 7.15% |
| Northeast | CT, ME, MA, NH, NJ, NY, PA, RI, VT (9) | 7.22% |
Regional spread: 25 basis points. The Midwest is cheapest; the Northeast is most expensive, driven by NY, NJ, MA, and CT concentration. Strip Hawaii and Alaska from the West, and the region's average drops from 7.15% to 7.10%.
What's driving the spread?
Lender competition, not risk
HELOC pricing is not risk-based in the way purchase mortgages are. Individual borrower pricing is risk-based (FICO, CLTV, DTI), but the underlying rate structure — Prime + margin — is nationwide. State-level differences come from the number of lenders competing in each market.
The Midwest's rate advantage traces to dense credit-union footprints in Iowa, North Dakota, and South Dakota. Local credit unions pricing HELOCs 25–50 bps below big-bank competitors force everyone in the market to sharpen their pencils. The Northeast is more concentrated in national-bank pricing, with less credit-union pressure.
Alaska and Hawaii: fewer bidders, higher prices
Chase, PNC, Connexus, and Figure all exclude one or both of Alaska and Hawaii from their HELOC footprint. Fewer bidders in a market equals higher prices — the same dynamic that makes rural mortgages more expensive than urban ones. Hawaii's 7.45% average is 55 bps above the Iowa/ND/SD floor despite the underlying credit risk not being 55 bps worse.
Texas: a state constitution's worth of exceptions
Texas HELOC pricing looks normal (7.10% average) but availability is anything but. Article XVI §50(a)(6) of the Texas Constitution imposes:
- 80% CLTV hard cap (no exceptions)
- 12-day cooling-off period after application before closing
- 2% fee cap (excluding appraisal and title)
- $4,000 minimum draw
- No credit-card or convenience-check draw mechanisms
- Attorney-prepared closing documents required
- "Once cash-out, always cash-out" reclassification of the entire lien
Several national lenders — Figure, PNC's HELOC product, and most out-of-state credit unions — skip Texas entirely. If you're a Texas homeowner, your lender pool is smaller than the state average implies.
The story behind the numbers
Chase re-entered the HELOC market in late 2025
After a five-year pandemic pause, JPMorgan Chase reintroduced its HELOC product in Q4 2025. This is a significant capacity-expansion story: Chase's HELOC pause removed the largest U.S. bank from the market during a period when second-lien demand was structurally growing. Their return has meaningful competitive implications, particularly in states where Chase branches dominate.
Fintechs are disrupting on UX, not price
Figure offers a fixed-rate HELOC (6.55%–15.54%) with a fully digital application. Aven offers a HELOC-backed Visa credit card (7.49%–14.99% variable) with 2% purchase cash back. Neither is meaningfully cheaper than a traditional bank HELOC. Their innovation is speed to close (days, not weeks) and product structure (card vs. draw). If you value velocity over rate, they're compelling; if you value rate over velocity, a large regional bank or credit union usually wins.
The second-lien preference is driving HELOC growth
The Mortgage Bankers Association projects 9.5% growth in HELOC debt outstanding for 2026. The mechanic: a homeowner with a 3.0% first mortgage would rather add a 7.43% HELOC than refinance the entire balance into a 6.79% cash-out. Even though the cash-out rate is lower, the blended cost of keeping the low-rate first and adding a small second-lien HELOC is dramatically lower than refinancing $400K to access $40K.
Tax deductibility remains narrow
Post-TCJA rules were made permanent by the One Big Beautiful Bill Act (Pub. L. 119-21, signed July 4, 2025). HELOC interest is deductible only when proceeds are used to "buy, build, or substantially improve" the securing home, capped at $750K MFJ combined acquisition + qualifying home-equity debt. Debt consolidation, tuition, medical, car purchases, vacations — none of these produce deductible interest. Substantiation requires contracts, permits, and invoices.
What this means for borrowers
If you're deciding whether to open a HELOC, state doesn't matter much. The 55-basis-point spread between Iowa and Hawaii is smaller than the pricing difference between a 780 FICO and a 700 FICO borrower in the same state. Your credit profile, CLTV, and negotiation matter more than your state.
If you're deciding which lender in your state to use, state matters a lot. Some national lenders skip roughly a third of states. Some regional credit unions have exclusive footprints. The lowest advertised rate you see on a rate-shopping page may not even be available where you live. Applying with 2–3 lenders in your state remains the single most effective way to get the best pricing.
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Sources
National / prime rate: Bankrate (bankrate.com/home-equity/heloc-rates), Federal Reserve H.15 (federalreserve.gov/releases/h15/), FRED Bank Prime Loan Rate (fred.stlouisfed.org/series/PRIME), NerdWallet, LendingTree, Money.com, Forbes Advisor, Yahoo Finance, MBA Home Equity Lending Study.
State-level data: StateLoanRates.com HELOC 50-state table (Curinos-sourced), LendEDU, Forbes Advisor state-level rate trends.
Lender-specific: Bank of America, PNC, Third Federal, U.S. Bank, TD Bank, Figure, Aven, Chase, Citizens, KeyBank, Connexus Credit Union product pages.
Comparable products: Freddie Mac PMMS (freddiemac.gcs-web.com), Bankrate cash-out refi rates.
Regulatory: Texas Constitution Art. XVI §50, One Big Beautiful Bill Act (Pub. L. 119-21).
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This study is published under a Creative Commons Attribution 4.0 license. Journalists and analysts are welcome to cite, quote, or reproduce the tables and charts with attribution to HELOCpedia. For a direct interview or additional data cuts (metro-level, segment-level), contact Audi.