Home Equity Rates, Fees & Closing Costs (2026)
Fixed home-equity rates loosely track 10-year Treasury yields plus a margin for second-lien risk; HELOCs track prime plus a margin and move with every Fed meeting. Credit score, CLTV, DTI, and occupancy (primary vs. rental) set your personal markup.
Typical fee ranges
- Home equity loan: appraisal $300–$700, origination 0–1%, title/recording $200–$800. Many lenders credit fees for autopay or high balances — ask.
- HELOC: often $0 upfront, then $50–$75 annual fee plus $200–$500 early-termination fee if closed within 2–3 years.
- Prepayment: fixed loans rarely penalize; some HELOCs claw back waived fees if you close early.
APR vs. interest rate
The APR folds fees into a yearly rate so you can compare offers. A “7.99% rate / 8.4% APR” loan with $1,500 fees may lose to an “8.25% / 8.3% APR” loan with $0 fees if you prepay early — run both in the calculator with your actual payoff horizon.
Questions, answered
Should I pay points to lower the rate?
Only if you’ll keep the loan past break-even: $1,000 to cut 0.25% on $50,000 saves ~$7/mo — 12 years to break even. Most second liens don’t survive that long untouched.
Why is my HELOC rate higher than my mortgage?
Second liens lose first in foreclosure, so lenders charge for the risk — typically 1–3 points above first-mortgage rates, more for high CLTV.