Feb 23, 2026
How Much Can You Borrow With a HELOC — and What Will It Cost Each Month?
How much can you borrow with a HELOC? We break down the 80% CLTV rule, current 7.23% rates, and exactly what a $100K-$400K draw costs per month in 2026.
If your home has appreciated significantly -- and for most homeowners in today's market, it has -- you're sitting on equity that can be put to work. A home equity line of credit (HELOC) is one of the most flexible ways to access it. But before you apply, two questions are worth answering precisely: how much can you actually borrow, and what will it cost each month?
Here's a complete breakdown, anchored to current 2026 rates.
The Borrowing Limit: How the 80% CLTV Rule Works
Lenders don't let you borrow against your full home value. Most cap your total borrowing at 80% of your home's current appraised value -- a measure called the combined loan-to-value ratio, or CLTV. The HELOC limit is whatever remains after subtracting your existing mortgage balance.
Formula: (Home value x 0.80) minus current mortgage balance = Maximum HELOC
Example on a $1 million home with $400,000 remaining on the mortgage: $1,000,000 x 0.80 = $800,000 minus $400,000 = $400,000 available HELOC
Some lenders extend to 85% or even 90% CLTV -- but rates climb as you go higher and underwriting tightens. The national averages below are based on Curinos data for borrowers with a minimum 780 credit score and CLTV under 70%.
As of February 27, 2026:
Average HELOC rate: 7.23% (variable, tied to prime rate of 6.75%)
Average Home Equity Loan rate: 7.44% (fixed)
These are the lowest rates since 2022. Analysts expect modest further declines if the Fed cuts as anticipated in the second half of 2026.
What You Pay Each Month: Draw Period vs. Repayment Period
A HELOC has two distinct phases with different payment structures.
Draw period (typically 10 years): You borrow as needed up to your limit. Most HELOCs require interest-only payments -- you pay only on what you've actually drawn, not the full credit line.
Repayment period (typically 20 years): Once the draw period ends, the outstanding balance converts to a fully amortizing loan -- principal plus interest -- over the remaining term.
Draw Period Payments at 7.23% (Interest-Only)
Amount Drawn | Monthly Interest-Only Payment |
|---|---|
$100,000 | $602/mo |
$200,000 | $1,205/mo |
$300,000 | $1,808/mo |
$400,000 | $2,410/mo |
Repayment Period Payments at 7.23% (Principal + Interest, 20 Years)
Outstanding Balance | Monthly Payment |
|---|---|
$100,000 | $789/mo |
$200,000 | $1,578/mo |
$300,000 | $2,367/mo |
$400,000 | $3,157/mo |
The jump from draw to repayment is significant and is one of the most important things to plan for from day one. A homeowner paying $602/month in interest on a $100,000 draw will see that rise to $789/month when repayment begins. At $300,000, the jump goes from $1,808 to $2,367. Budget for this transition before you draw the first dollar.
HELOC vs. Home Equity Loan: The Core Tradeoff
Both products let you borrow against equity, but they work differently. On a $200,000 draw at current rates:
Product | Monthly Payment | Rate Type |
|---|---|---|
HELOC (draw period, interest-only) | $1,205 | Variable 7.23% |
HELOC (repayment period, 20yr P+I) | $1,578 | Variable 7.23% |
Home Equity Loan (20yr P+I) | $1,604 | Fixed 7.44% |
The home equity loan costs $26/month more today, but that rate is locked for the full 20-year term. A HELOC payment rises with the prime rate when rates climb and falls when rates drop. For large one-time expenses where you know the total cost upfront, the home equity loan's predictability has real value. For multi-phase projects where you'll draw incrementally over time, the HELOC's draw-as-you-go flexibility is often worth the variable rate risk.
What Qualifies You -- and What Affects Your Rate
Credit score: National averages apply to 780+ borrowers. At 700, expect rates 0.50-1.00% higher. At 620-680 (the lower threshold at most lenders), the spread widens further.
CLTV: Lower is better. At 70% CLTV or below, you qualify for the most competitive rates. Borrowing to 80-85% is available but comes at a cost.
Debt-to-income ratio: Most lenders want total debt -- including the new HELOC payment -- to stay under 43% of gross income.
Property type: Primary residences get the best rates. Second homes and investment properties typically see rates 0.50-1.50% higher with stricter CLTV caps.
Introductory Rates: Read the Fine Print
Some lenders advertise HELOC rates as low as 5.99% or lower as introductory offers. These teaser rates typically last 6-12 months before resetting to a variable rate based on prime plus a lender margin. With prime currently at 6.75%, a margin of 0.75% produces a post-intro rate of 7.50%. Always look at both the introductory rate and the ongoing rate before comparing offers.
Bankrate's national survey as of February 25, 2026 puts the average at 7.31% for a $30,000 HELOC at 80% CLTV with a 700 credit score. The 7.23% Curinos figure cited throughout this article reflects stronger-qualified borrowers at sub-70% CLTV.
—
Every number in this article assumes a specific draw amount and rate. Your actual costs depend on your credit profile, CLTV, lender, and how much you actually draw. Use Hauser's HELOC calculator to model your home's available equity and see what different draw amounts cost in both the draw period and repayment period.
Sources
Bankrate, Current HELOC Rates in February 2026, February 25, 2026: https://www.bankrate.com/home-equity/heloc-rates/
Yahoo Finance / Curinos, HELOC and Home Equity Loan Rates Today, February 27, 2026: https://finance.yahoo.com/personal-finance/mortgages/article/heloc-home-equity-loan-interest-rates-today-friday-february-27-2026-110054165.html
CBS News, Today's HELOC and Home Equity Loan Interest Rates: February 18, 2026: https://www.cbsnews.com/news/todays-heloc-and-home-equity-loan-interest-rates-february-18-2026/
LendEDU, Current HELOC Rates in February 2026: https://lendedu.com/blog/current-heloc-rates/
All monthly payment calculations use: M = P x [r(1+r)^n] / [(1+r)^n - 1]. Interest-only = P x (APR/12).