Feb 27, 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, there are two questions 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 × 0.80) − Current mortgage balance = Maximum HELOC
Example on a $1 million home with $400,000 remaining on the mortgage:
$1,000,000 × 0.80 = $800,000 − $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. For well-qualified borrowers (780+ credit, strong income, sub-70% CLTV), you'll see the most competitive rates. 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, and analysts expect modest further declines in the second half of 2026 if the Fed cuts as anticipated.
What You Pay Each Month: Draw Period vs. Repayment Period
A HELOC has two distinct phases, each with a different payment structure.
Draw period (typically 10 years): You can borrow as needed, up to your limit. Most HELOCs require interest-only payments during this phase — meaning you're only paying 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 | $603/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 period to repayment period can be significant — and is one of the most important things to plan for. A homeowner who's been paying $603/month in interest on a $100,000 draw will see that rise to $789/month when repayment begins. At $300,000, the jump is from $1,808 to $2,367. Budget for this transition from the beginning.
HELOC vs. Home Equity Loan: The Core Tradeoff
Both products let you borrow against your equity, but they work very differently.
A HELOC is a revolving line of credit. You draw what you need, when you need it, and pay interest only on the drawn amount. Rates are variable — they move with the prime rate, currently 6.75%. When rates fall, your payment falls. When they rise, it rises with them.
A Home Equity Loan (HEL) gives you a lump sum at a fixed rate. You start repaying immediately, on the full amount, regardless of whether you've used it all. There's no flexibility in draw timing, but there's also no rate uncertainty.
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 slightly more per month today, but that rate is locked for the full 20-year term. If rates rise, the HELOC payment rises with them. If rates fall as expected in 2026, the HELOC becomes cheaper.
For large, one-time expenses (a complete kitchen renovation, a roof replacement, medical bills), a home equity loan's predictability has real value. For multi-phase projects or spending you'll do over time, a HELOC's draw-as-you-go flexibility is often worth the variable rate risk.
What Qualifies You — and What Affects Your Rate
Lenders evaluate several factors when setting your HELOC rate and limit:
Credit score: The national averages cited above apply to borrowers with 780+ credit. At 700, you'll still qualify, but expect rates 0.50–1.00% higher. At 680 (the lower threshold at most lenders), the spread widens further.
CLTV: Lower is better. At 70% CLTV or below, you'll qualify for the most competitive rates. Borrowing to 80–85% CLTV 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. On a $1M+ home with a large mortgage, this matters.
Property type: Primary residences get the best rates. Second homes and investment properties typically see rates 0.50–1.50% higher and may face stricter CLTV caps.
Introductory Rates: Read the Fine Print
Some lenders advertise HELOC rates as low as 5.99% or even lower as introductory offers. These teaser rates typically last 6–12 months before resetting to a variable rate based on prime plus a margin. If you're comparing offers, always look at both the introductory rate and the ongoing rate — often expressed as "prime + X%." With prime currently at 6.75%, a margin of 0.75% gives a post-intro rate of 7.50%.
The Bankrate survey as of February 25, 2026 puts the national average at 7.31% for a $30,000 HELOC at 80% CLTV with a 700 credit score. The 7.23% Curinos average cited throughout this article reflects borrowers with 780+ credit and sub-70% CLTV — the benchmark for strongest-qualified borrowers.
Running Your Numbers
The calculations in this article assume a specific draw amount and rate. Your actual costs will vary based on your credit profile, CLTV, lender, and the amount you actually draw.
Use Hauser's HELOC calculator to model your home's available equity and see what different draw amounts cost you in both the draw period and repayment period — side by side, before you commit.
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 the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1]. Interest-only payments calculated as P × (r/12).