Home equity line of credit (80% LTV): credit union vs bank
line of credit, 80% LTV · Loan · rates as of December 26, 2025
The national average home equity line of credit (80% ltv) rate is 7.13% at federally insured credit unions versus 7.74% at banks (-0.61 pts). That makes the credit union the better deal on this product - a 0.61-point saving for borrowers. Credit unions charge a lower average HELOC rate than banks. These are national averages, general information, not financial advice or an offer.
Source: NCUA Credit Union and Bank Rates. Data as of December 26, 2025.
What is home equity line of credit (80% ltv)?
A revolving line of credit secured by your home equity (a HELOC) at up to 80% combined loan-to-value. The quoted rate is the national average.
Credit union vs bank average
| Measure | Value |
|---|---|
| Credit union average | 7.13% |
| Bank average | 7.74% |
| Spread (CU minus bank) | -0.61 pts |
| Better deal | Credit union |
Source: NCUA Credit Union and Bank Rates. Data as of December 26, 2025.
Worked example: On a $200,000 balance
On a $200,000 balance, one year of interest is about $14,260 at the credit-union average (7.13%) versus about $15,480 at the bank average (7.74%) - roughly $1,220 less in interest at the credit union in year one. Over a 5-year term the total saving is larger.
Simple illustration on the opening balance, before compounding, fees and taxes. Use the calculator with your own numbers.
How this compares
| Where | Average rate | Better deal |
|---|---|---|
| Credit unions | 7.13% | Yes |
| Banks | 7.74% | No |
Frequently asked questions
Are home equity line of credit (80% ltv) rates better at a credit union or a bank?
Credit unions charge a lower national average rate on this product: 7.13% at credit unions vs 7.74% at banks (a 0.61-point saving for borrowers). Credit unions charge a lower average HELOC rate than banks. This is a national average, not the rate any single institution offers.
What is home equity line of credit (80% ltv)?
A revolving line of credit secured by your home equity (a HELOC) at up to 80% combined loan-to-value. The quoted rate is the national average.
When was this home equity line of credit (80% ltv) rate measured?
These are national averages from the NCUA Credit Union and Bank Rates, 2025 Q4, with rates as of December 26, 2025. The NCUA updates the report quarterly and the underlying survey is collected by S&P Global Market Intelligence. Confirm the live rate with the credit union or bank before deciding.
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Sources & accuracy
NCUA Credit Union and Bank Rates, 2025 Q4 (rates as of December 26, 2025; underlying survey by S&P Global Market Intelligence). National average, general information, not financial advice. The rate you are offered depends on the institution, your credit and the balance. Verify the live rate before deciding. See methodology and disclaimer.
Last updated: 2026-06-22