HELOC and home equity loan rates cling to three-year lows. Unlike mortgage rates, which can vary dramatically with bond market movements, second mortgage rates are tied to the prime rate, which only changes with changes in Federal Reserve rates. At the moment, none are expected for the remainder of the year.
The average HELOC rate is 7.24%according to the real estate analysis firm Curinos. The HELOC’s 52-week low was 7.19% in mid-January. The national average home equity loan rate is 7.37%the lowest since early December 2025.
Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value (CLTV) ratio of less than 70%.
With mortgage rates remaining around 6%, homeowners with home equity and a low primary mortgage rate may feel the frustration of not being able to access that growing value in their home. A second mortgage in the form of a HELOC or HEL may be a viable solution.
Home equity interest rates are calculated differently than primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That rate is usually the prime rate, which is currently 6.75%. If a lender added 0.75% as margin, the HELOC would have a rate of 7.50%.
A home equity loan may have a different margin because it is a fixed interest product.
Each lender has its own pricing methodology for second mortgage products, like a HELOC or a home equity loan, so it’s worth comparing. Your rate will depend on your credit score, the amount of debt you have, and the size of your line of credit compared to the value of your home.
And average national HELOC rates may include “introductory” rates that may last only six months or a year. After that, your interest rate will be adjustable, probably starting with a higher rate.
Again, because a home equity loan has a fixed rate, it is unlikely to have a “promotional” introductory rate.
The best HELOC lenders offer low fees, a fixed-rate option, and generous lines of credit. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to the limit of your line of credit. Take out a little; return it. Repeat.
Look for a lender that offers a lower-than-market introductory rate. For example, FourLeaf Credit Union currently offers a HELOC APR of 5.99% for 12 months on lines of up to $500,000. That introductory rate will become a variable rate in one year. When shopping for lenders, keep both rates in mind.
Also, pay attention to the minimum withdrawal amount for a HELOC. The withdrawal is the amount of money a lender requires you to initially withdraw from your equity.
The best home equity loan lenders may be easier to find because the fixed rate you earn will last the entire repayment period. That means just one rate to focus on. And you will receive a lump sum, so there are no withdrawal minimums to consider.
And as always, compare rates and the fine print of payment terms.
Rates vary from lender to lender and depending on where you live. You may see rates from almost 6% to as high as 18%. It really depends on your creditworthiness and how diligent you are as a buyer. The national average for an adjustable rate HELOC is 7.24%, and for a fixed rate home equity loan it is currently 7.37%. Try to match or beat those rates.
For homeowners with low primary mortgage rates and a significant amount of equity in their home, it is likely one of the best times to take out a HELOC, or home equity loan. You don’t give up that great mortgage rate and you can use the cash withdrawn from your equity for things like home improvements, repairs and upgrades. Or almost anything else.
If you take out the full $50,000 on a home line of credit and pay an interest rate of 7.25%, your monthly payment over the 10-year HELOC draw period would be approximately $302. That sounds good, but remember that the rate is usually variable, so it changes periodically and your payments will increase over the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are better if you borrow and pay off the balance in a much shorter period.