Current national average rates for home equity lines of credit and home equity loans are as of 2026 in the mid-7% range. That makes both home equity options more affordable than they have been in three years.
According to real estate analysis firm Curinos, the average HELOC rate is 7.44%. The national average home equity loan rate is 7.59%. Both 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%.
Choosing between a HELOC or a HEL is not that complicated. A HELOC allows you to withdraw funds from your approved line of credit whenever you need to. A home equity loan gives you a lump sum.
As mortgage rates refuse to budge, homeowners with home equity and a favorable primary mortgage rate may feel the frustration of not being able to access that increasing value in their home.
For those unwilling to give up their low home loan rate, a second mortgage in the form of a HELOC or HEL may be a viable solution.
The Federal Reserve estimates that homeowners have $36 trillion of equity locked up within the walls of their homes. A second mortgage allows American homeowners to take advantage of the record equity they have built.
HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is usually the prime rate, which has just fallen to 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.
Lenders have flexibility with the pricing of a second mortgage product, like a HELOC or home equity loan, so it’s worth shopping around. 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.
Today, FourLeaf Credit Union offers a 5.99% HELOC rate for 12 months on lines up to $500,000. This is an introductory rate that will convert to an adjustable rate later. When shopping for lenders, keep both rates in mind.
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 so much from lender to lender that it’s hard to pin down a magic number. You may see rates from almost 6% to as high as 18%. The national average for a HELOC is 7.44% and for a home equity loan it is currently 7.59%. These can serve as a point of reference when comparing rates from second mortgage lenders.
Is it a good idea to get a HELOC or home equity loan right now?
For homeowners with low primary mortgage rates and some equity in their home, it’s probably one of the best times to get 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.
If you withdraw the entire $50,000 from a home equity line of credit and pay an interest rate of 7.50%, your monthly payment over the 10-year withdrawal period would be approximately $313. 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.