Rates on home equity lines of credit and home equity loans are lower than they have been in years, and that goes for introductory rate offers, too. For example, Bank of America offers a variable HELOC rate of 4.74% for six months.
Today’s national average monthly HELOC rate is 7.25%. The average rate on a home equity loan is 7.56%according to the data analysis company Curinos.
Both rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value (CLTV) ratio of 70%.
The Federal Reserve estimates that homeowners have $34 trillion in home equity in the third quarter of 2025, just below an all-time high. With mortgage rates near 6%, homeowners are unlikely to abandon their low primary mortgage anytime soon, so selling the home may not be an option. A cash-out refinance may not be feasible either.
Accessing some of the value locked in your home with a second mortgage can be an excellent alternative.
Home equity 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 fallen to 6.75% following three Federal Reserve rate cuts. 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 pricing flexibility with second mortgage products, such as HELOCs or home equity loans, so it pays to shop around. Your rate will depend on your credit score, how much debt you have, and the amount of your line of credit relative to the value of your home.
And average national HELOC rates may include “introductory” rates that can last six months or a year. After that, your interest rate will become variable, probably starting at a substantially higher rate.
Again, because a home equity loan has a fixed rate, it is unlikely to have a “promotional” introductory rate.
FURTHER: Read our guide to the best home equity loan lenders.
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 a variable rate of 7.25% in one year. 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 significantly from lender to lender, making it difficult to pinpoint a single, definitive figure. The current national average for a HELOC is 7.25% and 7.56% for a home equity loan. These can serve as a basis when comparing rates from second mortgage lenders.
It’s probably a good idea to consider a HELOC or home equity loan now. You don’t give up that great primary mortgage rate you’re paying for your home and you can use the cash taken out of your equity for things like home improvements, repairs and upgrades. Almost anything, really.
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 with a HELOC 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.