National average rates for second mortgage home equity loans and lines of credit are mostly unchanged. Even more importantly, they are just above three-year lows.
The average HELOC rate is 7.20%That’s down three basis points from a month ago, according to real estate analytics firm Corinos. The lowest 52-week HELOC rate was 7.19% in mid-January. The national average home equity loan rate 7.47%up three basis points from last month. The lowest rate was 7.38% in early December 2025.
Rates are based on applicants having a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.
Home interest rates are calculated differently than mortgage rates. Second mortgage rates are based on an index rate and margin. This index is often the prime rate, which is now 6.75%. If the lender adds 0.75% as margin, the HELOC will have a variable rate of 7.50%.
A home equity loan may have different margins, as it is a fixed interest product.
Lenders have flexibility in pricing a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you are taking on, and the amount of your line of credit compared to the value of your home. Shop around a few lenders to find your best interest rate offer.
Today, Four Leaf Credit Union offers a HELOC APR (annual percentage rate) of 5.99% for 12 months on up to $500,000. This is an initial rate that will convert to a variable rate in one year.
When shopping for lenders, be aware of both rates. And as always, compare fees, repayment terms, and minimum payout amounts. A down payment is the amount of money a lender requires you to take from your equity initially.
The best home loan lenders may be easier to find, as the fixed rate you get will last over the repayment period. This means only one price to focus on. And you get a certain amount of money, so don’t draw a minimum to consider.
Rates vary significantly from one lender to another. You may see rates ranging from 6% to 18%. It really depends on your credibility and how willing you are as a customer. Currently, the national average for an adjustable rate HELOC is 7.20%, and for a fixed rate home equity loan it is 7.47%.
Interest rates have fallen for most of 2025. They are expected to remain stable in the first half of 2026. So yes, this is a good time to get a second mortgage. And with a HELOC or HEL, you can use the money you borrow from your home equity for things like home improvements, repairs, and upgrades. Or just about anything else.
If you draw the full $50,000 on your home equity line of credit and pay an interest rate of 7.25%, your monthly payment would be about $302 over a 10-year draw period. This sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year payment cycle. A HELOC is originally a 30-year loan. HELOCs are best if you borrow and pay back the balance over a very short period of time.
