Homeowners see little change in the national average for HELOC and home equity loan rates, as the Federal Reserve continues to ease interest rate gaps. Dealers now anticipate no rate cuts before July, keeping second mortgage rates close to current levels.
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%.
With mortgage rates hovering near 6%, homeowners with home equity and low primary mortgage rates may feel desperate to access this rising value in their home. A second mortgage in the form of a HELOC or HEL can be a viable solution.
Home equity interest rates vary more than primary mortgage rates. Second mortgage rates are based on an index rate and margin. This index is usually the prime rate, which is currently 6.75%. If the lender adds 0.75% as margin, the HELOC will 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 a pricing methodology for second mortgage products, such as a HELOC or home equity loan, so it pays to shop around. 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.
And the average national HELOC rates include “introduction” rates that may last only six months or a year. After that, your interest rate will be adjustable, possibly starting at a higher rate.
Again, because a home equity loan has a fixed rate, it is unlikely to have an initial “teaser” rate.
The best HELOC lenders offer low fees, fixed rate options, and generous credit lines. A HELOC allows you to easily access your home equity in any way and in any amount you choose, up to the limit of your credit line. take something out; Repeat the refund.
Look for a lender that offers a below-market initial rate. For example, FourLeaf Credit Union currently offers a HELOC APR 5.99% Up to $500,000 for 12 months. This initial rate will convert to a variable rate in one year. When shopping for lenders, be aware of both rates.
Also, pay attention to the HELOC minimum draw amount. 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.
And as always, compare fees and the fine print of payment terms.
Rates vary from one lender to another – and by where you live. You may see rates ranging from approximately 6% to 18%. It really depends on your credibility and how popular you are. The national average for an adjustable rate HELOC is 7.20%, and for a fixed rate home equity loan is currently 7.47%.
For homeowners with low primary mortgage rates and significant equity in their home, this is likely 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 from your equity for things like home improvements, renovations, 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 will be about $302 over the course of a 10-year HELOC 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 repay over a very short period of time.
