As daylight savings time begins, many homeowners are getting ready to enjoy their backyards. This is fueling the popularity of home equity lines of credit (HELOCs) and home equity loans. Using equity to improve your home’s value and lifestyle is a common use of a second mortgage.
According to real estate analytics firm Curinos, the average HELOC rate is 7.20%down three basis points from a month ago. 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 prime home mortgage rates still nearing 6%, homeowners with equity and low prime mortgage rates may not be able to access the rising value of their home. For those who don’t want to give up their low home loan rates, a home equity loan or home equity loan can be the best solution.
Home equity interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate and margin. This indicator is often the primary rate, which has been reduced to only 6.75%. If the lender adds 0.75% as margin, the HELOC will have a rate of 7.50%.
Lenders have flexibility in pricing a second mortgage product, 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, likely starting at a significantly higher rate.
HELs usually don’t have initial rates, so this is one less variable to deal with. The fixed rate at which you get the home equity loan will not change during the life of the agreement.
You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.
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.
At the same time, you pay off your low-interest rate primary mortgage and even earn the equivalent of wealth creation.
Today, LendingTree offers a HELOC APR as low as 6.13% on a $150,000 line of credit. However, keep in mind that HELOCs usually come with variable interest rates, meaning your rate will change periodically. Make sure you can afford the monthly payments if your rate goes up.
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.
The national average for a HELOC is 7.20%, and for a home equity loan is 7.47%. However, rates vary from one lender to another. You may see rates ranging from 6% to 18%. It really depends on your credibility and how expensive a seller you are.
For homeowners with low primary mortgage rates and some equity in their home, this is 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 from your equity for things like home improvements, renovations, and upgrades.
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 may 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.
