National average rates for home equity lines of credit and lump-sum home equity loans have moved closer to 7%. Second mortgage home equity rates are now at their lowest point in years.
Data from Curinos shows the average monthly HELOC rate dropped to 7.25% on Saturday, January 10, 2026, a decline of 19 basis points from one month earlier. The national average rate for a home equity loan stands at 7.56%, down three basis points.
These rates apply to applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio below 70%.
The Federal Reserve estimates homeowners hold $36 trillion in home equity. With primary mortgage rates remaining high, some homeowners may find accessing this equity through a second mortgage, like a HELOC or home equity loan, a viable option.
Interest rates for home equity products differ from primary mortgage rates. They are typically based on an index, often the prime rate, plus a margin. The prime rate recently fell to 6.75%. A lender adding a 0.75% margin would result in a HELOC rate of 7.50%.
Home equity loans may have different margins as they are fixed-interest products. Lenders have flexibility in pricing these second mortgages, so shopping around is advised. Rates depend on credit score, debt load, and the credit line amount relative to home value.
National average HELOC rates can include introductory rates lasting six months to a year, after which the rate becomes adjustable and often higher. Home equity loans, being fixed-rate, typically lack such introductory offers.
Some lenders offer below-market introductory rates. For instance, FourLeaf Credit Union currently offers a HELOC APR of 5.99% for 12 months on lines up to $500,000, converting to a variable rate afterward. Borrowers should note both rates and consider HELOC minimum draw requirements.
Home equity loans may be simpler to compare, as the fixed rate lasts the entire repayment term, involves a lump sum with no draw minimums, but still requires fee and term comparisons.
Rates vary widely by lender and location, ranging from nearly 6% to 18%, influenced by creditworthiness and shopping effort. The current national averages are 7.25% for HELOCs and 7.56% for home equity loans.
For homeowners with low primary mortgage rates and substantial equity, now may be a favorable time to consider a HELOC or home equity loan, allowing cash access for purposes like home improvements without sacrificing the existing mortgage rate.
On a $50,000 HELOC at a 7.50% rate, the monthly payment during the 10-year draw period is approximately $313. However, as rates are usually variable, payments can increase during the 20-year repayment period, making HELOCs effectively 30-year loans best suited for shorter borrowing periods.