Rates for home equity lines of credit and home equity loans currently range from the low 7% range to near 9%, with national averages remaining near 7.5% or lower. According to data from real estate analytics firm Curinos dated Tuesday, January 20, 2026, the average monthly HELOC rate has fallen to 7.25%. The national average rate on a home equity loan is 7.56%.
Both reported rates apply to applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70%. Second mortgage interest rates continue to be viewed as an affordable borrowing method, particularly for homeowners who wish to retain a super-low rate on their first mortgage and avoid refinancing.
The Federal Reserve estimates that homeowners have approximately $36 trillion in equity. A second mortgage allows access to this accumulated equity. For those unwilling to give up a favorable primary mortgage rate, which may be well below current levels near 6%, products like HELOCs or home equity loans present a potential solution to access growing home value.
Home equity interest rates differ from primary mortgage rates. They are typically based on an index rate, such as the prime rate currently at 6.75%, plus a margin set by the lender. A margin addition of 0.75% would result in a variable HELOC rate starting at 7.50%. Home equity loans, being fixed-interest products, may have different margins.
Lenders maintain flexibility in pricing these second mortgage products. Individual rates depend on factors including credit score, existing debt, and the amount drawn relative to home value. It is advised to shop around. Importantly, HELOC rates can include below-market introductory rates, sometimes lasting six months to a year, after which the rate becomes adjustable and often substantially higher. Fixed-rate home equity loans generally do not feature such introductory teaser rates.
When seeking a lender, considerations include low fees, fixed-rate options for HELOCs, and generous credit lines. Some lenders, like FourLeaf Credit Union, are currently offering promotional rates, such as a 5.99% APR for 12 months on lines up to $500,000, which later convert to a variable rate. Borrowers should be aware of both the introductory and subsequent rates. Attention should also be paid to minimum draw amounts required by lenders for HELOCs.
Finding a home equity loan lender may be simpler, as the fixed rate remains constant for the repayment period, eliminating rate variability concerns. There are also no draw minimums, as the loan provides a lump sum. As with any financial product, comparing annual fees, other charges, and repayment terms is recommended.
Rates vary significantly between lenders, from nearly 6% to as high as 18%, depending on creditworthiness and shopping diligence. The national averages of 7.25% for HELOCs and 7.56% for home equity loans serve as benchmarks. For homeowners with low primary mortgage rates and significant equity, considering these options now may be advantageous, allowing cash to be used for purposes like home improvements, repairs, or other needs without forfeiting an existing favorable mortgage rate.
As an example, a full $50,000 withdrawal from a HELOC at a 7.50% interest rate would result in a monthly payment of approximately $313 during a 10-year draw period. However, since HELOC rates are usually variable, payments can increase, especially during the subsequent 20-year repayment period, making the total loan term effectively 30 years. Financial advisors often suggest that these products are best used when the borrowed balance is repaid within a much shorter timeframe.