Interest rates on home equity lines of credit (HELOCs) and home equity loans are currently at their lowest in years, making monthly payments more affordable for homeowners. According to real estate data firm Curinos, the average HELOC rate is 7.23%, with a 52-week low of 7.19%. The national average rate for a home equity loan is 7.44%, with a low of 7.38% in early December 2025. These rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.
With primary home mortgage rates hovering near 6%, homeowners who have built up equity in their homes may find it challenging to access that equity without giving up their low mortgage rate. In such cases, a home equity line of credit or home equity loan can be a viable solution.
The Federal Reserve estimates that homeowners collectively have $34 trillion in equity locked within their homes. A second mortgage, such as a HELOC or HEL, allows homeowners to tap into this near-record-setting equity.
Home equity interest rates differ from primary mortgage rates, as they are based on an index rate plus a margin. Typically, the prime rate serves as the index, which has recently fallen to 6.75%. Adding a margin of 0.75% would result in a HELOC rate of 7.50%. Lenders have flexibility in pricing second mortgage products, so it’s essential to shop around for the best rate based on factors like credit score, debt amount, and credit line compared to the home value.
It’s important to note that national average HELOC rates may include introductory rates that last for a limited time before becoming adjustable. Home equity loans, on the other hand, typically do not have introductory rates, providing borrowers with a fixed rate for the loan’s duration.
To access home equity without giving up a low-rate primary mortgage, homeowners can consider a second mortgage like a HELOC. The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines, allowing borrowers to utilize their equity as needed while continuing to pay down their primary mortgage.
LendingTree currently offers a HELOC APR as low as 6.13% on a credit line of $150,000. However, it’s essential to be prepared for potential rate fluctuations with variable interest rates. Home equity loans may be a more straightforward option for some borrowers, as they offer a fixed rate for the loan term and provide a lump sum upfront.
When comparing lenders, it’s crucial to consider fees and repayment terms carefully. Rates for HELOCs and home equity loans can vary significantly, ranging from below 6% to as high as 18%, depending on creditworthiness and lender offerings.
Overall, for homeowners with low primary mortgage rates and substantial home equity, now may be an opportune time to consider a HELOC or home equity loan. By leveraging their equity for home improvements, repairs, or upgrades, homeowners can access additional funds while maintaining their favorable mortgage rate. However, it’s important to understand the terms and potential payment fluctuations associated with these second mortgage products to make an informed decision on borrowing against home equity.
