Interest rates on home equity lines of credit (HELOCs) and home equity loans are currently at near one-year lows, presenting a prime opportunity for homeowners to secure a below-market interest rate offer. By leveraging the averages provided below and comparing offers from multiple lenders, individuals with good credit and substantial home equity may be able to secure a rate that surpasses the national average.
According to real estate data firm Curinos, the average HELOC rate stands at 7.23%, with the 52-week low recorded at 7.19%. On the other hand, the national average rate for a home equity loan is 7.44%, with a low of 7.38% noted in early December 2025. These rates are applicable to 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 around 6%, homeowners who possess home equity along with a low primary mortgage rate may find it challenging to access the increasing value of their home. In such cases, a home equity line of credit or home equity loan can serve as a viable solution for tapping into the accumulated equity.
The Federal Reserve estimates that homeowners collectively hold $34 trillion in equity within their homes, providing a substantial opportunity for individuals to leverage this equity through second mortgage products like HELOCs or HELs. These second mortgage rates are typically based on an index rate plus a margin, with the prime rate currently sitting at 6.75%. For instance, if a lender adds a margin of 0.75%, the HELOC rate would total 7.50%.
Lenders offer flexibility in pricing for second mortgage products, allowing borrowers to shop around for competitive rates based on factors such as credit score, existing debt levels, and the credit line amount compared to the home’s value. It’s crucial to note that average national HELOC rates may include introductory rates that are temporary and subject to adjustment after the initial period, potentially leading to higher rates.
Unlike HELOCs, home equity loans typically do not feature introductory rates, offering borrowers a fixed rate throughout the loan term. This stability can be advantageous for individuals seeking consistency in their repayment obligations without the uncertainty of fluctuating rates.
To access the equity in your home without sacrificing your low-rate mortgage, consider exploring options like a HELOC or home equity loan. The best HELOC lenders provide low fees, fixed-rate options, and generous credit lines, enabling you to utilize your home equity as needed while concurrently building wealth through mortgage repayments.
As you evaluate different lenders, compare fees, repayment terms, and the fine print to ensure you select a loan that aligns with your financial goals. While the national average rates for HELOCs and home equity loans are 7.23% and 7.44% respectively, individual rates may vary based on your creditworthiness and diligence in researching available offers.
For homeowners with low primary mortgage rates and substantial equity in their homes, securing a HELOC or home equity loan could be a strategic move to access cash for home improvements, repairs, or upgrades without compromising their existing mortgage terms. However, it’s essential to consider the potential variability of HELOC rates and the long-term repayment implications before committing to a loan.
In summary, with interest rates on HELOCs and home equity loans at near one-year lows, homeowners have a valuable opportunity to leverage their home equity for various financial needs. By comparing offers from different lenders and understanding the nuances of second mortgage products, individuals can make informed decisions to optimize their financial situation while preserving the benefits of their existing mortgage arrangements.
