Rates on home equity lines of credit (HELOC) and home equity loans have remained relatively stable following the Federal Reserve’s decision to pause rates in 2026. The prime rate has not changed, and second mortgage rates are holding steady near three-year lows.
According to real estate analytics firm Curinos, the average HELOC rate is currently at 7.20%, with a low of 7.19% recorded earlier this year. The national average rate for a home equity loan stands at 7.47%, with a low of 7.38% seen in 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%. For homeowners with equity and a low primary mortgage rate, accessing the increasing value of their home through a HELOC or home equity loan can be a viable solution.
It’s important to note that home equity interest rates differ from primary mortgage rates. Second mortgage rates are typically based on an index rate plus a margin, with the prime rate currently at 6.75%. Lenders have the flexibility to adjust pricing on second mortgage products, so it’s advisable to shop around to find the best rate based on your credit score, debt levels, and the amount of your credit line relative to your home’s value.
Average national HELOC rates may include introductory rates that last for a limited time before becoming adjustable. On the other hand, home equity loans usually offer fixed rates for the duration of the agreement, providing more stability in terms of repayment.
Some of the best HELOC lenders offer low fees, fixed-rate options, and generous credit lines, allowing homeowners to access their equity as needed and repay it over time. While HELOCs may come with variable interest rates, offering flexibility in borrowing and repayment, it’s essential to ensure that you can afford potential rate increases in the future.
For those seeking a more predictable repayment schedule, home equity loans with fixed rates for the entirety of the repayment period may be a better option. Comparing fees and repayment terms across lenders can help you find the best deal for your financial situation.
Overall, national average rates for HELOCs and home equity loans may vary between lenders, ranging from below 6% to as high as 18%. Your specific rate will depend on your creditworthiness and the terms offered by the lender.
For homeowners with low primary mortgage rates and significant equity in their homes, now could be an opportune time to consider a HELOC or home equity loan. By leveraging their equity for home improvements, repairs, or upgrades, homeowners can make the most of their assets while maintaining their favorable mortgage rates.
It’s important to carefully consider the terms and repayment structure of a HELOC or home equity loan before borrowing. While these products can provide convenient access to cash, understanding the potential risks and benefits is crucial in making an informed financial decision.
