HELOC and home equity loan rates Sunday, January 4, 2026: Lowest in over 36 months

Core Insights - National average rates for home equity lines of credit (HELOCs) and home equity loans (HELs) are currently below 8%, marking the lowest levels in over 36 months [1] - The average HELOC rate is 7.44% and the average home equity loan rate is 7.59%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70% [2] - Homeowners with low primary mortgage rates and significant equity in their homes are in a favorable position to access their home equity without losing their advantageous mortgage rates [3][12] Market Overview - The Federal Reserve estimates that homeowners have approximately $36 trillion in equity locked in their homes, indicating a substantial opportunity for second mortgages like HELOCs and HELs [4] - Interest rates for home equity products are distinct from primary mortgage rates, often based on an index rate plus a margin, with the current prime rate at 6.75% [5] Product Features - HELOCs typically offer variable interest rates, which can fluctuate, while HELs generally provide fixed rates throughout the loan term [6][7] - Lenders have flexibility in pricing second mortgage products, making it beneficial for consumers to shop around for the best rates [6] - The best HELOC lenders provide low fees, fixed-rate options, and generous credit lines, allowing homeowners to utilize their equity as needed [8] Current Offers - LendingTree is currently offering a HELOC APR as low as 6.36% for a credit line of $150,000, although rates can vary significantly based on creditworthiness [9][11] - Monthly payments for a $50,000 HELOC at a 7.50% interest rate would be approximately $313 during the 10-year draw period, but payments may increase during the repayment period due to variable rates [13]