HELOC and home equity loan rates today, January 7, 2026: A price break for tapping a home's value

Core Insights - Home equity lines of credit (HELOCs) and home equity loans (HELs) are currently at historically low rates, with averages of 7.44% and 7.59% respectively, providing homeowners with an affordable option to access their home equity without selling or refinancing [2][10] - Homeowners have approximately $36 trillion in home equity, the highest ever recorded, making it a favorable time to consider second mortgages as primary mortgage rates remain high [3] Interest Rates and Pricing - The pricing of HELOCs and HELs is influenced by an index rate plus a margin, with the current prime rate at 6.75%, leading to effective rates around 7.50% for HELOCs [4] - Lenders have flexibility in setting rates for second mortgage products, and it is advisable for borrowers to shop around for the best terms based on their credit score and debt levels [5] Shopping for HELOCs and HELs - Homeowners can maintain their low-rate primary mortgage while accessing home equity through HELOCs or HELs, which can be used for various purposes such as home improvements [11] - It is important to compare lenders not only on interest rates but also on fees and repayment terms, as some lenders may offer introductory rates that change after a set period [8][9] Monthly Payments and Loan Structure - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the draw period would be approximately $313, but borrowers should be aware of the variable nature of the rates [12]