HELOC and home equity loan rates Sunday, January 11, 2026: At or near 52-week lows

Core Insights - National average rates for home equity lines of credit (HELOCs) and home equity loans (HELs) are at or near 52-week lows, making it crucial for consumers to shop multiple lenders for the best offers [1] Interest Rates - The average HELOC rate is currently 7.25%, down 19 basis points from the previous month, while the average home equity loan rate is 7.56%, three basis points lower than last month [2] - The prime rate has fallen to 6.75%, which influences second mortgage rates, typically calculated as an index rate plus a margin [5] Home Equity Access - Homeowners have approximately $36 trillion in equity locked in their homes, and HELOCs or HELs provide a means to access this equity [4] - For homeowners with low primary mortgage rates, obtaining a HELOC or HEL is an attractive option to leverage home equity without losing favorable mortgage terms [12] Lender Flexibility and Shopping - Lenders have flexibility in pricing second mortgage products, emphasizing the importance of comparing offers based on credit score, debt levels, and home value [6] - The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines, allowing homeowners to utilize their equity as needed [8] Payment Structures - HELOCs typically have variable interest rates, which can fluctuate, while HELs usually offer fixed rates for the duration of the loan [7][10] - For example, a $50,000 HELOC at a 7.50% interest rate would result in a monthly payment of about $313 during the draw period, but payments may increase during the repayment period due to rate variability [13]