HELOC and home equity loan rates today, January 14, 2026: Lowest rates in years

Core Insights - Home equity lines of credit (HELOCs) and home equity loans (HELs) have seen a significant drop in interest rates, now averaging around 7.5% or lower, making them more affordable than in recent years [1][2] Interest Rates Overview - The national 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%, a decrease of three basis points [2] - These rates are applicable to applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70% [2] Home Equity Value - Homeowners have a record amount of equity tied up in their homes, totaling nearly $36 trillion at the end of Q2 2025, the highest ever reported [3] - With mortgage rates around 6%, homeowners are likely to retain their low-rate primary mortgages, making selling less appealing [3] Alternative Financing Options - Accessing home equity through second mortgages like HELOCs or HELs is presented as a viable alternative for homeowners [4] Pricing Mechanism - Home equity interest rates differ from primary mortgage rates, being based on an index rate plus a margin, with the current prime rate at 6.75% [5] - Lenders have flexibility in pricing second mortgage products, and rates can vary based on credit score, existing debt, and the credit line relative to home value [6] Lender Comparison - It is advisable for borrowers to shop around for the best rates and terms, as average national HELOC rates may include introductory rates that can change after a set period [6][9] - The best HELOC lenders typically offer low fees, fixed-rate options, and generous credit lines, allowing homeowners to utilize their equity flexibly [8] Current Offers - FourLeaf Credit Union is currently offering a HELOC rate of 5.99% for the first 12 months on lines up to $500,000, which will convert to a variable rate of 7.25% thereafter [9] Payment Structure - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the 10-year draw period would be approximately $313, but the variable nature of the rate means payments may increase during the repayment period [13]