HELOC and home equity loan rates Saturday, January 17, 2026: Rates inch down, closer to 7%

Core Insights - National average HELOC and home equity loan rates have decreased, with HELOC rates at 7.25% and home equity loan rates at 7.56% [2][11] - Homeowners have approximately $36 trillion in equity that remains inaccessible due to stagnant mortgage rates, making HELOCs and home equity loans viable options for accessing this value [3] HELOC and Home Equity Loan Rates - The average monthly HELOC rate has dropped by 19 basis points from the previous month, while home equity loan rates have decreased by three basis points [2] - Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70% [2] Market Dynamics - The prime rate has recently fallen to 6.75%, affecting second mortgage rates, which are typically based on this index plus a margin [4] - Lenders have flexibility in pricing second mortgage products, and rates can vary significantly based on individual credit scores and debt levels [5] Loan Features - HELOCs often come with introductory rates that may last for a limited time before becoming adjustable, while home equity loans typically have fixed rates [6][9] - The best HELOC lenders offer low fees and generous credit lines, allowing homeowners to draw from their equity as needed [7] Current Offers - FourLeaf Credit Union is currently offering a HELOC APR of 5.99% for the first 12 months on lines up to $500,000, after which the rate will convert to a variable rate [8] - Home equity loans may be easier to find due to their fixed rates, which remain constant throughout the repayment period [9] Financial Considerations - For homeowners with low primary mortgage rates and significant equity, now may be an optimal time to obtain a HELOC or home equity loan for purposes such as home improvements [12] - A $50,000 home equity line of credit at a 7.50% interest rate would result in a monthly payment of approximately $313 during the draw period, but rates are typically variable [13]