HELOC and home equity loan rates Sunday, January 25, 2026: Get home equity cash without refinancing

Core Insights - Interest rates for home equity lines of credit (HELOCs) and home equity loans are currently averaging in the low to mid 7% range, with the average HELOC rate at 7.25% and home equity loan rate at 7.56% [2][11] - Homeowners with low primary mortgage rates can access their home equity through second mortgages without refinancing their existing loans, making HELOCs and home equity loans attractive options [3][12] Interest Rates and Market Conditions - The Federal Reserve estimates that homeowners have approximately $34 trillion in equity locked in their homes, indicating a significant opportunity for homeowners to tap into this equity through HELOCs or home equity loans [4] - The index rate for second mortgage rates is often based on the prime rate, which is currently at 6.75%, plus a margin that can vary by lender [5] Loan Features and Options - HELOCs typically come with variable interest rates and may include introductory rates that last for a limited time, while home equity loans usually have fixed rates for the duration of the loan [6][7] - Lenders offer various terms and conditions for HELOCs and home equity loans, making it essential for borrowers to shop around for the best rates and terms based on their creditworthiness and financial situation [6][10] Borrowing and Repayment - 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 borrowers should be aware that rates are typically variable and can increase over time [13] - Homeowners can utilize the funds from HELOCs or home equity loans for various purposes, including home improvements and repairs, while maintaining their low-rate primary mortgage [12]