HELOC and home equity loan rates today, January 27, 2026: How long will these low rates last?

Core Insights - Home equity lines of credit (HELOC) and home equity loan (HEL) rates are at multi-year lows, making it an opportune time for homeowners to explore lending options [1][2] - The average HELOC rate is currently 7.25%, while the average HEL rate is 7.56%, based on applicants with a minimum credit score of 780 and a combined loan-to-value ratio of less than 70% [2][12] - Homeowners have approximately $34 trillion in equity available, which can be accessed through second mortgages like HELOCs and HELs [3] Group 1: Current Market Conditions - Second mortgage rates have been declining since reaching their highest levels in decades in late 2023 [1] - Mortgage rates remain near 6%, leading homeowners with favorable primary mortgage rates to consider second mortgages to access home equity [4] Group 2: Loan Types and Features - A HELOC allows homeowners to draw cash as needed, while a HEL provides a lump sum [3] - HELOC rates are typically variable and may include introductory rates that last for a limited time, while HELs usually have fixed rates [5][7][10] Group 3: Lender Considerations - Lenders have flexibility in pricing second mortgage products, and rates can vary significantly based on creditworthiness and other factors [6][12] - Home equity lenders may offer below-market introductory rates, which can be beneficial for borrowers [10] Group 4: Financial Implications - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the draw period would be approximately $313, but rates are variable and can increase over time [14] - Homeowners are encouraged to consider using HELOCs or HELs for home improvements or other significant expenses while maintaining their low primary mortgage rates [13]