HELOC and home equity loan rates Monday, February 2, 2026: Beat these rates and you've got a deal

Core Insights - The average rates for home equity lines of credit (HELOC) and home equity loans are currently below 8%, with some introductory offers significantly lower [1][10] - The average HELOC rate is reported at 7.25% and the average home equity loan rate at 7.56%, based on specific credit criteria [2][10] - Homeowners are sitting on approximately $34 trillion in home equity, which presents opportunities for second mortgages like HELOCs or home equity loans [4] Interest Rates and Terms - HELOC rates are typically based on an index rate plus a margin, with the current prime rate at 6.75%, leading to potential HELOC rates around 7.50% [5] - Home equity loans generally have fixed rates, making them less likely to feature introductory rates compared to HELOCs [7] - Lenders offer varying rates and terms, emphasizing the importance of shopping around for the best deal [6][9] Benefits and Usage - HELOCs provide flexibility, allowing homeowners to draw funds as needed, while home equity loans offer a lump sum [3] - Homeowners with low primary mortgage rates can benefit from accessing their home equity without refinancing their primary mortgage [11] - The cash drawn from home equity can be utilized for various purposes, including home improvements and repairs [11] Lender Offers - Some lenders, like FourLeaf Credit Union, are offering competitive HELOC rates, such as 5.99% for the first 12 months on lines up to $500,000 [8] - The best home equity loan lenders are easier to identify due to the fixed rate structure, which simplifies the repayment process [9]