HELOC and home equity loan rates Saturday, February 7, 2026: The national average rates to beat

Core Insights - HELOC and home equity loan rates have decreased, with the average HELOC rate at 7.23% and home equity loan rate at 7.44% [2][11] - Homeowners have approximately $34 trillion in equity, but many are unable to access this value due to high primary mortgage rates [3] - Shopping around for lenders is essential as rates can vary significantly based on creditworthiness and loan terms [5][11] Group 1: Current Rates - The average HELOC rate is currently 7.23%, down two basis points from the previous month, while the home equity loan rate is 7.44%, down 12 basis points [2] - The 52-week low for HELOC was 7.19%, and the low for home equity loans was 7.38% in early December 2025 [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] Group 2: Market Dynamics - The Federal Reserve estimates homeowners have $34 trillion in equity, but many are frustrated by the inability to access this value due to high primary mortgage rates [3] - Second mortgage rates, including HELOCs and home equity loans, are based on an index rate plus a margin, with the prime rate currently at 6.75% [4] - Lenders have flexibility in pricing second mortgage products, making it important for borrowers to compare options [5] Group 3: Loan Features - HELOCs allow homeowners to draw from their equity as needed, with the ability to pay back and borrow again, while home equity loans provide a lump sum with fixed rates [7][9] - Introductory rates for HELOCs can be significantly lower than market rates, but they typically convert to variable rates after an initial period [8] - The best home equity loan lenders may be easier to find due to the fixed rate structure, which simplifies the borrowing process [9] Group 4: Borrowing 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 [12] - Monthly payments on a $50,000 HELOC at a 7.50% interest rate would be approximately $313 during the draw period, but rates are variable and can increase [13]