HELOC and home equity loan rates Sunday, February 8, 2026: Get a better-than-average rate

Core Insights - Interest rates for home equity lines of credit (HELOCs) and home equity loans are currently near one-year lows, with potential for lower rates through lender comparison [1][2] - The average HELOC rate is 7.23%, while the average home equity loan rate is 7.44%, with both rates influenced by credit scores and loan-to-value ratios [2][11] - Homeowners with low primary mortgage rates may find HELOCs or home equity loans beneficial for accessing home equity without losing their favorable mortgage rates [3][12] Interest Rate Details - The 52-week low for HELOCs is 7.19%, and the low for home equity loans was 7.38% in early December 2025 [2] - The prime rate, which influences second mortgage rates, has recently fallen to 6.75%, affecting the pricing of HELOCs and home equity loans [5] - Lenders have flexibility in pricing second mortgage products, making it advantageous for borrowers to shop around for the best rates [6] Loan Characteristics - HELOCs typically have variable interest rates and may include introductory rates that last for a limited time, while home equity loans usually offer fixed rates [6][7] - The best HELOC lenders provide low fees, fixed-rate options, and generous credit lines, allowing homeowners to utilize their equity flexibly [8] - Home equity loans provide a lump sum with a fixed interest rate, simplifying repayment terms for borrowers [10] Market Context - The Federal Reserve estimates that homeowners have approximately $34 trillion in equity available, indicating a significant opportunity for accessing home equity through HELOCs and home equity loans [4] - Current market conditions suggest that it may be an opportune time for homeowners with substantial equity and low primary mortgage rates to consider these financial products for home improvements or other expenses [12]