HELOC and home equity loan rates today, February 6, 2026: Intro rates as low as 1.99%

Core Insights - Second mortgage rates, including home equity loans and HELOCs, are at historically low levels, with introductory rates as low as 1.99% APR for one year offered by some credit unions [1] - The average HELOC rate is currently 7.23%, down two basis points from the previous month, while the national average for home equity loans is 7.44%, down 12 basis points [2] - With primary mortgage rates remaining low, homeowners are less likely to sell their homes or refinance, making HELOCs and home equity loans attractive alternatives for accessing home equity [3] Interest Rate Determination - Home equity interest rates are calculated based on an index rate plus a margin, often using the prime rate of 6.75% as a benchmark [4] - Lenders have flexibility in pricing second mortgage products, and rates depend on factors such as credit score and debt levels [5] Lender Offers and Comparisons - Credit unions are offering competitive introductory HELOC rates, such as 5.99% APR for 12 months on lines up to $500,000, which will convert to a variable rate after the introductory period [6] - Home equity loans may be easier to navigate due to fixed rates throughout the repayment period, eliminating concerns about draw minimums [7] Current Market Conditions - Interest rates for HELOCs and home equity loans have decreased throughout 2025 and are expected to remain stable in the first half of 2026, making it a favorable time for obtaining a second mortgage [9] - Funds drawn from HELOCs or home equity loans can be utilized for various purposes, including home improvements and repairs [10] Payment Structure - For a $50,000 home equity line of credit at a 7.50% interest rate, the monthly payment during the 10-year draw period would be approximately $313, but rates are variable and payments may increase during the repayment period [11]