HELOC and home equity loan rates Monday, February 16, 2026: Likely to remain low for months

Core Insights - Home equity lines of credit (HELOC) and home equity loans (HEL) are currently available at some of the lowest interest rates in years, making it an opportune time for homeowners to seek approval for these products [1] Interest Rates - The average adjustable rate for HELOCs is 7.23%, while the national average fixed rate for home equity loans is 7.44%, both based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70% [2] - HELOC interest rates differ from primary mortgage rates, being based on an index rate plus a margin, with the current prime rate at 6.75% [5] - The best HELOC lenders offer rates as low as 5.99% for an introductory period, which will convert to an adjustable rate after one year [8] Benefits of HELOC and HEL - A HELOC allows homeowners to draw from their approved line of credit as needed, while a home equity loan provides a lump sum [3] - Homeowners with low primary mortgage rates can benefit from a HELOC or HEL without sacrificing their favorable mortgage terms, allowing them to access cash for home improvements or other expenses [12] Market Dynamics - The Federal Reserve estimates that homeowners have $34 trillion in equity in their homes, indicating a significant opportunity for second mortgages like HELOCs and HELs [4] - Lenders have flexibility in pricing second mortgage products, making it essential for borrowers to shop around for the best rates based on their credit score and debt levels [6] Payment Structure - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the 10-year draw period would be approximately $313, but this rate is variable and may increase during the repayment period [13]