HELOC and home equity loan rates today, February 18, 2026: Expected to remain mostly unchanged

Core Insights - Home equity lines of credit (HELOC) and home equity loan rates are currently at multi-year lows, with expectations that rates will remain stable until the next Federal Reserve meeting [1] Group 1: Current Rates - The national average HELOC rate is 7.23%, a decrease of two basis points from the previous month, while the average home equity loan rate is 7.44%, down 12 basis points [2] - Both rates are applicable to applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70% [2] Group 2: Pricing Mechanism - Home equity interest rates are determined by different benchmarks compared to primary mortgage rates; second mortgage rates are based on the prime rate plus a margin, currently set at 6.75% [3] - For example, if a lender adds a 0.75% margin, the HELOC rate would be 7.50% [3] Group 3: Lender Flexibility and Shopping - Lenders have pricing flexibility with second mortgage products, making it beneficial for consumers to shop around for the best rates [4] - The average national HELOC rates may include introductory rates that last for a limited time before converting to variable rates [4] Group 4: Best Practices for Borrowers - The best HELOC lenders typically offer low fees, fixed-rate options, and generous credit lines, allowing borrowers to utilize their home equity flexibly [6] - FourLeaf Credit Union is currently offering a HELOC rate of 5.99% for the first 12 months on lines up to $500,000, which will convert to a variable rate of 7.25% after one year [7] Group 5: Considerations for Borrowers - Current rates for HELOCs and home equity loans vary significantly among lenders, with the national averages serving as a baseline for comparison [9] - It is advisable to consider obtaining a HELOC or home equity loan now, as it allows homeowners to retain favorable primary mortgage rates while accessing cash for various needs [10]