HELOC and home equity loan rates today, February 20, 2026: Lowest rates since late 2022

Core Insights - National average rates for second mortgage home equity loans and lines of credit are approaching 7%, marking their lowest point since late 2022 [1] - The average HELOC rate is currently 7.23%, while the average rate for home equity loans is 7.44% [2][8] - Interest rates for HELOCs and home equity loans are expected to remain steady through the first half of 2026, making it a favorable time for homeowners to consider these options [9] 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, with rates influenced by credit scores, debt levels, and the loan-to-value ratio [5] Lender Offers and Comparisons - FourLeaf Credit Union is currently offering a promotional HELOC APR of 5.99% for the first 12 months on lines up to $500,000, which will convert to a variable rate thereafter [6] - It is advisable for borrowers to compare rates, fees, repayment terms, and minimum draw amounts when shopping for lenders [6] Loan Utilization and Payments - Homeowners can utilize HELOCs or home equity loans for various purposes, including home improvements and repairs [9] - 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, with the understanding that rates are typically variable [10]