HELOC and home equity loan rates Sunday, February 22, 2026: Monthly payments fall (example: $302 a month)

Core Insights - Interest rates on home equity lines of credit (HELOCs) and home equity loans are at their lowest in years, making monthly payments more affordable [1] - The average HELOC rate is currently 7.23%, while the average home equity loan rate is 7.44% [2] - Homeowners with low primary mortgage rates may find HELOCs and home equity loans to be an effective way to access their home equity without losing their favorable mortgage rates [3][12] Interest Rates Overview - The average HELOC rate is 7.23%, with a 52-week low of 7.19%, while the national average for home equity loans is 7.44%, with a low of 7.38% recorded in early December 2025 [2] - Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70% [2] - The prime rate, which influences second mortgage rates, has recently fallen to 6.75%, affecting the rates for HELOCs and home equity loans [5] Home Equity Access - The Federal Reserve estimates that homeowners have approximately $34 trillion in equity locked in their homes, which can be accessed through HELOCs or home equity loans [4] - HELOCs allow homeowners to draw on their equity as needed, providing flexibility in how funds are used [8] - Home equity loans typically offer fixed rates, providing stability over the life of the loan, unlike HELOCs which may have variable rates [7][10] Lender Considerations - Lenders have flexibility in pricing second mortgage products, making it beneficial for borrowers to shop around for the best rates [6] - Average national HELOC rates may include introductory rates that last for a limited time, after which rates may adjust to higher levels [6] - The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines, making them attractive for homeowners looking to leverage their equity [8] Payment Examples - A HELOC payment example shows a monthly payment of approximately $302 for a $50,000 draw at a 7.25% interest rate, although this rate is typically variable [13] - Homeowners are advised to consider their ability to afford potential increases in monthly payments if interest rates rise [9][13]