HELOC and home equity loan rates today, March 6, 2026: Mostly unchanged

Core Insights - National average rates for second mortgage home equity loans and lines of credit remain mostly unchanged and are just above three-year lows [1] Group 1: Current Rates - The average HELOC rate is currently 7.20%, down three basis points from the previous month, with a 52-week low of 7.19% recorded in mid-January [2] - The national average rate for home equity loans is 7.47%, which is up three basis points from last month, with a low of 7.38% noted 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] Group 2: Rate Determination - Home equity interest rates are calculated based on an index rate plus a margin, often using the prime rate, which is currently 6.75% [3] - A HELOC may have a variable rate depending on the margin added by the lender, while home equity loans typically have a fixed interest rate [3] Group 3: Lender Flexibility and Offers - Lenders have flexibility in pricing second mortgage products, and rates depend on factors such as credit score and debt levels [4] - FourLeaf Credit Union is currently offering a HELOC APR of 5.99% for the first 12 months on lines up to $500,000, which will convert to a variable rate after one year [5] - The best home equity loan lenders may be easier to find due to the fixed rate lasting the entire repayment period, eliminating draw minimums [6] Group 4: Market Outlook - Interest rates fell for most of 2025 and are expected to remain steady through the first half of 2026, making it a favorable time to obtain a second mortgage [8] - Cash drawn from a HELOC or home equity loan can be used for various purposes, including home improvements and repairs [8] Group 5: Payment Structure - For a $50,000 home equity line of credit at a 7.25% interest rate, the monthly payment during the 10-year draw period would be approximately $302 [9] - The HELOC typically becomes a 30-year loan, with variable rates that can change periodically, leading to increased payments during the repayment period [10]