HELOC and home equity loan rates today, March 20, 2026: Ask this important question

Core Insights - The average HELOC rate is currently 7.20%, showing a slight decrease of three basis points from the previous month, while the average home equity loan rate is 7.47%, which has increased by three basis points [2] - Interest rates for HELOCs and home equity loans are influenced by factors such as credit score, debt levels, and the combined loan-to-value ratio [4] - The current economic environment suggests that it is a favorable time to obtain a second mortgage, as interest rates are expected to remain steady through the first half of 2026 [8] Interest Rates - The average HELOC rate is 7.20%, down from 7.23% last month, with a 52-week low of 7.19% recorded in mid-January [2] - The national average for a home equity loan is 7.47%, up from 7.44% 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 of less than 70% [2] Lender Considerations - Lenders have flexibility in pricing HELOCs and home equity loans, and rates can vary significantly based on individual creditworthiness and market conditions [4][7] - It is advisable for borrowers to shop around among different lenders to find the best interest rate offers [4] Loan Features - 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 after the introductory period [5] - Home equity loans provide a fixed interest rate for the duration of the repayment period, making them easier to manage compared to variable-rate HELOCs [6] Payment Structure - For a $50,000 HELOC at a 7.25% interest rate, the monthly payment during the 10-year draw period would be approximately $302, but payments may increase during the repayment period due to the variable nature of the interest rate [10]