HELOC and home equity loan rates are low, but line of credit introductory rates are really impressive. It's easy to find limited time offers near and below 5%, but a handful of lenders are advertising 3.99% — and even 1.99% for 12 months. Rate shopping can be fun when you discover rates like that. HELOC and home equity loan rates: Saturday, February 21, 2026 The average HELOC adjustable rate is 7.23%, according to real estate data firm Curinos. The national average fixed rate on a home equity loan is 7.4 ...

Core Insights - HELOC and home equity loan rates have decreased, with the average HELOC rate at 7.23% and home equity loan rate at 7.44% [2][11] - Homeowners have approximately $34 trillion in equity, but many are unable to access this value due to high primary mortgage rates [3] - Shopping around for lenders is essential as rates can vary significantly based on creditworthiness and loan terms [5][11] Group 1: Current Rates - The average HELOC rate is currently 7.23%, down two basis points from the previous month, while the home equity loan rate is 7.44%, down 12 basis points [2] - The 52-week low for HELOC was 7.19%, and the low for home equity loans was 7.38% 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] Group 2: Market Dynamics - The Federal Reserve estimates homeowners have $34 trillion in equity, but many are frustrated by the inability to access this value due to high primary mortgage rates [3] - Second mortgage rates, including HELOCs and home equity loans, are based on an index rate plus a margin, with the prime rate currently at 6.75% [4] - Lenders have flexibility in pricing second mortgage products, making it important for borrowers to compare options [5] Group 3: Loan Features - HELOCs allow homeowners to draw from their equity as needed, with the ability to pay back and borrow again, while home equity loans provide a lump sum with fixed rates [7][9] - Introductory rates for HELOCs can be significantly lower than market rates, but they typically convert to variable rates after an initial period [8] - The best home equity loan lenders may be easier to find due to the fixed rate structure, which simplifies the borrowing process [9] Group 4: Borrowing Considerations - For homeowners with low primary mortgage rates and significant equity, now may be an optimal time to obtain a HELOC or home equity loan [12] - Monthly payments on a $50,000 HELOC at a 7.50% interest rate would be approximately $313 during the draw period, but rates are variable and can increase [13]

Core Insights - Home equity lines of credit (HELOC) and home equity loan rates are currently near or just below 7.5% with introductory rates available at 5% or less for a limited time [1][2] Group 1: Current Rates - The national average monthly HELOC rate is 7.25% and the average rate on a home equity loan is 7.56% as of February 3, 2026 [2][11] - Introductory rates for HELOCs can be as low as 4.99% for the first six months [1][8] Group 2: Home Equity Value - Homeowners have approximately $34 trillion in home equity as of Q3 2025, just below a record high [3] - With current mortgage rates around 6%, refinancing primary mortgages is unlikely, making second mortgages a viable option for accessing home equity [3] Group 3: Pricing Mechanism - Home equity interest rates are determined by an index rate plus a margin, often based on the prime rate, which is currently at 6.75% [4] - Lenders have flexibility in pricing second mortgage products, and rates can vary significantly based on credit scores and loan-to-value ratios [5][11] Group 4: Lender Comparison - It is advisable for borrowers to shop around for HELOC and home equity loan rates, as they can differ widely among lenders [5][7] - The best HELOC lenders typically offer low fees, fixed-rate options, and generous credit lines [7] Group 5: Payment Structure - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the 10-year draw period would be approximately $313, but payments may increase during the repayment period due to variable rates [13]

Core Insights - HELOC and home equity loan rates are currently stable, averaging around 7.5%, with introductory rates significantly lower but requiring diligent rate shopping [1][11] - The Federal Reserve estimates homeowners have $34 trillion in equity, which many are unable to access due to stagnant mortgage rates [3] HELOC and Home Equity Loan Rates - The average monthly HELOC rate is 7.25%, while the national average for home equity loans is 7.56%, based on applicants with a credit score of at least 780 and a CLTV of less than 70% [2] - Second mortgage rates, including HELOCs, are determined by an index rate plus a margin, with the current prime rate at 6.75% [4] - Lenders have flexibility in pricing second mortgage products, making it beneficial for borrowers to shop around for the best rates [5] Introductory Rates and Lender Options - Introductory rates for HELOCs can be significantly lower than market rates, with some lenders offering rates as low as 5.99% for the first 12 months [8] - Home equity loans typically do not have introductory rates and offer a fixed rate for the duration of the repayment period, simplifying the borrowing process [6][9] Borrowing Considerations - Homeowners with low primary mortgage rates and substantial equity may find it advantageous to obtain a HELOC or home equity loan for various uses, including home improvements [12] - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the draw period would be approximately $313, but rates are usually variable, affecting future payments [13]

Core Insights - National average rates for home equity lines of credit (HELOCs) and home equity loans (HELs) are at or near 52-week lows, making it crucial for consumers to shop multiple lenders for the best offers [1] Interest Rates - The average HELOC rate is currently 7.25%, down 19 basis points from the previous month, while the average home equity loan rate is 7.56%, three basis points lower than last month [2] - The prime rate has fallen to 6.75%, which influences second mortgage rates, typically calculated as an index rate plus a margin [5] Home Equity Access - Homeowners have approximately $36 trillion in equity locked in their homes, and HELOCs or HELs provide a means to access this equity [4] - For homeowners with low primary mortgage rates, obtaining a HELOC or HEL is an attractive option to leverage home equity without losing favorable mortgage terms [12] Lender Flexibility and Shopping - Lenders have flexibility in pricing second mortgage products, emphasizing the importance of comparing offers based on credit score, debt levels, and home value [6] - The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines, allowing homeowners to utilize their equity as needed [8] Payment Structures - HELOCs typically have variable interest rates, which can fluctuate, while HELs usually offer fixed rates for the duration of the loan [7][10] - For example, a $50,000 HELOC at a 7.50% interest rate would result in a monthly payment of about $313 during the draw period, but payments may increase during the repayment period due to rate variability [13]

Core Insights - The current average HELOC rate is 7.75%, which has decreased throughout the year and is at its lowest point for 2025 [1][2] - Homeowners have over $34 trillion in home equity, marking the third-largest amount on record [2] - Accessing home equity through a HELOC is a viable alternative for homeowners with low primary mortgage rates [3][11] HELOC Rates and Trends - The average HELOC rate has dropped by three basis points week over week and 31 basis points since January [2] - Rates are influenced by credit scores and loan-to-value ratios, with a minimum credit score of 780 and a maximum CLTV of 70% for the average rate [2][5] - Lenders have flexibility in pricing HELOCs, making it essential for borrowers to shop around for the best rates [5] How HELOCs Work - A HELOC allows homeowners to access their home equity without refinancing their primary mortgage [6] - Borrowers can draw from their credit line as needed, only paying interest on the amount borrowed [9] - Introductory rates may be offered, but borrowers should be aware of potential rate adjustments after the initial period [8][11] Payment Structure - For a $50,000 HELOC at a 7.75% interest rate, the monthly payment during the draw period would be approximately $323 [12] - Payments may increase during the repayment period, as HELOCs typically convert to a longer-term loan structure [12]