A mixed performance for home equity rates this week, holding near their lowest levels in about three years. The $30,000 home equity line of credit rose one basis point to 7.32%, according to Bankrate’s national survey of lenders. Meanwhile, the five-year $30,000 home equity loan fell two basis points to 7.87%. With home equity borrowing costs still relatively affordable, the decision to borrow against your home’s value depends on a homeowner’s individual situation, says Tom Hutchens, president of Angel O ...

Core Insights - Home equity lines of credit (HELOC) and home equity loans are currently offering some of the lowest interest rates in years, providing homeowners with an opportunity to unlock the value in their homes without selling or refinancing their primary mortgage [1] Interest Rates - The average adjustable rate for HELOCs is 7.23%, while the national average fixed rate for home equity loans is 7.44%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70% [2] - HELOC interest rates differ from primary mortgage rates, being based on an index rate plus a margin, with the current prime rate at 6.75% [5] - The best HELOC lenders are offering rates as low as 5.99% for introductory periods, which will convert to adjustable rates after one year [8] Benefits of HELOC and Home Equity Loans - A HELOC allows homeowners to draw from an approved line of credit as needed, while a home equity loan provides a lump sum [3] - Homeowners with low primary mortgage rates can benefit from obtaining a HELOC or home equity loan without losing their favorable mortgage rate, allowing them to use the cash for various purposes [11] Lender Flexibility and Comparison - Lenders have flexibility in pricing second mortgage products, making it essential for borrowers to shop around for the best rates based on their credit score and debt levels [6] - The best home equity loan lenders may be easier to find due to the fixed rate lasting throughout the repayment period, simplifying the borrowing process [9] Monthly Payments and Loan 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, but this rate is variable and may increase during the repayment period [12]

Core Insights - Home equity lines of credit (HELOC) and home equity loan (HEL) rates are currently near 52-week lows, making them attractive options for homeowners looking to access their home’s value without refinancing their primary mortgage [1][4] Group 1: Current Rates and Trends - The average monthly HELOC rate has decreased to 7.23%, with a 52-week low of 7.19% recorded in mid-January [2] - The national average rate for home equity loans stands at 7.44%, with a 52-week low of 7.38% noted in early December [2] - Rates are determined 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: Product Comparison - A HELOC allows homeowners to draw cash as needed from an approved line of credit, while a home equity loan provides a lump sum [3] - Home equity interest rates differ from primary mortgage rates, typically based on an index rate plus a margin, with the current prime rate at 6.75% [5] - Lenders have flexibility in pricing second mortgage products, and it is advisable for borrowers to shop around for the best rates [6] Group 3: Lender Considerations - Some lenders may offer below-market introductory rates for HELOCs, which can last for a limited time before converting to a variable rate [6][9] - Home equity loans generally do not feature introductory rates, providing a fixed interest rate throughout the repayment period [7][12] - It is important to consider minimum draw amounts for HELOCs, as some lenders may require a significant initial draw [11] Group 4: Usage and Recommendations - Homeowners with low primary mortgage rates and significant home equity are encouraged to consider HELOCs or HELs for accessing cash for home improvements or other expenses [14] - The national average rates for HELOCs and HELs can serve as a benchmark when comparing offers from different lenders [13]

Core Insights - Interest rates for home equity lines of credit (HELOCs) and home equity loans are currently at one-year lows, providing an opportunity for homeowners to secure below-market rates if they shop around [1][2] Interest Rates Overview - The average HELOC rate is 7.23%, with a 52-week low of 7.19%. 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 combined loan-to-value ratio (CLTV) of less than 70% [2] Home Equity Access - Homeowners with low primary mortgage rates may find it challenging to access their home's increasing value. HELOCs or home equity loans can provide a solution without sacrificing their low mortgage rates [3] - The Federal Reserve estimates that homeowners have approximately $34 trillion in equity locked in their homes, indicating a significant opportunity for accessing this equity through second mortgages like HELOCs or home equity loans [4] Rate Structure and Flexibility - Home equity interest rates differ from primary mortgage rates, typically based on an index rate plus a margin. For example, with a prime rate of 6.75% and a margin of 0.75%, the HELOC rate would be 7.50% [5] - Lenders have flexibility in pricing second mortgage products, making it beneficial for borrowers to compare offers based on credit score, debt levels, and credit line relative to home value [6] Loan Types and Features - HELOCs often come with introductory rates that may last for a limited time, after which rates become adjustable. In contrast, home equity loans (HELs) usually have fixed rates for the duration of the loan [6][7] - The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines, allowing homeowners to utilize their equity as needed [8] Current Offers and Considerations - LendingTree currently offers a HELOC APR as low as 6.13% for a credit line of $150,000, but borrowers should be aware of the variable nature of HELOC rates [9] - Home equity loans may be easier to navigate due to their fixed rates and lump-sum disbursement, eliminating concerns about draw minimums [10] Market Conditions and Recommendations - The national average for HELOCs is 7.23% and 7.44% for home equity loans, with rates varying significantly based on lender and borrower creditworthiness [11] - For homeowners with low primary mortgage rates and substantial equity, now may be an optimal time to consider a HELOC or home equity loan for purposes such as home improvements [12]

Core Insights - HELOC and home equity loan rates are currently near one-year lows, with the average HELOC rate at 7.23% and home equity loan rate at 7.44% [2][11] - Homeowners with low primary mortgage rates and significant home equity may find it advantageous to obtain a HELOC or home equity loan now [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% in early December 2025 [2] - Second mortgage rates, including HELOCs, are based on an index rate plus a margin, often tied to the prime rate, which is currently at 6.75% [4] Lender Flexibility and Shopping - Lenders have flexibility in pricing second mortgage products, making it essential for borrowers to shop around for the best rates based on credit score and debt levels [5] - Introductory rates for HELOCs may be significantly lower than market rates but typically convert to adjustable rates after an initial period [7][8] Loan Structure and Payment - Home equity loans generally have fixed rates, providing stability over the repayment period, while HELOCs may have variable rates that can change [6][9] - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the draw period would be approximately $313, but payments may increase during the repayment period [13]

Core Insights - Second mortgage rates, including home equity loans and HELOCs, are at historically low levels, with introductory rates as low as 1.99% APR for one year offered by some credit unions [1] - The average HELOC rate is currently 7.23%, down two basis points from the previous month, while the national average for home equity loans is 7.44%, down 12 basis points [2] - With primary mortgage rates remaining low, homeowners are less likely to sell their homes or refinance, making HELOCs and home equity loans attractive alternatives for accessing home equity [3] 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, and rates depend on factors such as credit score and debt levels [5] Lender Offers and Comparisons - Credit unions are offering competitive introductory HELOC rates, such as 5.99% APR for 12 months on lines up to $500,000, which will convert to a variable rate after the introductory period [6] - Home equity loans may be easier to navigate due to fixed rates throughout the repayment period, eliminating concerns about draw minimums [7] Current Market Conditions - Interest rates for HELOCs and home equity loans have decreased throughout 2025 and are expected to remain stable in the first half of 2026, making it a favorable time for obtaining a second mortgage [9] - Funds drawn from HELOCs or home equity loans can be utilized for various purposes, including home improvements and repairs [10] Payment Structure - 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, but rates are variable and payments may increase during the repayment period [11]

Core Insights - Home equity rates have seen slight increases, with the $30,000 home equity line of credit rising to 7.32% and the five-year home equity loan increasing to 7.92% [1][2] - Despite the recent rise, home equity rates remain near three-year lows, making them attractive for homeowners, particularly those looking to consolidate debt [2][4] - The primary drivers of home equity rates are Federal Reserve policy and long-term inflation expectations, with forecasts indicating potential interest rate cuts in the future [3][4] Current Home Equity Rates - The current average rates for home equity products are as follows: HELOC at 7.32%, five-year home equity loan at 7.92%, ten-year home equity loan at 8.09%, and fifteen-year home equity loan at 8.09% [2][5] - Historical comparisons show that HELOC rates have decreased from 8.29% one year ago, while five-year home equity loans have dropped from 8.41% [2] Comparison with Other Credit Types - Home equity rates are significantly lower than rates for unsecured credit types, with credit cards averaging 19.60% and personal loans at 12.16% [5] - The use of home as collateral for HELOCs and home equity loans results in lower interest rates compared to unsecured loans [4][5] Market Context - The Federal Reserve's current stance on interest rates is cautious, with a focus on monitoring inflation and the job market, which influences home equity rates [3][4] - The job market appears to be stabilizing, and inflation is moderating, contributing to a balanced risk environment for future rate decisions [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 - National average rates for second mortgage products, including home equity loans and lines of credit, are near one-year lows, with well-qualified borrowers encouraged to shop for the best rates [1] Interest Rates Overview - The average HELOC rate is currently 7.23%, down two basis points from the previous month, while the national average for home equity loans is 7.44%, down 12 basis points [2] - The 52-week low for HELOCs was 7.19%, and for home equity loans, it was 7.38% in early December 2025 [2] Home Equity Value - Homeowners have approximately $34 trillion in home equity as of Q3 2025, making it unlikely for them to sell their homes or refinance at higher mortgage rates [3] - Accessing home equity through HELOCs or home equity loans is presented as a viable alternative for homeowners [3] 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 and debt levels [5] Lender Offers - 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 thereafter [6] - The best home equity loan lenders may be easier to identify due to fixed rates lasting the entire repayment period [7] Current Market Conditions - 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 obtaining a second mortgage [9] - The national average for HELOCs is 7.23%, while home equity loans average 7.44%, with rates varying significantly based on borrower creditworthiness [8] Payment Structure - 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]

Core Insights - Home equity borrowing costs have decreased significantly, with the $30,000 home equity line of credit dropping to 7.31%, a reduction of 13 basis points, and the five-year home equity loan decreasing to 7.90%, down two basis points [1][2]. Group 1: Current Rates - The current average rates for home equity products are as follows: HELOC at 7.31%, five-year home equity loan at 7.90%, ten-year home equity loan at 8.08%, and fifteen-year home equity loan at 8.07% [2][4]. - Compared to four weeks ago, HELOC rates have decreased from 8.22% to 7.31%, and the five-year home equity loan has slightly decreased from 7.97% to 7.90% [2][4]. Group 2: Influencing Factors - Home equity rates are primarily influenced by Federal Reserve policy and long-term inflation expectations, with the Fed maintaining interest rates at its January meeting while monitoring inflation and the job market [3][4]. - Forecasts suggest that the Fed may implement three quarter-point cuts in 2026, indicating a potential easing of monetary policy [3]. Group 3: Comparison with Other Credit Types - Home equity products are generally less expensive than unsecured credit options, with HELOCs at 7.31% and home equity loans at 7.90%, compared to credit cards at 19.61% and personal loans at 12.27% [5]. - The rates for home equity loans are more favorable due to the collateralization of the home, which reduces the risk for lenders [4][5]. Group 4: Borrower Considerations - Borrowers are advised to consider their financial situation and goals when deciding between a HELOC and a home equity loan, and to consult with a loan officer for tailored advice [2][6]. - Key questions for borrowers include the amount of money needed, the frequency of withdrawals, and comfort with potential interest rate fluctuations [6].