Rates for home equity lines of credit and home equity loans are in the low- to mid-7% range. If you are an existing customer of a second-mortgage lender, you may be able to save on closing costs and earn an even better interest rate offer. HELOC and home equity loan rates Tuesday, February 24, 2026 According to real estate analytics firm Curinos, the average monthly HELOC rate is 7.23%. The national average rate on a home equity loan is 7.44%. Rates are based on applicants with a minimum credit score of ...

Core Insights - Home equity lines of credit (HELOCs) and home equity loans (HELs) are concluding 2025 at their lowest rates, making monthly payments more affordable for homeowners [1] - The national average monthly HELOC rate is currently 7.44%, while the average rate for home equity loans is 7.59% [2] - Homeowners have a record amount of equity, nearly $36 trillion, which is the highest ever reported, providing a significant opportunity for accessing home value [3] Interest Rate Dynamics - HELOC and HEL rates are distinct from primary mortgage rates, typically based on an index rate plus a margin, with the current prime rate at 6.75% [4] - Lenders have flexibility in pricing second mortgage products, and rates can vary based on credit score, debt levels, and home value [5] - Home equity loans generally do not have introductory rates, providing a fixed rate throughout the repayment period [6] Shopping for HELOCs and HELs - Homeowners can retain their low-rate primary mortgage while accessing home equity through HELOCs or HELs, which can be used for various financial needs [7] - FourLeaf Credit Union is currently offering a HELOC rate of 5.99% for the first 12 months, which will convert to a variable rate of 7.25% [8] - It is essential to compare fees and repayment terms when selecting lenders for HELOCs and HELs [9] Current Market Conditions - The national average for HELOCs is 7.44% and for home equity loans is 7.59%, serving as benchmarks for consumers [10] - Considering a HELOC or home equity loan now is advisable, as homeowners can utilize cash for improvements without losing their favorable primary mortgage rates [11] - A $50,000 HELOC at a 7.50% interest rate would result in a monthly payment of approximately $313 during the draw period, but rates are typically variable [12]

Core Insights - HELOC rates have reached an all-time low of 7.75% in 2025, influenced by the prime rate and potential changes in the federal funds rate [1][2] - Homeowners have over $34 trillion in home equity, indicating a significant opportunity for accessing funds through HELOCs [2] - The current mortgage rates are low, making it less likely for homeowners to sell their properties, thus increasing the appeal of HELOCs as a financial tool [3] HELOC Rates and Trends - The average weekly HELOC rate is 7.75%, down 31 basis points since January, based on applicants with a minimum credit score of 780 and a maximum CLTV of 70% [2] - The prime rate, currently at 7.25%, is a key factor in determining HELOC rates, with lenders adding a margin to this index [4] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on individual credit profiles and market conditions [5][10] HELOC Mechanics - A HELOC allows homeowners to access equity without refinancing their primary mortgage, providing flexibility in borrowing and repayment [6][9] - Introductory rates can be attractive, but borrowers should be aware of potential rate adjustments after the initial period [8][11] - Monthly payments on a HELOC can vary; for example, a $50,000 draw at a 7.75% interest rate would result in a monthly payment of about $323 during the draw period [12]

Core Insights - HELOC rates have been gradually decreasing, currently averaging 7.75%, which is 23 basis points lower than the annual average, indicating a favorable time for homeowners to consider obtaining a HELOC [1][2] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, suggesting significant potential for accessing this equity through HELOCs [2] Group 1: HELOC Rates and Trends - The average weekly HELOC rate is 7.75%, down 31 basis points since January, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70% [2] - HELOC interest rates differ from primary mortgage rates, typically based on an index rate plus a margin, with the current prime rate at 7.25% [4] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly, with some introductory rates available that may only last for a limited time [5][8] Group 2: Accessing Home Equity - Homeowners are likely to retain their low-rate primary mortgages, making HELOCs an attractive option to access home equity without selling their homes [3][6] - A HELOC allows homeowners to borrow as needed, only paying interest on the amount drawn, which provides financial flexibility [9] - For homeowners with substantial equity and low primary mortgage rates, obtaining a HELOC is advisable for purposes such as home improvements or other expenses [11] Group 3: Financial Considerations - An example calculation shows that withdrawing $50,000 from a HELOC at a 7.75% interest rate would result in a monthly payment of approximately $323 during the draw period, but rates are typically variable and can increase over time [12] - It is essential for borrowers to compare rates, fees, and repayment terms when shopping for HELOCs, as these factors can significantly impact overall costs [8][10]

Core Insights - The average HELOC rate is currently 7.75%, marking a decrease of 31 basis points since January, which is the lowest rate observed this year [1][2] HELOC Rates - The highest HELOC rate in 2025 was recorded in January, and the current rate reflects a significant drop since then [2] - HELOC rates are influenced by factors such as credit score and combined loan-to-value ratio, with the current average based on applicants with a minimum credit score of 780 and a maximum CLTV of 70% [2][4] Home Equity Context - Homeowners have over $34 trillion in home equity as of the end of 2024, representing the third-largest amount on record [3] - With mortgage rates above 6%, many homeowners are reluctant to sell their homes, making HELOCs an attractive option to access home equity without relinquishing low-rate primary mortgages [3][6] Lender Considerations - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on individual creditworthiness and market conditions [5][11] - Introductory rates may be offered, but borrowers should be aware of potential rate adjustments after the initial period [5][8] HELOC Functionality - A HELOC allows homeowners to access their home equity as needed, providing flexibility in borrowing and repayment [6][9] - The structure of a HELOC typically involves a draw period followed by a repayment period, with variable interest rates that can affect monthly payments [13]

Core Insights - Current HELOC interest rates are below 8.5% APR, with a national average of 8.47% for a 10-year draw HELOC, and introductory rates around 5.99% [1][2] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, making HELOCs an attractive option for accessing this value without selling their homes [2] - The prime rate is currently at 7.25%, influencing HELOC rates which are typically based on this index plus a margin [3] Group 1: HELOC Rates and Trends - Bank of America offers HELOC rates ranging from 7.80% to 9.34% APR, reflecting the variability in lender pricing [2][4] - Introductory rates for HELOCs can be significantly lower but may adjust to higher rates after an initial period, emphasizing the importance of comparing offers [4][7] - The flexibility of HELOCs allows homeowners to borrow as needed, with interest only on the drawn amount, making it a strategic financial tool [8] Group 2: Usage and Benefits of HELOCs - HELOCs provide homeowners with a way to access equity without refinancing their low-rate primary mortgages, allowing for continued wealth building [5][6] - They can be used for various purposes, including home improvements and personal expenses, but should be managed carefully to avoid long-term debt [10] - Monthly payments on a $50,000 HELOC can be around $375, highlighting the affordability of borrowing against home equity [11]