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 ...

National average rates for second mortgage home equity loans and lines of credit are nearing 7%, their lowest point since late 2022. Over the years, your home has grown in value. Now you can access that equity at very favorable interest rates. HELOC and home equity loan rates: Friday, February 20, 2026 According to real estate analytics firm Curinos, the average 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 780 ...

Core Insights - Interest rates for home equity lines of credit (HELOCs) and home equity loans are currently near one-year lows, with potential for lower rates through lender comparison [1][2] - The average HELOC rate is 7.23%, while the average home equity loan rate is 7.44%, with both rates influenced by credit scores and loan-to-value ratios [2][11] - Homeowners with low primary mortgage rates may find HELOCs or home equity loans beneficial for accessing home equity without losing their favorable mortgage rates [3][12] Interest Rate Details - The 52-week low for HELOCs is 7.19%, and the low for home equity loans was 7.38% in early December 2025 [2] - The prime rate, which influences second mortgage rates, has recently fallen to 6.75%, affecting the pricing of HELOCs and home equity loans [5] - Lenders have flexibility in pricing second mortgage products, making it advantageous for borrowers to shop around for the best rates [6] Loan Characteristics - HELOCs typically have variable interest rates and may include introductory rates that last for a limited time, while home equity loans usually offer fixed rates [6][7] - The best HELOC lenders provide low fees, fixed-rate options, and generous credit lines, allowing homeowners to utilize their equity flexibly [8] - Home equity loans provide a lump sum with a fixed interest rate, simplifying repayment terms for borrowers [10] Market Context - The Federal Reserve estimates that homeowners have approximately $34 trillion in equity available, indicating a significant opportunity for accessing home equity through HELOCs and home equity loans [4] - Current market conditions suggest that it may be an opportune time for homeowners with substantial equity and low primary mortgage rates to consider these financial products for home improvements or other expenses [12]

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 - The national average rates for second mortgage products, including home equity loans and HELOCs, are at multi-year lows, with the Federal Reserve maintaining a hold on interest rates, suggesting stability in the prime rate, a key factor in home equity lending [1] Group 1: Current Rates - The average HELOC rate is currently 7.25%, while the national average for home equity loans is 7.56%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70% [2][8] - Homeowners have approximately $34 trillion in equity tied up in their homes as of Q3 2025, indicating significant potential for home equity lending [2] Group 2: Market Dynamics - With mortgage rates remaining in the low-6% range, homeowners are less likely to sell their homes or refinance, making HELOCs and home equity loans attractive alternatives for accessing home equity [3] - Interest rates for home equity products are determined by an index rate plus a margin, with the current prime rate at 6.75% [4] Group 3: Lender Considerations - Lenders have flexibility in pricing second mortgage products, and rates depend on factors such as credit score and debt levels, encouraging consumers to shop around for the best offers [5] - Introductory HELOC rates can be as low as 5.99% for the first year, but consumers should compare rates, fees, and repayment terms when selecting lenders [6] Group 4: Financial Implications - Interest rates fell throughout most of 2025 and are expected to remain steady into the first half of 2026, making it a favorable time for obtaining a second mortgage [10] - A $50,000 HELOC at a 7.50% interest rate would result in a monthly payment of approximately $313 during the 10-year draw period, but rates are typically variable, which could lead to increased payments during the repayment period [11]

Core Insights - Average rates for home equity lines of credit (HELOC) and home equity loans (HEL) are approaching 7%, marking the lowest levels in years [1] Group 1: Current Rates - The average HELOC rate is currently 7.25%, while the national average for home equity loans is 7.56% [2] - These rates are applicable to 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 Benefits - 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 may find HELOCs or HELs beneficial to access their home equity without losing their favorable mortgage rate [4] Group 3: Rate Structure - 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] - A typical HELOC rate could be around 7.50% if a lender adds a margin of 0.75% [5] - Home equity loans generally have a fixed interest rate, making them less likely to feature introductory rates [7] Group 4: Lender Considerations - Lenders have flexibility in pricing second mortgage products, making it essential for borrowers to shop around for the best rates [6] - Average national HELOC rates may include introductory rates that last for a limited time before becoming adjustable [6] Group 5: Best Offers - FourLeaf Credit Union currently offers a HELOC rate of 5.99% for the first 12 months on lines up to $500,000, which will convert to an adjustable rate thereafter [8] - The best home equity loan lenders typically offer fixed rates for the duration of the repayment period, simplifying the borrowing process [9] Group 6: Payment Insights - 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 this rate is variable and may increase during the repayment period [13]

Core Insights - Interest rates for home equity lines of credit (HELOCs) and home equity loans are currently averaging in the low to mid 7% range, with the average HELOC rate at 7.25% and home equity loan rate at 7.56% [2][11] - Homeowners with low primary mortgage rates can access their home equity through second mortgages without refinancing their existing loans, making HELOCs and home equity loans attractive options [3][12] Interest Rates and Market Conditions - The Federal Reserve estimates that homeowners have approximately $34 trillion in equity locked in their homes, indicating a significant opportunity for homeowners to tap into this equity through HELOCs or home equity loans [4] - The index rate for second mortgage rates is often based on the prime rate, which is currently at 6.75%, plus a margin that can vary by lender [5] Loan Features and Options - HELOCs typically come with variable interest rates and may include introductory rates that last for a limited time, while home equity loans usually have fixed rates for the duration of the loan [6][7] - Lenders offer various terms and conditions for HELOCs and home equity loans, making it essential for borrowers to shop around for the best rates and terms based on their creditworthiness and financial situation [6][10] Borrowing and Repayment - 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 borrowers should be aware that rates are typically variable and can increase over time [13] - Homeowners can utilize the funds from HELOCs or home equity loans for various purposes, including home improvements and repairs, while maintaining their low-rate primary mortgage [12]

Core Insights - Current national average rates for home equity lines of credit (HELOC) and home equity loans (HEL) are decreasing, making second mortgage options more affordable for homeowners [1] - 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%, a decrease of three basis points [2] Group 1: Rate Trends - The Federal Reserve estimates that homeowners have $36 trillion of equity locked in their homes, indicating a significant opportunity for homeowners to access this equity through second mortgages [4] - HELOC rates are based on an index rate plus a margin, with the current prime rate at 6.75%, leading to potential HELOC rates around 7.50% depending on lender margins [5] - Average national HELOC rates can include introductory rates that may only last for a limited time before becoming adjustable [6] Group 2: Product Comparison - 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 may find it advantageous to obtain a HELOC or HEL without sacrificing their favorable mortgage rate [11] - The best HELOC lenders offer low fees and flexible credit lines, while the best home equity loan lenders provide fixed rates for the duration of the repayment period [8][9] Group 3: Financial Implications - 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 this rate is variable and may increase during the repayment period [12] - Homeowners can utilize cash drawn from their equity for various purposes, including home improvements and repairs, making this an opportune time to consider a HELOC or HEL [11]

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 - National average HELOC and home equity loan rates have decreased, with HELOC rates at 7.25% and home equity loan rates at 7.56% [2][11] - Homeowners have approximately $36 trillion in equity that remains inaccessible due to stagnant mortgage rates, making HELOCs and home equity loans viable options for accessing this value [3] HELOC and Home Equity Loan Rates - The average monthly HELOC rate has dropped by 19 basis points from the previous month, while home equity loan rates have decreased by three basis points [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] Market Dynamics - The prime rate has recently fallen to 6.75%, affecting second mortgage rates, which are typically based on this index plus a margin [4] - Lenders have flexibility in pricing second mortgage products, and rates can vary significantly based on individual credit scores and debt levels [5] Loan Features - HELOCs often come with introductory rates that may last for a limited time before becoming adjustable, while home equity loans typically have fixed rates [6][9] - The best HELOC lenders offer low fees and generous credit lines, allowing homeowners to draw from their equity as needed [7] Current 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 [8] Considerations for Homeowners - For homeowners with low primary mortgage rates and significant equity, now may be an optimal time to secure a HELOC or home equity loan for purposes such as home improvements [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 during the repayment period [13]