Rates for home equity lines of credit i home equity loans they’re lower than they’ve been in years, and that also applies to introductory rate offers. For example, Bank of America offers a variable HELOC rate of 4.74% for six months.

Today’s national average monthly HELOC rate is 7.25%. The average rate a home loan is 7.56%according to the data analysis company Curinos.

Both rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.

The Federal Reserve estimates that homeowners hold $34 trillion home heritage from the third quarter of 2025, just below the historical high. With mortgage rates nearing 6%, homeowners are unlikely to let go of their primary mortgage anytime soon, so selling the home may not be an option. A cash-out refinance may not be viable either.

Access part of the value locked in your home with a second mortgage can be an excellent alternative.

Home equity interest rates are different than primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the preferred rate, which has fallen to 6.75% after three rate cuts by the Federal Reserve. If a lender adds 0.75% as margin, the HELOC would have a rate of 7.50%.

A home equity loan may have a different margin because it is a fixed interest product.

Lenders have pricing flexibility with second mortgage products like HELOCs or home equity loans, so it’s worth shopping around. Your rate will depend on your credit score, the amount of debt you have, and the amount of your line of credit relative to the value of your home.

And national average HELOC rates may include “introductory” rates that can last six months or a year. After that, your interest rate will be variable, likely starting at a substantially higher rate.

Again, since a home equity loan has a fixed rate, it is unlikely to have a “teaser” introductory rate.

MORE: Read our guide to the best home loan lenders.

The best HELOC lenders they offer low fees, a fixed rate option and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your line of credit limit. Take some out; return it repeat

today, FourLeaf Credit Union offers a HELOC rate of 5.99% for 12 months on lines up to $500,000. This is an introductory rate that will convert to a variable rate of 7.25% in one year. When shopping for lenders, consider both fees.

The the best equity loan lenders may be easier to find, because the fixed rate you earn will last for the repayment period. This means you only need to focus on one rate. And you get a lump sum, so there’s no need to worry about minimums.

And as always, compare rates and the fine print of repayment terms.

Rates vary significantly from lender to lender, making it difficult to pinpoint a single, definitive number. The current national average for a HELOC is 7.25% and 7.56% for a home equity loan. These can serve as a benchmark for shopping second mortgage lenders’ rates.

It is likely that a good idea to consider a HELOC or a home equity loan now. Don’t give up the large principal mortgage rate you’re paying on your home, and you can use the cash taken from your home equity for things like home improvements, repairs, and improvements. Pretty much anything, really.

If you withdraw all of $50,000 from a home equity line of credit and pay an interest rate of 7.50%, your monthly payment over 10 years draw period it would be about $313. That sounds good, but remember that with a HELOC, the rate is usually variable, so it changes periodically and your payments will increase over the 20-year repayment period. A HELOC basically turns into a 30-year loan.