The national average rates for second mortgage products such as home equity loans and lines of credit continue to hold multi-year lows. With the Federal Reserve maintaining interest rate cuts, the prime rate, a key pricing element of home equity loans, is likely to remain stable.

The average HELOC rate is 7.25%according to the real estate analysis firm Curinos. The national average rate a home loan is 7.56%.

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

Homeowners have an impressive amount of value tied up in their homes: nearly $34 trillion by the end of the third quarter of 2025, according to the Federal Reserve.

With mortgage rates remaining in the low 6% range, homeowners are unlikely to let go of their primary mortgage anytime soon, so selling a home may not be an option. A cash-out refinance may not be viable either. Why give up your 5%, 4%, or even 3% mortgage?

Accessing some of that value with a HELOC or home equity loan can be an excellent alternative.

Home interest rates are calculated differently from mortgage rates. Second mortgage rates are based on an index rate plus a margin. This rate is often the prime rate, which is 6.75%. If a lender adds 0.75% as margin, the HELOC would have a variable rate of 7.50%.

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

Lenders have flexibility with the price of a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your line of credit compared to the value of your home. Shop around a few lenders to find your best interest rate deal.

today, FourLeaf Credit Union offers a HELOC APR (annual percentage rate) of 5.99% for 12 months on lines up to $500,000. This is an introductory rate that will become a variable rate in one year.

When shopping for lenders, consider both fees. And, as always, compare rates, repayment terms and minimum draw amounts. The draw is the amount of money a lender requires you to initially take from your equity.

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.

Fees vary significantly from lender to lender. You can see rates from 6% to 18%. It really depends on your creditworthiness and how diligent you are as a buyer. Currently, the national average for a HELOC is 7.25%, and for a home equity loan it is 7.56%.

Interest rates fell for most of 2025. They are expected to remain stable through the first half of 2026. So yes, it’s a good time to get a second mortgage. And with a HELOC or HEL, you can use the cash taken from your estate for things like home improvementsrepairs and upgrades. Or almost anything else.

If you draw down the full $50,000 on 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 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. HELOCs are better if you borrow and pay off the balance in a much shorter period of time.