HELOC i home loan rates have come down again. Finding lenders with second mortgage rates close to or below the national average will take some comparisons.

The average HELOC rate is 7.23%just two basis points less than a month ago, according to real estate data firm Curinos. The 52-week HELOC low was 7.19%. The national average rate for a home loan is 7.44%12 basis points less than last month. The low was 7.38% in early December 2025.

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%.

The Federal Reserve estimates that homeowners hold $34 trillion in equity. With mortgage rates stubbornly holding close to 6%, homeowners with home heritage and a low primary mortgage rate can feel the frustration of not being able to access that growing value in their home. A second mortgage in the form of a HELOC or HEL may be a viable solution.

Home equity interest rates are different than primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. This rate is often the preferred rate, which has recently fallen to 6.75%. 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 flexibility with the price of a second mortgage product, such as a HELOC or home equity loanso worth buying. 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.

And national average HELOC rates may include “introductory” rates that may only last six months or a year. After that, your interest rate will become adjustable, probably starting at a higher rate.

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

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 credit line limit. Take some out; return it repeat

Look for a lender that offers a below-market origination rate. For example, FourLeaf Credit Union currently offers a HELOC APR of 5.99% for 12 months on a line up to $500,000. This introductory rate will become a variable rate. When shopping for lenders, consider both rates.

Also, pay attention to the minimum draw amount for a HELOC. 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.

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

Fees vary from lender to lender, and depending on where you live. You may see rates anywhere from nearly 6% to 18%. It really depends on your creditworthiness and how diligent a buyer you are. The national average for a HELOC is 7.23%, and for a home equity loan it is currently 7.44%.

For homeowners with low primary mortgage rates and a significant amount of equity in their home, it’s likely one of the best times to get a HELOC or home loan. You don’t give up that big mortgage rate, and you can use the cash taken from your equity for things like home improvements, repairs, 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 HELOC 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 over a much shorter period.