Currently, home equity rates remain close to three-year lows. That’s the case for adjustable-rate HELOCs as well as for fixed-rate home equity loans. With the get-outdoors season approaching, you can use the cash for just about anything — at the lowest rates in years.
According to real estate analytics firm Curinos, the average HELOC adjustable rate is 7.20%. The 52-week HELOC low was 7.19% in mid-January. The national average fixed rate on a home equity loan is 7.47%. 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 70% or less.
Choosing between a HELOC and a HEL depends on how you want to use the money. A HELOC allows you to draw from your approved line of credit as you need it. One catch: Recently, many HELOC lenders have been requiring larger and larger minimum immediate withdrawals. That can mostly erase one of the primary benefits of a HELOC, which is getting cash as you need it — and paying interest only on the amount you borrow.
You may want to consider HELOC lenders that don’t have high initial draws.
Meanwhile, a home equity loan gives you a lump sum.
With refinance mortgage rates still hovering near 6%, homeowners with accumulated equity and a much lower primary mortgage rate may feel the frustration of not being able to access that growing value in their home.
For those who are unwilling to give up their low home loan rate, a second mortgage in the form of a HELOC or HEL can be a good solution.
Home equity interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which is currently 6.75%. If a lender added 0.75% as a 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 pricing flexibility with second mortgage products, such as HELOCs or home equity loans, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.
And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become variable, likely beginning at a substantially higher rate.
Because a home equity loan has a fixed rate, it’s unlikely to have an introductory “teaser” rate.
The best HELOC lenders offer low fees, a fixed-rate option, low immediate draw minimums, and generous credit lines. For example, today FourLeaf Credit Union is offering a HELOC APR of 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate a year later.
The best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.
As always, compare fees and the fine print of repayment terms.
HELOC interest rates vary significantly from one lender to the next, making it challenging to pinpoint the best rate. You may see rates from nearly 6% to as much as 18%. The national average for a HELOC is 7.20%, and for a home equity loan is currently 7.47%. Those can give you a good idea of what a favorable rate might be when shopping second mortgage lenders.
For homeowners with low primary mortgage rates and a significant amount of equity in their house, it’s likely one of the best times to obtain a HELOC or a home equity loan. You don’t give up the low primary mortgage rate you got when you bought your house, and you can use the cash from your equity for home improvements, repairs, and upgrades. Really, any cash need is fair game.
If you withdraw the full $50,000 from a line of credit on your home and pay a 7.25% interest rate, your monthly payment during the 10-year draw period would be about $302. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.