When comparing the average rates for 2025 mortgage loans and home equity lines of credit (HELOC) to the averages for 2026 so far this year, the rates have decreased slightly. The average mortgage rate in 2025 was 7.61%, according to Curins, a real estate analysis firm. So far this year, mortgage rates have averaged 7.44%. The average HELOC rate in 2025 was 7.86%, and the average so far this year is 7.21%.
Learn the difference between a HELOC and a home equity loan
HELOC and mortgage loan rates Tuesday, May 12, 2026
According to real estate analytics firm Curins, the average HELOC is 7.21%down three basis points from one month ago. The lowest 52-week HELOC was 7.19% in mid-March. The national average for home equity loans is 7.36%down one point from last month, and matching the 2026 low we saw in mid-March.
Rates are based on applicants with a minimum credit score of 780 and a combined maximum loan-to-value (CLTV) ratio of less than 70%.
HELOC or home equity loan: How to decide
Choosing between a HELOC and a home equity loan is easy when you consider what you’re using it for. A HELOC allows you to draw cash from your approved line of credit, pay it off, and tap it back. A home equity loan gives you a lump sum of money.
With 30-year and 20-year mortgage rates still above 6%, homeowners with home equity and low-cost subprime mortgages are likely to feel frustrated about not being able to access the increased value in their home. For those who are unwilling to give up their subprime mortgage, a second mortgage in the form of a HELOC or HEL can be an attractive solution.
Learn how to use home equity to build wealth
HELOC and mortgage loan interest rates: What to watch
Home equity interest rates work differently than prime mortgage rates. The second mortgage rates are based on the index rate and the margin. That index is usually the prime rate, today it dropped to 6.75%. If the lender adds 0.75% as margin, the HELOC will have a variable rate starting at 7.50%.
A home loan may have a different margin because it is a fixed interest product.
Lenders have flexibility and pricing on secondary loan 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 debt compared to the value of your home.
Most importantly, HELOC rates can include below-market “introductory” rates that can last six months or one year. After that, your interest rate will adjust, probably starting at the highest rate.
Also, because home equity loans have a fixed rate, there is less chance of an introductory “teaser” rate.
Learn about home equity and how it works
How to find the best mortgage lender
The best offers from HELOC lenders:
A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit limit. Take out the rest; pay. Repeat.
You should also find and consider a lender that offers a below-market introductory rate. For example, FourLeaf Credit Union currently offers a HELOC APR of 5.99% for 12 months on lines up to $500,000. That introductory rate will convert to a variable rate of up to 6.75% in one year, with a “prime rate of living” thereafter.
Beware of drawing less on HELOCs
Also, pay attention to the minimum withdrawal amount for a HELOC. A draw is the amount of money a lender needs you to take from your equity immediately. Some banks will allow no, or minimal, initial withdrawal requirements. Lenders who are not part of the bank that holds the customer’s deposit may require more money at closing.
Home loans have a unique advantage: fixed interest rates
The best home loan lenders may be easy to find, because the fixed rate you pay will last for the duration of the repayment period. That means just one level to focus on. And you get a lump sum, so there’s no minimum withdrawal to consider.
And as always, compare any annual fees or other charges, and fine print the terms of payment.
Home equity values today: Frequently Asked Questions
What is a good interest rate on a HELOC or HEL right now?
Rates vary widely from one lender to the next. You can see rates from about 6% to 18%. It depends on your creditworthiness and how diligent you are as a buyer. The national average for a HELOC is 7.21%, and 7.36% for a home loan. Those can serve as a guide when buying prices from second mortgage lenders.
Is it a good idea to get a HELOC or home equity loan right now?
For homeowners with low mortgage rates and significant equity in their homes, it may be a good idea to consider a HELOC or home equity loan now. First of all, the prices are the lowest in years. And you don’t give up that great mortgage you got when you bought your house.
What is the monthly payment for a $50,000 home equity line of credit?
If you take out the full $50,000 on a home equity line of credit and pay 7.25% interest, your monthly payment over the 10-year HELOC draw period would be $302. That sounds good, but remember that the rate is often variable, so it changes from time to time, and your payments will increase over the course of a 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs and HELs are best if you borrow and repay the balance within a very short period of time.
