Home equity lines of credit (HELOC) and mortgage rates remain stable following the Federal Reserve’s second rate hike in 2026. The prime rate was unchanged and secondary mortgage rates stuck at a three-year low.
According to real estate analytics firm Curins, the average HELOC is flat 7.20%. The lowest 52-week HELOC was 7.19% in mid-January. The national average mortgage rate is 7.47%with a low rate of 7.38% recorded in early December 2025.
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%.
With prime mortgage rates approaching 6%, homeowners with equity and low mortgage rates may not be able to access the rising value of their home. For those who are not willing to give up their low mortgage rate, a home equity line of credit or home equity loan can be a great solution.
Home equity interest rates are different from mortgage rates. The second mortgage rates are based on the index rate and the margin. That index is usually the prime rate, which recently dropped to 6.75%. If the lender adds 0.75% as margin, the HELOC will be worth 7.50%.
Lenders are more flexible with the pricing of a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the value of your line of credit compared to the value of your home.
And national average HELOC rates may include “introductory” rates that may last only six months or one year. After that, your interest rate will adjust, probably starting at the highest rate.
HELs don’t usually have introductory prices, so that’s one small difference to deal with. The fixed rate you earn on a home equity loan will not change during the life of the agreement.
You don’t have to ditch your subprime mortgage to gain equity in your home. Keep your primary mortgage and consider a secondary mortgage, such as a home equity line of credit.
The best HELOC lenders offer low down payments, a fixed rate option, and open lines of credit. 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.
Meanwhile, you pay off your principal with a lower interest rate and gain more equity to build wealth.
Today, LendingTree offers a HELOC APR as low as 6.23% on a $150,000 line of credit. However, keep in mind that HELOCs often come with variable interest rates, meaning your rate will fluctuate from time to time. Make sure you can afford the monthly payments if your rate goes up.
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 whole lot of money, so there are few things to consider.
And as always, compare fees and the fine print of payment terms.
The national average for a HELOC is 7.20%, and 7.47% for a home loan. However, rates vary from borrower to borrower. You may see rates ranging from just under 6% to as high as 18%. It depends on your creditworthiness and how diligent a buyer you are.
For homeowners with low mortgage rates and equity in their home, this is probably one of the best times to get a HELOC or home equity loan. You don’t give up that loan amount, and you can use the money taken from your equity for things like home improvements, repairs, and upgrades.
If you take out the full $50,000 on your home equity line of credit and pay 7.25% interest, your monthly payment over a 10-year term would be $302. That sounds good, but remember that the rate is often variable, so it changes from time to time, and your payments may increase over the course of a 20-year repayment period. A HELOC becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a very short period of time.
