Homeowners are seeing little change in national HELOC and home loan rates, as the Federal Reserve continues to hold interest rates on hold. Traders now expect a rate cut before July, which keeps secondary loan rates close to current levels.
The standard ELOC level is 7.20%down three points from one month ago, according to real estate analytics firm Curins. The lowest 52-week HELOC was 7.19% in mid-January. The national average mortgage rate is 7.47%up three points from last month. The lowest was 7.38% 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 mortgage rates remaining close to 6%, homeowners with equity and low mortgage rates may feel frustrated by not being able to access that growing amount on their home. A second mortgage in the form of a HELOC or HEL can be a viable solution.
Home equity interest rates work much differently than mortgage rates. The second mortgage rates are based on the index rate and the margin. That rate is usually the prime rate, currently 6.75%. If the lender adds 0.75% as margin, the HELOC will be worth 7.50%.
A home loan may have a different margin because it is a fixed interest product.
Each lender has its own way of pricing second mortgage products, such as a HELOC or home equity loan, so you pay to shop. 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 a higher rate.
Also, because home equity loans have a fixed rate, there is less chance of an introductory “teaser” rate.
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.
Look for a lender that offers a below-market introductory rate. For example, FourLeaf Credit Union currently offers a HELOC APR of 5.99% 12 months on lines up to $500,000. That introductory rate will convert to a variable amount in one year. When shopping for lenders, be aware of both rates.
Also, pay attention to the minimum withdrawal amount for a HELOC. The draw is the amount of money the lender requires you to take out at the start of your equity.
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.
Rates vary from one lender to the next — and where you live. You can see rates from about 6% to 18%. It depends on your creditworthiness and how diligent a buyer you are. The national average for an adjustable rate HELOC is 7.20%, and a fixed rate home loan is 7.47%.
For homeowners with low mortgage rates and a significant amount of equity in their home, it may be 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. Anything else.
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 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 are best if you borrow and repay the balance within a very short period of time.
