According to the Mortgage Bankers Association, the industry average number of days to close a home loan is 39 days. The exact time it takes from start to finish depends on your home loan lender. For example, Better Mortgage, rated by Yahoo Finance as the best mortgage lender, says it can close on HELs in as little as three days.
HELOC and mortgage loan rates: Monday, May 25, 2026
The average adjustable ELOC ratio is 7.21%according to real estate data analytics company Curinos. The national average fixed rate for home loans is 7.36%. Both rates are based on applicants with a minimum credit score of 780 and a combined maximum loan-to-value ratio (CLTV) of less than 70%.
HELOC or home equity loan: What are the benefits?
A HELOC allows you to draw on your approved line of credit as needed. A home equity loan gives you a lump sum of money.
Since original mortgage rates don’t move much, homeowners with equity and low mortgage rates may not be able to access that increased value on their home without a home equity loan or HELOC.
The Federal Reserve estimates that homeowners have $34 trillion of equity in their homes. 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 excellent solution.
Learn more about how a second mortgage works
How HELOC and home equity loan interest rates differ
The second mortgage rates are based on the index rate and the margin. That home equity line of credit rate is usually the prime rate, which has 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 rate product.
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 a higher rate.
Also, because home equity loans have a fixed interest rate, there is less likely to be an introductory “teaser” rate.
Find out if now is a good time to take out a HELOC
Offered by leading HELOC lenders
The most popular 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.
Today, FourLeaf Credit Union offers a HELOC rate of 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a one-year adjustable rate. When shopping for lenders, be aware of both rates.
The best home loan lenders may be even easier 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 lot of money, so there are few things to consider.
And as always, compare fees and the fine print of payment terms.
HELOC rates today: FAQs
What is a good interest rate on a HELOC right now?
Rates vary from one lender to the next. You can see rates from about 6% to 18%. The national average for a HELOC is a variable rate of 7.21%, and a fixed rate of 7.36% for home loans. That can serve as your goals when shopping for rates from second home mortgage lenders.
Is it a good idea to get a HELOC or home equity loan right now?
For homeowners with low mortgage rates and equity in their homes, it’s 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. Anything else.
What is the monthly payment for a $50,000 home equity line of credit?
If you take out the full $50,000 on your home equity line of credit and pay 7.25% interest, for example, your monthly payment over a 10-year draw 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.
