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Hal Bundrick, CFP® · Senior Writer 
Laura Grace Tarpley · Lead Editor and Content Strategist, Mortgages Fri, February 27, 2026 at 7:00 PM GMT+8 3 min read National average rates for second mortgage home equity loans and lines of credit are near their lowest levels in more than three years. You can access the equity in your home at these very favorable rates.
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Find out how HELOC and home equity loan interest rates work and what you can expect to pay.
HELOC and home equity loan rates: Friday, February 27, 2026
The average HELOC rate is 7.23%, according to real estate analytics firm Curinos. The national average rate on a home equity loan is 7.44%. Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.
With mortgage rates remaining near 6%, homeowners are unlikely to let go of their lower primary mortgage anytime soon, so selling a house may not be an option. A cash-out refinance might not be workable either. Why give up your 5%, 4% — or even 3% mortgage?
Accessing some of that value with a use-it-as-you-need-it HELOC or lump-sum home equity loan can be an excellent alternative.
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MORE: Here are our picks for the best HELOC lenders.
How lenders determine HELOC and HEL interest rates
Home equity interest rates are calculated differently from mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which is now 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 flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. 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. Shop a few lenders to find your best interest rate offer.
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Learn about how fixed-rate HELOCs work.
Look for low introductory HELOC rate offers
Today, FourLeaf Credit Union is offering a HELOC APR (annual percentage rate) of 5.99% for 12 months on lines up to $500,000. That's an introductory rate that will convert to a variable rate in one year.
When shopping for lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.
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.
HELOC and home equity loan rates today: FAQs
What is a good interest rate on a HELOC right now?
Rates vary significantly from one lender to the next. You may see rates from 6% to as much as 18%. It really depends on your creditworthiness and how diligent you are as a shopper. Currently, the national average for a HELOC is 7.23%, and for a home equity loan it's 7.44%.
Is it a good idea to get a HELOC or a home equity loan right now?
Interest rates fell for most of 2025. They are expected to remain steady through the first half on 2026. So yes, it's a good time to get a second mortgage. And with a HELOC or a HEL, you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Or just about anything else.
What is the monthly payment on a $50,000 home equity line of credit?
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 of time.
Read More
Is now a good time to take out a HELOC?
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The best HELOC lenders of February 2026
The best HELOC lenders have flexible payment options, allow high CLTV ratios, and more. Read through our top picks to find the best HELOC lender for you.
How do fixed-rate HELOCs work, and which lenders offer them?
Home equity lines of credit (HELOCs) usually charge variable rates, but you can find fixed-rate HELOCs with certain lenders. Learn how a fixed-rate HELOC works.
HELOCs heat up: Chase launches a new home equity product
Chase Home Lending is finally re-introducing its home equity line of credit (HELOC) product. Learn how Chase's new HELOC works and whether it's a good fit for you.
Best home equity loan lenders of February 2026
The best home equity loan lenders offer perks such as low fees, no appraisals, and high borrowing limits. Find out which lender is best for a home equity loan.
Is a HELOC a good idea? Pros and cons to consider.
A home equity line of credit (HELOC) can help many homeowners, but it’s not right for everyone. Before you take one out, consider the pros and cons.