National average rates for second mortgage products like home equity loans and lines of credit are at multi-year lows, with the prime rate remaining stable. The average HELOC rate is 7.25%, while the home equity loan rate is 7.56%, based on a minimum credit score of 780 and CLTV of less than 70%. Homeowners have nearly $34 trillion tied up in house value.

With mortgage rates in the low-6% range, homeowners are holding onto their primary mortgages. Utilizing a HELOC or home equity loan to access home value may be a better option. Second mortgage rates are calculated based on an index rate plus a margin, with flexibility in pricing based on credit score and debt amount.

FourLeaf Credit Union is offering a 5.99% HELOC APR for 12 months on lines up to $500,000. When comparing lenders, consider rates, fees, repayment terms, and minimum draw amounts. The best home equity loan lenders offer fixed rates for the repayment period, simplifying the process. Rates vary from 6% to 18% based on creditworthiness and lender.

Interest rates are expected to remain steady in 2026, making it a good time to consider a second mortgage. HELOCs and home equity loans provide options to access cash for home improvements or other expenses. Consider the variable nature of rates and repayment periods when utilizing a HELOC for borrowing.

Read more at Yahoo Finance: As the Fed pauses, so do home equity rates