The national average rate for second mortgage products remains near multi-year lows. HELOC rate is 7.25%, down 19 basis points, while a home equity loan is 7.56%, down three basis points. Homeowners hold nearly $34 trillion in house value. With low mortgage rates, a cash-out refinance may not be ideal.

HELOC and home equity loan rates are influenced by an index rate plus a margin. The prime rate is currently 6.75%, affecting HELOC variable rates. Lenders have flexibility in pricing based on credit score, debt amount, and credit line value compared to home value. Shop around for the best rate.

FourLeaf Credit Union offers a HELOC with an introductory rate of 5.99% for 12 months, up to $500,000. Lenders are adjusting rates following Federal Reserve cuts. Compare rates, fees, repayment terms, and minimum draw amounts when shopping for a loan.

The best home equity loan lenders offer fixed rates for the repayment period. Rates vary from 6% to 18%, depending on creditworthiness. Now is a good time for a second mortgage, with lower interest rates. Use cash drawn from equity for improvements, repairs, or upgrades.

Interest rates have fallen in 2025 and are expected to continue decreasing. HELOC or HEL can be used for various purposes. Be aware of variable rates and repayment periods. HELOCs are best for short-term borrowing and repayment.

Read more at Yahoo Finance: HELOC and home equity loan rates today, January 23, 2026: Clinging to multi-year lows