Interest rates on home equity lines of credit (HELOCs) and home equity loans are the lowest in years, making monthly payments more affordable. The average HELOC rate is 7.23%, while the national average rate on a home equity loan is 7.44%. The Federal Reserve estimates homeowners have $34 trillion in equity.

Homeowners with low primary mortgage rates can access their home equity without giving up their mortgage through a HELOC or home equity loan. Second mortgage rates are based on an index rate plus a margin, with HELOC rates typically beginning at 7.50%.

Lenders have flexibility with pricing on second mortgage products like HELOCs, so it’s important to shop around for the best rates. Introductory rates on HELOCs may only last for six months to a year, after which they become adjustable. Home equity loans have fixed rates for the life of the agreement.

The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines. LendingTree is offering a HELOC APR as low as 6.13% on a credit line of $150,000. Home equity loan lenders provide fixed rates for the length of the repayment period, making it easier to find the best rate.

National average rates for HELOCs and home equity loans are 7.23% and 7.44% respectively, but rates can vary from lender to lender. Homeowners with low primary mortgage rates and equity in their homes are in an ideal position to benefit from a HELOC or home equity loan.

Withdrawing the full $50,000 from a HELOC at a 7.25% interest rate would result in a monthly payment of about $302 during the draw period. Payments may increase during the 20-year repayment period, so it’s important to understand the variable nature of HELOC rates and repayment terms.

Read more at Yahoo Finance: HELOC and home equity loan rates Sunday, February 22, 2026: Monthly payments fall (example: $302 a month)