Rates for home equity lines of credit and home equity loans are at multi-year lows, with national averages of 7.23% and 7.44%, respectively, for applicants with a credit score of 780 and a CLTV of 70%. HELOC rates are based on the prime rate plus a margin, while home equity loans have fixed rates. Lenders have pricing flexibility, so shop around for the best deal.

HELOCs may offer super low introductory rates that eventually become variable, while home equity loans typically have fixed rates. The best HELOC lenders have low fees and flexible credit lines, allowing you to access your equity as needed. Some lenders, like FourLeaf Credit Union, offer an introductory rate of 5.99% for 12 months on HELOCs up to $500,000.

Comparing fees and repayment terms is crucial when choosing a lender, as rates can vary significantly. Consider whether a HELOC or home equity loan suits your needs, as both offer ways to access your home’s equity for various purposes. Remember that HELOCs have variable rates that can impact your monthly payments over time.

Using a HELOC to withdraw $50,000 at a 7.25% interest rate could result in a $302 monthly payment during the draw period, with payments potentially increasing over the 20-year repayment period. It’s important to understand the terms of a HELOC, as it essentially functions as a 30-year loan in some cases.

Read more at Yahoo Finance: HELOC and home equity loan rates today, February 25, 2026: Down to 7.23%