The national average rates for home equity lines of credit and loans start 2026 in the mid-7% range, making them more affordable than in recent years. Average rates are 7.44% for HELOCs and 7.59% for home equity loans. Choosing between the two options depends on your financial needs.

Homeowners with equity may face frustration accessing their growing home value due to unchanging mortgage rates. A second mortgage in the form of a HELOC or HEL can provide a solution for those who want to keep their low home loan rate. The Federal Reserve estimates $36 trillion in locked home equity.

HELOC interest rates are different from primary mortgage rates, often based on the prime rate plus a margin. With rates starting at 7.50%, lenders have flexibility in pricing. Shopping around is key, as rates vary. HELOC rates may include introductory rates that become adjustable later.

The best HELOC lenders offer low fees and a fixed-rate option. FourLeaf Credit Union currently offers a 5.99% introductory rate for 12 months on lines up to $500,000. Home equity loan lenders may be easier to find, offering a fixed rate for the repayment period. Compare fees and repayment terms.

National average rates for HELOCs are 7.44% and for home equity loans are 7.59%. Rates can vary significantly between lenders, ranging from 6% to 18%. Now may be a good time to get a HELOC or home equity loan for homeowners with low primary mortgage rates and equity.

Withdrawals from a HELOC can have a variable interest rate, making monthly payments subject to change. It’s important to consider the draw period and repayment period when using a HELOC. HELOCs are best for short-term borrowing and repayment.

Read more at Yahoo Finance: Both options feature lower rates