Rates for second mortgages, like home equity loans and HELOCs, are at historic lows. APGFCU is offering a 1.99% APR intro rate for one year. Average HELOC rate is 7.23%, home equity loan is 7.44%. Homeowners with low 6% primary mortgage rates may consider a HELOC or home equity loan.

HELOC rates are based on an index rate plus a margin, often the prime rate at 6.75%. HELOCs have variable rates, while home equity loans have fixed rates. Lenders determine rates based on credit score, debt amount, and credit line compared to home value. Compare lenders for best rates.

FourLeaf Credit Union offers a 5.99% APR HELOC intro rate for 12 months on lines up to $500,000. When comparing lenders, consider both rates, fees, repayment terms, and minimum draw amount. Fixed-rate home equity loans eliminate draw minimums and offer a lump sum for repayment.

Interest rates fell throughout 2025 and are expected to remain steady in 2026. HELOC and HEL allow homeowners to access cash for improvements, repairs, or any other needs. Monthly payments on a $50,000 HELOC at 7.50% interest during the draw period would be around $313, but payments will increase during the repayment period.

Read more at Yahoo Finance: Intro rates as low as 1.99%