Home equity borrowing has gotten quieter this spring, but rates for HELOCs and home equity loans have nudged down to some of the lowest levels of 2026 in places where home prices haven’t cooled. This piece walks through current averages, why homeowners might prefer a second mortgage to a refinance, how those rates are set, and the practical tradeoffs of variable versus fixed equity lending.
Nationwide averages aren’t the whole story, but they matter: analytics firm Curinos reports the average HELOC sits at 7.21%, with a 2026 low of 7.19 first spotted in mid-January and again in March. The average home equity loan rate is 7.36%, which ties the 2026 low seen in mid-March. Those figures give a clear signal that equity borrowing costs have eased slightly from earlier spikes this year.
The reported rates assume very strong applicants: think credit scores of at least 780 and combined loan-to-value ratios under 70%. That underwriting standard keeps published averages down, while real offers can vary widely depending on your profile. If you don’t match those strict criteria, expect higher pricing or fewer lender options.
Main mortgage rates hovering near 6% complicate things for homeowners who want cash out. Refinancing a low-rate first mortgage into a higher-rate loan just to tap equity often makes no sense, which is why many are turning to second mortgages like HELOCs or home equity loans instead. Those products let you access cash without touching your original mortgage rate.
It helps to understand how second-mortgage pricing works. HELOCs and second loans usually track an index plus a margin, and the index is often the prime rate, currently 6.75%. So if a lender adds a 0.75% margin, the starting rate would be 7.50%. That math makes it obvious why small moves in the index or margin shift your cost materially.
Lenders wield a lot of flexibility when setting rates and fees on these products, so shopping pays off. Your final rate will hinge on your credit score, debt load, and the size of your line relative to your home’s value. Don’t assume the first offer you get is the best deal available.
HELOCs sometimes come with short-term introductory teaser rates that look great on paper but soon adjust higher. Those promos might last six or 12 months, then revert to an adjustable structure that can push your payment up. Expect variability and plan for higher payments if the market moves up.
By contrast, home equity loans are typically fixed-rate products, meaning your payment stays the same for the life of the loan. That stability removes one layer of risk and makes budgeting easier, but it also means you give up the flexibility of drawing and repaying as needed. The choice boils down to whether you prefer predictability or access on demand.
Top HELOC providers tend to offer low fees, optional fixed-rate conversions for some balances, and larger credit lines when they can. That makes HELOCs useful for ongoing projects, accessible repairs, or smoothing cash flow during renovations. With a line you can draw, repay, and draw again, it’s a practical tool for rolling work or unpredictable costs.
Home equity loans shine when you need a lump sum for a one-off expense like a major remodel or debt consolidation. You get one rate to focus on and a clear repayment timeline, which many homeowners find comforting. That single-rate simplicity also makes apples-to-apples comparisons between lenders easier.
Keep an eye on fees and fine print no matter which route you pick; application fees, appraisal charges, and prepayment rules can erase the advantage of a slightly lower interest rate. And remember that a HELOC’s variable nature means your monthly obligation can increase if rates climb. Always run worst-case scenarios to verify you’d still be comfortable.
So what’s a “good” rate right now? The national averages—7.21% for HELOCs and 7.36% for home equity loans—offer a benchmark, but actual offers can range from under 6% up into the high teens depending on circumstances. For many homeowners sitting on a low primary mortgage and meaningful equity, this still feels like one of the better moments to consider a second mortgage rather than touching a cheap first mortgage.
To put a practical number on it: if you borrowed $50,000 on a HELOC at 7.25% and carried that balance through a typical 10-year draw, the monthly payment would be about $302 during the draw period. That looks manageable until you remember the rate is often adjustable afterward and could add years or extra cost during repayment. Aim to borrow with a plan to repay quickly whenever possible.
