HELOC and home equity loan rates are steady this weekend, with national averages sitting around the mid-sevens and lenders lining up to compete for second-mortgage business. This piece breaks down the current averages, what drives those rates, what lenders are offering, and practical examples you can use to decide whether a HELOC or a fixed home equity loan makes sense for your situation.
Curinos reports the average HELOC rate at 7.24% and the national average for a home equity loan at 7.37%. The 52-week HELOC low was 7.19% in mid-January and the home equity loan low was 7.38% in early December 2025, showing only slight movement across the last year. Those averages reflect strong demand and competitive pricing among lenders chasing second-mortgage customers.
Published rate quotes generally assume a borrower with excellent credit, typically a minimum credit score of 780 and a combined loan-to-value ratio under 70%. If your score or CLTV is weaker, expect higher pricing and fewer favorable terms. Lenders tailor margins and fees to risk, so the headline averages may not match the offers you’ll receive without shopping around.
Second mortgage rates are often built from an index plus a lender margin, and the common index is the prime rate, currently 6.75%. For example, a lender that tacks on a 0.75% margin to prime would price a HELOC around 7.50% before any borrower-specific adjustments. That structure explains why HELOCs can jump or dip as market rates shift and why introductory pricing might look tempting up front.
Many HELOCs advertise low introductory rates that last six months to a year, then revert to an adjustable rate based on the index plus margin. That conversion can put monthly payments noticeably higher after the intro period ends, so you need a plan for payment rises. Home equity loans, by contrast, usually offer fixed rates that remain the same over the life of the loan, removing that particular uncertainty.
The fixed-rate home equity loan can be simpler to manage: one rate, a lump-sum payout, and predictable payments for the repayment term. Lenders that rank well for home equity loans emphasize transparency in fees and clear repayment terms, which makes it easier to compare true costs. If you want stability and a single monthly payment, a fixed home equity loan tends to be the better choice.
Top HELOC lenders often compete on low fees, flexible draw periods, a fixed-rate conversion option, and generous credit limits. A HELOC gives repeated access to cash up to your credit line so you can borrow, repay, and borrow again for ongoing projects. That flexibility is attractive for renovation work, staged improvements, or intermittent expenses where you don’t need a full lump sum all at once.
Practical math matters. If you draw the full $50,000 from a line and carry it at a 7.25% rate, your monthly payment during a 10-year draw period would be roughly $302. That figure is useful for short-term budgeting, but remember that the payment picture changes in the repayment period, often extending the effective amortization toward a 30-year equivalent. A HELOC is most efficient if you plan to borrow and repay quickly rather than carry a long-term balance.
Lenders vary widely in what they advertise and what they actually underwrite, so shop. LendingTree is offering a HELOC APR as low as 6.23% on a credit line of $150,000, which is a headline grabber but still subject to credit, CLTV, and qualifying rules. Always read the fee schedule and the terms that govern margins, caps, and whether an initial rate is temporary.
Bottom line, if you want to keep a low primary mortgage rate and tap appreciation in your home, a second mortgage can be a smart tool when used carefully. Compare fixed home equity loans for stability and HELOCs for flexibility, and be prepared for variable-rate risk if you pick a HELOC. The market is steady now, but your best move is to compare offers, review the fine print, and choose the product that aligns with your cash-flow needs and tolerance for rate swings.
