HELOC and home equity loan rates Sunday, February 22, 2026: Monthly payments fall (example: $302 a month)

Interest rates on home equity lines of credit (HELOCs) and home equity loans are currently at their lowest in years, making monthly payments more affordable for homeowners. According to real estate data firm Curinos, the average HELOC rate is 7.23%, with the lowest rate in the past year being 7.19%. The national average rate for a home equity loan is 7.44%, with the low being 7.38% in early December 2025. These rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.

For homeowners with low primary mortgage rates, accessing the increasing value of their home through a HELOC or home equity loan can be a great solution. The Federal Reserve estimates that homeowners have $34 trillion of equity locked within their homes, making a second mortgage HELOC or HEL a valuable financial tool.

Home equity interest rates are different from primary mortgage rates, as they are based on an index rate plus a margin. Typically, the prime rate serves as the index, which has recently fallen to 6.75%. Adding a margin of 0.75% would result in a HELOC rate of 7.50%. Lenders have flexibility in pricing second mortgage products, so it’s essential to shop around for the best rates based on factors like credit score, existing debt, and the credit line compared to the home’s value.

When considering a HELOC or home equity loan, it’s crucial to be aware of introductory rates that may only last for a limited time before becoming adjustable. Home equity loans, on the other hand, typically offer fixed rates that remain unchanged throughout the repayment period.

LendingTree is currently offering a HELOC APR as low as 6.13% on a credit line of $150,000, but it’s important to note that HELOCs come with variable interest rates that can fluctuate over time. The best home equity loan lenders may offer fixed rates that last the duration of the repayment period, simplifying the payment process and eliminating draw minimums.

Overall, the national average rates for HELOCs and home equity loans are 7.23% and 7.44%, respectively, but rates can vary significantly between lenders. It’s essential to compare fees and repayment terms to find the best option for your financial situation.

For homeowners with low primary mortgage rates and substantial equity in their homes, now may be an opportune time to consider a HELOC or home equity loan. By leveraging the equity in your home, you can fund home improvements, repairs, or upgrades without sacrificing your favorable mortgage rate. However, it’s important to be mindful of the variable nature of HELOC rates and plan accordingly to manage potential payment increases over time.