HELOC and home equity loan interest rates on Sunday, January 11, 2026: Close to their lowest point in the past 52 weeks

Current Trends in HELOC and Home Equity Loan Rates

Home equity lines of credit (HELOCs) and home equity loans (HELs) are currently experiencing some of the lowest average rates seen in the past year. With rates at or near their 52-week minimums, it's a smart move to compare offers from several lenders to secure the most favorable terms, whether you need flexible access to funds or a one-time lump sum through a second mortgage.

Latest HELOC and Home Equity Loan Rates (as of Sunday, January 11, 2026)

Data from Curinos, a real estate analytics provider, shows that the average HELOC rate stands at 7.25%, marking a 19 basis point decrease from the previous month. Meanwhile, the typical rate for a home equity loan is 7.56%, down by three basis points. These averages are based on borrowers with at least a 780 credit score and a combined loan-to-value ratio (CLTV) below 70%.

With mortgage rates for primary residences remaining high, homeowners who have built up equity and locked in a low mortgage rate may find it challenging to tap into their home's value.

If you want to retain your low mortgage rate, a HELOC or home equity loan can provide a practical way to access your equity without refinancing your main mortgage.

The Federal Reserve estimates that U.S. homeowners collectively have $36 trillion in home equity. By using a second mortgage, such as a HELOC or HEL, you can unlock a portion of this accumulated wealth.

Understanding HELOC and Home Equity Loan Interest Rates

Interest rates for home equity products differ from those of primary mortgages. Second mortgage rates are typically calculated by adding a margin to an index rate, often the prime rate, which has recently dropped to 6.75%. For example, if a lender adds a 0.75% margin, the resulting HELOC rate would be 7.50%.

Lenders have considerable flexibility in setting rates for HELOCs and home equity loans, so it's beneficial to compare multiple offers. Your rate will be influenced by factors such as your credit score, existing debt, and the proportion of your credit line relative to your home's value.

Be aware that many HELOCs advertise introductory rates that may only last for six to twelve months. After this period, the rate usually becomes variable and may increase significantly.

In contrast, home equity loans generally offer fixed rates for the entire loan term, eliminating concerns about future rate changes.

What Top HELOC and Home Equity Loan Lenders Provide

You can access your home's equity without giving up your favorable mortgage rate by considering a second mortgage, such as a HELOC.

The leading HELOC providers typically feature low fees, options for fixed rates, and substantial credit lines. With a HELOC, you have the flexibility to borrow what you need, repay, and borrow again up to your limit.

This approach allows you to continue paying down your original low-rate mortgage while leveraging your equity as needed.

For example, LendingTree currently advertises a HELOC APR as low as 6.36% for a $150,000 line of credit. However, keep in mind that HELOCs usually have variable rates, so your payments may rise if rates increase. Make sure your budget can accommodate potential payment changes.

On the other hand, the best home equity loan lenders offer fixed rates that remain constant for the duration of the loan, making it easier to plan your finances. With a home equity loan, you receive a lump sum and don't have to worry about minimum draws.

Always review lender fees and carefully read the repayment terms before making a decision.

Frequently Asked Questions About HELOC Rates

What is considered a competitive HELOC interest rate right now?

The current national average for a HELOC is 7.25%, while home equity loans average 7.56%. However, rates can vary widely, ranging from just under 6% to as high as 18%, depending on your credit profile and how thoroughly you compare lenders.

Is now a good time to apply for a HELOC?

If you have a low-rate primary mortgage and significant equity in your home, this could be an ideal time to consider a HELOC or home equity loan. You can retain your existing mortgage rate and use the funds for renovations, repairs, or other major expenses.

How much would the monthly payment be on a $50,000 HELOC?

With a $50,000 draw at a 7.50% interest rate, your monthly payment during the 10-year draw period would be around $313. Keep in mind that most HELOCs have variable rates, so your payment could increase over time, especially during the 20-year repayment phase. While HELOCs can last up to 30 years, they are most cost-effective when used and repaid over a shorter period.