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According to a new report, the average U.S. homeowner lost about $8,500 in equity during the past year. Data firm Cotality says it’s because home price appreciation is slowing. However, there is good news: the average borrower still has about $295,000 in accumulated home equity.

Now, let’s check the latest second mortgage rates.

Find out how HELOC and home equity loan interest rates work and what you can expect to pay.

The average HELOC rate is 7.20%, down three basis points from one month ago, according to real estate analytics firm Curinos. The 52-week HELOC low was 7.19% in mid-January. The national average rate on a home equity loan is 7.47%, up three basis points from last month. The low was 7.38% in early December 2025.

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%.

MORE: Here are our picks for the best HELOC lenders.

Home equity interest rates work differently from mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which is now 6.75%. If a lender added 0.75% as a margin, the HELOC would have a variable rate of 7.50%.

A home equity loan may have a different margin, because it is a fixed-interest product.

Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home. Shop a few lenders to find your best interest rate offer.

Learn about how fixed-rate HELOCs work.

Today, FourLeaf Credit Union is offering a HELOC APR (annual percentage rate) of 5.99% for 12 months on lines up to $500,000. That's an introductory rate that will convert to a variable rate in one year.

When shopping for lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.

The best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you're getting a lump sum, so no draw minimums to consider.

Rates vary significantly from one lender to the next. You may see rates from 6% to as much as 18%. It really depends on your creditworthiness and how diligent you are as a shopper. Currently, the national average for an adjustable-rate HELOC is 7.20%, and for a fixed-rate home equity loan it's 7.47%. Those are the rates to meet or beat.

Interest rates fell for most of 2025. They are expected to remain steady through the first half on 2026. So yes, it's a good time to get a second mortgage. And with a HELOC or a HEL, you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Or just about anything else.

If you withdraw the full $50,000 from a line of credit on your home and pay a 7.25% interest rate, your monthly payment during the 10-year draw period would be about $302. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period of time.

It can be a good time to get a HELOC, especially if you don’t want to lose the low rate on your first mortgage. Learn how the housing market could affect your decision.

Home equity lines of credit (HELOCs) usually charge variable rates, but you can find fixed-rate HELOCs with certain lenders. Learn how a fixed-rate HELOC works.

Chase Home Lending is finally re-introducing its home equity line of credit (HELOC) product. Learn how Chase's new HELOC works and whether it's a good fit for you.

A home equity line of credit (HELOC) can help many homeowners, but it’s not right for everyone. Before you take one out, consider the pros and cons.

The best home equity loan lenders offer perks such as low fees, no appraisals, and high borrowing limits. Find out which lender is best for a home equity loan.

The best HELOC lenders have flexible payment options, allow high CLTV ratios, and more. Read through our top picks to find the best HELOC lender for you.