HELOC and home equity loan rates today, January 21, 2026: Lowest since late 2022

Rates for location equity lines of recognition and location equity loans are mostly immune to the enslaved marketplace volatility of owe rates. HELOCs and HELs are driven by the premier involvement rate, which is astatine its lowest level since precocious 2022.

• Discover however overmuch you tin get with a HELOC.

Today's nationalist mean monthly HELOC complaint is 7.25%. The mean complaint connected a location equity indebtedness is 7.56%, according to information analytics institution Curinos.

Both rates are based connected applicants with a minimum recognition people of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.

The Federal Reserve estimates that homeowners person $34 trillion dollars of location equity arsenic of the 3rd 4th of 2025, conscionable beneath a grounds high. With owe rates remaining adjacent 6%, homeowners are not apt to fto spell of their superior debased owe anytime soon, truthful selling the location whitethorn not beryllium an option. A cash-out refinance whitethorn not beryllium viable either.

Accessing immoderate of the worth locked into your location with a 2nd owe tin beryllium an fantabulous alternative.

• Learn astir what to choose: a HELOC oregon a location equity loan.

How HELOC and location equity loan involvement rates are priced by lenders

Home equity involvement rates are antithetic from superior owe rates. Second owe rates are based connected an scale complaint positive a margin. That scale is often the premier rate, which has fallen to 6.75% pursuing 3 Federal Reserve complaint cuts. If a lender added 0.75% arsenic a margin, the HELOC would person a complaint of 7.50%.

A location equity indebtedness whitethorn person a antithetic margin, due to the fact that it is simply a fixed-interest product.

Lenders person flexibility with pricing connected 2nd owe products, specified arsenic HELOCs oregon location equity loans, truthful it pays to store around. Your complaint volition beryllium connected your recognition score, the indebtedness you carry, and the magnitude of your recognition enactment compared to the worth of your home.

And mean nationalist HELOC rates tin see "introductory" rates that whitethorn lone past for six months oregon 1 year. After that, your involvement complaint volition go variable, apt opening astatine a substantially higher rate.

Again, due to the fact that a location equity indebtedness has a fixed rate, it's improbable to person an introductory "teaser" rate.

MORE: Read our usher to the champion location equity indebtedness lenders.

The champion HELOC lenders connection debased fees, a fixed-rate option, and generous recognition lines. A HELOC allows you to easy usage your location equity successful immoderate mode and successful immoderate magnitude you choose, up to your recognition enactment limit. Pull immoderate out; wage it back. Repeat.

Today, FourLeaf Credit Union is offering a HELOC complaint of 5.99% for 12 months connected lines up to $500,000. That's an introductory complaint that volition person to a adaptable complaint of 7.25% later. When buying for lenders, beryllium alert of some rates.

The champion location equity indebtedness lenders whitethorn beryllium easier to find, due to the fact that the fixed complaint you gain volition past the magnitude of the repayment period. That means conscionable 1 complaint to absorption on. And you're getting a lump sum, truthful nary gully minimums to consider.

And arsenic always, comparison fees and the good people of repayment terms.

Rates alteration importantly from 1 lender to the next, making it challenging to pinpoint a single, definitive number. The existent nationalist mean for a HELOC is 7.25% — and 7.56% for a location equity loan. Those tin service arsenic your baseline erstwhile buying rates from 2nd owe lenders.

It's apt a bully thought to see a HELOC oregon a location equity indebtedness now. You don't springiness up that large superior owe complaint that you're paying connected your house, and you tin usage the currency drawn from your equity for things similar location improvements, repairs, and upgrades. Just astir anything, really.

If you retreat the afloat $50,000 from a location equity enactment of recognition and wage a 7.50% involvement rate, your monthly outgo during the 10-year gully play would beryllium astir $313. That sounds good, but remember, with a HELOC, that the complaint is usually variable, truthful it changes periodically, and your payments volition summation during the 20-year repayment period. A HELOC fundamentally becomes a 30-year loan.