Fixed-rate home equity loan rates have declined to 6.96% on a 10-year, $50,000 loan in early 2026, down from 8.18% in December 2025. At that rate, monthly payments on such a loan total $579.51, compared with $611.40 in December 2025 and $618.06 in September 2025, when the same loan carried an 8.43% rate.

A 15-year home equity loan of $50,000 at 6.96% carries monthly payments of $448.30. In December 2025, a comparable 15-year loan at 8.13% had payments of $481.59, and in September 2025, a 15-year loan at 8.31% had payments of $486.82.

Home equity lines of credit, known as HELOCs, currently carry an average rate of 7.11%. A 10-year HELOC of $50,000 at that rate has monthly payments of $583.38, while a 15-year HELOC of the same size has payments of $452.49. Both figures exceed the corresponding home equity loan payments at 6.96%, making a $50,000 home equity loan cheaper on a monthly basis than a $50,000 HELOC of the same term.

Historical HELOC data show the same trend. In December 2025, a 10-year HELOC of $50,000 at 7.81% carried monthly payments of $601.63, and a 15-year HELOC at the same rate had payments of $472.36. In September 2025, a 10-year HELOC of $50,000 at 8.05% had monthly payments of $607.96, while a 15-year HELOC at 8.05% had payments of $479.27.

HELOC rates have also moved lower over a longer horizon. The average HELOC interest rate is down by more than two full percentage points compared with where it stood around 18 months earlier.

Home equity loans carry fixed interest rates that do not change over the life of the loan unless the borrower refinances. HELOCs, by contrast, carry variable interest rates that adjust each month based on market conditions.