Increasing interest rates at many lenders continue to decline

HELOC rates remain at lows through 2025, according to analytics company Kurinos. While the average national rate on home equity lines of credit is as attractive as it has been in years, rising interest rates at many lenders continue to decline.

According to Curinos data, the average weekly HELOC rate is 7.64%. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.

According to the Federal Reserve, homeowners have an impressive amount of value tied up in their homes — about $36 trillion by the end of the second quarter of 2025. That’s the largest amount of home equity on record.

With mortgage rates remaining in the low-6% range, homeowners are unlikely to shed their primary mortgage anytime soon, so selling a home may not be an option. Why leave your 5%, 4% – or 3% mortgage?

Accessing some of that value with a use-it-as-you-need HELOC can be a great option.

HELOC interest rates are calculated differently than mortgage rates. Second mortgage rates are based on index rates and margins. That index is often the prime rate, which has fallen to 7.00%. If the lender adds 0.75% as margin, the HELOC will have a 7.75% rate.

Lenders have flexibility in pricing 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 line of credit compared to the value of your home. Shop two or three lenders for the best terms.

National HELOC rates may include “introductory” offers that may only be for six months or one year. After that, your interest rate will be adjustable, possibly starting at a fairly high rate.

You don’t have to give up your low-rate mortgage to access equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.

The best HELOC lenders offer low fees, a fixed rate option, and generous credit lines. A HELOC allows you to easily use your home equity up to your credit line limit in any way and in any amount you choose. pull something out; Pay it back. Repeat.

Meanwhile, you’ll be paying off your low-interest-rate primary mortgage like the wealth-building machine you are.

Today, FourLeaf Credit Union is offering a HELOC APR of 5.99% for 12 months on lines up to $500,000. That is an introductory rate that will later convert to a variable rate. When shopping for lenders, be aware of both rates. And as always, compare fees, payment terms, and minimum draw amounts. The draw is the amount of money the lender must initially take from your equity.

The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.

Rates vary significantly from one lender to another. You may see rates ranging from 6% to 18%. It really depends on your creditworthiness and how diligent you are as a shopper.

For homeowners with low primary mortgage rates and a large amount of equity in their home, this is the best time to take out a HELOC. You don’t give up that great mortgage rate, and you can use the cash from your equity for things like home improvements, repairs, and upgrades. Of course, you can also use a HELOC for fun things, like a vacation—if you have the discipline to pay it off right away. Vacation is not possible for taking long term loans.

If you withdraw the full $50,000 from your home equity line of credit and pay an interest rate of 7.50%, your monthly payment over a 10-year draw period will be approximately $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase over a 20-year payment period. A HELOC is essentially a 30-year loan. HELOCs are best if you borrow and pay off the balance over a very short period of time.