From Yahoo Finance: 2025-06-06 06:00:00

HELOC rates experienced a slight increase today, but remain popular due to demand. Home equity lines of credit offer flexibility for homeowners with growing home values. Zillow reports 10-year HELOC rates at 6.73%, while VA-backed rates are at 6.28%. Homeowners hold over $34 trillion in home equity, the third-highest on record.

HELOC interest rates are distinct from primary mortgage rates, often based on the prime rate plus a margin. National HELOC rates may include introductory rates, subject to change after an initial period. Second mortgage rates are variable, influenced by credit score and debt levels.

Consider a second mortgage like a HELOC to access home equity without losing a low-rate primary mortgage. The best HELOC lenders offer low fees, fixed-rate options, and flexible credit lines for homeowners to use as needed. Repayments on primary mortgages can continue while leveraging home equity.

FourLeaf Credit Union is offering a 6.49% introductory HELOC rate for 12 months on lines up to $500,000. HELOCs offer the ability to borrow as needed, paying interest only on what is used. Rates vary widely between lenders, depending on creditworthiness and shopping diligence.

With low primary mortgage rates and substantial home equity, now is an optimal time for a HELOC. Use equity for home improvements or other needs without sacrificing a favorable mortgage rate. HELOCs allow for flexibility, but it’s crucial to pay off balances promptly to avoid long-term debt.



Read more at Yahoo Finance: HELOC interest rates take a small bounce higher