HELOC rates holding steady, offering homeowners access to home equity without losing low mortgage rates.

From Yahoo Finance: 2025-06-30 06:00:00

HELOC interest rates are holding steady as equity borrowing costs have decreased over the past year. A $50,000 HELOC payment has dropped $100. Homeowners with low-rate mortgages can benefit from a HELOC without refinancing. The rate for 10-year HELOCs is 6.50%, with VA-backed HELOCs at 6.15%.

With over $34 trillion in home equity, homeowners are reluctant to sell their homes due to low mortgage rates. HELOCs offer a way to access home equity without losing a favorable mortgage rate. HELOC rates are based on an index rate plus a margin, typically lower than primary mortgage rates.

Some HELOC rates may start with introductory rates before adjusting higher. Keeping your primary mortgage and using a HELOC allows you to access home equity without losing a low-rate mortgage. Consider factors such as credit score and debt amount when determining HELOC rates.

The best HELOC lenders offer low fees and flexible credit lines. Using a HELOC allows homeowners to access home equity as needed, paying it back and accessing it again. With a low-interest primary mortgage, homeowners can build wealth while using a HELOC for various expenses.

FourLeaf Credit Union is offering a 6.49% HELOC rate for 12 months. Remember to compare rates, fees, repayment terms, and minimum draw amounts when shopping for a HELOC. HELOCs allow for flexibility in borrowing only what you need and leaving the rest of the credit line available for future needs without interest charges.

HELOC rates vary widely, ranging from nearly 7% to 18%. Your creditworthiness and diligence as a shopper will impact the rates offered to you. Now is a favorable time for homeowners with low primary mortgage rates and equity to consider getting a HELOC for expenses like home improvements or repairs.

Taking out $50,000 from a $400,000 home with a HELOC may result in a $395 monthly payment with a variable interest rate starting at 8.75%. While this may seem like a good deal, remember that HELOCs are best used when borrowed and paid back in a shorter period. Consider the repayment terms before accessing home equity.

Read more: Home equity line of credit rate holds steady