From Yahoo Finance: 2025-06-01 06:00:00

HELOC interest rates dropped slightly today, making it more affordable to tap into your home’s value. Zillow reports rates on a 10-year HELOC are now at 6.77%, with VA-backed HELOCs at 6.34%. Homeowners have over $34 trillion in home equity, making a HELOC a valuable option to access funds without refinancing.

Second mortgage rates are based on an index rate plus a margin, often the prime rate at 7.50%. Lenders offer lower rates depending on credit score, debt, and credit line compared to home value. Introductory rates may last six months to a year before adjusting higher, making a HELOC a flexible option.

Best HELOC lenders provide low fees, fixed-rate options, and generous credit lines for easy access to home equity. By keeping your primary mortgage with a low rate, you can leverage a HELOC for various needs and pay it back on your terms. This wealth-building strategy allows you to maximize your financial potential.

FourLeaf Credit Union offers a 6.49% introductory HELOC rate for 12 months on lines up to $500,000. Shopping around for rates, fees, and repayment terms is essential to find the best deal. HELOCs offer the flexibility to borrow what you need, with interest only on the amount borrowed.

HELOC rates range from 7% to 18% depending on creditworthiness and lender terms. With low primary mortgage rates and substantial home equity, now may be an ideal time to consider a HELOC for home improvements or other financial needs. Utilize the equity wisely for short-term benefits without taking on long-term debt.

Borrowing $50,000 on a $400,000 home with a HELOC could result in a $395 monthly payment at an 8.75% variable interest rate. While HELOCs offer flexibility, it’s important to pay back the balance within a shorter period to avoid turning it into a long-term loan. Understanding the terms and repayment structure is crucial for successful use of a HELOC.



Read more at Yahoo Finance: Interest rates on home equity lines of credit move lower again