From Yahoo Finance: 2025-06-02 06:00:00

Interest rates for HELOCs increased slightly, with 28% of Americans considering tapping into their home equity. Renovations, property investments, and debt consolidation are top uses for HELOCs. Rates for 10-year HELOCs rose to 6.81%, while VA-backed HELOCs moved up to 6.36%.

Homeowners have a staggering $34 trillion in home equity. HELOC rates are based on an index rate plus a margin, with flexibility in pricing. Introductory rates may change to adjustable rates after a period. Keeping a low-rate mortgage while accessing home equity with a second mortgage like a HELOC is a smart option.

The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. Using a HELOC allows for the flexibility to use home equity as needed, up to the credit line limit. Pay down the low-rate primary mortgage while accessing cash from home equity. Rates vary among lenders, ranging from 7% to 18%.

FourLeaf Credit Union offers a HELOC rate of 6.49% for 12 months on lines up to $500,000, with the rate converting to a variable rate later. HELOCs allow you to tap into what you need, leaving the line of credit available for future use without paying interest on unused funds.

Read more: Interest rates on home equity lines of credit nudge higher as consumer demand grows