From Yahoo Finance: 2025-06-08 06:00:00

HELOC interest rates surged today due to a bond market sell-off. Homeowners can tap into their home equity with a HELOC or home equity loan, keeping their primary mortgage intact. Zillow reports a 12 basis point increase in 10-year HELOC rates to 6.85%, with VA-backed HELOCs rising to 6.42%.

With over $34 trillion in home equity, homeowners are hesitant to give up low primary mortgage rates. HELOC rates, based on an index rate plus a margin, vary based on credit score and debt amount. National rates may have introductory periods before adjusting higher.

Consider a second mortgage like a HELOC to access home equity without refinancing. The best HELOC lenders offer low fees, fixed-rate options, and flexible credit lines. LendingTree currently offers a 6.50% HELOC rate for a $150,000 credit line, with variable rates later.

HELOCs allow homeowners to borrow as needed, paying interest only on what is borrowed. Rates vary widely, from 7% to 18%, based on creditworthiness and lender. Now is a prime time for homeowners to get a HELOC with low primary mortgage rates and available equity.

Taking out a HELOC on a $400,000 home for $50,000 may result in a $395 monthly payment with an 8.75% variable interest rate. Optimal for short-term borrowing and repayment, HELOCs offer flexibility for home improvements, repairs, upgrades, or even a vacation with disciplined repayment practices.

Read more: Interest rates on home equity lines of credit sharply higher