Interest rate for home equity line of credit drops to 6.50%, good for homeowners

From Yahoo Finance: 2025-06-29 06:00:00

HELOC interest rates are near 30-year fixed mortgage rates, offering access to home equity. Smart borrowers pay off balance before credit limit. Zillow reports 6.50% rate for 10-year HELOC, while VA-backed HELOCs have 6.15%. Homeowners hold over $34 trillion in home equity. Consider HELOC for accessing home equity without refinancing.

HELOC rates differ from primary mortgage rates, based on index rate plus margin. Rates can vary due to credit score, debt amount, and credit line compared to home value. Introductory rates may last six months to a year. Keep low-rate mortgage and consider HELOC for flexible access to home equity.

Best HELOC lenders offer low fees, fixed-rate option, and generous credit lines. Easily use home equity for any purpose, pay it back, repeat. Pay down low-interest primary mortgage while using HELOC. LendingTree offers 6.50% HELOC rate for $150,000 credit line. Compare rates, fees, and repayment terms when shopping for a HELOC.

HELOC power lies in tapping only what you need, leaving credit line available for future needs. Rates vary from 7% to 18% based on creditworthiness and lender. Ideal time for a HELOC with low primary mortgage rates and equity in house. Use cash from equity for home improvements, repairs, upgrades, or fun activities with disciplined repayment.

Full $50,000 draw on $400,000 home may result in $395 monthly payment with variable interest at 8.75% for 10-year draw and 20-year repayment period. HELOC can turn into a 30-year loan if not paid off promptly. Best to borrow and pay back balance in shorter period for optimal use of HELOC.

Read more: The interest rate on a home equity line of credit moves lower (to 6.50%)