HELOC rates today remain below 8.75%, with a 10.3% increase in total debt attributed to HELOCs and home equity loans in 2024. Home improvements are the main reason for HELOCs, accounting for 46% of known borrower usage, while debt consolidation is at 39%. Bank of America’s average APR for a 10-year draw HELOC is 8.72%. Homeowners have over $34 trillion in home equity. Mortgage rates in the high 6% range make holding onto primary mortgages appealing. HELOC interest rates differ from primary mortgage rates, with second mortgage rates based on an index rate plus a margin. The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines. Rates for HELOCs can vary widely, from 7% to 18%. It’s a good time for homeowners with low mortgage rates to consider a HELOC for home improvements or other expenses. Taking out a full $50,000 from a line of credit on a $400,000 home could result in a monthly payment of around $395 with a variable interest rate of 8.75%.

Read more at Yahoo Finance: Unchanged as borrower demand grows