HELOC interest rates vary from 8.05% to 9.59% APR, with lower promotional rates available for up to a year. Bank of America’s average 10-year draw HELOC APR is 8.72% after a 6.49% introductory rate. Homeowners hold over $34 trillion in home equity, the third-largest on record per the Federal Reserve.

HELOCs offer a way to tap into home equity without giving up low primary mortgage rates. Rates, based on an index plus margin, vary between lenders. Comparing offers can help find a favorable rate based on credit score, debt, and credit line value.

Best HELOC lenders provide low fees, fixed-rate options, and flexible credit lines. With a HELOC, homeowners can draw on their equity as needed, making payments on their low-interest primary mortgage. Rates from lenders can range from 7% to 18%, depending on creditworthiness and shopping diligence.

FourLeaf Credit Union offers a 6.49% introductory HELOC rate for 12 months, converting to a variable rate. HELOC’s flexibility allows homeowners to borrow only what they need and pay interest solely on borrowed amounts. Rates vary widely among lenders, emphasizing the importance of shopping around.

Homeowners with low primary mortgage rates and substantial home equity may find it advantageous to get a HELOC. By keeping their mortgage rate and utilizing equity for home improvements or other expenses, homeowners can benefit from the flexibility of a HELOC for short-term borrowing.

Taking out a $50,000 HELOC on a $400,000 home could result in a $395 monthly payment with an 8.75% interest rate. While the draw period may be 10 years and repayment period 20 years, it is essentially a 30-year loan. HELOCs are most beneficial when balances are paid off promptly.

Read more at Yahoo Finance: Don’t miss super low promotional rates