The average rate on a home equity line of credit has dropped by 25 basis points to just under 8.5%. Bank of America, the top HELOC lender, offers an average APR of 8.47% on a 10-year draw HELOC. Homeowners have over $34 trillion in home equity, creating a valuable resource.

With mortgage rates still above 6%, homeowners are reluctant to give up their low-rate mortgages. A HELOC allows homeowners to access their home equity without refinancing their primary mortgage. HELOC rates are different from primary mortgage rates, typically based on an index rate plus a margin.

The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines. HELOCs allow homeowners to use their equity as needed, paying it back and repeating as desired. FourLeaf Credit Union is offering a 5.99% introductory HELOC rate for 12 months. Rates can vary widely, depending on creditworthiness and lender.

HELOCs allow homeowners to tap into their equity as needed, leaving the line of credit available for future use. Interest is only paid on the amount borrowed. Rates can range from nearly 6% to as high as 18%, depending on creditworthiness and lender.

For homeowners with low mortgage rates and equity, now is a great time to consider a HELOC for home improvements, repairs, or even a vacation. HELOC payments on a $50,000 draw from a $400,000 home could be around $389 per month with an 8.63% interest rate. HELOCs are best suited for short-term borrowing and repayment.

Read more at Yahoo Finance: Rates are down since last week