According to data from Bank of America, the largest HELOC lender in the country, the current average HELOC interest rate is 8.47% APR. With home equity line of credit rates at 2025 lows, this may be the best time in years to apply for a HELOC. Today’s average APR on a 10-year draw HELOC ranges from 7.80% to 9.34%, varies by location, and kicks in after a six-month introductory rate of 5.99%.

Homeowners have over $34 trillion in home equity, the third-largest amount on record. Mortgage rates just over 6% may make homeowners hesitant to let go of their primary mortgage. Accessing home equity through a HELOC can be an excellent alternative.

HELOC interest rates are different from primary mortgage rates and are based on an index rate plus a margin. Lenders have flexibility in pricing, so it’s important to shop around for the best rates. Average national HELOC rates may include introductory rates that later become adjustable.

You can keep your low-rate mortgage and still access your home’s equity through a second mortgage like a HELOC. The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines, allowing you to use your home equity as needed.

FourLeaf Credit Union is offering a HELOC rate of 5.99% for 12 months on lines up to $500,000, which later converts to a variable rate. Rates vary by lender, and it’s essential to compare fees, repayment terms, and minimum draw amounts when shopping for a HELOC.

The power of a HELOC lies in tapping only what you need and leaving the rest of your credit line available for future use. You only pay interest on the amount you borrow.

For homeowners with low primary mortgage rates and equity in their home, now may be an excellent time to get a HELOC. You can use the cash drawn from your equity for things like home improvements, repairs, upgrades, or even fun things like vacations, if paid off promptly.

Taking out a $50,000 line of credit on a $400,000 home may result in a monthly payment of around $384 with a variable interest rate starting at 8.49%. HELOCs with a draw period and repayment period can be beneficial if paid off quickly.

Read more at Yahoo Finance: At 2025 lows and entering a cycle of lower interest rates