HELOC interest rates in the US average just under 8.5%, making it an opportune time to apply for a home equity line of credit. Bank of America offers an average APR of 8.47% on a 10-year draw HELOC after a 5.99% introductory rate. Homeowners hold over $34 trillion in home equity, the third-highest on record.

With mortgage rates above 6%, homeowners are unlikely to give up their primary mortgage for a cash-out refinance. HELOCs offer a way to access home equity without sacrificing a low-rate mortgage. Second mortgage rates, like HELOCs, are based on an index rate plus a margin, with national rates including introductory rates that adjust higher later.

The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines for homeowners. Using a HELOC allows homeowners to access their home equity as needed, leaving room for future use. LendingTree currently offers a HELOC rate as low as 6.38% for a $150,000 credit line.

HELOCs offer the power to borrow only what is needed, avoiding interest on unused credit. Rates vary widely depending on creditworthiness and lender, ranging from below 6% to as high as 18%. For homeowners with low mortgage rates and substantial equity, now is an excellent time to consider a HELOC for various financial needs.

Taking out a $50,000 line of credit on a $400,000 home with a HELOC can result in a $384 monthly payment at an 8.49% variable interest rate. While HELOCs offer flexibility, it’s best to borrow and repay the balance within a shorter period to avoid turning it into a long-term loan.

Read more at Yahoo Finance: The versatile line of credit rate keeps getting better