The national average interest rate for home equity lines of credit is dropping below 7.5%, with lenders adjusting to the new prime rate of 6.75%. Homeowners had a record $36 trillion in home equity by the end of the second quarter of 2025. With mortgage rates still above 6%, accessing home equity through a HELOC may be a better option than selling or refinancing. HELOC rates are based on an index rate plus a margin, and lenders have flexibility with pricing. Some national HELOC rates include introductory rates that may change after a few months or a year. Keep your low-rate mortgage and consider a second mortgage like a HELOC for accessing home equity. The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines. LendingTree is offering a HELOC APR as low as 6.38%, but remember HELOC rates are variable and can fluctuate. Compare fees, repayment terms, and minimum draw amounts when considering a HELOC. HELOCs allow you to tap into your equity as needed, paying interest only on what you borrow. Rates for HELOCs can vary significantly between lenders, ranging from under 6% to as high as 18%, depending on creditworthiness and lender competitiveness. For homeowners with low mortgage rates and substantial equity, now may be one of the best times to consider a HELOC. Using a HELOC responsibly for things like home improvements or repairs can be beneficial, but be cautious about taking on long-term debt for non-essential expenses. If you withdraw $50,000 from a HELOC at a 7.50% interest rate, your monthly payment during the draw period could be around $313. However, the rate is variable, so payments may increase during the repayment period, making HELOCs more suitable for shorter-term borrowing and repayment.

Read more at Yahoo Finance: The lower prime rate of 6.75% is causing lenders to reprice