National average rates for home equity lines of credit (HELOCs) and home equity loans (HELs) are at or near 52-week lows. The average HELOC rate is 7.25%, while the average HEL rate is 7.56%. The Federal Reserve estimates homeowners have $36 trillion of equity in their homes, which can be accessed through a second mortgage like a HELOC or HEL. Interest rates for second mortgages are based on an index rate plus a margin, with lenders offering flexibility in pricing. HELOCs may have introductory rates that can increase after a certain period, while HELs offer fixed rates for the life of the loan.

For homeowners with low primary mortgage rates and equity in their homes, now is a good time to consider a HELOC or HEL. HELOC rates can start as low as 6.36%, but are variable and subject to change. The best home equity loan lenders offer fixed rates for the duration of the loan. It’s important to compare fees and repayment terms when considering a second mortgage. Rates for HELOCs and HELs can vary from around 6% to 18%, depending on creditworthiness and lender.

Overall, a HELOC or HEL can be a good option for accessing home equity without giving up a low primary mortgage rate. It allows homeowners to use their equity for various purposes and pay down their primary mortgage while managing their credit line. It’s crucial to understand the terms of the loan and potential rate adjustments with a HELOC to ensure affordability over time.

Read more at Yahoo Finance: At or near 52-week lows