Rates for home equity lines of credit and home equity loans are at multi-year lows, making now a good time to shop for the best offer. Average monthly HELOC rate is 7.25%, while the national average rate for a home equity loan is 7.56%. Rates are based on a minimum credit score of 780 and a CLTV of less than 70%.

The Federal Reserve estimates homeowners have $34 trillion in equity. Second mortgages like HELOCs and HELs allow homeowners to access this value. Homeowners with low primary mortgage rates may find it frustrating not being able to tap into their growing home equity, making a second mortgage a solution.

HELOC interest rates are different from primary mortgage rates, often based on an index rate plus a margin. Best HELOC lenders offer flexibility with rates, with introductory rates that may only last for a short period. Shopping around is key to finding the best rate based on credit score and loan-to-value ratio.

For homeowners considering a second mortgage, a HELOC allows flexible access to home equity, while a home equity loan provides a lump sum. Rates vary between lenders, from nearly 6% to 18%, depending on creditworthiness. Shopping around and comparing rates is crucial in finding the best deal.

HELOCs offer easy access to home equity, while home equity loans provide a lump sum. Look for lenders offering below-market introductory rates, pay attention to draw minimums, and compare annual fees and charges. Rates can range from 6% to 18%, so diligent shopping is essential in securing the best rate.

Consider a HELOC or HEL if you have a low primary mortgage rate and significant home equity. Use the cash for home improvements or other expenses, but be disciplined in paying off the balance promptly. HELOC payments during the draw period are manageable, but remember rates are usually variable.

HELOCs and HELs are best for short-term borrowing and repayment. Full $50,000 withdrawal at 7.50% interest results in a $313 monthly payment during the draw period, which then increases during the repayment period. Consider the long-term implications of variable rates and repayment terms when using a second mortgage.

Read more at Yahoo Finance: How long will these low rates last?