National average HELOC and home equity rates remain around 7.5%, making it a favorable time for those looking to make home upgrades or reduce high-interest debt. The average monthly HELOC rate is 7.44%, while the national average rate for a home equity loan is 7.59%. With $36 trillion of equity locked in homes, homeowners may feel frustrated not being able to access that growing value. Second mortgages in the form of a HELOC or HEL can provide a solution. Rates for home equity loans are different from primary mortgage rates, with second mortgage rates typically based on an index rate plus a margin.

The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines. Look for below-market introductory rates when shopping for lenders. Pay attention to minimum draw amounts for HELOCs. The best home equity loan lenders offer fixed rates for the length of the repayment period, with no draw minimums. Rates for HELOCs and home equity loans can vary significantly depending on creditworthiness and lender. Homeowners with low primary mortgage rates and significant equity in their homes may find it advantageous to obtain a HELOC or home equity loan for uses like home improvements or repairs. During the HELOC draw period, monthly payments can be relatively low, but it’s essential to be aware that rates are typically variable.

Read more at Yahoo Finance: Lower rates are in your favor