National average Home Equity Line of Credit (HELOC) and lump-sum home equity loan rates are close to 7%, with second mortgage rates at their lowest in years. According to Curinos data, HELOC rates have fallen to 7.25%, while home equity loan rates are at 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 $36 trillion in locked equity. With mortgage rates stagnant, homeowners with equity may feel frustrated at not being able to access their home’s value. A second mortgage in the form of a HELOC or HEL can provide a solution.

Home equity interest rates differ from primary mortgage rates, with second mortgage rates based on an index rate plus a margin. Lenders have pricing flexibility on HELOCs and home equity loans, so it’s important to shop around based on credit score, debt, and credit line value compared to home value.

Average national HELOC rates may include introductory rates for a limited time before becoming adjustable, while home equity loans typically have fixed rates. The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines.

The best home equity loan lenders offer fixed rates for the repayment period, eliminating the need to worry about draw minimums. Rates vary by lender and location, with national averages at 7.25% for HELOCs and 7.56% for home equity loans. It’s a good time for homeowners with low primary mortgage rates to consider a HELOC or home equity loan.

It’s important to consider the variable nature of HELOC rates, which can impact monthly payments during the repayment period. HELOCs are best suited for short-term borrowing and repayment, as rates can change periodically.

Read more at Yahoo Finance: Rates inch down, closer to 7%