From Yahoo Finance: 2025-06-14 06:00:00

HELOC rates increased slightly, reflecting daily consumer lending product price changes. Homeowners saw significant equity gains due to pandemic-driven home price appreciation, averaging over $38,000 annually since 2020. However, rapid equity accumulation is slowing. Zillow reported a 10-year HELOC rate of 6.72% and VA-backed HELOCs at 6.31%. Homeowners hold over $34 trillion in home equity as of 2024.

HELOC interest rates differ from primary mortgage rates, often based on an index rate plus a margin. National HELOC rates may include introductory rates that transition to adjustable rates. You can access home equity without giving up a low-rate mortgage through HELOCs or second mortgages. Best HELOC lenders offer low fees, fixed-rate options, and flexible credit lines.

FourLeaf Credit Union offers a 12-month introductory HELOC rate of 6.49% for lines up to $500,000. Shopping lenders should involve comparing rates, fees, repayment terms, and minimum draw amounts. HELOCs allow tapping into needed funds with available credit for future needs without paying interest on unused amounts. Rates vary widely based on creditworthiness and lender terms.

For homeowners with low mortgage rates and substantial equity, now is an opportune time for a HELOC. It allows leveraging equity for home improvements or other expenses without affecting favorable mortgage rates. However, using a HELOC responsibly is crucial to avoid accumulating long-term debt. Monthly payments on a $50,000 HELOC draw from a $400,000 home may start at $395 with a variable interest rate.



Read more at Yahoo Finance: The home equity line of credit rate drifts marginally higher