HELOC interest rates drop to 6.68%, making it an attractive option for homeowners

From Yahoo Finance: 2025-06-22 06:00:00

HELOC interest rates are dropping, making it an attractive option for homeowners looking to tap into their growing home equity. Zillow reports a 10-year HELOC rate at 6.68%, while VA-backed HELOCs are at 6.33%. With over $34 trillion in home equity nationwide, accessing a HELOC can provide financial flexibility without giving up a low-rate primary mortgage. Rates vary based on creditworthiness and lender, ranging from 7% to 18%.

HELOCs offer the ability to borrow and repay as needed, with some lenders offering introductory rates that convert to a variable rate later. LendingTree is currently offering a 6.50% rate for a $150,000 credit line. It’s essential to compare rates, fees, repayment terms, and minimum draw amounts when considering a HELOC. Homeowners can use a HELOC for various purposes, from home improvements to vacations, but discipline is key to avoid long-term debt.

HELOCs allow homeowners to access their home equity without refinancing their primary mortgage, providing financial flexibility and opportunity for wealth-building. With rates as low as 6.50% from some lenders, homeowners can tap into their equity for various needs while keeping their low-rate mortgage intact. Consider the terms, fees, and repayment structure when exploring HELOC options.



Read more at Yahoo Finance: The interest rate on a home equity line of credit moves even lower (to 6.68%)