HELOC interest rates are decreasing, offering homeowners access to cash from home equity

From Yahoo Finance: 2025-06-23 06:00:00

HELOC interest rates dipped slightly, sparking uncertainty in financial markets. A HELOC allows homeowners to access cash from home equity. Zillow reported 10-year HELOC rates at 6.68%, while VA-backed HELOCs are at 6.33%. Homeowners hold over $34 trillion in home equity. Accessing home equity with a HELOC can be a smart move.

Second mortgage rates are lower than prime rate due to lender flexibility. National HELOC rates may include introductory rates. Keep your low-rate mortgage and consider a HELOC for additional funds. Best HELOC lenders offer low fees and fixed-rate options. Use your home equity as needed, while paying down your mortgage.

FourLeaf Credit Union offers a 6.49% introductory HELOC rate for 12 months. Rates vary from 7% to 18% based on creditworthiness. HELOCs allow flexibility in borrowing only what is needed. With low mortgage rates, now is a good time to consider a HELOC for home improvements or other expenses.

Borrowing $50,000 from a $400,000 home with a HELOC could result in a $395 monthly payment at 8.75% variable interest. HELOCs typically have a 10-year draw period and 20-year repayment period, but should ideally be paid off sooner. Consider HELOCs for short-term borrowing needs.

Read more: Interest rates on home equity lines of credit continue lower trend