HELOC rates holding steady at around 8.90%

HELOC rates are unchanged today as the U.S. celebrates Independence Day. You won’t find a bank open, but online applications are available. Average rate on a 10-year draw HELOC is 8.90% after a 6.49% introductory rate. Homeowners hold over $34 trillion in home equity, the third-largest amount on record.

After a strong jobs report, chances of a Federal Reserve rate cut in July have dropped. Prime rate likely to stay at 7.5%, affecting financial product pricing. HELOC rates differ from primary mortgage rates. Second mortgage rates depend on index rate and margin, often starting at 8.50%.

HELOCs offer flexibility to access home equity. Rates can vary from 7% to 18%, based on creditworthiness. Best time for homeowners with low mortgage rates to consider a HELOC. HELOCs can be used for home improvements, repairs, or even vacations, but discipline in repayment is crucial.

Lenders like FourLeaf Credit Union offer a 6.49% introductory rate on HELOCs up to $500,000. Pay interest only on amount borrowed. HELOC payments on a $50,000 draw can be around $395 monthly with a variable rate of 8.75%. Repayment period typically 20 years, but best if paid back sooner.

Read more at Yahoo Finance: Holding steady as prospects dim for a summer interest rate cut