HELOC interest rates remain steady, making it a good time to consider unlocking home equity if you have a low-rate primary mortgage. Bank of America reports an average APR of 8.72% on a 10-year draw HELOC with a 6.49% introductory rate in most states. Homeowners hold over $34 trillion in home equity, the third-highest on record.

Second mortgage rates, like HELOC rates, are based on an index rate plus a margin. The prime rate currently sits at 7.50%, so a HELOC with a 1% margin would have an 8.50% rate. National HELOC rates may include introductory rates that adjust to higher rates after a set period, depending on the lender.

Best HELOC lenders offer low fees, fixed-rate options, and generous credit lines. Borrowers can use HELOC funds as needed up to their credit limit, paying down their primary mortgage while accessing home equity. LendingTree advertises a 6.50% HELOC rate for a $150,000 credit line, which likely converts to a variable rate later.

HELOC rates can vary widely, ranging from 7% to 18% depending on creditworthiness and lender. Homeowners with low primary mortgage rates and substantial home equity may find now an opportune time to consider a HELOC for home improvements, repairs, or even vacations. Borrowers should be disciplined about paying off HELOC balances promptly.

Using a $50,000 draw from a $400,000 home’s line of credit with an 8.75% variable interest rate could result in a $395 monthly payment for a 10-year draw and 20-year repayment period. HELOCs are most beneficial when borrowed funds are repaid within a shorter timeframe.

Read more at Yahoo Finance: Is this the time to lock your HELOC rate?