HELOC national average rates have decreased, with rates potentially at their lowest this year. Homeowners have over $34 trillion in home equity, the third-largest amount on record. Considering a HELOC to access home equity without giving up a low-rate primary mortgage is an option.

HELOC interest rates differ from primary mortgage rates, with second mortgage rates based on an index rate plus a margin. Lenders have pricing flexibility, so shopping around is recommended. Introductory rates may only last for a limited time, with rates becoming adjustable thereafter.

Best HELOC lenders offer low fees, fixed-rate options, and generous credit lines. HELOC allows flexible access to home equity for various needs. Rates vary widely among lenders, ranging from around 6% to 18%, depending on creditworthiness. Tapping into a HELOC can provide financial flexibility without incurring unnecessary interest.

For homeowners with low primary mortgage rates and significant home equity, considering a HELOC may be beneficial. Using equity for home improvements or other expenses while maintaining a low primary mortgage rate is advantageous. Careful consideration of repayment terms and financial discipline are crucial when utilizing a HELOC.

Understanding the terms of a HELOC is essential, as the interest rate is typically variable, leading to changing monthly payments. While initial payments may seem manageable, long-term repayment can result in increased costs over time. HELOCs are best suited for short-term borrowing and prompt repayment to avoid long-term debt.

Read more at Yahoo Finance: How much lower can they go before the end of the year?