Average HELOC rates are dropping, leading to the highest demand in home equity lending since 2008. In Q3 2025, over 557,000 new home equity loans were originated, totaling $31.6 billion. Homeowners have a record $36 trillion in home equity. Consider a HELOC to access your home’s value without giving up a low mortgage rate. Rates vary, so shop around for the best deal.

HELOC interest rates differ from primary mortgage rates, with an average weekly rate of 7.44%. Second mortgage rates are based on an index rate plus a margin, often the prime rate. Flexibility in pricing depends on your credit score, debt amount, and credit line compared to home value. Look for introductory rates that can later become adjustable.

HELOCs allow you to access your home equity without giving up your low-rate mortgage. Look for the best lenders offering low fees, fixed-rate options, and generous credit lines. Tap into your equity as needed and pay it back, while paying down your primary mortgage. Rates can range from 6% to 18% based on creditworthiness and lender terms.

FourLeaf Credit Union is offering a HELOC rate of 5.99% for 12 months on lines up to $500,000, converting to a variable rate of 7.25% later. When shopping for lenders, compare rates, fees, repayment terms, and minimum draw amounts. The power of a HELOC lies in only borrowing what you need and leaving the rest available for future needs.

For homeowners with low mortgage rates and home equity, now is an excellent time to consider a HELOC. Use the cash drawn from your equity for home improvements, repairs, upgrades, or even a vacation. Remember to pay off the balance promptly to avoid long-term debt. Calculate your monthly payment during the draw period and repayment period to understand the financial commitment.

Read more at Yahoo Finance: Home equity lending highest since 2008