HELOC rates are at record lows, making it an attractive option for homeowners needing cash. The average monthly rate is 7.44% for those with a credit score of 780 and a CLTV of 70%. Homeowners frustrated by high primary mortgage rates can tap into their home equity with a HELOC at a lower rate.

The Federal Reserve estimates that U.S. homeowners have $36 trillion in equity. HELOC rates are different from primary mortgage rates, typically based on the prime rate plus a margin. Lenders offer flexibility in pricing, so it’s essential to shop around for the best rate based on credit score and debt-to-value ratio.

HELOC rates can include introductory rates that adjust higher after a set period. Keeping your low-rate mortgage and getting a second mortgage, like a HELOC, allows you to access your home equity without refinancing. The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines for flexible borrowing.

FourLeaf Credit Union is offering a 5.99% HELOC rate for 12 months on lines up to $500,000. Rates vary widely among lenders, from 6% to 18%, depending on creditworthiness. With a HELOC, you only pay interest on what you borrow, leaving the line of credit available for future needs.

For homeowners with low mortgage rates and equity, now is an excellent time to consider a HELOC. Use the cash drawn from equity for home improvements, repairs, or even a vacation. However, be mindful of repayment terms and discipline in paying off the balance promptly. HELOCs are best suited for shorter-term borrowing and repayment.

Read more at Yahoo Finance: HELOC rates today, December 29, 2025: Lowest rates since 2022