National average rates for home equity lines of credit (HELOCs) and home equity loans (HELs) are currently under 8%, the lowest in over 36 months. Homeowners with the most equity and best credit earn the lowest rates. According to Curinos, the average HELOC rate is 7.44% and the average HEL rate is 7.59%, based on applicants with a credit score of 780 and CLTV under 70%.

With primary mortgage rates staying put, frustrated homeowners with equity may feel limited in accessing their home’s value. For those wanting to keep their low mortgage rate, a HELOC or HEL can be a good solution. The Federal Reserve estimates $36 trillion in home equity, which can be tapped into with a second mortgage like a HELOC or HEL.

Home equity interest rates differ from primary mortgage rates, with second mortgage rates based on an index rate plus a margin. The prime rate has fallen to 6.75%, leading to potential HELOC rates around 7.50%. Lenders have pricing flexibility, so shopping around is key based on credit score, debt, and credit line value.

HELOC rates may include introductory rates lasting 6 months to a year, then adjusting higher. HELs have fixed rates without introductory periods, simplifying payments. Keep your low mortgage rate and consider a second mortgage like a HELOC for easy access to home equity, while paying down the primary mortgage.

The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines, allowing flexible use of home equity. LendingTree offers a HELOC APR as low as 6.36% on a $150,000 credit line, but variable rates mean potential fluctuations. Ensure affordability with changing rates. Compare lenders for the best rates and terms on HELOCs and HELs.

Read more at Yahoo Finance: Lowest in over 36 months