Current national average rates for home equity lines of credit and home equity loans are falling, with HELOC at 7.25% and HEL at 7.56%. Both rates require a minimum credit score of 780 and CLTV of less than 70%. Homeowners may consider a second mortgage as a way to access growing home equity.

The Federal Reserve estimates U.S. homeowners have $36 trillion in equity. HELOC rates are based on an index rate plus a margin, often the prime rate currently at 6.75%. Lenders have flexibility in pricing second mortgages based on credit score, debt, and credit line compared to home value.

HELOC offers flexibility in using home equity with an adjustable rate, while a home equity loan provides a lump sum with a fixed rate. Introductory rates may apply to HELOCs for a limited time, while home equity loans typically offer fixed rates without teaser rates.

Top HELOC lenders offer low fees, fixed-rate options, and generous credit lines. Consider rates carefully, as an introductory rate may convert to an adjustable rate later. Best home equity loan lenders offer fixed rates for the entire repayment period, simplifying the borrowing process.

Rates for HELOCs and home equity loans vary from 6% to 18%, with national averages at 7.25% and 7.56%, respectively. Homeowners with low primary mortgage rates and equity may find it beneficial to consider a second mortgage to access cash for home improvements or other expenses.

If considering a HELOC, be aware of the variable interest rate and potential repayment changes over the 20-year period. Monthly payments may increase during the repayment period, making it essential to borrow and repay the balance within a shorter timeframe.

Read more at Yahoo Finance: Lower rates can give your budget some breathing room