Rates for home equity lines of credit and home equity loans are hovering near or just below 7.5%, with introductory rates as low as 5%. The national average monthly HELOC rate is 7.25%, while the average home equity loan rate is 7.56% for applicants with a 780 credit score and 70% CLTV.

Homeowners have $34 trillion in home equity, with mortgage rates around 6%. Refinancing may not be an option, making a second mortgage like a HELOC a good alternative. Second mortgage rates are based on the prime rate, currently at 6.75%, plus a margin, like 0.75%.

Lenders offer flexibility with second mortgages, so it’s essential to shop around for the best rate based on credit score, debt, and credit line relative to home value. National HELOC rates may include introductory rates for six months to a year, but home equity loans typically have fixed rates without teaser rates.

The best HELOC lenders provide low fees, fixed-rate options, and generous credit lines. For example, FourLeaf Credit Union offers a 5.99% introductory rate for 12 months on lines up to $500,000, converting to a variable rate of 7.25% after a year. Compare both rates when shopping for lenders.

Consider a HELOC or home equity loan now to access cash for home improvements without giving up your primary mortgage rate. Withdrawing $50,000 from a HELOC at 7.50% interest results in a $313 monthly payment during the 10-year draw period, but be aware that rates are variable and payments may increase during the 20-year repayment period.

Read more at Yahoo Finance: Introductory rates dip below 5%