The lowest in over 36 months

The national average rates for home equity lines of credit (HELOC) and home equity loans (HEL) are well below 8%, the lowest in more than 36 months. Of course, homeowners with the most equity in their homes – and the best credit – get the lowest rates.

According to real estate analytics firm Curinos, the average HELOC rate is 7.44%. The national average rate on a home equity loan East 7.59%. Both rates are based on applicants with a minimum credit score of 780 and a maximum score of 780. combined loan-to-value (CLTV) ratio less than 70%.

As primary mortgage rates refuse to budge, homeowners with home equity and a favorable primary mortgage rate may feel the frustration of not being able to access this growing value in their home.

For those who don’t want to give up their low home loan rate, a home equity line of credit or home equity loan can be a great solution.

The Federal Reserve estimates that homeowners have $36 trillion in equity locked within the walls of their homes. A HELOC or HEL second mortgage allows American homeowners to tap into the record-breaking equity they’ve accumulated.

Home equity interest rates are different from primary mortgage rates. Second mortgage rates are based on an indexed rate plus a margin. This index is often the prime rate, which has just fallen to 6.75%. If a lender added 0.75% margin, the HELOC would have a rate of 7.50%.

Lenders have the flexibility to price a second mortgage product, such as a HELOC or Home Equity Loanso it is worth shopping around. Your rate will depend on your credit score, the amount of debt you have, and the amount of your line of credit relative to the value of your home.

And average national HELOC rates may include “introductory” rates that may only last six months or a year. After that, your interest rate will become adjustable, likely starting at a significantly higher rate.

HELs generally don’t have a launch rate, so that’s one less variable to manage. The fixed rate you earn on a home equity loan will not change during the life of the contract.

You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgagesuch as a home equity line of credit.

THE best HELOC lenders offer low fees, a fixed rate option and generous credit lines. A HELOC allows you to easily use your home equity in any way and amount you want, up to your line of credit limit. Take a little out; pay it back. Repeat.

During this time, you pay off your low-interest primary mortgage.

Today, LendingTree offers a HELOC APR as low as 6.36% on a $150,000 line of credit. However, keep in mind that HELOCs typically come with variable interest rates, meaning your rate will fluctuate periodically. Make sure you can afford to pay monthly payments if your rate increases.

THE best home equity lenders may be easier to find, as the fixed rate you earn will last for the duration of the repayment period. This means that you only need to focus on one rate. And you receive a lump sum, so no drawdown minimum to consider.

And as always, compare fees and refund terms details.

The national average for a HELOC is 7.44% and for a home equity loan is currently 7.59%. However, rates vary so much from lender to lender that it’s difficult to pin down a magic number. You can see rates ranging from just under 6% to 18%. It really depends on your creditworthiness and diligence in purchasing.

For homeowners with low primary mortgage rates and a lot of equity in their home, it’s likely one of the best times to get a HELOC or a home equity loan. You don’t give up that great mortgage rate, and you can use the money from your equity for things like improvements, repairs, and upgrades.

If you withdraw the entire $50,000 from a home line of credit and pay an interest rate of 7.50%, your monthly payment during the 10-year period drawing period would be around $313. This sounds good, but remember that the rate is usually variable, so it changes periodically and your payments will increase over the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are better if you borrow and pay off the balance in a much shorter time frame.