Home / Business and Economy / Low HELOC Rates Offer Smart Equity Access Now
Low HELOC Rates Offer Smart Equity Access Now
18 Nov
Summary
- National HELOC average rates have dropped to 7.64%.
- Homeowners possess over $34 trillion in home equity.
- Introductory HELOC rates can be significantly lower.
Homeowners seeking to access their home equity have a compelling opportunity as national average HELOC rates have recently declined. Currently standing at 7.64%, these rates are significantly lower than at the beginning of the year, making it an opportune time to consider a Home Equity Line of Credit. This is particularly relevant given the vast amount of equity, over $34 trillion, currently locked in U.S. homes.
With primary mortgage rates still elevated, selling a home to access equity is often unattractive for those holding low-rate mortgages. A HELOC provides a viable solution, allowing homeowners to leverage their property's value without relinquishing their existing low-interest primary mortgage. Rates for HELOCs are typically based on an index rate, such as the prime rate, plus a margin set by the lender, offering flexibility.
It is essential for consumers to shop diligently for HELOCs, as rates and terms can vary significantly between lenders. Some lenders offer attractive introductory rates that can last for a limited period, after which the rate becomes variable. Understanding these terms, along with fees and repayment structures, is crucial for making an informed decision and maximizing the benefits of tapping into home equity.
