Core Insights - HELOC and home equity loan rates are currently stable, averaging around 7.5%, with introductory rates significantly lower but requiring diligent rate shopping [1][11] - The Federal Reserve estimates homeowners have $34 trillion in equity, which many are unable to access due to stagnant mortgage rates [3] HELOC and Home Equity Loan Rates - The average monthly HELOC rate is 7.25%, while the national average for home equity loans is 7.56%, based on applicants with a credit score of at least 780 and a CLTV of less than 70% [2] - Second mortgage rates, including HELOCs, are determined by an index rate plus a margin, with the current prime rate at 6.75% [4] - Lenders have flexibility in pricing second mortgage products, making it beneficial for borrowers to shop around for the best rates [5] Introductory Rates and Lender Options - Introductory rates for HELOCs can be significantly lower than market rates, with some lenders offering rates as low as 5.99% for the first 12 months [8] - Home equity loans typically do not have introductory rates and offer a fixed rate for the duration of the repayment period, simplifying the borrowing process [6][9] Borrowing Considerations - Homeowners with low primary mortgage rates and substantial equity may find it advantageous to obtain a HELOC or home equity loan for various uses, including home improvements [12] - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the draw period would be approximately $313, but rates are usually variable, affecting future payments [13]