HELOC interest rates saw a slight decrease today, making it an opportune time for homeowners to consider tapping into their home equity. According to data compiled by Cotality, the Northeast region experienced the most significant equity gains in the first quarter of 2025. Cities like New York, N.Y., and Boston, Mass., saw substantial increases in average home equity, with New York seeing gains of $20,600 and Boston seeing gains of $25,200.
Rhode Island and New Jersey also saw record-breaking increases in house prices, resulting in significant equity gains for homeowners in these areas.
Looking at the latest HELOC rates, Zillow reports that rates on 10-year HELOCs have decreased by three basis points to 6.70%. Similarly, 15- and 20-year HELOCs are also available at the same rate. VA-backed HELOCs have also seen a decrease of two basis points to 6.34%.
With over $34 trillion in home equity across the nation, homeowners have a substantial amount of value tied up in their houses. In a market where mortgage rates are hovering in the high 6% range, homeowners may be hesitant to let go of their low-rate mortgages. However, accessing the equity in their homes through a HELOC can be a viable alternative.
HELOC interest rates differ from primary mortgage rates, as they are based on an index rate plus a margin. Lenders have the flexibility to adjust rates based on factors such as credit score, existing debt, and the credit line compared to the home’s value. It’s important to note that national average HELOC rates may include introductory rates that could increase after a certain period.
By keeping their primary mortgage and considering a second mortgage like a HELOC, homeowners can access their home equity without giving up their low-rate mortgage. The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines, allowing homeowners to use their equity as needed and pay it back at their own pace.
Today, FourLeaf Credit Union is offering a competitive HELOC rate of 6.49% for 12 months on lines up to $500,000. It’s essential to compare rates, fees, repayment terms, and minimum draw amounts when shopping for a HELOC. The flexibility of a HELOC allows homeowners to borrow only what they need and leave the rest of the line of credit available for future use.
Rates for HELOCs can vary significantly between lenders, ranging from 7% to 18%, depending on creditworthiness and diligence in shopping around. For homeowners with low primary mortgage rates and substantial equity in their homes, now may be an ideal time to consider a HELOC for home improvements, repairs, upgrades, or even discretionary expenses like vacations.
It’s crucial to consider the repayment terms of a HELOC, as borrowing and paying back the balance in a shorter period is typically more advantageous than stretching it out over a longer period. By using a HELOC responsibly, homeowners can leverage their home equity to achieve their financial goals while maintaining their low-rate mortgage.
