HELOC i home loan rates are the lowest they’ve been in years, and that means your borrowing power is even greater. Whether you’re looking to tackle some home improvements or reduce high-interest debt, a second mortgage is even more attractive with such low borrowing costs.

The average HELOC adjustable rate is 7.23%according to real estate data firm Curinos. The national average fixed rate for a home loan is 7.44%. Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.

With mortgage rates staying close to 6%, homeowners with home heritage and a low primary mortgage rate can feel the frustration of not being able to access that growing value in their home. A second mortgage in the form of a HELOC or HEL may be a viable solution.

Home equity interest rates work very differently than primary mortgage rates. Second mortgage rates are based on an index rate plus a spread. This rate is usually the prime rate, which is currently 6.75%. If a lender adds 0.75% as margin, the HELOC would have a rate of 7.50%.

A home equity loan may have a different margin because it is a fixed interest product.

Each lender has its own pricing methodology for second mortgage products, such as a HELOC or home equity loanso worth buying. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your line of credit compared to the value of your home.

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

Again, since a home equity loan has a fixed rate, it is unlikely to have a “teaser” introductory rate.

The best HELOC lenders they 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 in any amount you choose, up to your credit line limit. Take some out; return it repeat

Look for a lender that offers a below-market origination rate. For example, FourLeaf Credit Union currently offers a HELOC APR of 5.99% for 12 months on lines up to $500,000. This type of introduction will become a variable type in one year. When shopping for lenders, consider both rates.

Also, pay attention to the minimum draw amount for a HELOC. The draw is the amount of money a lender requires you to initially take from your equity.

The the best equity loan lenders may be easier to find, because the fixed rate you earn will last for the repayment period. This means you only need to focus on one rate. And you get a lump sum, so there’s no need to worry about minimums.

And as always, compare rates and the fine print of repayment terms.

Fees vary from lender to lender, and depending on where you live. You may see rates anywhere from nearly 6% to 18%. It really depends on your creditworthiness and how diligent a buyer you are. The national average for a HELOC is 7.23%, and for a home equity loan it is currently 7.44%.

For homeowners with low primary mortgage rates and a significant amount of equity in their home, it’s likely one of the best times to get a HELOC or home loan. Don’t give up that great mortgage rate, and you can use the cash taken from your equity for things like home improvements, repairs, and upgrades. Or almost anything else.

If you draw down the full $50,000 on a home equity line of credit and pay an interest rate of 7.25%, your monthly payment over 10 years HELOC Draw Period it would be about $302. That 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 basically turns into a 30-year loan. HELOCs are better if you borrow and pay off the balance over a much shorter period.