Interest rate in home equity lines of credit (HELOC) i home equity loans have decreased significantly over the past year. The average HELOC rate was above 8% last January and has since dropped 81 basis points. The annual home equity loan rate has dropped 40 basis points. It could be a good time to fix a second mortgage rate.

According to real estate analytics firm Curinos, the average HELOC rate is 7.25%19 basis points less than last month. The national average rate for a home loan is 7.56%three basis points less than a month ago. Both 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 primary home mortgage rates refusing to budge, homeowners with home equity and a favorable primary mortgage rate can feel the frustration of not being able to access that growing value in their home.

For those who are unwilling to give up their low rate home loan, a home equity line of credit or home equity loan can be an excellent solution.

The Federal Reserve estimates that homeowners have $36 trillion in equity locked up in the walls of their homes. A HELOC, or HEL, second mortgage allows U.S. homeowners to tap into the record equity they’ve built up.

Home equity interest rates are different than primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. This rate is often the preferred rate, which has just dropped to 6.75%. If a lender adds 0.75% as margin, the HELOC would have a rate of 7.50%.

Lenders have flexibility with the price of a second mortgage product, such as a HELOC or home equity loan, so it’s worth shopping around. 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, likely starting at a substantially higher rate.

HELs don’t usually have introductory fees, so that’s one less variable to deal with. 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 your home equity. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.

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

Meanwhile, you’re paying off your low-interest primary mortgage.

today, LendingTree offers a HELOC APR as low as 6.36% with a $150,000 line of credit. However, remember that HELOCs usually come with variable interest rates, meaning your rate will fluctuate periodically. Make sure you can afford the monthly payments if your rate goes up.

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.

The national average for a HELOC is 7..25% and for a home equity loan it is currently 7.56%. However, rates vary from lender to lender. You may see rates anywhere from 6% to 18%. It really depends on your creditworthiness and how diligent a buyer you are.

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

If you draw down the full $50,000 on a home equity line of credit and pay an interest rate of 7.50%, your monthly payment over 10 years draw period it would be about $313. 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.