I'm Greg McBride, senior financial analyst with Bankrate.com and here is your weekly look at home equity rates.
Home equity rates pulled back this week as several lenders cut rates. The average variable rate home equity line of credit retreated to 5.55 percent, a point last seen in May. Rates on home equity lines have been fairly static, particularly over the last 7 months.
In contrast, fixed rate home equity loans have resumed the downward trend of the past 2 years, setting a record low for the 2nd straight week. The average rate on a home equity loan is currently 6.8 percent.
While 1/3 of homeowners have no equity to work with, many longtime owners have plenty of equity and find the cost of tapping that equity to be very attractive. To manage risk, lenders typically limit borrowers' total mortgage and home equity debt to no more than 80% of the home's value.
For more information on home equity loans and home equity lines of credit, and to check home loan rates in your area, go to Bankrate.com.
I'm Greg McBride.