HELOC rates are unchanged today as the U.S. celebrates Independence Day. You won’t find a bank or other brick-and-mortar financial provider open today, but starting an online home equity line of credit application is always an option.

After a healthy jobs report on Thursday, the odds of a Federal Reserve rate cut in July plummeted. That means the prime rate will likely remain camping out at 7.5%, and as the foundation to most financial product pricing, don’t expect any big discounts until fall.

As we put another dozen hot dogs on the grill, let’s check today’s HELOC rates.

According to Bank of America, the largest HELOC lender in the country, today’s average rate on a 10-year draw HELOC is 8.90%. That is a variable rate that kicks in after a six-month introductory rate of 6.49%.

Homeowners have a staggering amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That’s the third-largest amount of home equity on record.

With mortgage rates lingering in the high 6% range, homeowners are not going to let go of their primary mortgage anytime soon, so selling a house may not be an option. Why let go of your 5%, 4% — or even 3% mortgage?

Accessing some of that value with a use-it-as-you-need-it HELOC can be an excellent alternative.

Dig deeper: Is a HELOC a good idea? Pros and cons to consider.

HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is 7.50%. If a lender added 1% as a margin, the HELOC would have a rate of 8.50%.

Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.

And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.

You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.

The best HELOC lenders 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. Pull some out; pay it back. Repeat.

Meanwhile, you’re paying down your low-interest-rate primary mortgage like the wealth-building machine you are.

Today, FourLeaf Credit Union is offering a HELOC rate of 6.49% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate later. When shopping lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.

The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.

Rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from 7% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.

For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.

If you take out the full $50,000 from a line of credit on a $400,000 home, your payment may be around $395 per month with a variable interest rate of 8.75%. That’s for a HELOC with a 10-year draw period and a 20-year repayment period. That sounds good, but remember, it winds up being a 30-year loan. HELOCs are best if you borrow and pay back the balance in a much shorter period of time.