Low HELOC Rates – Consolidate Debt and Save Money

These days you can get a home equity line of credit (HELOC) with a rate under 5.00%. HELOC’s are usually tied to the prime rate which is currently 3.25%.

Most banks will offer a HELOC rate with plus or minus 1.00% of the prime rate depending on your credit score. Though with rates at historic lows you will be hard press to find a bank offering prime minus 1.00% these days. We were recently quoted a HELOC rate of 4.25% from Citibank for a loan modification.

Getting a HELOC at 4.25% to payoff credit card debt at a lot higher interest rate makes financial sense. Especially if the credit card rate you are paying is in the double digits or higher, which we all know is actually the norm.

Though with a HELOC, rates are flexible since the rate is tied to the prime rate, so you run the risk of rates increasing. Most HELOC’s have a rate hike limit per year and for the lifetime of the HELOC.

You can use our HELOC/home equity line of credit calculator to see if consolidating your credit card, auto and other loans will save you money.