Best HELOC Rates Remain Below 4%

Although rates on our favorite home equity lines of credit have edged up since December, they’re still the cheapest consumer loans you can get.

If you have 30% to 40% equity in your home and good credit you should be able to find a HELOC for under 5% APR. In some areas of the country, you could pay 4% or less.

Of course that’s a very big if after two years of steadily, and in some parts of the country, spectacularly falling home prices.

Banks opened less than $60 billion worth of new home equity loans and lines of credit in 2009, down from $430 billion in 2006, primarily because homeowners have much less equity to borrow against.

But if you can qualify, you’ll get a great rate with our favorite deals.

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