Why a HELOC Could Be the Smart Move for Buyers & Investors in Today’s Real Estate Market
In today’s real-estate landscape, pricing and financing dynamics are shifting—and that can create opportunity for your clients. Let’s break down why a home-equity line of credit (HELOC) is increasingly valuable, and how you as a realtor can use it to broaden your service offering.
Market snapshot
The average 30-year fixed mortgage rate in the U.S. is around 6.27%, among the lowest levels seen in over a year. YCharts+2The Wall Street Journal+2
The average HELOC rate is 8.18% APR, down from closer to 9% earlier in 2025. Experian+1
Many homeowners are choosing to stay in place due to elevated mortgage rates and limited new-home inventory—meaning more available equity and fewer listings. National Mortgage Professional+1
Why a HELOC is timely
Flexible access to equity: Unlike a traditional second mortgage or cash-out refi (which may require refinancing the first mortgage), a HELOC gives homeowners a revolving line of credit tied to their home equity.
Strategic for renovations: Buyers can fund needed updates or repairs (which often make or break a sale) before or after purchase. For investors or flippers, it gives capital to renovate.
Interest rate benefits: While HELOCs have higher rates than first mortgages, they’re much lower than high-interest consumer debt like credit cards — making them a smart option for debt consolidation or costly home projects.
Enables movement: For a move-up buyer, a HELOC on their current home can free up funds, enabling a smoother transition into a larger home without immediately tapping high-cost financing.
Alignment with market trends: Because mortgage rates remain elevated, homeowners are less likely to sell—and more likely to use their home as a financial resource. By offering HELOC solutions, you’re adapting to what buyers & homeowners are doing now.
For realtors: how to position it
Ask the right question: “What renovations or costs might your client face after the purchase?” If the answer involves updates, a HELOC could be part of the conversation.
Bundle financing discussions: When presenting home options, mention that waiting to renovate isn’t always required—equity can be leveraged now.
Show value beyond purchase price: You’re not just finding the home—they’re hiring you to guide them through financing solutions too.
Partner with a lender who can co-present: If you collaborate with a mortgage professional, you can offer holistic solutions upfront and strengthen your client relationships.
Stay alert to timing: With mortgage and HELOC rates shifting incrementally, keeping tabs on rate changes gives you a competitive edge in positioning clients.
What to watch
Ensure the client understands that a HELOC is secured by the home—and variable-rate lines may increase if the benchmark rises.
Advise that the best HELOC rates go to borrowers with strong credit, low combined loan-to-value (CLTV) ratios, and stable income. The Mortgage Reports+1
Coordination matters: The home equity draw may affect their overall debt-to-income (DTI) ratio—important for purchase approval or subsequent financing.
Timing and terms: Some HELOCs come with introductory rates or draw periods that convert—ensure the product fits the client’s timeline and needs.
Final thought
In a market where mortgage rates remain above historic lows and competition is tight, offering strategic financing alternatives like a HELOC gives you a distinctive advantage. It positions you not just as a home-finder, but as a financing advisor too—and that puts you ahead in client value.
Ready to dive deeper? Let’s schedule a short session together, walk through how this HELOC product can work for your clients, and tailor a game plan for your next listings and buyer engagements.