HELOC rates today, November 21, 2025: It's the best time to get a HELOC so far this year

Core Insights - HELOC rates are currently below 8%, with the average national rate at 7.64%, down 40 basis points since January 2025, making it an opportune time for homeowners to consider opening a HELOC [1][2] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, indicating significant potential for accessing funds through HELOCs [2] - With mortgage rates remaining low, homeowners are less likely to sell their homes, making HELOCs an attractive option for accessing home equity without losing favorable mortgage rates [3] HELOC Rates and Trends - The average HELOC rate is currently 7.64%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70% [2] - The prime rate, which influences HELOC rates, has fallen to 7.00%, allowing lenders to offer competitive rates [4] - Rates can vary significantly among lenders, ranging from 6% to 18%, depending on individual creditworthiness [11] Lender Considerations - Lenders have flexibility in pricing HELOCs, and rates depend on credit scores, existing debt, and the credit line relative to home value [5] - Introductory offers are common, but borrowers should be aware that rates may adjust after an initial period [5][8] - It is advisable for borrowers to shop around and compare terms, fees, and repayment options among different lenders [5][8] HELOC Functionality - A HELOC allows homeowners to access equity without refinancing their primary mortgage, providing flexibility in borrowing and repayment [6] - Borrowers can draw only what they need, avoiding interest on unused credit, which enhances financial management [9] - Monthly payments on a HELOC can vary; for example, a $50,000 draw at a 7.50% interest rate would result in a monthly payment of approximately $313 during the draw period [13] Usage of HELOC Funds - HELOCs can be used for various purposes, including home improvements, repairs, and even discretionary spending, provided borrowers manage repayment responsibly [12] - The current environment is favorable for homeowners with low primary mortgage rates and significant equity, making HELOCs a strategic financial tool [12]