HELOC rates today, November 25, 2025: Rates are at annual lows — and they could drop lower

Core Insights - HELOC interest rates are at their lowest in 2025, with potential for further decreases in December as the Federal Reserve is likely to lower the federal funds rate [1][2] - The average HELOC rate is currently 7.64%, down over 40 basis points since the start of the year, with homeowners holding more than $34 trillion in home equity [3] - Homeowners are less likely to sell their homes due to low primary mortgage rates, making HELOCs an attractive option to access home equity [4] HELOC Rates and Market Dynamics - The prime rate, which influences HELOC rates, is currently at 7.00%, and lenders have flexibility in pricing, making it essential for consumers to shop around for the best rates [5][6] - Introductory rates for HELOCs can be significantly lower, but they typically adjust to higher rates after an initial period [6][9] - Current offers include a 5.99% APR for 12 months on HELOCs up to $500,000, highlighting the importance of comparing rates and terms [9] Usage and Benefits of HELOCs - HELOCs allow homeowners to access equity without refinancing their low-rate primary mortgages, providing flexibility in borrowing and repayment [7][10] - The ability to borrow only what is needed and pay interest only on that amount is a key advantage of HELOCs [10] - Homeowners can utilize HELOC funds for various purposes, including home improvements and personal expenses, while maintaining their favorable mortgage rates [12] Financial Considerations - Monthly payments on a $50,000 HELOC at a 7.50% interest rate would be approximately $313 during the draw period, but rates are variable and can increase over time [13] - The structure of HELOCs typically involves a 10-year draw period followed by a 20-year repayment period, making them suitable for short-term borrowing needs [13]