HELOC rates today, December 5, 2025: A quarter-point drop in 5 weeks

Core Insights - HELOC rates are experiencing a steady decline, with the average national rate down a quarter-point over the past five weeks [1] - The current average weekly HELOC rate stands at 7.44%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70% [2] - Home equity has reached a record high of nearly $36 trillion, indicating significant value tied up in homes [2] HELOC Rates and Trends - Mortgage rates remain low, making homeowners reluctant to sell their properties, thus increasing the appeal of HELOCs as a means to access home equity without giving up favorable mortgage rates [3] - HELOC interest rates are determined differently from mortgage rates, typically based on an index rate plus a margin, with the prime rate currently at 7.00% [4] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score and debt levels [5] HELOC Functionality - A HELOC allows homeowners to access their home equity without refinancing their primary mortgage, providing flexibility in borrowing and repayment [6] - Introductory rates for HELOCs can be attractive, such as FourLeaf Credit Union's current offer of 5.99% for the first 12 months on lines up to $500,000, but borrowers should be aware of potential rate adjustments afterward [8] - The advantage of a HELOC is that interest is only paid on the amount borrowed, allowing homeowners to keep some credit available for future needs [9] Financial Considerations - For homeowners with low primary mortgage rates and substantial equity, now is considered an opportune time to take out a HELOC for various uses, including home improvements or personal expenses [12] - A typical monthly payment example for a $50,000 HELOC at a 7.50% interest rate would be approximately $313 during the draw period, but payments may increase during the repayment period due to variable rates [13]