HELOC rates today, December 8, 2025: Rates have dropped 60 basis points this year

Core Insights - The current national average HELOC rate has reached a low of 7.44%, down 60 basis points from 8.04% at the beginning of January 2025 [2] - Home equity in the U.S. has reached nearly $36 trillion, the highest on record, indicating significant value tied up in residential properties [2] - Homeowners are likely to retain their low-rate primary mortgages, making HELOCs an attractive option for accessing home equity without selling their homes [3] HELOC Rates and Trends - The average HELOC rate is currently 7.44%, which is a decrease of 60 basis points since early January 2025 [2] - The prime rate, which influences HELOC rates, has decreased to 7.00%, affecting the overall cost of borrowing [4] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit scores and other factors [5] HELOC Mechanics - A HELOC allows homeowners to access their home equity without refinancing their primary mortgage, providing flexibility in borrowing [6] - Introductory rates, such as 5.99% for the first 12 months, can be beneficial, but borrowers should be aware of potential rate adjustments afterward [8] - Borrowers only pay interest on the amount they draw from their HELOC, making it a cost-effective option for accessing funds [9] Considerations for Borrowers - Homeowners with low primary mortgage rates and substantial equity may find it advantageous to obtain a HELOC for various purposes, including home improvements or personal expenses [12] - 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]