HELOC rates today, December 6, 2025: Rates fall under 7.5%

Core Insights - The national average HELOC rate has decreased to under 7.5%, marking its lowest point in 2025 [1] - The current average weekly HELOC rate is 7.44%, down by over half a point since January 2025 [2] - Home equity has reached nearly $36 trillion, the highest on record, indicating significant value tied up in homes [3] HELOC Rates and Trends - The highest HELOC rate in 2025 was recorded in January, with a current rate of 7.44% based on specific credit criteria [2] - HELOC interest rates are determined by an index rate plus a margin, with the prime rate recently falling to 7.00% [4] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on individual credit profiles [5] HELOC Functionality - A HELOC allows homeowners to access their home equity without giving up their low-rate primary mortgage [6] - The structure of a HELOC enables borrowers to withdraw funds as needed, only paying interest on the amount borrowed [9] - Introductory rates, such as 5.99% for 12 months, are available but will adjust to higher rates after the initial period [8] Financial Considerations - Homeowners with low primary mortgage rates and substantial equity may find it advantageous to obtain a HELOC for various uses, including home improvements [12] - Monthly payments on a $50,000 HELOC at a 7.50% interest rate would be approximately $313 during the draw period, but rates are typically variable [13] - The importance of comparing fees, repayment terms, and minimum draw amounts when selecting a HELOC lender is emphasized [8]