HELOC rates today, December 9, 2025: One more chance for lower HELOC rates this year

Core Insights - Interest rates on home equity lines of credit (HELOCs) are at 2025 lows, with a potential for further decreases if the Federal Reserve cuts the federal funds rate, which has an 87% chance according to the CME FedWatch tool [1] HELOC Rates - The average weekly HELOC rate is currently 7.44%, down 62 basis points from its 2025 high in January, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70% [2] - HELOC interest rates differ from primary mortgage rates, typically based on an index rate plus a margin, with the current prime rate at 7.00% [4] Home Equity Trends - Homeowners have a record amount of equity in their homes, nearly $36 trillion at the end of Q2 2025, the highest on record [3] - With mortgage rates in the low-6% range, homeowners are likely to retain their primary mortgages, making HELOCs an attractive option to access home equity without selling their homes [3] Lender Flexibility and Shopping - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score, debt levels, and credit line amounts [5] - Introductory rates may be below market rates but can adjust to higher rates after an initial period, making it essential for borrowers to compare offers carefully [5][8] HELOC Functionality - A HELOC allows homeowners to access their home equity without giving up their low-rate primary mortgage, providing flexibility in borrowing and repayment [6] - Borrowers only pay interest on the amount they draw, allowing for strategic financial management [9] Current Offers and Considerations - FourLeaf Credit Union is currently offering a HELOC APR of 5.99% for 12 months on lines up to $500,000, which will convert to a higher rate later [8] - Homeowners with significant equity and low primary mortgage rates are encouraged to consider HELOCs for various uses, including home improvements and other expenses [11] Payment Structure - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the 10-year draw period would be approximately $313, but rates are typically variable and can increase during the repayment period [12]