HELOC rates today, December 10, 2025: Fed Day expected to move home equity rates even lower

Core Insights - The average HELOC rate has reached a new low of 7.44%, with expectations for further declines due to a recent Federal Reserve interest rate cut [1][2] HELOC Rates and Market Context - The average HELOC rate is currently 7.44%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70% [2] - Homeowners have approximately $36 trillion in home equity, the highest amount ever reported, indicating a strong market for HELOCs [2] Mortgage Market Dynamics - With primary mortgage rates around 6%, homeowners are likely to retain their existing low-rate mortgages, making HELOCs an attractive alternative for accessing home equity [3] - HELOC interest rates are typically based on an index rate plus a margin, with the current prime rate at 7.00% [4] Lender Pricing and Flexibility - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score, debt levels, and home value [5] - Average national HELOC rates may include introductory rates that are temporary, leading to potential adjustments after an initial period [5] HELOC Functionality and Usage - A HELOC allows homeowners to access equity without giving up their low-rate primary mortgage, providing flexibility in borrowing and repayment [6] - Homeowners can draw only what they need from their HELOC, avoiding interest on unused credit [9] Current Offers and Considerations - FourLeaf Credit Union is currently offering a HELOC rate of 5.99% for the first 12 months, which will convert to a variable rate of 7.25% thereafter [8] - Homeowners are advised to compare rates, fees, and repayment terms when shopping for HELOCs [8] Financial Implications - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the draw period would be approximately $313, but rates are typically variable, leading to potential increases in payments over time [12]