HELOC rates today, December 12, 2025: Lenders begin HELOC discounts

Core Insights - The average national rate on a home equity line of credit (HELOC) is currently under 7.5%, with lenders adjusting offers following a recent Federal Reserve rate cut [1][8] - Homeowners have approximately $36 trillion in home equity, the highest recorded amount, indicating significant potential for HELOC utilization [2] - The current average weekly HELOC rate is 7.44%, based on specific credit score and loan-to-value criteria [2] HELOC Rates and Offers - Following the Federal Reserve's quarter-point rate cut, lenders are offering lower introductory rates, such as Fifth Third Bank's promotional rate of 4.99% for the first six months [8] - HELOC interest rates are determined by an index rate plus a margin, with the current prime rate at 7.00% [4] - Rates can vary significantly among lenders, ranging from 6% to 18%, depending on the borrower's creditworthiness [11] Home Equity Utilization - Homeowners are encouraged to consider HELOCs as a means to access home equity without relinquishing low-rate primary mortgages [3][6] - The flexibility of HELOCs allows homeowners to borrow as needed, only paying interest on the amount drawn [10] - HELOCs can be used for various purposes, including home improvements and personal expenses, making them a versatile financial tool [12] Considerations for Borrowers - When selecting a lender, borrowers should compare rates, fees, repayment terms, and minimum draw amounts to secure the best deal [9] - A typical monthly payment for a $50,000 HELOC at a 7.50% interest rate would be approximately $313 during the draw period, but rates are variable and can increase over time [13]