HELOC rates today, December 13, 2025: Moving lower with the prime rate

Core Insights - The national average HELOC rate is following the prime rate, which has recently decreased to 6.75% due to the Federal Reserve's rate cut [1] - The average weekly 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 a record amount of home equity, nearly $36 trillion, indicating significant potential for HELOC utilization [2] HELOC Rates and Trends - HELOC interest rates are influenced by the prime rate, with lenders adding a margin; for example, a margin of 0.75% would result in a HELOC rate of 7.50% [4] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score and debt levels [5] - Introductory rates for HELOCs can be attractive but may convert to adjustable rates after a set period, often leading to higher payments [5][8] Utilization of HELOCs - Homeowners are likely to retain low-rate primary mortgages and may prefer HELOCs to access home equity without refinancing [3][6] - HELOCs allow homeowners to borrow as needed, only paying interest on the amount drawn, which can be beneficial for managing cash flow [9] - The current environment is favorable for obtaining a HELOC, especially for those with significant equity and low primary mortgage rates [12] Financial Implications - A $50,000 HELOC at a 7.50% interest rate would result in a monthly payment of approximately $313 during the draw period, but payments may increase during the repayment phase [13] - Homeowners should consider the long-term implications of borrowing against home equity, especially for discretionary spending [12]