HELOC rates today, December 14, 2025: The lower prime rate of 6.75% is causing lenders to reprice

Core Insights - The average home equity line of credit (HELOC) interest rate is currently below 7.5% and is decreasing, with lenders adjusting to a new prime rate of 6.75% [1][4] - Homeowners have reached a record high of nearly $36 trillion in home equity by the end of Q2 2025, indicating a significant opportunity for accessing home equity through HELOCs [2] - With mortgage rates remaining above 6%, homeowners are likely to retain their low-rate primary mortgages, making HELOCs an attractive alternative for accessing home equity [3] HELOC Interest Rates - The average weekly HELOC rate is reported at 7.44%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70% [2] - Lenders have flexibility in pricing HELOCs, which can vary significantly based on individual credit scores and debt levels [5][10] - Introductory rates for HELOCs may only last for a limited time, after which rates can become adjustable and potentially higher [5] 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] - The structure of a HELOC enables homeowners to borrow as needed, only paying interest on the amount drawn [8] - Monthly payments on a HELOC can vary; for example, a $50,000 draw at a 7.50% interest rate would result in a monthly payment of approximately $313 during the draw period [12] Current Market Conditions - LendingTree is currently offering HELOCs with APRs as low as 6.38% for a $150,000 credit line, but borrowers should be aware of the variable nature of these rates [7] - Homeowners with low primary mortgage rates and significant equity are in a favorable position to consider HELOCs for various financial needs, including home improvements and other expenses [11]