HELOC rates today, December 16, 2025: Lender rates range from the low 7% range to near 9%

Core Insights - Lenders are reducing HELOC rates, with Bank of America offering rates between 7.3% and 8.84% depending on location [1] - The average HELOC rate is currently 7.44%, based on high credit scores and low loan-to-value ratios [2] - Home equity has reached a record $36 trillion, indicating significant value tied up in homes [2] Group 1: HELOC Rates and Trends - HELOC rates are distinct from primary mortgage rates, often based on the prime rate, which is currently at 6.75% [4] - Lenders have flexibility in pricing HELOCs, and rates can vary widely based on creditworthiness and debt levels [5] - Introductory rates for HELOCs can be attractive but may lead to higher adjustable rates after an initial period [5][8] Group 2: Benefits and Usage of HELOCs - Homeowners can access home equity without refinancing their low-rate primary mortgages, making HELOCs a viable option [6] - HELOCs allow homeowners to borrow only what they need, avoiding interest on unused credit [9] - Utilizing a HELOC can be beneficial for home improvements or other expenses while maintaining a low primary mortgage rate [11] Group 3: Financial Implications - A $50,000 HELOC at a 7.50% interest rate would result in monthly payments of approximately $313 during the draw period, but rates are typically variable [12] - Homeowners should be cautious of the potential for increased payments during the repayment period, as HELOCs can effectively become long-term loans [12]