HELOC rates today, December 20, 2025: Lowest rates in 3 years

Core Insights - The national average HELOC rate is decreasing to its lowest level in three years, influenced by the prime rate [1] - Home equity line of credit lenders are becoming more competitive with introductory pricing offers [1] HELOC Rates and Market Conditions - 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 approximately $36 trillion in home equity, the highest recorded amount, as of the end of Q2 2025 [2] - With mortgage rates above 6%, homeowners are likely to retain their low-rate primary mortgages, making HELOCs an attractive alternative for accessing home equity [3] Interest Rate Determination - HELOC interest rates differ from primary mortgage rates, typically based on an index rate plus a margin, often linked to the prime rate, which recently fell to 6.75% [4] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score, debt levels, and the credit line relative to home value [5] HELOC Functionality - A HELOC allows homeowners to access their home equity without relinquishing their low-rate primary mortgage, providing flexibility in borrowing and repayment [6] - Introductory rates, such as 5.99% for 12 months on lines up to $500,000, are available but will convert to variable rates after the introductory period [7] - The advantage of a HELOC is that interest is only paid on the amount borrowed, not on the total credit line [8] Current Market Considerations - Rates for HELOCs can range from nearly 6% to 18%, depending on individual creditworthiness and lender comparisons [10] - For homeowners with significant equity and low primary mortgage rates, now is considered an optimal time to obtain a HELOC for various uses, including home improvements or personal expenses [11] - A $50,000 HELOC at a 7.50% interest rate would result in a monthly payment of approximately $313 during the draw period, but rates are typically variable and can increase over time [12]