HELOC rates today, December 22, 2025: Rates dipping closer to 7%

Core Insights - The current national average HELOC rate is approaching 7%, with Bank of America offering rates as low as 7.3% in certain states [1] - Home equity has reached a record high of nearly $36 trillion, indicating significant value tied up in residential properties [2] - Homeowners are likely to retain their low-rate primary mortgages, making HELOCs an attractive option for accessing home equity without selling their homes [3] HELOC Rates and Determinants - 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] - HELOC interest rates are determined by an index rate plus a margin, with the prime rate recently falling to 6.75% [4] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on creditworthiness and other factors [5][10] HELOC Functionality - A HELOC allows homeowners to access their home equity without giving up their low-rate primary mortgage, providing flexibility in borrowing [6] - Introductory rates, such as FourLeaf Credit Union's 5.99% for the first 12 months, can convert to adjustable rates later, necessitating careful comparison of terms [7] - The structure of a HELOC enables homeowners to borrow only what they need, avoiding interest on unused credit [8] Usage and Payment Considerations - For homeowners with low primary mortgage rates, obtaining a HELOC is considered advantageous for funding home improvements or other 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 payments may increase during the repayment phase [12]