HELOC rates today, December 27, 2025: Lowest HELOC rates in 3 years

Core Insights - The national average HELOC rate is projected to be at its lowest in three years by the end of 2025, with lenders adjusting their rates for 2026 borrowers [1] - The average national monthly 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 are facing challenges in accessing their home equity due to stagnant mortgage rates, despite having significant equity available [2][3] HELOC Rate Dynamics - HELOC rates differ from primary mortgage rates, being based on an index rate plus a margin, with the current prime rate at 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] - Average national HELOC rates may include introductory rates that last for a limited time before becoming adjustable [5] Lender Offerings and Options - The best HELOC lenders provide low fees, fixed-rate options, and generous credit lines, allowing homeowners to access their equity as needed [6] - An example of a competitive offering is FourLeaf Credit Union, which provides a 5.99% APR for 12 months on lines up to $500,000, transitioning to a variable rate thereafter [7] - The flexibility of a HELOC allows homeowners to borrow only what they need, avoiding interest on unused credit [8] Current Market Conditions - HELOC interest rates can range widely from nearly 6% to 18%, depending on individual creditworthiness and shopping diligence [10] - For homeowners with low primary mortgage rates and substantial equity, now is considered an advantageous time to obtain a HELOC for various purposes, including home improvements and personal expenses [11] - A typical monthly payment example for a $50,000 HELOC at a 7.50% interest rate would be approximately $313 during the draw period, with payments increasing during the repayment phase [12]