HELOC rates today, December 29, 2025: Rates this low haven't been seen since 2022

Core Insights - The current national average HELOC rate is at its lowest since late 2022, making it an attractive option for homeowners seeking cash-on-demand financial tools [1] HELOC Rates Overview - As of December 29, 2025, the average monthly HELOC rate is 7.44%, applicable to applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70% [2] - HELOC interest rates differ from primary mortgage rates, typically based on an index rate plus a margin, with the prime rate currently at 6.75% [4] Home Equity Utilization - Homeowners have approximately $36 trillion in equity locked in their homes, and a second mortgage HELOC allows them to access this accumulated equity [3] - The flexibility of HELOCs enables homeowners to borrow only what they need, avoiding interest on unborrowed amounts [8] Lender Considerations - Lenders offer varying rates for HELOCs, influenced by credit scores, existing debt, and the credit line relative to home value, making it essential for borrowers to shop around [5] - Introductory rates can be significantly lower than market rates, with examples like FourLeaf Credit Union offering a 5.99% rate for the first 12 months on lines up to $500,000 [7] Usage and Payment Structure - HELOCs can be used for various purposes, including home improvements and personal expenses, but borrowers should be disciplined in repayment to avoid long-term debt [11] - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the 10-year draw period would be approximately $313, with payments increasing during the 20-year repayment period [12]