HELOC rates today, December 29, 2025: Lowest rates 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] Group 1: HELOC Rates and Market Conditions - The average 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] - The Federal Reserve estimates that homeowners have $36 trillion in equity locked in their homes, indicating significant potential for second mortgage HELOCs [3] - HELOC interest rates differ from primary mortgage rates, typically based on an index rate plus a margin, with the prime rate recently falling to 6.75% [4] Group 2: Lender Flexibility and Offerings - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score, debt levels, and home value [5] - 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 offer includes FourLeaf Credit Union's introductory HELOC rate of 5.99% for 12 months on lines up to $500,000 [7] Group 3: Usage and Payment Structure - A HELOC allows homeowners to borrow only what they need, with interest charged only on the amount borrowed [8] - Monthly payments for a $50,000 HELOC at a 7.50% interest rate would be approximately $313 during the 10-year draw period, but rates are typically variable and can increase during the repayment period [12]