HELOC and home equity loan rates today, December 30, 2025: Home equity rates set to close the year at 2025 lows

Core Insights - Home equity line of credit (HELOC) and home equity loan (HEL) rates are at their lowest levels in 2025, both hovering around 7.5% [1] - The average HELOC rate is currently 7.44%, while the national average for home equity loans is 7.59% [2] Home Equity Products Overview - A HELOC allows homeowners to draw from an approved line of credit as needed, while a HEL provides a lump sum [3] - Homeowners with low primary mortgage rates may find HELOCs or HELs beneficial to access their home equity without losing their favorable mortgage rate [4] Market Conditions - The Federal Reserve estimates that homeowners have approximately $36 trillion in equity locked in their homes, indicating a significant opportunity for second mortgages [4] - Home equity interest rates differ from primary mortgage rates, often based on an index rate plus a margin, with current prime rates at 6.75% [5] Lender Considerations - Lenders have flexibility in pricing second mortgage products, making it essential for borrowers to shop around for the best rates [6] - HELOCs may feature below-market introductory rates that last for a limited time, after which rates can become adjustable [6][7] Finding the Best Lender - The best HELOC lenders typically offer low fees, fixed-rate options, and generous credit lines, allowing homeowners to utilize their equity flexibly [8] - For home equity loans, the fixed rate simplifies the borrowing process, as there are no draw minimums to consider [10] Current Rate Benchmarks - Current rates for HELOCs range from nearly 6% to 18%, with national averages at 7.44% for HELOCs and 7.59% for HELs serving as benchmarks [11] - Homeowners with significant equity and low primary mortgage rates are encouraged to consider HELOCs or HELs for various financial needs [12] Payment Structure - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the 10-year draw period would be approximately $313, but rates are variable and can increase during the repayment period [13]