Core Insights - The current average HELOC rate is 7.75%, which has decreased throughout the year and is at its lowest point for 2025 [1][2] - Homeowners have over $34 trillion in home equity, marking the third-largest amount on record [2] - Accessing home equity through a HELOC is a viable alternative for homeowners with low primary mortgage rates [3][11] HELOC Rates and Trends - The average HELOC rate has dropped by three basis points week over week and 31 basis points since January [2] - Rates are influenced by credit scores and loan-to-value ratios, with a minimum credit score of 780 and a maximum CLTV of 70% for the average rate [2][5] - Lenders have flexibility in pricing HELOCs, making it essential for borrowers to shop around for the best rates [5] How HELOCs Work - A HELOC allows homeowners to access their home equity without refinancing their primary mortgage [6] - Borrowers can draw from their credit line as needed, only paying interest on the amount borrowed [9] - Introductory rates may be offered, but borrowers should be aware of potential rate adjustments after the initial period [8][11] Payment Structure - For a $50,000 HELOC at a 7.75% interest rate, the monthly payment during the draw period would be approximately $323 [12] - Payments may increase during the repayment period, as HELOCs typically convert to a longer-term loan structure [12]