Core Insights - The average HELOC rate is currently 7.75%, marking the lowest rate in 2025, down from a high of 8.06% in January [1][2] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, indicating significant potential for HELOC utilization [2] HELOC Rates and Trends - The average weekly HELOC rate decreased by three basis points week over week and 31 basis points since January [2] - HELOC rates are influenced by factors such as credit score and combined loan-to-value ratio, with current rates based on a minimum credit score of 780 and a maximum CLTV of 70% [2][4] Market Dynamics - With primary mortgage rates remaining low, homeowners are less likely to sell their homes, making HELOCs an attractive option for accessing home equity [3] - Lenders have flexibility in pricing HELOCs, which can vary significantly based on individual borrower profiles [5] HELOC Functionality - A HELOC allows homeowners to access their home equity without refinancing their primary mortgage, providing a flexible borrowing option [6] - Borrowers can draw from their HELOC as needed, only paying interest on the amount borrowed [9] Lender Offers and Considerations - Introductory rates, such as FourLeaf Credit Union's 5.99% for the first 12 months, can be appealing but may convert to variable rates later [8] - Homeowners should compare rates, fees, and repayment terms when shopping for HELOCs to ensure they secure the best deal [5][8] Financial Implications - For a $50,000 HELOC at a 7.75% interest rate, the monthly payment during the draw period would be approximately $323, but rates are typically variable, affecting future payments [13]