Prices fall 19 basis points in 3 months

HELOC rates have been gradually declining over the year. Currently average Home equity line of credit The interest rate is 7.75%According to analytics company Curinos. This represents a weekly decline of three basis points, and interest rates have fallen by 19 basis points in the past three months.

According to Curinos data, the average weekly HELOC rate is 7.75%, the lowest it has been so far in 2025. This rate is based on applicants with a minimum credit score of 780 and a maximum Combined loan to value (CLTV) ratio From 70%.

Homeowners have an enormous amount of value attached to their homes — more than $34 trillion at the end of 2024, according to the Federal Reserve. This is the third largest amount of home equity ever.

With mortgage rates still above 6%, homeowners are unlikely to give up their primary mortgage anytime soon, so sell a home or move in. Cash-out refinancing It may not be an option. Why give up your mortgage at 5%, 4%, or even 3%?

Accessing some of this value with a HELOC that you use as you need can be an excellent alternative.

HELOC interest rates differ from prime mortgage rates. Second mortgage rates are based on the index rate plus a margin. This indicator is often the base rate, which today is 7.25%. If the lender adds 1% as margin, the HELOC rate will be 8.25%.

Lenders have pricing flexibility on a second mortgage product, such as a HELOC or home equity loanso it’s worth shopping around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit limit compared to the value of your home.

The national average HELOC rates can include “introductory” rates that may last for only six months or one year. After that, your interest rate will become adjustable, and will likely start at a much higher rate.

You don’t have to give up a low-interest mortgage to access the equity in your home. Keep your primary mortgage and consider a Second mortgagesuch as a home equity line of credit.

the Best HELOC Lenders Offering low fees, a fixed rate option, and generous lines of credit. A HELOC allows you to easily use your home equity in any way and for any amount you choose, up to the limit of your credit line. Pull some out; stopper. Repeats.

Meanwhile, you’re paying off your primary mortgage at a low interest rate like the wealth building machine you are.

today, LendingTree offers a HELOC APR of up to 6.49% For a credit limit of $150,000. However, remember that HELOCs typically come with variable interest rates, which means your interest rate will fluctuate periodically. Make sure you can afford monthly payments if your rate goes up.

As always, compare fees, payment terms and minimum withdrawal amount. A draw is the amount of money a lender initially requires you to take out of your equity.

The power of a HELOC is in only tapping what you need and leaving some of your credit line available for future needs. You don’t pay interest on what you don’t borrow.

Rates vary so much from lender to lender that it can be difficult to pinpoint a magic number. You may see rates ranging from just under 6% to as high as 18%. It really depends on your creditworthiness and how diligently you shop.

For homeowners who have low interest rates on their primary mortgage and a large portion of equity in their home, this is likely the case One of the best times to get a HELOC. You’re not giving up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it back right away. A vacation probably isn’t worth taking on long-term debt.

If you took out the full $50,000 from a line of credit on your home and paid an interest rate of 7.75%, your monthly payment over the 10-year period would be Withdrawal period It will be around $323. This sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase over the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and pay off the balance over a much shorter period.