What is a good interest rate for a HELOC in December 2025?

As of December 2025, the average HELOC rate is 7.44%, but good rates can range from below 6% to 18% depending on your creditworthiness and lender.

Is it a smart time to get a HELOC in late 2025?

Yes, if you have significant home equity and a low primary mortgage rate, it's an opportune time to consider a HELOC for funds.

What is the estimated monthly payment for a $50,000 HELOC at 7.50%?

A $50,000 HELOC at 7.50% would have an initial monthly payment of approximately $313, but be aware of variable rates.

Home / Business and Economy / HELOC Rates Hit Lowest Point of 2025

HELOC Rates Hit Lowest Point of 2025

7 Dec, 2025

•

Summary

Average HELOC rate is 7.44%, the lowest of 2025.
Home equity reached a record high of nearly $36 trillion.
Homeowners can access equity without losing low mortgage rates.

Nationally, the average interest rate for a home equity line of credit (HELOC) has reached 7.44%, marking the lowest point of 2025. This presents a significant opportunity for homeowners looking to leverage the substantial equity they hold in their properties. With total U.S. home equity soaring to a record nearly $36 trillion, a HELOC offers a flexible way to access funds without relinquishing historically low primary mortgage rates.

HELOC rates are determined differently from traditional mortgages, often tied to a prime rate plus a margin. While lenders have flexibility in setting these rates, it is crucial for consumers to shop around. Factors like credit score, debt-to-income ratio, and loan-to-value ratio heavily influence the final rate. It's also important to be aware of potential introductory rates that may increase significantly after an initial period.

Utilizing a HELOC allows homeowners to tap into their home's value as needed, offering a 'use-it-as-you-need-it' approach. This means interest is only paid on the borrowed amount, and a portion of the credit line can be reserved for future needs. While attractive, borrowers must prepare for potential variable rate adjustments and compare all fees and repayment terms before committing.