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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.
