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

Rates vary widely, but as of December 2025, average HELOC rates are below 7.5% nationally, with some offers as low as 6.38%.

Is it a good time for homeowners to get a HELOC?

Yes, for homeowners with significant equity and low primary mortgage rates, it's an opportune time to consider a HELOC.

What's the monthly payment on a $50,000 HELOC?

With a 7.50% interest rate, a $50,000 HELOC could have a monthly payment of around $313 during the draw period, but payments will rise later.

Home / Business and Economy / Unlock Home Equity: HELOC Rates Plummet Below 7.5%!

Unlock Home Equity: HELOC Rates Plummet Below 7.5%!

14 Dec, 2025

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Summary

Average HELOC rates are below 7.5% and falling nationally.
Homeowners have a record $36 trillion in home equity.
HELOCs offer access to equity without losing low mortgage rates.

Unlock Home Equity: HELOC Rates Plummet Below 7.5%!

Homeowners can now access their home equity more affordably, as national average interest rates for home equity lines of credit (HELOCs) have dropped below 7.5%. This decrease is attributed to lenders adjusting pricing to the new, lower prime rate of 6.75%. With homeowners holding a record $36 trillion in home equity, HELOCs present a compelling alternative to selling or refinancing, especially when primary mortgage rates remain elevated.

HELOC interest rates function differently from primary mortgages, typically based on an index rate plus a margin. The prime rate's recent drop to 6.75% has lowered potential HELOC rates. Lenders offer flexibility in pricing, making it crucial for consumers to shop around. Factors like credit score, debt levels, and loan-to-value ratio significantly influence the final rate. It's also important to be aware of potential introductory rates that may increase after an initial period.