The current national average HELOC rate will bottom in 2025, according to analytics firm Curinos. Home equity line of credit rates have dropped with perfect timing for homeowners who could use a little extra cash for vacations.
According to Curinos data, the average weekly HELOC rate is 7.64%. This rate is based on applicants with a minimum credit score of 780 and a maximum loan-to-value (CLTV) ratio of 70%.
Homeowners have an enormous amount of value attached to their homes — nearly $36 trillion at the end of the second quarter of 2025, according to the Federal Reserve. This is the largest amount of home equity ever.
With mortgage rates remaining at just over 6%, homeowners may not want to give up their primary mortgage anytime soon, so selling the home may not be an option. Why give up your mortgage at 5%, 4%, or even 3%?
Accessing some of the value in your home 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 has fallen to 7.00%. If the lender adds 0.75% as margin, the HELOC rate will be 7.75%.
Lenders are flexible in pricing a second mortgage product, like a HELOC or home equity loan, so it pays to shop 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 your home equity. Keep your primary mortgage and consider getting a second mortgage, such as a home equity line of credit.
The best HELOC lenders offer 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, Forleaf Credit Union The HELOC offers an interest rate of 5.99% for 12 months on lines up to $500,000. This is the introductory rate that will be converted to a variable rate later. When shopping for lenders, be aware of both rates. 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 approximately 6% to 18%. It really depends on your creditworthiness and how diligently you shop.
For homeowners with low initial mortgage rates and a large portion of equity in their home, this is likely 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 withdraw the full $50,000 from your home equity line of credit and pay an interest rate of 7.50%, your monthly payment over the 10-year withdrawal period will be about $313. 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.
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