The national average HELOC rate is at a 2025 low of 7.64%, making it a great time for homeowners to access extra cash for the holidays. Homeowners hold a record $36 trillion in home equity, with mortgage rates over 6%. HELOCs offer an alternative to accessing this value without giving up low primary mortgage rates.

HELOC interest rates are separate from primary mortgage rates, with lenders offering flexibility in pricing. National rates may include introductory rates that transition to adjustable rates. Keeping a low-rate mortgage and utilizing a second mortgage like a HELOC can be beneficial for homeowners.

The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines. HELOCs allow users to access home equity as needed, paying back and repeating the process as desired. FourLeaf Credit Union is offering a 5.99% introductory rate for 12 months on lines up to $500,000.

HELOCs allow homeowners to tap into their equity as needed, only paying interest on the borrowed amount. Rates vary widely among lenders, from 6% to 18%, based on creditworthiness and shopping diligence. It’s a prime time for homeowners with low primary mortgage rates to consider a HELOC.

Homeowners can use HELOC funds for various purposes, from home improvements to vacations. However, it’s crucial to pay off the borrowed amount promptly to avoid long-term debt. Monthly payments during the 10-year draw period can be manageable, but rates are variable, leading to increased payments.

Utilizing a HELOC wisely involves borrowing and repaying the balance within a shorter period to avoid turning it into a 30-year loan. It’s essential to understand the terms and potential changes in rates during the repayment period. HELOCs offer a flexible way to access home equity without giving up low mortgage rates.

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