The national average home equity line of credit (HELOC) interest rate is under 8%, making it a valuable source of cash during the upcoming holidays, according to Curinos. The average weekly HELOC rate is currently at 7.64%, the lowest in 2025, based on applicants with a minimum credit score of 780 and a 70% CLTV.

Homeowners have nearly $36 trillion in home equity, the highest on record. With mortgage rates above 6%, selling a house or doing a cash-out refinance may not be ideal. Instead, accessing home equity through a HELOC can be a smart alternative, allowing you to keep your low-rate mortgage.

HELOC interest rates are different from primary mortgage rates, often based on an index rate plus a margin. Lenders have pricing flexibility, so shopping around for a HELOC or home equity loan is crucial. Rates can include introductory offers that may adjust to higher rates after a set period.

The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines, giving homeowners the flexibility to use their home equity as needed. By keeping a low-interest primary mortgage and utilizing a HELOC, homeowners can build wealth while accessing cash.

LendingTree is currently offering a HELOC APR as low as 6.38% on credit lines up to $150,000, but remember that HELOC rates are variable and can fluctuate. It’s important to compare fees, repayment terms, and minimum draw amounts to ensure you can afford monthly payments if rates rise.

HELOCs allow you to tap into your equity as needed, only paying interest on the amount borrowed. Rates can vary widely depending on creditworthiness and lender, ranging from below 6% to 18%. For homeowners with low mortgage rates and equity, now may be an ideal time to consider a HELOC.

For those looking to access cash for home improvements, repairs, or even vacations, a HELOC can be a useful tool. By borrowing and repaying within a shorter period, homeowners can avoid turning their HELOC into a long-term loan. It’s crucial to have the discipline to pay off any borrowed funds promptly.

If you withdraw $50,000 from a HELOC at 7.50% interest, your monthly payment during the 10-year draw period would be around $313. However, since rates are typically variable, payments will increase during the 20-year repayment period, essentially turning the HELOC into a 30-year loan.

Read more at Yahoo Finance: Lowest 2025 rates in time for holiday cash needs