As the national average home equity line of credit interest rate falls, homeowners are considering HELOCs as a holiday cash flow solution. With pricing at a three-year low based on the prime rate, HELOCs are more affordable nowadays.
The average weekly HELOC rate is 7.44% for applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70%.
Homeowners had nearly $36 trillion in home equity at the end of Q2 2025, the largest amount on record.
With mortgage rates still above 6%, homeowners are keeping their primary mortgages and considering a HELOC as an alternative to accessing home equity.
HELOC interest rates are based on an index rate plus a margin, with the prime rate currently at 6.75%.
Lenders offer flexible pricing on second mortgage products like HELOCs, so shopping around is beneficial for finding the best rate based on your credit score and other factors.
HELOC rates can include introductory rates that may only last for a limited time before becoming adjustable.
The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines for easy access to home equity.
Today, LendingTree is offering a HELOC APR as low as 6.36% for a $150,000 credit line, but remember that rates are variable.
The power of a HELOC lies in the ability to tap only what you need and leave the rest of the credit line available for future use without paying interest on unused funds.
HELOC rates vary widely depending on the lender and can range from below 6% to as high as 18%.
For homeowners with low primary mortgage rates, now may be one of the best times to get a HELOC to access equity for home improvements or other needs.
If you withdraw $50,000 at a 7.50% interest rate from a HELOC, your monthly payment during the 10-year draw period would be approximately $313, but remember the rate is variable.
HELOCs are best used when borrowing and repaying the balance within a shorter period to avoid turning it into a 30-year loan.
Read more at Yahoo Finance: A holiday cash flow solution gets a rate break