The national average rate for a home equity line of credit is under 7.5%. Lenders are offering lower rates after the Fed’s rate cut. Homeowners have nearly $36 trillion in home equity, the most on record. A HELOC allows you to access your equity as needed.

HELOC rates are different from mortgage rates, with varying factors like credit score and debt amount. Introductory rates may last for a limited time before becoming adjustable. Keep your low-rate mortgage and consider a HELOC or second mortgage for additional funds.

Fifth Third Bank launched a promotional HELOC rate of 4.99% for six months post-Fed rate cut. As lenders adjust rates, compare fees, terms, and minimum draw amounts. HELOCs offer flexibility to borrow what you need when you need it.

Rates for HELOCs range from 6% to 18%, depending on creditworthiness. With low mortgage rates and high home equity, now is a good time to consider a HELOC. Use the cash for home improvements, repairs, or fun, but pay it off promptly.

Drawing $50,000 from a HELOC at 7.50% interest would result in a $313 monthly payment during the 10-year draw period. Remember, rates are variable, and payments will increase during the 20-year repayment period. HELOCs are best for short-term borrowing and repayment.

Read more at Yahoo Finance: HELOC rates today, December 12, 2025: Lenders begin HELOC discounts