The national average HELOC rate is at record lows for 2025, with rates below 7% for some lenders. Homeowners have nearly $36 trillion in home equity, the highest ever reported. HELOC interest rates are separate from primary mortgage rates, with margins added to index rates. Shopping around is key to finding the best rates and terms.

Lenders offer flexibility in pricing for HELOCs, with introductory rates that may increase after a set period. Keeping your low-rate mortgage and adding a second mortgage, like a HELOC, can be a smart financial move. Some lenders, like FourLeaf Credit Union, offer introductory rates as low as 5.99%.

A HELOC allows you to access your home equity as needed, with the ability to use and repay funds repeatedly. Rates can vary greatly, from 6% to 18%, depending on creditworthiness and lender terms. It’s a good time for homeowners with low mortgage rates to consider a HELOC for home improvements, repairs, or other expenses.

Using a HELOC responsibly is key, as withdrawing the full amount can lead to higher monthly payments during the repayment period. It’s important to understand that HELOC rates are usually variable and payments can increase over time. HELOCs are best suited for shorter-term borrowing and repayment.

Read more at Yahoo Finance: Lenders begin pushing rates down to the 6% range