HELOC rates have been gradually decreasing throughout the year, with the average interest rate currently at 7.75%, a three-basis-point weekly decrease. Homeowners have over $34 trillion in home equity, the third-largest amount on record, making accessing this value through a HELOC an attractive option.

The average national HELOC rate is currently at 7.75%, the lowest in 2025, based on a credit score of 780 and a CLTV of 70%. Second mortgage rates are typically based on an index rate plus a margin, with the prime rate at 7.25%, resulting in a potential rate of 8.25%.

For homeowners with low primary mortgage rates, now is one of the best times to consider a HELOC. By keeping their existing mortgage and tapping into their home equity, they can access cash for home improvements or other expenses without giving up their low-rate mortgage.

Lenders offer flexibility with pricing on HELOCs, with rates ranging from below 6% to as high as 18%. It’s crucial to compare fees, repayment terms, and minimum draw amounts to find the best option. HELOCs allow homeowners to borrow only what they need, saving on interest costs.

LendingTree is currently offering a HELOC APR as low as 6.49% for a credit line of $150,000. However, variable interest rates mean that monthly payments can fluctuate, so borrowers should ensure they can afford potential increases. Comparing terms and fees is essential when selecting a HELOC lender.

HELOCs provide a convenient way for homeowners to access their home equity as needed, with the flexibility to borrow and repay as necessary. By leveraging a HELOC alongside a primary mortgage, homeowners can make strategic financial decisions to support their wealth-building goals.

Read more at Yahoo Finance: Rates fall 19 basis points in 3 months