The average national home equity line of credit (HELOC) interest rate is below 7.5%, a significant drop from the initial 2025 rate of over 8%. Homeowners hold nearly $36 trillion in home equity, the highest recorded amount. With mortgage rates above 6%, many opt for HELOCs to access their home equity.

HELOC rates are currently at their lowest point in 2025, averaging 7.44%. Lenders base rates on factors like credit score and combined loan-to-value ratio. HELOCs offer flexibility in accessing home equity without affecting existing low-rate mortgages.

HELOC rates are separate from primary mortgage rates, often tied to an index like the prime rate. Shopping around for HELOC rates is advisable, as introductory rates may rise after a certain period.

LendingTree offers a low HELOC APR of 6.38% on a $150,000 credit line, but rates are variable. Comparing fees, terms, and minimum draw amounts is crucial. HELOCs allow borrowing only what is needed, with interest paid on the borrowed amount.

HELOC rates vary widely, ranging from under 6% to as high as 18%. The rate depends on creditworthiness and lender terms. Homeowners with low mortgage rates and substantial equity find this a prime time to consider a HELOC for various financial needs.

Taking out a HELOC allows homeowners to access equity for home improvements, repairs, or other expenses without giving up their low mortgage rates. It’s essential to use a HELOC responsibly to avoid long-term debt.

For a full $50,000 withdrawal at a 7.50% interest rate on a HELOC, the monthly payment during the draw period would be around $313. Payments may increase during the 20-year repayment period, essentially turning the HELOC into a 30-year loan. Borrowing and repaying promptly is ideal with HELOCs.

Read more at Yahoo Finance: Lowest rates of the year