The national average HELOC rate is dropping to new 2025 lows, now at 7.44% for applicants with a minimum credit score of 780 and a 70% CLTV. Homeowners hold nearly $36 trillion in home equity, the most on record, making a HELOC a valuable option to access equity without giving up low primary mortgage rates.

HELOC interest rates are different from primary mortgage rates, based on an index rate plus a margin. Lenders offer flexibility in pricing for second mortgage products like HELOCs or home equity loans. National HELOC rates may include introductory rates that adjust higher after a set period.

FourLeaf Credit Union is offering a 5.99% HELOC rate for 12 months on lines up to $500,000, converting to an adjustable rate later. HELOCs allow homeowners to tap into their equity as needed, paying interest only on the amount borrowed. Rates vary widely among lenders, from 6% to 18%, based on creditworthiness and shopping diligence.

Now is a prime time for homeowners with low mortgage rates and equity to consider a HELOC, keeping their great rate while accessing cash for home improvements, repairs, or even fun expenses. Using a HELOC wisely means borrowing and repaying the balance promptly to avoid long-term debt and higher payments in the future.

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