HELOC rates today continue to sit at their lowest level of 2025 — and there may still be room for rates to fall before the end of the year. With the Federal Reserve’s next meeting set for December 10, many borrowers are watching closely. If the Fed delivers another rate cut, HELOC pricing could drift even lower heading into 2026, giving homeowners a rare borrowing window while equity levels hit record highs.
Right now, the average HELOC rate is 7.64% based on strong borrower profiles — including a 780+ credit score and a 70% combined loan-to-value (CLTV). That average sits near the lowest levels seen all year. Meanwhile, U.S. homeowners now hold nearly $36 trillion in tappable home equity, the highest on record. With mortgage rates still hovering above 6%, most homeowners have no reason to give up their 3%, 4%, or 5% primary mortgage rate, leaving refinancing or selling off the table. Instead, many are turning to HELOCs as a flexible second-mortgage tool rather than replacing their existing low-rate loan.
A HELOC rate works differently from a traditional mortgage rate. Instead of a fixed structure, HELOC pricing is tied to benchmarks such as the prime rate, now sitting at 7.00%, plus a lender-assigned margin. That margin depends heavily on the borrower’s credit, debt levels, income, and available equity. For example, if the lender adds a 0.75% margin, the final rate becomes 7.75% — and it may adjust over time. Pricing also varies widely across the market because lenders have more flexibility with second mortgages. That means shopping around matters — and the difference between lenders can easily cost or save thousands over time.
Many borrowers are also seeing promotional offers. Some lenders now advertise introductory HELOC rates under 6% for the first 6–12 months. For example, some credit unions are offering 5.99% for 12 months on lines up to $500,000 before converting to a variable rate. These offers can be attractive, but borrowers should pay close attention to the long-term rate, fee structure, repayment rules, and minimum draw requirements. The promotional rate may disappear quickly, and the post-promo variable rate becomes the true cost of borrowing.
A HELOC works like a revolving line of credit. Borrow only what you need. Pay it back. Reuse the credit when needed. The biggest advantage: , they can also rise again depending on economic conditions.
So is now a smart time to get a HELOC? For many homeowners with strong equity and low primary mortgage rates, yes — especially for short-term borrowing and fast repayment. For borrowers planning long-term debt, comparing terms and avoiding promotional traps is key.
For example, if you borrow $50,000 at a 7.50% rate, the payment during the draw period is about $313 per month — but that amount will increase during the repayment phase and may rise further if rates adjust.
With rates at 2025 lows, record home equity available, and another potential policy shift ahead, HELOC borrowing conditions are more favorable now than earlier in the year — and homeowners watching the Fed decision may find even more opportunity in the weeks ahead.
Homeowners today hold close to $36 trillion in total equity. That is the highest amount on record. As home values climbed and fixed mortgages stayed low for many borrowers, homeowners gained a significant financial cushion tied directly to their properties.
For many people, selling their home does not make financial sense right now. Mortgage rates for new loans are still sitting above 6%, while millions of Americans have primary mortgages locked in at 3%, 4%, or 5%. Giving up that low rate doesn’t feel worth it. That’s why HELOCs are becoming one of the most popular ways to access cash without changing the main mortgage.
If rates continue trending down, some homeowners may see even better borrowing opportunities by mid-December or early 2026.
Each lender can set their own margins, fees, and requirements. That means shopping around is key. Two borrowers with the same financial profile may receive completely different offers depending on which bank or credit union they approach.
Also, many lenders advertise a low introductory rate. These promotions may last only six months or a year and may increase significantly once the promotional period ends. Borrowers should carefully compare the intro rate, the long-term rate, and any built-in adjustments to avoid surprises later.
Credit score, income stability, home equity level, and debt-to-income ratio all play a role in the final offer.
A HELOC works like a reusable credit line. Borrow only what you need. Pay it back. Borrow again later if necessary. This flexibility is especially useful for home improvements, repairs, medical bills, or emergency costs.
Some lenders are offering standout promotions. For example, some allow HELOCs with introductory rates below 6% for a limited time. After that period, the rate becomes variable. That’s why comparing long-term repayment terms matters just as much as the first-year cost.
When reviewing offers, pay attention to:
However, HELOC rates are variable, meaning they can move up or down over time. Even if rates fall now, they may fluctuate again in 2026 depending on inflation and Federal Reserve decisions.
Borrowers who plan to use a HELOC for short-term borrowing and fast repayment may benefit the most from today’s environment. For those planning to carry the balance long term, timing and rate structure matter more.
Right now, the average HELOC rate is 7.64% based on strong borrower profiles — including a 780+ credit score and a 70% combined loan-to-value (CLTV). That average sits near the lowest levels seen all year. Meanwhile, U.S. homeowners now hold nearly $36 trillion in tappable home equity, the highest on record. With mortgage rates still hovering above 6%, most homeowners have no reason to give up their 3%, 4%, or 5% primary mortgage rate, leaving refinancing or selling off the table. Instead, many are turning to HELOCs as a flexible second-mortgage tool rather than replacing their existing low-rate loan.
A HELOC rate works differently from a traditional mortgage rate. Instead of a fixed structure, HELOC pricing is tied to benchmarks such as the prime rate, now sitting at 7.00%, plus a lender-assigned margin. That margin depends heavily on the borrower’s credit, debt levels, income, and available equity. For example, if the lender adds a 0.75% margin, the final rate becomes 7.75% — and it may adjust over time. Pricing also varies widely across the market because lenders have more flexibility with second mortgages. That means shopping around matters — and the difference between lenders can easily cost or save thousands over time.
Many borrowers are also seeing promotional offers. Some lenders now advertise introductory HELOC rates under 6% for the first 6–12 months. For example, some credit unions are offering 5.99% for 12 months on lines up to $500,000 before converting to a variable rate. These offers can be attractive, but borrowers should pay close attention to the long-term rate, fee structure, repayment rules, and minimum draw requirements. The promotional rate may disappear quickly, and the post-promo variable rate becomes the true cost of borrowing.
A HELOC works like a revolving line of credit. Borrow only what you need. Pay it back. Reuse the credit when needed. The biggest advantage: , they can also rise again depending on economic conditions.
So is now a smart time to get a HELOC? For many homeowners with strong equity and low primary mortgage rates, yes — especially for short-term borrowing and fast repayment. For borrowers planning long-term debt, comparing terms and avoiding promotional traps is key.
For example, if you borrow $50,000 at a 7.50% rate, the payment during the draw period is about $313 per month — but that amount will increase during the repayment phase and may rise further if rates adjust.
With rates at 2025 lows, record home equity available, and another potential policy shift ahead, HELOC borrowing conditions are more favorable now than earlier in the year — and homeowners watching the Fed decision may find even more opportunity in the weeks ahead.
What is the current HELOC rate today?
The average HELOC rate today is 7.64%, based on strong borrower profiles, including a 780 credit score and a 70% combined loan-to-value ratio. These factors matter because lenders view HELOCs as second mortgages, meaning there is more risk involved compared with a primary mortgage.Homeowners today hold close to $36 trillion in total equity. That is the highest amount on record. As home values climbed and fixed mortgages stayed low for many borrowers, homeowners gained a significant financial cushion tied directly to their properties.
For many people, selling their home does not make financial sense right now. Mortgage rates for new loans are still sitting above 6%, while millions of Americans have primary mortgages locked in at 3%, 4%, or 5%. Giving up that low rate doesn’t feel worth it. That’s why HELOCs are becoming one of the most popular ways to access cash without changing the main mortgage.
If rates continue trending down, some homeowners may see even better borrowing opportunities by mid-December or early 2026.
How do HELOC rates work and why do they move?
A HELOC works differently from a regular mortgage. Instead of a fixed rate from the start, HELOC rates are tied to a financial benchmark, usually the prime rate, which currently sits at 7.00%. Then lenders add a margin based on the borrower’s financial risk. For example, if the margin is 0.75%, the total adjustable rate becomes 7.75%.Each lender can set their own margins, fees, and requirements. That means shopping around is key. Two borrowers with the same financial profile may receive completely different offers depending on which bank or credit union they approach.
Also, many lenders advertise a low introductory rate. These promotions may last only six months or a year and may increase significantly once the promotional period ends. Borrowers should carefully compare the intro rate, the long-term rate, and any built-in adjustments to avoid surprises later.
Credit score, income stability, home equity level, and debt-to-income ratio all play a role in the final offer.
Is a HELOC a smart tool for homeowners right now?
For many homeowners, a HELOC may be a strong financial tool right now. It allows you to keep your low primary mortgage while still accessing funds when needed.A HELOC works like a reusable credit line. Borrow only what you need. Pay it back. Borrow again later if necessary. This flexibility is especially useful for home improvements, repairs, medical bills, or emergency costs.
Some lenders are offering standout promotions. For example, some allow HELOCs with introductory rates below 6% for a limited time. After that period, the rate becomes variable. That’s why comparing long-term repayment terms matters just as much as the first-year cost.
When reviewing offers, pay attention to:
- Whether fixed-rate conversion options exist
- Repayment rules during the draw period
- Any required minimum withdrawals
- Fees and closing costs
Will HELOC rates fall further before the end of the year?
There is a growing expectation that HELOC rates could soften slightly if the Federal Reserve cuts rates again in December. Inflation has been cooling, and the broader economy appears steady enough to support another adjustment.However, HELOC rates are variable, meaning they can move up or down over time. Even if rates fall now, they may fluctuate again in 2026 depending on inflation and Federal Reserve decisions.
Borrowers who plan to use a HELOC for short-term borrowing and fast repayment may benefit the most from today’s environment. For those planning to carry the balance long term, timing and rate structure matter more.
