Home equity lines of credit (HELOCs) can be a valuable financial tool for homeowners, especially during the holiday season. The average interest rate for HELOCs nationwide remains under 8%, making it an attractive option for accessing cash when needed.
According to Curinos data, the average weekly HELOC rate is currently at 7.64%, the lowest point in 2025. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%. With nearly $36 trillion in home equity across the country, homeowners have a substantial amount of value tied up in their properties.
While mortgage rates are above 6%, many homeowners are reluctant to give up their low-rate primary mortgages. This reluctance makes selling a house or opting for a cash-out refinance less appealing. Instead, utilizing a HELOC allows homeowners to access their home equity without affecting their existing mortgage.
HELOC interest rates differ from primary mortgage rates, typically being based on an index rate plus a margin. Lenders have flexibility in pricing HELOCs, so it’s essential to shop around for the best rates based on factors like credit score, debt amount, and credit line compared to home value.
It’s important to note that average national HELOC rates may include introductory rates that can increase after a certain period. By keeping their primary mortgage and considering a second mortgage like a HELOC, homeowners can access their home equity without sacrificing their low-rate mortgage.
The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines. This enables homeowners to use their equity as needed, with the flexibility to borrow and repay as necessary. Additionally, HELOCs allow homeowners to pay down their primary mortgage while accessing their home equity.
Currently, LendingTree is offering a HELOC APR as low as 6.38% on credit lines up to $150,000. However, it’s crucial to consider that HELOCs typically have variable interest rates, meaning monthly payments can fluctuate. Comparing fees, repayment terms, and minimum draw amounts is essential when choosing a HELOC.
The power of a HELOC lies in accessing only what is needed and leaving the line of credit available for future use. By borrowing responsibly and repaying promptly, homeowners can make the most of their home equity without taking on long-term debt.
Overall, for homeowners with low primary mortgage rates and substantial home equity, now may be an ideal time to consider a HELOC. Whether for home improvements, repairs, or even a vacation, a HELOC can provide financial flexibility while allowing homeowners to maintain their existing mortgage. Just remember to borrow and repay wisely to make the most of this valuable financial tool.
