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Hal Bundrick, CFP® · Senior Writer 
Laura Grace Tarpley · Lead Editor and Content Strategist, Mortgages Tue, November 25, 2025 at 7:00 PM GMT+8 4 min read Interest rates on home equity lines of credit (HELOCs) are at their lowest point so far in 2025. While some expected them to hold steady through the end of the year, HELOC rates could actually decrease in December. It's becoming more likely that the Federal Reserve will lower the federal funds rate at its December meeting.
When the fed funds rate goes down, the prime rate — which strongly impacts HELOC rates — usually goes down too. Currently, the CME FedWatch tool indicates a likelihood of a Fed rate cut of roughly 85%.
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Learn how to get a HELOC in 6 simple steps.
HELOC rates Tuesday, November 25, 2025
According to Curinos data, the average weekly HELOC rate is 7.64%, down more than 40 basis points since the beginning of the year. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.
Homeowners have a substantial amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That's the third-largest amount of home equity on record.
With mortgage rates lingering in the low-6% range, homeowners are not likely to let go of their primary mortgage anytime soon, so selling the house may not be an option. Why lose your 5%, 4% — or even 3% mortgage?
Accessing some of the value locked into your house with a use-it-as-you-need-it HELOC can be an excellent alternative.
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Read about all the ways you can use the money you receive from a HELOC.
HELOC interest rates: What to look for
HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is down to 7.00%. If a lender added 1% as a margin, the HELOC would have a rate of 8.00%.
Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.
Most importantly, HELOC rates can include below-market "introductory" rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.
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How a HELOC works
You don't have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.
The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.
Meanwhile, you're paying down your low-interest-rate primary mortgage like the wealth-building machine you are.
Look for introductory rates, but be aware of a rate adjustment later
Today, FourLeaf Credit Union is offering a HELOC APR of 5.99% for 12 months on lines up to $500,000. That's an introductory rate that will convert to a higher rate at a later date. When shopping for lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.
The power of a HELOC lies in tapping only what you need, while leaving some of your line of credit available for future needs. You don't pay interest on what you don't borrow.
HELOC rates today: FAQs
What is a good interest rate on a HELOC right now?
Rates vary significantly from one lender to the next. You may see rates from nearly 6% to as much as 18%. It really depends on your creditworthiness and how diligent you are as a shopper.
Is it a good idea to get a HELOC right now?
For homeowners with low primary mortgage rates and a significant amount of equity in their house, it's likely a good idea to consider a HELOC soon. You don't give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.
What is the monthly payment on a $50,000 home equity line of credit?
If you withdraw the full $50,000 from a home equity line of credit and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.
Read More
What can you use a HELOC for? 7 ways homeowners use the funds.
You can use money from a HELOC for pretty much anything. Learn about the top reasons to take out a HELOC and how to pay for something using a HELOC balance.
Is now a good time to take out a HELOC?
It can be a good time to get a HELOC, especially if you don’t want to lose the low rate on your first mortgage. Learn how the housing market could affect your decision.
Should you pay off your mortgage with a HELOC?
You can use a HELOC to pay off your mortgage, but there are risks. Learn about the process to decide if paying off your home with a HELOC is the right choice for you.
HELOC vs. credit card: Which should you choose?
HELOCs and credit cards are solid options for covering large purchases, each with its own pros and cons. Learn whether a credit card or HELOC is a better fit.
Can you use a HELOC for a down payment?
Using a HELOC for a down payment on a second home has its advantages and disadvantages. Learn how it works, who’s eligible, and when it makes sense.
The best HELOC lenders of 2025
The best HELOC lenders have flexible payment options, allow high CLTV ratios, and more. Read through our top picks to find your HELOC lender.
