Rates are getting closer to 7%

The current national average HELOC rate is closer to 7%. In fact, Bank of America has a home equity line of credit rates as low as 7.3% in some states.

According to Curinos data, the average weekly HELOC rate is 7.44%. This rate is based on applicants with a minimum credit score of 780 and a maximum score combined loan-to-value (CLTV) ratio by 70%.

Homeowners have enormous value tied up in their homes — nearly $36 trillion at the end of the second quarter of 2025, according to the Federal Reserve. This is the largest quantity of home equity recorded.

With mortgage rates remaining just above 6%, homeowners may not want to give up their primary mortgage anytime soon, so selling the home may not be an option. Why give up your 5%, 4% or even 3% mortgage?

Accessing some of the value locked in your home with a HELOC to use as needed can be a great alternative.

HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an indexed rate plus a margin. This index is often the prime rate, which has just fallen to 6.75%. If a lender added 0.75% margin, the HELOC would have a rate of 7.50%.

Lenders have the flexibility to price a second mortgage product, such as a HELOC or Home Equity Loanso it is worth shopping around. Your rate will depend on your credit score, the amount of debt you have, and the amount of your line of credit relative to the value of your home.

And average national HELOC rates may include “introductory” rates that may only last six months or a year. After that, your interest rate will become adjustable, likely starting at a significantly higher rate.

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 mortgagesuch 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 amount you want, up to your line of credit limit. Take a little out; pay it back. Repeat.

During this time, you pay off your low-interest primary mortgage.

Today, Four-leaf credit union offers a HELOC rate of 5.99% for 12 months on lines up to $500,000. This is an introductory rate which will later be converted into a variable rate. When researching lenders, be aware of both rates. And as always, compare fees, repayment terms and minimum withdrawal amount. The drawdown is the amount of money a lender asks you to initially draw down from your equity.

The power of a HELOC is leveraging only what you need and leaving a portion of your credit line available for future needs. You don’t pay interest on what you don’t borrow.

Rates vary so much from lender to lender that it’s hard to find a magic number. You can see rates ranging from almost 6% to 18%. It really depends on your creditworthiness and diligence as a buyer.

For homeowners with low primary mortgage rates and a lot of equity in their home, this is probably one of the best times to get a HELOC. You do not give up this advantageous mortgage rate and you can use the money taken from your equity for things like home renovationsrepairs and upgrades. Of course, you can also use a HELOC for fun things, like a vacation, if you have the discipline to pay it off quickly. A vacation probably isn’t worth going into debt in the long run.

If you withdraw all of $50,000 from a home equity line of credit and pay an interest rate of 7.50%, your monthly payment during the 10-year period drawing period would be around $313. This sounds good, but remember that the rate is usually variable, so it changes periodically and your payments will increase over the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are better if you borrow and pay off the balance in a much shorter time frame.