How to get a HELOC rate below 8% now
The steady downward trend in interest rates on home equity lines of credit (HELOCs) has reversed in the last two weeks. After dropping to 18-month and multiple two-year lows in the opening months of 2025, HELOC rates ticked up last week and the week before and now sit at an average of 8.02%, according to new Bankrate data. That's up 12 basis points from the 7.90% average HELOCs sat at earlier this month.
Still, the context here is critical. Overall, HELOC interest rates have declined by around two percentage points from where they were in 2024, when they hovered around 10%. So a HELOC remains one of your cheapest borrowing options now, especially when compared to home equity loans, personal loans and credit cards, all of which have higher rates.
That all noted, once a rate drops below a certain threshold, borrowers understandably won't want to pay more than they have to. But that doesn't mean the recent window of opportunity has fully closed, either. Fortunately, there are still ways in which homeowners can get a HELOC rate below 8% now. Below, we'll break down three of them.
See what HELOC rate you'd currently qualify for here.
How to get a HELOC rate below 8% now
Here are three ways, either individually or in combination, in which homeowners can boost their chances of securing a HELOC rate under 8% now:
Improve your credit score
The average HELOC rates you see listed on lender marketplace websites are exactly that – the average. Borrowers can and likely will secure a lower rate if they apply with a high credit score. So, if you don't have one, consider working on that first.
While it may be discouraging to think of the work needed to boost your score, certain steps can improve it fairly quickly. Look to pay down (or off) high-rate debt immediately but smaller steps, like refraining from any additional credit applications during this time or reviewing your credit report for errors and inconsistencies can also improve your score. And, once it's high enough, you'll have the added benefit of qualifying for lower HELOC rates, too.
Learn more about applying for a HELOC online today.
Have lenders compete against each other
Did you know that you don't need to use your current mortgage lender to secure a HELOC? Because of this, it makes sense to shop around to see what competitors are offering. Consider securing rate offers from at least three other lenders before going back to your mortgage lender to see if they can beat the most competitive offer. Then, consider going back to that lender to see how low they can go. This may take some time and effort, but the result could be a markedly lower HELOC rate than you'd otherwise secure by accepting the first lender offer you receive.
Monitor the market for opportunities to act
Sure, HELOC rates recently ticked up again. But they could fall again soon, perhaps sooner than you anticipated. And that's good news for both prospective borrowers and current ones, as HELOCs have variable rates subject to change each month. So, it's important to know when those changes actually take place.
Monitor the market daily, then, for an opportunity to get a HELOC rate below 8%. With items like the unemployment rate and inflation slated to be released in upcoming weeks and a new Federal Reserve meeting set for May (the bank didn't meet in April), all likely to impact the rate climate, it makes sense to stay engaged and proactive now.
The bottom line
Recent slight changes in the HELOC rate climate shouldn't discourage borrowers. There are still effective ways to secure a rate below 8% right now. By making the above moves, either independently or in conjunction with one another, borrowers can boost their chances of finding a low HELOC rate, allowing them to more confidently and affordably use their home equity as needed. Just remember that your home functions as collateral in these exchanges, so it's important that the amount you borrow – and the rate at which you borrow it – are right for your financial circumstances.
