HELOC rates today, September 12, 2025: Lower interest rates may be on the way next week but this offer can get you one now

Core Insights - Current average HELOC rates are just under 9%, with introductory offers starting lower, typically around 6.49% for the first six months to one year [1][7] - The Federal Reserve is expected to lower short-term interest rates, which will reduce costs for HELOCs [2] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, indicating significant potential for HELOC utilization [2] HELOC Rates and Trends - Bank of America reports an average APR of 8.72% for a 10-year draw HELOC, with a variable rate after the introductory period [1] - The prime rate is currently at 7.50%, which influences HELOC rates; lenders may add a margin to this index [4] - Rates can vary significantly among lenders, ranging from 7% to 18%, depending on creditworthiness and shopping diligence [9] Homeowner Behavior - With mortgage rates in the mid-6% range, homeowners are reluctant to sell their homes, making HELOCs an attractive alternative for accessing home equity [3] - HELOCs allow homeowners to maintain their low-rate primary mortgages while tapping into their home equity as needed [6][10] Lender Considerations - Lenders have flexibility in pricing HELOCs based on credit scores, debt levels, and home value [5] - It is advisable for borrowers to compare terms, fees, and repayment options across multiple lenders to secure the best deal [5][8] Payment Structure - A $50,000 HELOC on a $400,000 home may result in a monthly payment of approximately $395 at a variable interest rate of 8.75%, highlighting the long-term nature of HELOCs [11]