HELOC rates today, September 13, 2025: A Fed rate cut Wednesday could lower HELOC rates

Core Insights - HELOC rates are currently averaging under 9% APR, with a notable drop expected following the Federal Reserve's anticipated reduction of short-term interest rates [1][2] - Homeowners are holding over $34 trillion in home equity, the third-largest amount on record, making HELOCs an attractive option for accessing this equity without selling homes [2][10] Group 1: HELOC Rates and Trends - The average APR for a 10-year draw HELOC is reported at 8.72%, with an introductory rate of 6.49% for the first six months in most states [1][3] - The prime rate, currently at 7.50%, serves as a basis for HELOC interest rates, which can vary significantly depending on lender margins and borrower creditworthiness [3][9] Group 2: Home Equity Utilization - Homeowners are encouraged to utilize HELOCs to access equity while retaining low-rate primary mortgages, allowing for financial flexibility [5][10] - Lenders offer various introductory rates, such as FourLeaf Credit Union's 6.49% for the first 12 months on lines up to $500,000, but borrowers should be aware of future rate adjustments [7][10] Group 3: Financial Management with HELOCs - The structure of HELOCs allows homeowners to borrow only what they need, avoiding interest on unused credit, which can be beneficial for managing cash flow [8][10] - Monthly payments for a $50,000 HELOC can be approximately $395, with a variable interest rate starting at 8.75%, highlighting the importance of short-term borrowing and repayment strategies [11]