HELOC rates today, September 17, 2025: How a Fed rate cut might affect HELOCs

Core Insights - Current average HELOC rates range from 8.05% to 9.59%, with Bank of America reporting an average APR of 8.72% for a 10-year draw HELOC [1][2][10] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, making HELOCs an attractive option for accessing this value without selling homes [2][10] - The pricing of HELOC interest rates is based on an index rate, typically the prime rate, which is currently 7.50%, plus a margin set by lenders [3][4] Group 1: HELOC Rates and Trends - HELOC rates are influenced by the prime rate and can vary significantly between lenders, with rates ranging from nearly 7% to 18% depending on creditworthiness [9][10] - Introductory rates are common, such as FourLeaf Credit Union's 6.49% for the first 12 months, but borrowers should be aware of future rate adjustments [7][10] - The flexibility of HELOCs allows homeowners to borrow only what they need, avoiding interest on unused credit [8][10] Group 2: Home Equity and Borrowing Strategies - Homeowners are likely to retain low-rate primary mortgages, making HELOCs a viable alternative for accessing home equity without refinancing [2][5][10] - The structure of HELOCs allows for easy access to funds for various purposes, including home improvements and personal expenses, while maintaining the primary mortgage [5][10] - Monthly payments on a $50,000 HELOC can be around $395, with a variable interest rate starting at 8.75%, emphasizing the importance of borrowing and repaying within a shorter timeframe [11]