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HELOC rates today, September 20, 2025: Holding steady for now
Yahoo Financeยท2025-09-20 10:00

Group 1: HELOC Rates and Market Overview - The national average HELOC rate is currently under 9% APR, with Bank of America reporting an average APR of 8.72% for a 10-year draw HELOC, which has a six-month introductory rate of 6.49% [1][2] - Homeowners have over $34 trillion in home equity as of the end of 2024, marking the third-largest amount on record, which indicates a significant opportunity for accessing home equity through HELOCs [2] - The Federal Reserve's recent decision to lower short-term interest rates by a quarter point is expected to lead to a slight decrease in prime rates and HELOC interest rates [1] Group 2: HELOC Mechanics and Considerations - HELOC interest rates are determined by an index rate plus a margin, with the current prime rate at 7.50%, leading to potential rates around 8.50% depending on lender margins [3] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit scores, existing debt, and the ratio of credit line to home value [4] - HELOCs allow homeowners to access equity without refinancing their primary mortgage, providing a flexible borrowing option that can be drawn upon as needed [5][8] Group 3: Lender Offers and Consumer Advice - FourLeaf Credit Union is currently offering a 6.49% introductory rate for 12 months on HELOCs up to $500,000, which will convert to a variable rate afterward [7] - Homeowners are advised to compare rates, fees, repayment terms, and minimum draw amounts when shopping for HELOCs to ensure they get the best deal [7] - For homeowners with low primary mortgage rates, obtaining a HELOC now can be advantageous for funding home improvements or other expenses without losing their favorable mortgage rate [10]