HELOC rates today, September 22, 2025: Entering a cycle of falling interest rates

Group 1: HELOC Interest Rates - Current HELOC interest rates range from 8.05% to 9.59% APR, with an average APR of 8.72% for a 10-year draw HELOC as of September 22, 2025 [1][2] - The introductory APR for most parts of the country is 6.49% for the first six months [1] - HELOC rates are influenced by the prime rate, which is currently at 7.50%, plus a margin set by lenders [3] Group 2: Home Equity Value - Homeowners have over $34 trillion in home equity as of the end of 2024, marking the third-largest amount on record [2] - With mortgage rates above 6%, many homeowners are reluctant to sell their homes, making HELOCs an attractive option to access home equity without losing low-rate primary mortgages [2] Group 3: Lender Considerations - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score, existing debt, and the credit line relative to home value [4] - Average national HELOC rates may include introductory rates that last for a limited time before becoming adjustable [4] Group 4: HELOC Functionality - A HELOC allows homeowners to access their home equity without giving up their low-rate primary mortgage, providing flexibility in borrowing and repayment [5][6] - Borrowers can choose to draw only what they need, avoiding interest on unused credit [8] Group 5: Current Offers and Payment Structure - FourLeaf Credit Union offers a HELOC rate of 6.49% for 12 months on lines up to $500,000, which will convert to a variable rate later [7] - For a $50,000 HELOC on a $400,000 home, the estimated monthly payment may be around $395 with a variable interest rate starting at 8.75% [11] Group 6: Usage of HELOC Funds - HELOCs can be used for various purposes, including home improvements and personal expenses, but borrowers should be disciplined in repayment to avoid long-term debt [10]