HELOC rates today, September 23, 2025: Prime rate edges lower, nudging HELOC rates down

Core Insights - HELOC rates have decreased slightly due to the Federal Reserve's quarter-point rate cut, with the national average APR on a 10-year draw HELOC now at 8.47% [1] - 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 their homes [2] - The current prime rate is 7.50%, which influences HELOC rates, typically calculated as an index rate plus a margin [3] HELOC Rates and Market Dynamics - HELOC rates range from 7.8% to 9.34%, with lenders offering flexibility in pricing based on credit scores and debt levels [2][4] - Introductory rates for HELOCs can be significantly lower but may adjust to higher rates after an initial period, making it essential for borrowers to compare offers [4][7] - The best HELOC lenders provide low fees, fixed-rate options, and generous credit lines, allowing homeowners to access equity as needed [5] Usage and Financial Strategy - A HELOC allows homeowners to maintain their low-rate primary mortgage while accessing home equity for various needs, including home improvements or personal expenses [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] - Homeowners are encouraged to consider HELOCs as a viable financial tool, especially when they have substantial equity and low primary mortgage rates [10]