HELOC rates today, September 24, 2025: Variable rates fall — and introductory rates are even lower

Group 1: HELOC Rates and Trends - Current average HELOC rates range from 7.8% to 9.34%, reflecting a decrease following the Federal Reserve's interest rate cut [1] - Bank of America reports an average APR of 8.47% for a 10-year draw HELOC, with a six-month introductory rate of 5.99% [1] - The prime rate is currently at 7.25%, which influences HELOC pricing [3] Group 2: Home Equity and Market Conditions - 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 in the high 6% range, homeowners are likely to retain their low-rate primary mortgages, making HELOCs an attractive option for accessing home equity [2] Group 3: HELOC Mechanics and Considerations - HELOC interest rates are determined by an index rate plus a margin, with lenders having flexibility in pricing [4] - A HELOC allows homeowners to access equity without giving up their low-rate primary mortgage, providing flexibility in borrowing [5] - Introductory rates can be beneficial, but borrowers should be aware of potential rate adjustments after the initial period [7][10] Group 4: Financial Implications and Usage - Homeowners can use HELOC funds for various purposes, including home improvements and personal expenses, while maintaining their primary mortgage [10] - A $50,000 HELOC on a $400,000 home may result in monthly payments around $395, with a variable interest rate starting at 8.75% [11]