HELOC rates today, September 26, 2025: Following the prime rate lower

Core Insights - HELOC rates have decreased recently, with the national average ranging from 7.8% to 9.34% as the prime rate fell to 7.25% [1] - Homeowners have over $34 trillion in home equity, making it the third-largest amount on record, which suggests a significant opportunity for HELOCs [2] - The current mortgage rates are low, leading homeowners to retain their primary mortgages and consider HELOCs as an alternative to accessing home equity [2] HELOC Rates and Terms - The average APR for a 10-year draw HELOC is now 8.47%, with an introductory rate of 5.99% for the first six months in most states [1][4] - Lenders determine HELOC rates based on an index rate plus a margin, often using the prime rate as a benchmark [4] - Rates can vary significantly between lenders, with current rates ranging from 7% to 18% depending on creditworthiness [9] Benefits and Flexibility of HELOCs - A HELOC allows homeowners to access their home equity without giving up their low-rate primary mortgage, providing flexibility in borrowing [6] - Homeowners can draw only what they need from their credit line, avoiding interest on unused amounts [8] - HELOCs can be used for various purposes, including home improvements and personal expenses, making them a versatile financial tool [10] Payment Structure - For a $50,000 HELOC on a $400,000 home, the estimated monthly payment could be around $384 with a variable interest rate of 8.49% [11] - HELOCs typically have a draw period followed by a repayment period, making them more beneficial for short-term borrowing [11]