HELOC rates today, September 27, 2025: Rates are down since last week

Group 1: HELOC Rates and Trends - The average rate on a home equity line of credit (HELOC) has decreased by 25 basis points to just below 8.5%, with Bank of America reporting an average APR of 8.47% for a 10-year draw HELOC [1][2] - Homeowners have over $34 trillion in home equity as of the end of 2024, marking the third-largest amount on record, which suggests a significant opportunity for accessing this equity through HELOCs [2] - HELOC interest rates are based on an index rate plus a margin, with the current prime rate at 7.25%, leading to potential rates around 8.25% depending on lender margins [4] Group 2: Lender Flexibility and Borrowing Options - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score, debt levels, and the credit line relative to home value, making it essential for borrowers to shop around [5][10] - Introductory rates for HELOCs can be attractive, such as FourLeaf Credit Union's offering of 5.99% for the first 12 months, but borrowers should be aware of future rate adjustments [8][11] - A HELOC allows homeowners to access their equity without giving up their low-rate primary mortgage, providing a flexible borrowing option that can be used as needed [6][9] Group 3: Usage and Financial Implications - Homeowners can utilize HELOC funds for various purposes, including home improvements, repairs, and even discretionary spending, provided they manage repayment responsibly [11] - For a $50,000 HELOC on a $400,000 home, the estimated monthly payment could be around $389 with a variable interest rate starting at 8.63%, highlighting the long-term nature of such loans [12]