HELOC rates today, October 1, 2025: Variable and introductory interest rates fall

Core Insights - The average HELOC rate is currently at 8.47% APR, marking the lowest rate available in 2025, with introductory rates also reaching new lows [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] - HELOC interest rates are typically based on an index rate plus a margin, with the current prime rate at 7.25% [3] Group 1: HELOC Rates and Trends - The average APR for a 10-year draw HELOC is 8.47%, with a six-month introductory rate of 5.99% in most areas [1] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score and debt levels [4] - Introductory rates may only last for a limited time before adjusting to a higher variable rate [4][7] Group 2: HELOC Functionality and Usage - A HELOC allows homeowners to access their home equity without giving up their low-rate primary mortgage [5] - Homeowners can borrow as needed, only paying interest on the amount drawn, which provides financial flexibility [8] - HELOCs can be used for various purposes, including home improvements and personal expenses, but should be managed carefully to avoid long-term debt [10] Group 3: Payment and Financial Considerations - A $50,000 HELOC on a $400,000 home may result in monthly payments around $375, with a variable interest rate starting at 8.24% [11] - It is advisable for homeowners to compare rates, fees, and repayment terms when shopping for a HELOC [7][9]