HELOC rates today, October 10, 2025: Lowest rates all year

Core Insights - The average HELOC rate is currently 7.75%, marking the lowest rate in 2025, down from a high of 8.06% in January [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 homes [2] - Lenders determine HELOC rates based on an index rate plus a margin, with the current prime rate at 7.25% [4] HELOC Rates and Trends - The average weekly HELOC rate has decreased by three basis points week over week and 31 basis points since January [1] - Rates can vary significantly among lenders, ranging from 6% to 18%, depending on creditworthiness [9] - Introductory rates are common, but they may convert to variable rates after a set period [7] Home Equity Utilization - HELOCs allow homeowners to access equity without giving up low-rate primary mortgages, providing flexibility in borrowing [6] - Homeowners can use HELOC funds for various purposes, including home improvements and personal expenses, while maintaining their existing mortgage rates [10] - The ability to borrow only what is needed and pay interest only on that amount is a key advantage of HELOCs [8] Payment Structure - For a $50,000 HELOC at a 7.75% interest rate, the monthly payment during the draw period would be approximately $323, but rates are typically variable [11] - HELOCs are structured as 30-year loans, with a 10-year draw period followed by a repayment period, making them best suited for short-term borrowing [11]