HELOC rates today, October 11, 2025: Rates have dropped 31 basis points this year

Core Insights - The average HELOC rate is currently 7.75%, marking a decrease of 31 basis points since January, which is the lowest rate observed this year [1][2] HELOC Rates - The highest HELOC rate in 2025 was recorded in January, and the current rate reflects a significant drop since then [2] - HELOC rates are influenced by factors such as credit score and combined loan-to-value ratio, with the current average based on applicants with a minimum credit score of 780 and a maximum CLTV of 70% [2][4] Home Equity Context - Homeowners have over $34 trillion in home equity as of the end of 2024, representing the third-largest amount on record [3] - With mortgage rates above 6%, many homeowners are reluctant to sell their homes, making HELOCs an attractive option to access home equity without relinquishing low-rate primary mortgages [3][6] Lender Considerations - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on individual creditworthiness and market conditions [5][11] - Introductory rates may be offered, but borrowers should be aware of potential rate adjustments after the initial period [5][8] HELOC Functionality - A HELOC allows homeowners to access their home equity as needed, providing flexibility in borrowing and repayment [6][9] - The structure of a HELOC typically involves a draw period followed by a repayment period, with variable interest rates that can affect monthly payments [13]