HELOC rates today, October 13, 2025: Rates are steadily decreasing throughout the year

Core Insights - The current average HELOC rate is 7.75%, which has decreased throughout the year and is at its lowest point for 2025 [1][2] - Homeowners have over $34 trillion in home equity, marking the third-largest amount on record [2] - With mortgage rates above 6%, many homeowners prefer to retain their low-rate primary mortgages while accessing equity through HELOCs [3] HELOC Rates and Trends - The average HELOC rate has dropped by three basis points week over week and 31 basis points since January [2] - HELOC rates are influenced by factors such as credit score and combined loan-to-value ratio, with current rates based on a minimum credit score of 780 and a maximum CLTV of 70% [2][5] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly, making it essential for borrowers to shop around [5][10] How HELOCs Work - A HELOC allows homeowners to access their home equity without refinancing their primary mortgage, providing flexibility in borrowing [6][11] - Introductory rates, such as FourLeaf Credit Union's 5.99% for 12 months, can be attractive but will convert to variable rates later [8] - Borrowers only pay interest on the amount they draw from their HELOC, allowing for strategic financial management [9] Financial Considerations - 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 [12] - Utilizing a HELOC can be beneficial for homeowners looking to fund home improvements or other expenses while maintaining a low primary mortgage rate [11]