HELOC rates today, October 14, 2025: Rate is 23 basis points lower than the yearly average

Core Insights - HELOC rates have been gradually decreasing, currently averaging 7.75%, which is 23 basis points lower than the annual average, indicating a favorable time for homeowners to consider obtaining a HELOC [1][2] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, suggesting significant potential for accessing this equity through HELOCs [2] Group 1: HELOC Rates and Trends - The average weekly HELOC rate is 7.75%, down 31 basis points since January, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70% [2] - HELOC interest rates differ from primary mortgage rates, typically based on an index rate plus a margin, with the current prime rate at 7.25% [4] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly, with some introductory rates available that may only last for a limited time [5][8] Group 2: Accessing Home Equity - Homeowners are likely to retain their low-rate primary mortgages, making HELOCs an attractive option to access home equity without selling their homes [3][6] - A HELOC allows homeowners to borrow as needed, only paying interest on the amount drawn, which provides financial flexibility [9] - For homeowners with substantial equity and low primary mortgage rates, obtaining a HELOC is advisable for purposes such as home improvements or other expenses [11] Group 3: Financial Considerations - An example calculation shows that withdrawing $50,000 from a HELOC at a 7.75% interest rate would result in a monthly payment of approximately $323 during the draw period, but rates are typically variable and can increase over time [12] - It is essential for borrowers to compare rates, fees, and repayment terms when shopping for HELOCs, as these factors can significantly impact overall costs [8][10]