HELOC rates today, October 20, 2025: Rates have been falling since mid-September

Core Insights - The current average HELOC rate is 7.75%, which has decreased from around 8% in 2025 following a reduction in the prime rate [1][2] HELOC Rates - As of October 20, 2025, the average weekly HELOC rate is 7.75%, down three basis points week over week and 31 basis points since January [2] - The average homeowner has over $34 trillion in home equity, marking the third-largest amount on record [2] Mortgage Context - With mortgage rates above 6%, homeowners are likely to retain their low-rate primary mortgages, making HELOCs an attractive alternative for accessing home equity [3] Interest Rate Determination - HELOC interest rates are based on an index rate plus a margin, often linked to the prime rate, which is currently 7.25% [4] Lender Flexibility - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score, debt levels, and home value [5] HELOC Functionality - A HELOC allows homeowners to access their home equity without giving up their low-rate primary mortgage, providing flexibility in borrowing and repayment [6][9] Introductory Rates - Some lenders, like FourLeaf Credit Union, offer introductory rates (e.g., 5.99% for 12 months) that convert to variable rates later, emphasizing the importance of comparing rates and terms [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, affecting future payments [13]