HELOC rates today, October 21, 2025: A quarter point lower since August

Core Insights - HELOC rates are currently averaging 7.75%, which is below the 8% high reached in August, making it a favorable time for homeowners to consider a HELOC [1][2] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, indicating significant potential for HELOC utilization [2] Group 1: HELOC Rates and Trends - The average weekly HELOC rate has decreased by more than a quarter point since the beginning of the year [2] - Introductory rates from some lenders are as low as 6%, providing attractive options for borrowers [1][8] - The prime rate, which influences HELOC rates, is currently at 7.25%, affecting the overall pricing of these products [4] Group 2: HELOC Mechanics and Benefits - A HELOC allows homeowners to access equity without refinancing their low-rate primary mortgage, providing flexibility in borrowing [6][11] - Borrowers can only pay interest on the amount they draw, making it a cost-effective option for accessing funds as needed [9] - The structure of HELOCs typically includes an initial draw period followed by a repayment period, with variable interest rates that can change over time [12] Group 3: Considerations for Borrowers - Homeowners should compare different lenders for rates, fees, and terms, as there is significant variability in HELOC offerings [5][10] - It is advisable for homeowners with low primary mortgage rates to consider obtaining a HELOC for home improvements or other expenses, while being mindful of repayment discipline [11] - The monthly payment for a $50,000 HELOC at a 7.75% interest rate would be approximately $323 during the draw period, but payments may increase during the repayment phase [12]