HELOC rates today, October 29, 2025: With a Fed rate cut, HELOC interest rates will likely soon follow

Core Insights - The national average HELOC rate is currently 7.75%, which may decrease if the Federal Reserve lowers the federal funds rate [1] - Homeowners have over $34 trillion in home equity, making it a significant asset for accessing funds through HELOCs [2] - HELOC interest rates are typically based on an index rate plus a margin, with the current prime rate at 7.25% [3] HELOC Rates and Market Dynamics - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score and debt levels [4] - Introductory rates for HELOCs can be attractive but may convert to higher variable rates after a set period [7] - Current HELOC rates can range from nearly 6% to 18%, depending on individual creditworthiness [9] Benefits and Usage of HELOCs - HELOCs allow homeowners to access equity without refinancing their low-rate primary mortgages, providing financial flexibility [5][6] - The ability to draw only what is needed from a HELOC means interest is only paid on borrowed amounts [8] - Utilizing a HELOC can be beneficial for home improvements or other expenses while maintaining a favorable primary mortgage rate [10] Financial Implications - A $50,000 HELOC at a 7.75% interest rate would result in a monthly payment of approximately $323 during the draw period, but rates are variable and can increase [11]