HELOC rates today, October 31, 2025: Rates are moving lower; time to shop

Core Insights - The average HELOC rate currently stands at 7.75%, which has decreased by 31 basis points since January 2025, and is expected to decline further following the recent Federal Reserve rate cut [1][2] - Homeowners have over $34 trillion in home equity, marking the third-largest amount on record, indicating significant potential for HELOC utilization [2] - With primary mortgage rates remaining low, homeowners are likely to retain their existing mortgages, making HELOCs an attractive option for accessing home equity without refinancing [3] HELOC Interest Rates - HELOC rates are determined by an index rate plus a margin, with the current prime rate at 7.25%. For example, a lender adding a 1% margin would result in a HELOC rate of 8.25% [4] - Lenders have flexibility in pricing HELOCs, which can vary based on credit score, debt levels, and the credit line relative to home value. It is advisable to compare offers from multiple lenders [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] - Introductory rates, such as FourLeaf Credit Union's 5.99% for the first 12 months, can be beneficial, but borrowers should be aware of potential rate adjustments afterward [8] - The structure of a HELOC enables homeowners to borrow only what they need, avoiding interest on unused credit [9] Current Market Conditions - Interest rates for HELOCs can range from 6% to 18%, heavily influenced by individual creditworthiness and lender competition [11] - For homeowners with significant equity and low primary mortgage rates, now is considered an opportune time to secure a HELOC for various uses, including home improvements or personal expenses [12] Payment Structure - A $50,000 HELOC at a 7.75% interest rate would result in a monthly payment of approximately $323 during the 10-year draw period, but payments may increase during the repayment phase due to variable rates [13]