HELOC rates today, November 2, 2025: Moving lower with a quarter-point drop in the prime rate

Core Insights - HELOC rates have been decreasing throughout the year, currently averaging 7.75%, which does not yet reflect the recent quarter-point drop in the prime rate [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 mortgage rates above 6%, homeowners are likely to retain their low-rate primary mortgages, making HELOCs an attractive alternative for accessing home equity [3] HELOC Rate Determination - HELOC interest rates differ from primary mortgage rates, typically based on an index rate plus a margin, with the prime rate recently falling to 7.00% [4] - 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 equity without refinancing their primary mortgage, providing flexibility in borrowing and repayment [6] - The ability to draw only what is needed from the credit line means interest is only paid on borrowed amounts, enhancing financial efficiency [9] Current Market Conditions - As of now, LendingTree offers HELOCs with APRs as low as 6.48% for a $150,000 credit line, but borrowers should be aware of potential rate fluctuations [8] - The current environment is favorable for homeowners with low primary mortgage rates to consider HELOCs for various uses, including home improvements and other expenses [11] Payment Considerations - For a $50,000 HELOC at a 7.50% interest rate, monthly payments during the draw period would be approximately $313, but borrowers should prepare for potential increases in payments during the repayment period [12]