HELOC rates today, November 5, 2025: Rates are heading lower

Core Insights - The average HELOC rate is currently 7.75%, with individual lenders beginning to lower their rates, indicating a potential decrease in the national average soon [1][2] - Homeowners have over $34 trillion in home equity, making it the third-largest amount on record, and with mortgage rates around 6%, many are opting for HELOCs instead of selling their homes [3] - Lenders have flexibility in pricing HELOCs, which are influenced by the prime rate and individual borrower factors such as credit score and debt levels [4][5] HELOC Rates and Trends - The average weekly HELOC rate is 7.75%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70% [2] - Bank of America has recently reduced its HELOC rate by 0.25%, aligning with the drop in the prime rate [2] - Rates can vary significantly among lenders, ranging from nearly 6% to as high as 18%, depending on creditworthiness and shopping diligence [10] HELOC Mechanics - HELOCs allow homeowners to access equity without giving up low-rate primary mortgages, providing flexibility in borrowing and repayment [6][11] - Introductory rates are common, such as FourLeaf Credit Union's offering of 5.99% for 12 months, which will adjust to a variable rate of 7.25% thereafter [8] - Borrowers only pay interest on the amount they draw, making HELOCs a cost-effective option for accessing funds as needed [9] Financial Implications - A $50,000 HELOC at a 7.50% interest rate would result in a monthly payment of approximately $313 during the draw period, but payments may increase during the repayment period [12] - Utilizing a HELOC can be beneficial for homeowners looking to finance home improvements or other expenses while maintaining their existing low mortgage rates [11]