The greatest source of net worth for most Americans is their home. And many retirees may be sitting on a lot of equity if their home is paid off. While more equity isn’t a “problem” per se, it can create an issue. Seniors need income to make it through retirement, not assets. If most of their net worth is tied up in the home in which they live, it can be a challenge to unlock that wealth. Fortunately, today’s homeowners have multiple ways to leverage a paid-off house that don’t include downsizing and movi ...

As the national average home equity line of credit interest rate continues to fall, homeowners are finding a HELOC to be a welcome holiday cash flow solution. With pricing as low as it's been in three years, based on the prime rate, a HELOC is more affordable these days too. HELOC rate: Sunday, December 21, 2025 According to Curinos data, the average weekly HELOC rate is 7.44%. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%. ...

Core Insights - The average HELOC rate is currently 7.75% and is expected to continue decreasing through the end of the year [1][2] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, making HELOCs an attractive option for accessing funds without selling homes [3] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit scores and other factors [4][5] HELOC Rates and Trends - The highest HELOC rate in 2025 was recorded in January, with a decrease of 31 basis points since then [2] - Current HELOC rates are influenced by the prime rate, which is at 7.25%, plus a margin set by lenders [4] - Introductory rates can be lower, such as FourLeaf Credit Union's 5.99% for the first 12 months, but will convert to a variable rate afterward [8] Home Equity Utilization - HELOCs allow homeowners to access their equity without refinancing their primary mortgage, which is beneficial when primary mortgage rates are low [6][12] - The flexibility of HELOCs enables homeowners to borrow only what they need, avoiding interest on unused credit [9] - Monthly payments on a $50,000 HELOC at a 7.75% interest rate would be approximately $323 during the draw period, but rates are typically variable [13] Considerations for Borrowers - Homeowners are encouraged to shop around for the best HELOC rates, as they can vary widely based on individual creditworthiness [5][11] - It is advisable for homeowners to consider the purpose of the HELOC, whether for home improvements or other expenses, and to be disciplined in repayment to avoid long-term debt [12]

Core Insights - HELOC rates have decreased slightly due to the Federal Reserve's quarter-point rate cut, with the national average APR on a 10-year draw HELOC now at 8.47% [1] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, making HELOCs an attractive option for accessing this value without selling their homes [2] - The current prime rate is 7.50%, which influences HELOC rates, typically calculated as an index rate plus a margin [3] HELOC Rates and Market Dynamics - HELOC rates range from 7.8% to 9.34%, with lenders offering flexibility in pricing based on credit scores and debt levels [2][4] - Introductory rates for HELOCs can be significantly lower but may adjust to higher rates after an initial period, making it essential for borrowers to compare offers [4][7] - The best HELOC lenders provide low fees, fixed-rate options, and generous credit lines, allowing homeowners to access equity as needed [5] Usage and Financial Strategy - A HELOC allows homeowners to maintain their low-rate primary mortgage while accessing home equity for various needs, including home improvements or personal expenses [10] - Monthly payments on a $50,000 HELOC can be around $395, with a variable interest rate starting at 8.75%, emphasizing the importance of borrowing and repaying within a shorter timeframe [11] - Homeowners are encouraged to consider HELOCs as a viable financial tool, especially when they have substantial equity and low primary mortgage rates [10]

Financial Data and Key Metrics Changes - The company reported funded volume of $561 million in Q1 2025, exceeding guidance and marking a 32% increase from Q1 2024 [5][15] - GAAP net income for Q1 2025 was $80 million, or $3.17 per share, compared to a net loss of $16 million, or $0.58 per share in Q1 2024 [6][16] - Adjusted net income improved to $13 million, or $0.52 per share, a $20 million improvement year-over-year [7][17] - Adjusted EBITDA totaled $29 million, representing a significant increase from breakeven in Q1 2024 [17] Business Line Data and Key Metrics Changes - The wholesale channel exceeded volume expectations, contributing to overall guidance being surpassed, although it carries lower margins [18] - The company saw a 40% increase in initial thirty-day sales conversion rates and a 12% reduction in cost per opportunity [12][19] Market Data and Key Metrics Changes - The company benefited from a lower rate environment, with the ten-year treasury falling approximately 35 basis points [6] - April 2025 was noted as the best month for submission and funded volume in the last two years, indicating strong market performance [26] Company Strategy and Development Direction - The company launched the "A Better Way with FOA" campaign to reposition reverse mortgages as a mainstream financial planning tool for homeowners aged 55 and up [8][10] - The strategic focus is on enhancing customer engagement and optimizing the customer journey, with a goal of improving lead conversion metrics [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy, highlighting the increasing awareness among older homeowners regarding home equity [22] - The company reaffirmed its full-year guidance for funded volume between $2.4 billion and $2.7 billion and adjusted EPS between $2.6 and $3 [20] Other Important Information - The company has seen a 25% year-over-year reduction in general and administrative expenses, with a notable 35% decrease in communication and data processing expenses [19] - The leadership change with John Scarpatti being promoted to Chief Production Officer is expected to unlock growth potential [13] Q&A Session Summary Question: How did rate volatility in April impact volumes? - Management noted that April was the best month for submission and funded volume in the last two years, indicating strong performance despite rate volatility [26][27] Question: What is the outlook for expenses going forward? - Management indicated that the fixed cost base is relatively stable, with opportunities for cost reductions as contracts renew, while variable expenses may increase with production [28][29]