The average HELOC rate is 7.64%, according to the analytics company Curinos. That's the lowest rate of the year, but there's no guarantee that the home equity line of credit rate will move much lower by the end of this year. The Federal Reserve has said that another interest rate cut before the end of the year is "far from" a foregone conclusion. HELOC rates: Wednesday, November 12, 2025 According to Curinos data, the average weekly HELOC rate is 7.64%. This rate is based on applicants with a minimum cr ...

Core Insights - HELOC rates are currently below 8%, with an average rate of 7.75%, which has decreased by more than a quarter point since the beginning of the year [1][2] - The Federal Reserve is expected to cut short-term interest rates, potentially leading to further decreases in HELOC rates [1] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, indicating significant potential for HELOC utilization [2] HELOC Rates and Trends - The average HELOC rate is 7.75%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70% [2] - The prime rate, which influences HELOC rates, is currently at 7.25%, and lenders may add a margin, resulting in rates around 8.25% [4] - Rates can vary significantly among lenders, ranging from nearly 6% to as high as 18%, depending on creditworthiness [10] HELOC Utilization - Homeowners are likely to retain their low-rate primary mortgages, making HELOCs an attractive option to access home equity without selling their homes [3] - HELOCs allow homeowners to borrow as needed, only paying interest on the amount drawn, which provides flexibility for future financial needs [9] - Introductory rates, such as 5.99% for 12 months offered by FourLeaf Credit Union, can be beneficial, but borrowers should be aware of future rate adjustments [8] Financial Considerations - 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 rates are typically variable [12] - HELOCs are best utilized for short-term borrowing and repayment, as they can convert into long-term loans if not managed properly [12] - Homeowners can use HELOC funds for various purposes, including home improvements or personal expenses, but should maintain discipline in repayment [11]

Core Insights - The current average HELOC rate is 7.75%, which has decreased from around 8% in 2025 following a reduction in the prime rate [1][2] HELOC Rates - As of October 20, 2025, the average weekly HELOC rate is 7.75%, down three basis points week over week and 31 basis points since January [2] - The average homeowner has over $34 trillion in home equity, marking the third-largest amount on record [2] Mortgage Context - 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] Interest Rate Determination - HELOC interest rates are based on an index rate plus a margin, often linked to the prime rate, which is currently 7.25% [4] Lender Flexibility - 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 their home equity without giving up their low-rate primary mortgage, providing flexibility in borrowing and repayment [6][9] Introductory Rates - Some lenders, like FourLeaf Credit Union, offer introductory rates (e.g., 5.99% for 12 months) that convert to variable rates later, emphasizing the importance of comparing rates and terms [8] Payment Structure - For a $50,000 HELOC at a 7.75% interest rate, the monthly payment during the draw period would be approximately $323, but rates are typically variable, affecting future payments [13]