HELOC Rates Plummet: Fed Rate Cut Sparks Lower Rates and Sweeter Introductory Deals

HELOC rates today are between 8% and 9% nationally, with the Fed rate cut expected to lower rates and sweeten introductory deals. The best lenders are likely to adjust their rates, and some are offering APRs as low as 6.74%. Homeowners can access their home equity through a HELOC, which allows for flexible use of funds and can be a good alternative to selling a house with a low mortgage rate. Lenders determine HELOC interest rates based on an index rate plus a margin, and rates can include introductory periods with higher adjustable rates later.

As of September 12, 2025, home equity line of credit (HELOC) rates are averaging between 8% and 9% nationally. The Federal Reserve is expected to lower short-term interest rates, which may further reduce HELOC costs. Homeowners with low primary mortgage rates and significant equity in their homes may find HELOCs an attractive alternative to selling their homes.

According to Bank of America, the largest HELOC lender in the country, today's average annual percentage yield (APR) on a 10-year draw HELOC is 8.72%. This rate is variable and kicks in after a six-month introductory APR of 6.49% in most U.S. states HELOC rates today, September 12, 2025 - Yahoo Finance^[1]. The Federal Reserve's expected rate cut could lower these rates further, making HELOCs even more affordable.

HELOC interest rates are determined by an index rate plus a margin, with the prime rate currently at 7.50%. For example, if a lender adds a 1% margin, the HELOC rate would be 8.50%. However, lenders have flexibility in pricing, and rates can vary significantly based on factors such as credit score, debt-to-income ratio, and the credit line's size relative to the home's value HELOC rates today, September 17, 2025 - Yahoo Finance^[2].

Homeowners can access their home equity through a HELOC, allowing them to use funds flexibly for various purposes, such as home improvements, repairs, and even vacations. The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines. It's essential to compare introductory rates, which may last for six months to one year, with the adjustable rates that follow.

FourLeaf Credit Union is currently offering a HELOC APR of 6.49% for 12 months on lines up to $500,000. This introductory rate will convert to a variable rate later. When shopping lenders, be aware of both rates and compare fees, repayment terms, and the minimum draw amount HELOC rates today, September 14, 2025: Don't wait on the Fed for a lower interest rate^[3].

In summary, HELOC rates today are competitive, and homeowners with low mortgage rates and substantial equity may find HELOCs a valuable financial tool. However, it's crucial to shop around, compare rates, and understand the terms and conditions to make an informed decision.