HELOC Rates Today: Understanding the Variable Rate and Introductory Offers

The current HELOC interest rate is under 9%, but the rate you'll pay may not be the same as the introductory rate you see today. Lenders often offer low introductory rates for six months or longer, which will later become adjustable. The average APR on a 10-year draw HELOC is 8.72%, with a six-month introductory APR of 6.49%. HELOC rates are determined by an index rate plus a margin, and vary based on credit score, debt, and credit line amount compared to the value of your home.

Home equity line of credit (HELOC) rates have shown a significant drop in recent weeks, providing a boost for homeowners looking to tap into their home equity. According to Bankrate's latest survey, the average rate on a $30,000 HELOC fell by 13 basis points to 8.13 percent, marking a substantial decline [1]. This decrease comes amidst a backdrop of competitive lending and Federal Reserve actions, which have been driving home equity rates.

While the current average rate is under 9%, it's essential to understand that the introductory rate you see today may not be the rate you'll pay long-term. Lenders often offer low introductory rates for six months or longer, which later become adjustable. For example, the average APR on a 10-year draw HELOC is 8.72%, with a six-month introductory APR of 6.49% [1].

HELOC rates are determined by an index rate plus a margin, and they can vary significantly based on factors such as credit score, debt, and the size of the credit line compared to the value of your home. Lenders typically limit all home loans, including mortgages, to a maximum 80 to 85 percent of your home's worth [1].

Despite the recent drop, home equity products remain relatively high-cost debt. Sarah Rose, senior home equity manager at Affinity Federal Credit Union, advises homeowners to be on the lookout for teaser offers on credit lines, which can save consumers hundreds in interest [1]. Consolidating high-interest credit card and loan debt into a low-rate home equity loan or HELOC can be beneficial for many borrowers.

For those seeking the best HELOC rates, LendingTree reports that current $50k HELOC rates are as low as 6.99% [2]. However, it's crucial to note that these rates are subject to lender approval and may not be guaranteed. Factors such as the index, margin, and ceiling can influence your HELOC rate over time.

In summary, while HELOC rates have shown a notable decline, homeowners should remain vigilant about the introductory rates and variable factors that can impact their long-term costs. It's always a good idea to compare offers from different lenders and understand the terms and conditions before making a decision.

References:
[1] https://www.bankrate.com/home-equity/heloc-rates-plunge-while-home-equity-loan-rates-hold-steady-august-7-2025/
[2] https://www.lendingtree.com/home/home-equity/heloc/