HELOC Interest Rates Remain Steady Ahead of Fed Meeting, Compare Lender Offers for Best Rates.

As of July 29, 2025, the HELOC interest rate remains steady, with the largest lender, Bank of America, offering an average APR of 8.72% for a 10-year draw HELOC. This is a variable rate that kicks in after a six-month introductory APR of 6.49%. Homeowners can tap into their home equity with a use-it-as-you-need-it HELOC, but rates vary depending on credit score, debt, and home value. Lenders have flexibility with pricing on second mortgage products like HELOCs.

As of July 29, 2025, the home equity loan rates have shown a downward trend, with the average APR for 5-year, 10-year, and 15-year loans standing at 8.25%, 8.40%, and 8.34%, respectively [1]. This decrease is attributed to the Federal Reserve's recent monetary policy and market conditions.

Home equity loans, characterized by fixed interest rates, offer borrowers the opportunity to tap into their home's equity. These loans are particularly attractive due to their lower interest rates compared to unsecured debt like credit cards or personal loans [2]. However, the amount one can borrow and the interest rate offered depend on several factors, including credit score, debt-to-income ratio, and the amount of equity built up in the home.

One of the leading lenders, Bank of America, currently offers a variable rate HELOC with an average APR of 8.72% for a 10-year draw period. This rate is subject to a six-month introductory APR of 6.49% [3]. Other notable lenders such as Regions Bank, Third Federal Savings and Loan, and Fifth Third Bank offer competitive rates with starting APRs ranging from 6.75% to 6.99% for 5-year to 20-year loans [4].

When selecting a home equity loan, it is crucial to consider factors such as the loan amount, term, and lender fees. Additionally, homeowners should be aware of the potential risks, including the risk of losing their home if they fail to make payments and the additional lien on their property [5].

In conclusion, home equity loan rates have shown a decline in July 2025, offering borrowers more favorable terms. Homeowners should carefully evaluate their financial needs, compare offers from multiple lenders, and understand the associated risks before proceeding with a home equity loan.

References:
[1] https://www.bankrate.com/home-equity/home-equity-loan-rates/
[2] https://www.bankrate.com/home-equity/home-equity-loan-rates/
[3] https://www.bankrate.com/home-equity/home-equity-loan-rates/
[4] https://www.bankrate.com/home-equity/home-equity-loan-rates/
[5] https://www.bankrate.com/home-equity/home-equity-loan-rates/