What's a good HELOC interest rate now that rates are falling again?

HELOC interest rates have declined significantly over the past year. Dragon Claws/Getty Images

In the past three years, finding inexpensive ways to borrow money has been difficult.

Credit card interest rates hit a record high (and are only slightly lower now). Personal loan rates, meanwhile, were (and remain) comfortably over 10%. And mortgage rates were, at one point, near their highest point since 2000, effectively eliminating the benefits of a cash-out refinancing approach.

Home equity borrowing rates, however, were relatively affordable, frequently in the single digits for qualified homeowners. And they've become much less expensive over the past year, as the Federal Reserve has moved to cut interest rates multiple times. That rate-cutting approach continued last month when the central bank cut rates by 25 basis points and it appears likely to be extended in the final months of the year, with additional reductions expected in October and December.

So, if you want to borrow equity with a home equity line of credit (HELOC), specifically, now could be a good time to do so. With a variable rate subject to respond to market conditions, this unique product could become less expensive over time, too. To better understand the value of taking action currently, it helps to know what a good HELOC interest rate is with rates are falling again. Below, we'll detail what homeowners should know. 

Start by seeing how much home equity you'd be eligible to borrow here.

What's a good HELOC interest rate now that rates are falling again?

HELOC interest rates have dropped materially from where they were in September 2024, when they averaged 9.99%. In recent weeks, they fell below 8% and are now averaging just 7.84%. That makes them more than two full percentage points lower than they were 13 months ago. That means a HELOC is not only the cheapest way to borrow home equity currently but it's also one of the cheapest ways to borrow money overall, right now. So, if you can find a HELOC rate around 7.84% or lower now, you can consider it to be a "good" one worth securing. 

That said, this definition is an evolving one, especially if the interest rate climate continues to cool in the weeks and months to come. Today's "good" 7.84% rate could be tomorrow's high one if this trend continues unabated. It's important, then, to monitor the rate climate closely for opportunities to find an even lower rate. And, once you secure the HELOC, it's equally as important to monitor the market for any changes that could cause your rate to rise. Rates here change monthly for borrowers, and not always in a downward way, so some volatility will need to be priced into your budget to better determine long-term affordability.

See what HELOC rate you could qualify for online today.

How to get a low HELOC interest rate now

There are multiple ways to get a low HELOC interest rate today, perhaps significantly below that 7.84% average. Make sure to start from a creditworthy point. Only apply with a good credit score and a relatively clean credit history to improve your chances of getting a low rate. Consider alternative lenders besides just your current mortgage lender, too, to see if there are more competitive rates available. Then go back to your existing lender to see if they can beat that rate. 

And shop around for lenders online, too. With online lender marketplaces listing multiple rates, lenders and offers all in one place, it's arguably easier (and quicker) than ever to compare your options. Finally, make sure your debt-to-income ratio is reasonable and the amount of equity you have to work with is significant, to increase your chances of being offered a low HELOC interest rate.

The bottom line

As of mid-October 2025, a "good" HELOC rate is one considered to be around 7.84% or lower. But this definition is an evolving one based on multiple factors and the interest rate climate in which the line of credit is being secured. However, with the right approach and a clean credit background, many homeowners may find a HELOC to be their optimal borrowing option now and, if rates continue to cool, in the future as well.

Edited by Angelica Leicht