Overview

• Following the September cut, average HELOC rates are about 8.05% and fixed home equity loans are roughly 8.31% to 8.43%, with a $100,000 10-year loan at 8.43% costing about $1,236 a month and a comparable HELOC at 8.05% about $1,216.
• ICE reports a record $17.8 trillion in total homeowner equity and $11.6 trillion tappable with a 20% cushion, giving roughly 48 million borrowers about $213,000 in accessible equity on average, though some markets have softened and about 1% are underwater.
• Experts highlight HELOCs as a tool to consolidate high-rate balances, noting they can undercut credit cards averaging above 21% and may cut some borrowers’ monthly payments by half or more.
• Advisers warn against HELOCs without reasonable lifetime caps, borrowing to the maximum allowed, overlooking fees or draw-period rules, and misjudging payment jumps after interest-only periods, with rising property insurance costs adding pressure.
• Traders widely expect additional Fed cuts in October and December, which could lower HELOC costs further, but the variable nature of lines means payments can also reset higher over time.