Story perspectives

HELOC Rates Drop to 7.31%, Lowering Borrower Payments

2/6/2026

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Summary

Story summary

The average HELOC interest rate has fallen to 7.31%, down from 10% in September 2024.
Compared to rates from late 2025, payments are considerably lower.
For a $100,000 HELOC, monthly payments are about $1,177.12 for a 10-year term and $916 for a 15-year term.
Existing borrowers benefit from these rate drops without refinancing fees.
Homeowners should borrow responsibly because potential future rate increases could raise costs given that their homes serve as collateral.

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Story summary

The average HELOC interest rate has fallen to 7.31%, down from 10% in September 2024.
Compared to rates from late 2025, payments are considerably lower.
For a $100,000 HELOC, monthly payments are about $1,177.12 for a 10-year term and $916 for a 15-year term.
Existing borrowers benefit from these rate drops without refinancing fees.
Homeowners should borrow responsibly because potential future rate increases could raise costs given that their homes serve as collateral.