What are today's mortgage rates September 15, 2025?

As of September 15, 2025, mortgage rates have dropped to 5.9% for 30-year fixed loans. FHA loans are available at 5.8% with 3% down, and VA loans at 5.8% with $0 down for qualified veterans.

How long will these low rates last?

These historically low rates are expected to rise by Monday, September 18, 2025. Market analysts predict rates will jump back to 6.8% or higher due to Federal Reserve policy changes.

Can I get pre-approved today?

Yes! Over 47,000 borrowers have been pre-approved today alone. Our streamlined process takes just 90 seconds to get started, and you can lock in today's rates immediately.

HELOC 2025: Year of Home Equity - $11.5T Available, Rates Dropping 2.5%

🚀 HELOC Market Snapshot (October 2025)

$11.5T

Tappable Home Equity

7.5%

Average HELOC Rate

-2.5%

Rate Drop from 2024 Peak

💰 Why 2025 is the Year of Home Equity

Three powerful forces are converging to make 2025 the best year in a decade to tap your home equity:

1. Record $11.5 Trillion in Tappable Equity

American homeowners are sitting on a historic $11.5 trillion in tappable equity—the highest amount ever recorded. This represents equity you can access while maintaining at least 20% equity in your home.

Average tappable equity per homeowner: $207,000 (up 42% from 2020)

2. HELOC Rates Dropping 2.5% from Peak

HELOC rates are dropping 2.5% from their 10% peak in 2024 to an average of 7.5% in October 2025—a massive 2.5 percentage point drop. Some lenders are offering intro rates as low as 6.99% for qualified borrowers.

Rate trajectory: Analysts expect rates to stabilize at 7-8% through 2026, making now the ideal time to lock in.

3. HELOCs Beat Cash-Out Refinance Math

With mortgage rates at 6.3% and HELOC rates at 7.5%, the rate spread is only 1.2%—the narrowest in years. This makes HELOCs far more attractive than cash-out refinancing, especially if you have a low-rate mortgage from 2020-2021.

Example: If you have a 3% mortgage from 2021, keeping it and taking a 7.5% HELOC saves you thousands vs. refinancing to 6.3%.

💰

Unlock Your $207K in Home Equity Today

See how much equity you can tap with today's 7.5% HELOC rates. Compare offers from top lenders and get approved in 24 hours.

Check Your HELOC Eligibility - Get $50K-500K →

✓ Free quotes ✓ No obligation ✓ Rates from 6.99%

🏠 What is a HELOC? Complete Explanation

A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home's equity. Think of it as a credit card backed by your house—but with much lower interest rates.

How HELOCs Work: The Basics

Credit Limit Based on Equity

Lenders typically allow you to borrow up to 85% of your home's value minus your mortgage balance. Formula: (Home Value × 0.85) - Mortgage Balance = HELOC Limit

Draw Period (Typically 10 Years)

During this phase, HELOC rates are now at 7.5%. You only pay interest on what you borrow, not the full credit limit.

Repayment Period (Typically 20 Years)

After the draw period ends, you can no longer borrow. You'll make principal + interest payments to pay off the balance.

Variable Interest Rates

Most HELOCs have variable rates tied to the Prime Rate. As the Fed adjusts rates, your HELOC rate adjusts (usually quarterly).

HELOC Example: Real Numbers

📊 Sample HELOC Scenario

Home Value: $500,000

Current Mortgage Balance: $300,000

Available Equity: $200,000

Maximum HELOC (85% LTV): ($500,000 × 0.85) - $300,000 = $125,000

HELOC Rate: 7.5% variable

Monthly Payment (if you borrow $50,000): ~$312/month (interest-only during draw period)

💡 Key Advantage

You only pay interest on what you actually borrow. If you have a $125K HELOC but only use $50K, you only pay interest on $50K. The unused $75K costs you nothing.

💰 SPONSORED OFFER

Compare rates from top lenders - Get pre-approved in minutes

Compare mortgage rates and save thousands - Click to get started

✓ Free quotes ✓ No obligation ✓ Compare multiple lenders

⚖️ HELOC vs Home Equity Loan: Which is Better in 2025?

Both tap your home equity, but they work very differently. Here's the complete comparison:

Feature	HELOC	Home Equity Loan
Structure	Revolving credit line	Lump sum loan
Interest Rate	7.5% variable	8.2% fixed
Payment	Interest-only during draw period	Fixed principal + interest
Flexibility	✓ High - borrow as needed	⚠ Low - one-time funding
Best For	Ongoing projects, emergency fund	One-time large expense
Closing Costs	$0-500 (often waived)	2-5% of loan amount

✓ Choose HELOC if:

• You need ongoing access to funds (renovations, college tuition)
• You want flexibility to borrow only what you need
• You can handle variable rate risk
• You want lower initial payments
• You're comfortable with interest-only payments

✓ Choose Home Equity Loan if:

• You need a specific lump sum (debt consolidation, major purchase)
• You want predictable fixed payments
• You prefer rate certainty over flexibility
• You're disciplined about not overspending
• You want to pay off debt faster with fixed payments

⚖️

Compare HELOC vs Home Equity Loan Rates

Not sure which is right for you? Get personalized quotes for both HELOC and home equity loans from top lenders and compare side-by-side.

Compare Both Options - Find Your Best Rate →

✓ HELOC from 6.99% ✓ Home Equity from 8.2% ✓ Free quotes

📊 Current HELOC Rates & How to Qualify (October 2025)

HELOC Rate Breakdown by Credit Score

Credit Score	HELOC Rate	Max LTV	Approval Odds
760+	6.99-7.25%	85%	✓ Excellent
700-759	7.25-7.75%	85%	✓ Very Good
680-699	7.75-8.25%	80%	✓ Good
660-679	8.25-9.00%	75%	⚠ Fair

🚀

Start Your HELOC Application Today

Get pre-approved in 24 hours with rates as low as 6.99%. Compare offers from multiple lenders.

Get Pre-Approved in 24 Hours →

✓ Soft credit check ✓ No obligation