Everything to know about HELOC interest rates this April

If you're a homeowner with significant equity in your home (and, right now, the average is around $313,000, so chances are high that you are), you may be contemplating borrowing from it. With cost-effective borrowing options limited in the current economic climate, borrowing against your accumulated home equity has multiple advantages, especially if you do so via a home equity line of credit (HELOC). This product works as a revolving line of credit similar to a credit card, except it uses your home's equity instead. But you'll only have to pay interest on the amount of credit used, not the full line of credit approved for.

And right now is a particularly great time to borrow with a HELOC, thanks to an increasingly borrower-friendly HELOC interest rate climate. Before getting started, however, it helps to know some important things about HELOC interest rates this April. Below, we'll break down five important items to know.

Start by seeing how low of a HELOC interest rate you'd qualify for here.

Everything to know about HELOC interest rates this April

Here are the questions (and answers) interested homeowners should know about HELOC rates this April:

What are HELOC interest rates now?

The average HELOC interest rate is 8.01% as of March 31, 2025. That's the average, however, and it's possible that homeowners could secure an even lower interest rate if they take the time to shop around and research lender offers. At the same time, that rate could be even higher if you apply with a mediocre credit score. So, if your credit isn't in good shape first, consider improving it before starting your HELOC borrowing journey.

Shop for HELOC rates and terms online today.

What's happened to HELOC interest rates so far this year?

HELOC interest rates fell to an 18-month low in January. They then hit a two-year low in February and followed that by dropping to new two-year lows multiple times in March. This has made HELOCs significantly cheaper than home equity loans, credit cards and personal loans, giving homeowners with equity in their homes a clear way to borrow in an otherwise high-rate atmosphere.

What's happened to HELOC interest rates over the past six months?

HELOC interest rates over the past six months, or since September 2024 approximately, have fallen by almost two full percentage points, underlining the cost-effectiveness of using this borrowing product this April. On September 4, 2024, the average HELOC interest rate was 9.99% but at 8.01% now, it's almost two points lower. And thanks to a variable rate that changes monthly for borrowers, it could fall even further this April.

Where are HELOC interest rates headed this April (and beyond)?

If recent performance is a reliable indicator, HELOC interest rates are likely to continue their downward trend this April and, potentially, even further in the months that follow. Still, economic conditions will need to be right for this trend to continue. That means a consistently falling inflation rate and, theoretically, additional cuts to the federal funds rate (as borrowers saw in the final months of 2024). 

Keep an eye out for the next inflation reading, to be released on April 10. If that shows further cooling as it did in the previous report, HELOC rates could come down again. And they'll almost assuredly drop again in the months that follow if the Federal Reserve resumes its interest-rate cut campaign.

Is a variable HELOC interest rate a good idea now?

If you're looking to secure one of the lowest interest rates possible now, then yes, a variable HELOC interest rate is a good idea now and is one of the few practical ways borrowers can position themselves for lower interest rates without the headache of having to refinance (and having to pay refinancing closing costs). At the same time, a variable rate can rise as easily as it can fall, so the inherent volatility will need to be priced in, particularly when borrowing from such a critical financial asset like your home.

Learn more about borrowing with a HELOC online today.

The bottom line

By understanding the dynamics of HELOC interest rates, both now and in the recent past and approaching future, homeowners considering this borrowing option can make a more informed and well-rounded decision. With your home functioning as collateral and the risk of losing it to the lender if you can't make your repayments, doing your research and understanding your affordability is key here. So consider speaking to a financial advisor or home equity lender who can answer your questions and help you better understand all of your options.