THE HELOC RATE REFERENCE
HELOC rates. In context.
Understand the benchmark. Translate a rate into dollars. Compare what a quote really costs.
Bank prime loan rate
Federal Reserve · Oct 13, 2026 observation
Many variable HELOCs use an index + a margin. Your agreement determines the index, adjustments, limits, and discounts.
Understand the rate formulaFed release: Oct 14, 2026. Last verified: Oct 14, 2026, 7:25 PM PDT.
Automatically checked against the latest published release. Market benchmark, not an available HELOC offer.
View the Federal Reserve source ↗What does the rate cost each month?
Use the balance you expect to borrow—not the full credit limit.
| Example rate | Interest only No principal repaid | Repay in 15 years Principal + interest |
|---|---|---|
| 6.00% | $250.00 | $421.93 |
| 7.00% | $291.67 | $449.41 |
| 8.00% | $333.33 | $477.83 |
| 9.00% | $375.00 | $507.13 |
| 10.00% | $416.67 | $537.30 |
| 11.00% | $458.33 | $568.30 |
| 12.00% | $500.00 | $600.08 |
A 1-percentage-point increase adds $41.67/month in interest.On the same outstanding balance, before fees or principal repayment.
Calculation assumptions & limitations
Interest only = balance × annual rate ÷ 12; the entire balance remains owed. Repayment uses equal monthly principal-and-interest payments at a constant rate over the selected term. No new draws, fees, taxes, insurance, daily-accrual differences, or changing rates are included. Actual HELOC payment rules differ. These scenarios do not indicate rates you qualify for.
Sources: CFPB HELOC booklet. Calculations are original illustrations.
A lower rate can still cost more.
Two hypothetical quotes. Same $50,000 balance. Same 12 months. Fees paid separately.
| Compare the same plan | Quote A | Quote B |
|---|---|---|
| Annual interest rate | 8.00% | 8.75% |
| One-year interest | $4,000 | $4,375 |
| Entered fees | $900 | $0 |
| Interest + fees | $4,900 | $4,375 |
$525 less with Quote B in this example, despite its higher rate.
Compare your own numbers →Constant balance and rates; interest-only payments. Both still owe $50,000. Excludes unentered costs and is not an APR calculation or product recommendation.
03 / THE RATE LIBRARY
The question behind the search.
20 focused guides.
Direct answers. Worked examples. Primary sources.
Rate mechanics
Index, margin, discounts, and the details behind a quoted rate.
- Compare HELOC margins using the same index and date
- Is a HELOC rate discount worth its account requirements?
- HELOC fixed segment vs. variable: compare the same repayment
- HELOC APR vs. interest rate: where do the fees go?
- HELOC rate floors and caps: the limits behind the formula
- If the Fed cuts rates, when would my HELOC payment fall?
- Why your HELOC rate may differ from the advertised rate
Payments & borrowing
See what changes when you draw, repay, or face a higher rate.
- Build a HELOC rate-reset calendar from your agreement
- Estimate HELOC interest across a staged project
- Stress-test a HELOC rate against your monthly budget
- Your HELOC promotional rate is ending: make an exit plan
- How is HELOC interest calculated when your balance changes?
- Why your HELOC payment can jump when the draw period ends
Shopping & comparing
Use the same assumptions to make an honest comparison.
- How to read a HELOC rate quote before comparing offers
- Low HELOC rate, high fees: compare a balance that falls
- When does a HELOC rate quote expire—and what is protected?
- Compare HELOC offers by equal cash you can actually use
- A HELOC rate-shopping worksheet that leads to a decision
- What does a HELOC cost if you never use it?
- Before you lock a HELOC balance: a fixed-rate conversion checklist