Cheapest ways to borrow home equity in October
A CBS News consumer‑finance explainer for U.S. homeowners in October 2025 finds that home‑equity lines of credit (HELOCs), fixed‑rate home‑equity loans, and reverse mortgages are currently the most cost‑effective ways to tap residential equity. The piece cites recent Federal Reserve rate cuts, current quoted borrowing rates, and national home‑equity metrics—arguing HELOCs offer the lowest rates now while fixed loans provide rate certainty and reverse mortgages remove monthly repayment obligations for eligible older homeowners.
Economy
Personal Finance
🔍 Key Facts
- U.S. home equity totaled about $17.8 trillion entering Q3 2025; the average homeowner has more than $300,000 in equity.
- Quoted borrowing rates in the article: HELOC ~7.88%; home equity loans ~8.21%–8.34%; unsecured personal loans ~12.27%; credit cards ~22%.
- Context: article frames these options in October 2025 after a recent Federal Reserve interest‑rate reduction and with further cuts anticipated later in 2025.
📍 Contextual Background
- The average interest rate on a home equity line of credit (HELOC) declined to under 8%.