HELOC rates are typically variable, calculated as the Prime Rate + a margin. The margin depends on your credit score, CLTV, and other factors. As the Prime Rate changes, your HELOC rate changes — typically adjusting monthly or quarterly.
HELOC Rate = Wall Street Journal Prime Rate + Your Margin (0.5% - 5%)
| Credit Score Range | Typical Margin | Est. Rate (Prime=8.0%) |
|---|---|---|
| 740+ (Excellent) | 0.5% - 1.5% | 8.5% - 9.5% |
| 700-739 (Good) | 1.5% - 2.5% | 9.5% - 10.5% |
| 660-699 (Fair) | 2.5% - 3.5% | 10.5% - 11.5% |
| 620-659 (Poor) | 3.5% - 5% | 11.5% - 13.0% |
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