HELOC Rates & Costs

Calculate the true cost of your HELOC including interest rates, closing costs, and potential tax benefits.

Understanding HELOC Costs

The total cost of a HELOC includes more than just the interest rate. Here's what you need to know:

Upfront Closing Costs

Typical closing costs range from $500 to $5,000 and may include:

  • Appraisal fee: $300-$500
  • Application fee: $75-$200
  • Origination fee: 1-2% of credit line
  • Title search and insurance: $200-$400
  • Recording fees: $25-$50

Interest Rates

HELOC rates are typically variable and tied to the Prime Rate. As of 2025, rates range from 7% to 11% depending on your credit score and LTV ratio.

Tax Deductibility

Under current IRS rules (Tax Cuts and Jobs Act), HELOC interest is only deductible if the funds are used to "buy, build, or substantially improve" the home that secures the loan.

Blended Rate Calculation

If you have both a mortgage and a HELOC, your "blended rate" is the weighted average of both loans. This helps you compare against refinancing options.