Is a HELOC worth opening this April?
If you're looking to borrow money right now, you may not know exactly where to start. And while that's a positive when there are multiple, low-interest rate options to choose from, that's not exactly the case in the current economic climate. Thanks to an extended bout with inflation that hurt the pockets of millions of Americans, the cost of everyday living remains high, even if it's cooled from 2022 highs. At the same time, interest rates remain elevated, where they will likely remain at least until May, when the Federal Reserve meets again.
In this atmosphere, homeowners may be contemplating simply using their home equity. And a home equity line of credit (HELOC) could be the smart way to do so, especially based off recent activity in the space. But is a HELOC worth opening this April, specifically? Below, we'll explain why it could be.
Start by seeing how low of a HELOC rate you'd qualify for here.
Is a HELOC worth opening this April?
While each homeowner's financial circumstances differ, there's a compelling argument for opening a HELOC this April. Here's why:
Interest rates have been falling
Interest rates on HELOCs declined for much of 2024. They then continued to fall in 2025, hitting an 18-month low and multiple two-year lows in March alone. Just six months ago, HELOC interest rates were hovering near 10%. Now they're barely over 8%, after falling in consecutive weeks. This gives homeowners looking to borrow a five- or six-figure sum of money an affordable way to do so.
And with a HELOC, interest paid for financing an eligible home repair or renovation could qualify for a tax deduction, making this an even more attractive way to borrow money. Plus, thanks to a variable rate that changes monthly for borrowers you won't need to worry about refinancing should rates fall again as the HELOC will adjust independently.
Get started with a HELOC here now.
Interest rates will likely continue to fall in April
If the current trends hold, and indications are that they will, HELOC interest rates will likely continue to fall in April. This is especially likely if the next inflation reading released by the Bureau of Labor Statistics on April 10 shows further cooling there (it dropped to 2.8% in February, according to the March 12 release). A cooling inflation rate, after all, tends to give the Federal Reserve more reason to cut rates. And HELOC lenders could get ahead of any assumed formal Fed action by preemptively reducing rates again this April.
It's already one of your cheapest borrowing options
Whether interest rates on HELOCs continue to fall in April or not, it's already one of your cheapest borrowing options. It's less expensive than home equity loans, which have rates as high as 8.50% for 10-year repayment periods now. But it's also currently less expensive than personal loans, which have rates averaging 12.37% now and credit cards, which remain near record highs in the low 20% range.
None of these alternative borrowing options are likely to even become competitive with the lowest HELOC rates in April, let alone drop below them. Understanding this reality, then, many homeowners would find borrowing with a HELOC in the new month to be their optimal option.
The bottom line
With an interest rate that's been steadily declining, is set to continue to fall in the weeks ahead and, thus, remains one of your very cheapest borrowing options, a HELOC makes a lot of sense for homeowners looking for additional financing heading into April. Still, it's important to remember that your home is collateral in these borrowing exchanges, so you should only withdraw as much as you can easily afford to pay back or you'll risk losing your home back to the lender. If you can manage the payments, however, a HELOC could be the smart move, both this April and in the months and years ahead.
