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$50,000 Home Equity Loan vs. $50,000 HELOC: Here's Which Costs Less Per Month Now

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$50,000 Home Equity Loan vs. $50,000 HELOC: Here's Which Costs Less Per Month Now

TL;DR

  • Homeowners have access to a record amount of home equity.
  • Rates on home equity loans and HELOCs have remained affordable and even declined.
  • The average HELOC interest rate is down over two percentage points from 18 months ago.
  • A $50,000 home equity loan at 6.96% for 10 years costs $579.51 per month, and for 15 years costs $448.30 per month.
  • A $50,000 HELOC at 7.11% for 10 years costs $583.38 per month, and for 15 years costs $452.49 per month.
  • Both loan types are less expensive now compared to December 2025 and September 2025.
  • HELOCs are variable-rate products that could become more affordable, while home equity loans have fixed rates.
  • Homeowners should carefully evaluate both options and consider speaking with multiple lenders.