economy
Here's how much a $100,000 home equity loan costs monthly now that rates are lower
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TL;DR
- Home equity loan borrowers should calculate potential monthly payments before applying.
- Homeowners have over $10 trillion in tappable equity.
- Interest rates on home equity loans and HELOCs are currently low.
- Home equity loans offer a fixed interest rate, protecting borrowers from rate increases.
- A $100,000 home equity loan at 6.97% costs $1,159.54/month for 10 years and $897.15/month for 15 years.
- These current rates are cheaper than in January 2026 (8.18%/8.13%) and January 2025 (8.57%/8.52%).
- Savings can be around $85 per month, over $1,000 annually, and over $10,000 over the loan's life.
- Qualified borrowers may receive a 6.97% rate (APR range 6.55% to 7.49%); good credit is important.
- Home equity levels are elevated, making borrowing easier, but repayment ability is crucial to avoid foreclosure.
- Potential tax deductions may apply for select home projects, reducing interest costs.