economy
Here's How Much More Affordable a $40,000 Home Equity Loan Is Now Compared to 2025
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TL;DR
- Home equity loan borrowing costs have declined consistently over the past year.
- A $40,000 home equity loan is now cheaper than in 2025, with monthly payments reduced by over $30.
- Average rates for a 10-year loan are 6.96% ($463.61/month) and for a 15-year loan are 6.96% ($358.64/month).
- In February 2025, rates were higher: 8.57% for a 10-year loan ($497.44/month) and 8.52% for a 15-year loan ($394.36/month).
- Home equity loans are a less expensive borrowing option compared to personal loans (over 10%) and credit cards (over 20%).
- Homeowners should borrow only the amount needed, not the maximum qualifying amount, for better borrowing success.