Home equity loan borrowers should closely calculate their potential monthly payments before applying.
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News in March that homeowners have over $10 trillion in tappable equity to borrow from may not have been surprising (a report last year showed home equity levels in the country reaching a record high), but it's not something that should be ignored either. Especially in the uneven economic terrain of April 2026. Not only are home equity levels particularly robust right now, but interest rates on home equity loans and home equity lines of credit (HELOCs) are some of the lowest available in the borrowing space currently. And with a home equity loan, in particular, the rate will be fixed, protecting borrowers from any market changes that would cause rates to rise in the future.
So borrowing $100,000 worth of home equity now, with equity amounts high, should be relatively simple to do. And with interest rates here much lower than they were a few months ago, not to mention what they were in recent years, it should be much cheaper, too. Still, with your home functioning as collateral in these exchanges, it's critical to know what you'll be expected to pay each month if you're approved for a $100,000 home equity loan. Fortunately, thanks to the product's fixed interest rate, this is simple to calculate. Below, we'll crunch the numbers and compare them to what it would have cost previously.
Start by seeing how much home equity you could borrow here.
Here's how much a $100,000 home equity loan costs monthly now that rates are lower
Home equity loans, unlike HELOCs, provide homeowners with a lump sum of money of which they will be expected to pay back monthly, typically over two common repayment periods. Here's what those payments will look like now, calculated against today's average rate and the assumption that the loan isn't refinanced:
- 10-year home equity loan at 6.97%: $1,159.54 per month
- 15-year home equity loan at 6.97%: $897.15 per month
To better understand how much more affordable this product has become, here's what it would have cost to borrow this much equity in January, when rates were higher:
- 10-year home equity loan at 8.18%: $1,222.81 per month
- 15-year home equity loan at 8.13%: $963.17 per month
And here's what it cost in January 2025, when rates were even higher than those:
- 10-year home equity loan at 8.57%: $1,243.60 per month
- 15-year home equity loan at 8.52%: $985.91 per month
So costs here are around $85 cheaper per month, for either term, than they were at the start of 2025. That's more than $1,000 saved each year and more than $10,000 saved over the life of the loan.
That noted, the 6.97% rate is what qualified borrowers will receive (the APR ranges from 6.55% to 7.49% now). So make sure that your credit is in good shape before applying, and be sure to shop around for rates and lenders besides just the one that currently holds your mortgage to see how affordable their options are as well.
Shop for low home equity loan rates online here.
The bottom line
A $100,000 home equity loan is considerably less expensive than it was at the start of 2026 and even more affordable than it was at the start of 2025. And with home equity levels elevated now, borrowing a six-figure amount of equity should be relatively easy. Still, be confident in your ability to repay the loan over the full repayment period to avoid the threat of foreclosure. And don't forget about the potential home equity loan tax deductions that will apply for select home projects and repairs, thus reducing your interest costs further when it comes time to file your next tax return.
Edited by Angelica Leicht
