Here's how much a $75,000 home equity loan costs monthly with interest rates falling again

With home equity loan rates declining, now could be a smart time to borrow for homeowners. lerbank/Getty Images

Around 76%. That's how much home equity the average homeowner would maintain in their house should they decide to borrow $75,000 worth of equity right now.

With the average home equity level sitting at $313,000 currently, a home equity loan in the amount of $75,000 comes with multiple advantages. For starters, a loan in that amount can cover a wide range of expenses, both large and small. And with the average homeowner having about four times that amount of home equity, owners won't have to worry about overleveraging themselves or their home (which functions as collateral here). 

And, after the Federal Reserve issued another interest rate cut last week, home equity loan rates tumbled this week, making this one of the cheaper ways to borrow a large, five-figure sum of money right now. Still, you should never rush into any loan application, especially when borrowing from your home equity. It's important to know the precise costs before taking action. Fortunately, that's easy to determine with a home equity loan thanks to the product's fixed interest rate. So, how much will a $75,000 home equity loan cost per month now with interest rates falling again? That's what we'll detail below.

See how much home equity you could be eligible to borrow here.

Here's how much a $75,000 home equity loan costs monthly with interest rates falling again

A $75,000 home equity loan is both cheaper than it was at the start of 2025 and less expensive than it was at this point last fall, after the Federal Reserve issued a half-a-percentage-point rate cut in September 2024. Here's what it costs now, calculated against readily available interest rates and repayment terms:

• 10-year home equity loans at 8.34%: $923.49 per month
• 15-year home equity loans at 8.21%: $725.86 per month

For reference, here's what a home equity loan in the same amount would have cost monthly if opened in February:

• 10-year home equity loan at 8.55%: $931.90 per month
• 15-year home equity loan at 8.50%: $738.55 per month

To better understand the affordability that now comes with a home equity loan of this size, it helps to also know what it cost last fall:

• 10-year fixed home equity loan at 8.50%: $929.89 per month
• 15-year fixed home equity loan at 8.41%: $734.60 per month

Costs here, then, are lower than they were, but not so drastically low that homeowners should rush to borrow. Instead, they should calculate their costs closely (against the rate they specifically are eligible for) and compare those costs with what's available with a variable-rate home equity line of credit (HELOC) to more accurately determine which is applicable for their unique borrowing needs.

Compare your home equity loan and HELOC offers here to learn more.

The bottom line

Interest rate cuts, as exciting and beneficial as they are for borrowers, will take some time to trickle through the home equity borrowing climate. Consider both home equity loans and HELOCs, then, to better understand which is more affordable for your needs now and into the future. And be sure to only borrow as much as you can easily repay – whether that be $75,000 or another amount – as you could risk foreclosure if you're ultimately unable to make the payments.