Here's how much an $80,000 home equity loan costs monthly after interest rates were cut

A home equity loan offers homeowners an affordable way to borrow a large amount of money right now. athima tongloom/Getty Images

Borrowing a large amount of money, such as $80,000, can seem daunting, especially in today's economy. With inflation rising again, unemployment on the same trajectory and interest rates higher than they were just a few years ago, borrowing money may not feel safe.

But if you're a homeowner considering a home equity loan, it can be. 

For starters, the average home equity amount is well over $300,000 now, meaning a withdrawal of this amount will still leave a comfortable amount of equity in your home. And with a home equity loan, specifically, borrowers will have the security and predictability that a fixed-rate product offers, unlike a home equity line of credit (HELOC), in which rates change monthly for borrowers. Additionally, with the Federal Reserve issuing an interest rate cut last week – and two others largely expected in the final months of the year – this unique borrowing tool is poised to become even cheaper than it already is.

Still, when leveraging your home's equity, it's always important to start by calculating your potential costs. And that's especially important to do when borrowing a large amount like $80,000. So, how much will an $80,000 home equity loan cost monthly now that interest rates have been cut? Below, we'll crunch the numbers homeowners should know before applying.

Start by seeing how much home equity you could borrow online here.

Here's how much an $80,000 home equity loan costs monthly after interest rates were cut

Calculating the monthly payments of a home equity loan is simple because the loan comes with a fixed interest rate that will remain the same until repaid or until the homeowner elects to refinance it. Here's how much an $80,000 home equity loan will cost monthly now that interest rates were cut, calculated against two different repayment periods:

• 10-year home equity loan at 8.43%: $988.89 per month
• 15-year home equity loan at 8.31%: $778.91 per month

To understand the cost-effectiveness of acting now, here's what a home equity loan in that same amount would cost monthly if secured in February 2025:

• 10-year home equity loan at 8.57%: $994.88 per month
• 15-year home equity loan at 8.52%: $788.73 per month

And here's how much more expensive it was last fall, after the September 2024 Fed rate cut:

• 10-year fixed home equity loan rate at 8.47%: $990.60 per month
• 15-year fixed home equity loan rate at 8.38%: $782.17 per month

So, monthly costs here are lower than they were at the start of 2025 and a bit lower than they were in fall 2024, but the difference between all three points is negligible, and, right now, an $80,000 home equity loan is only a few dollars cheaper per month than it was. 

But cheaper is almost always better than more expensive. And the cost differential will still equate to hundreds of dollars saved over the life of the loan. Take the time, then, to calculate costs and weigh them against what can be found with a HELOC and alternative borrowing products to determine if now is the right time to act.

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

The bottom line

A $80,000 home equity loan is generally both more affordable than it was at the beginning of this year and less expensive than it was at this point one year ago. Still, costs here haven't dropped so dramatically to make this an obvious choice for those homeowners looking to borrow this amount of money. Consider the costs here closely, compare them to potentially viable alternatives and be realistic about your ability to make payments. By doing so, you can better determine if an $80,000 home equity loan fits your budget now or if you need to wait for further interest rate reductions to justify making a move.