How much does a $100,000 HELOC cost monthly now that the Fed's cut rates again?

With interest rates cut again, now could be the smart time to apply for a HELOC. Getty Images/iStockphoto

Interest rates are on the decline again after the Federal Reserve issued a much-anticipated 25 basis point reduction on Wednesday.

The first rate cut of 2025, but potentially not the only one this year, will ease the cost of borrowing for millions of Americans, even if that relief comes in small increments. Perhaps it will be most powerfully felt, however, with variable rate products that respond quickly to market conditions. And a home equity line of credit (HELOC) is one such example.

This unique product allows homeowners to use their accumulated home equity via a revolving line of credit. With home equity levels recently hitting a record high, on average, this can be the ideal way to borrow a large, six-figure sum like $100,000. If it's used for eligible home projects, the minimal interest paid now can also be deducted from your taxes for the years in which it was used.

Before getting started, though, it's important to calculate the potential monthly costs. That's changed a bit since last year, albeit in a positive way for borrowers. So, how much does a $100,000 HELOC cost monthly now that the Fed's cut rates again? Below, we'll do the math.

Start by seeing how low your current HELOC rate offers are here.

How much does a $100,000 HELOC cost monthly now that the Fed's cut rates again?

Calculating the long-term costs of a HELOC always requires a bit of speculation since rates here change monthly and are likely to change multiple times over the 10- or 15-year draw period most HELOCs employ. Fortunately, rates on Thursday declined to their lowest level since March 2025, according to Bankrate, making this one of the least expensive ways to borrow now. 

Here's what a $100,000 HELOC would cost at today's rates, assuming they remain the same:

• $100,000 10-year HELOC at 8.05%: $1,215.92 per month
• $100,000 15-year HELOC at 8.05%: $958.54 per month

While HELOC rates may not move directly in tandem with the federal funds rate, it helps to calculate these potential costs against a few different scenarios. Here's what it would cost if today's rates drop another 25 basis points:

• $100,000 10-year HELOC at 7.80%: $1,202.73 per month
• $100,000 15-year HELOC at 7.80%: $944.14 per month

And here's what they'd look like if they rose by 25 basis points from today's average:

• $100,000 10-year HELOC at 8.30%: $1,229.19 per month
• $100,000 15-year HELOC at 8.30%: $973.05 per month

HELOC payments on $100,000, then, are noticeably lower than they were last September, when average rates were close to 9%. But with the product employing a variable rate, it's important to remember that costs could change, so closely consider that potential in advance.

Learn more about your current HELOC options here.

The bottom line

Not only are HELOCs less expensive now than they were, but they're well-positioned to become even more affordable should the interest rate climate continue to cool. That said, your home is collateral in these exchanges, and you could risk your homeownership if you're ultimately unable to make your payments as agreed to. It's critical, then, to carefully consider the potential costs, both calculated against the rates that are available for qualified borrowers right now as well as what they could be over the long term.