The monthly costs tied to a $100,000 home equity loan are dropping now that the Fed's been cutting rates.
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Home equity loan costs are continuing to fall.
That was the big takeaway in the home equity borrowing space this week after the average home equity loan rate dropped to just 8.02%, according to Bankrate. That's the lowest rate since March 2023, opening up a new, affordable window of opportunity for homeowners in need of extra financing.
And, if they act now, not only will they benefit from the Federal Reserve's October 29 rate cut, which helped cause rates to decline, but they'll also have a lot of equity to leverage. With home equity levels recently hitting a record high, the average homeowner now possesses around $300,000 in equity. Accordingly, this may be one of the better ways to borrow a large sum of money now.
Still, home equity loans use your home as collateral, so it's critical that owners can afford to repay any money that's been withdrawn. And this is especially important to get right for those looking to borrow a large, six-figure sum like $100,000 now. So, how much does a $100,000 home equity loan cost monthly now, after the Fed's October rate cut? That's what we'll detail below.
See how much home equity you'd be eligible to borrow here.
How much does a $100,000 home equity loan cost monthly after the Fed's October rate cut?
Determining the exact monthly costs of a home equity loan is simple to do because the product comes with a fixed interest rate that will remain the same unless refinanced (unlike a home equity line of credit). While the average home equity loan rate is 8.02% for a 5-year loan, it's a bit higher for longer terms. Here, then, is how much a $100,000 home equity loan will cost monthly, calculated against today's newly available low rates and two common repayment periods:
- 10-year home equity loan at 8.21%: $1,224.40 per month
- 15-year home equity loan at 8.10%: $961.43 per month
For comparison, here's what a home equity loan of this same size cost just a few weeks ago, following the Fed's September 2025 rate reduction:
- 10-year home equity loan at 8.43%: $1,236.12 per month
- 15-year home equity loan at 8.31%: $973.63 per month
And here's how much more expensive it was in February, before any 2025 rate cuts were issued:
- 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
A $100,000 home equity loan, then, is already cheaper than it was last month and considerably cheaper than it was at the start of 2025. And with a fixed interest rate, borrowers won't have to worry about any adverse economic conditions ahead, as they'll continue to make the same payments each month even if the rate climate reverses course. It's also important to remember that these are just averages. If homeowners with good credit scores and a sizable amount of equity to utilize take the time to shop for lenders, they may be able to find rates that are even lower.
Start shopping for home equity loan rates and lenders here.
How much does a $100,000 HELOC cost monthly after the Fed's October rate cut?
For those borrowers looking for an even lower rate, a HELOC could be worth evaluating. The average HELOC rate after the Fed's latest cut is now just 7.90%. But it's variable and can and will change monthly based on market conditions. For reference, here's what a $100,000 HELOC will cost monthly now, assuming today's rates remain constant over time (and that the borrower skips making interest-only payments during the draw period and makes full ones instead):
- 10-year HELOC at 7.90%: $1,208.00 per month
- 15-year HELOC at 7.90%: $949.89 per month
If you can effectively price in the variability, then, a HELOC offers an even more affordable way to borrow $100,000 worth of equity now. Take the time, then, to evaluate this unique equity borrowing tool before making a final decision.
The bottom line
Monthly costs for a $100,000 home equity loan for qualified borrowers after the October Fed rate cut range between $962 and $1,224. Those payments are cheaper than they were in recent weeks and in recent years, making this one of the better ways to borrow a large amount of money now. Just be sure to calculate your costs with precision here, both for accurate budgeting purposes and to ensure that you won't ultimately risk a potential foreclosure.
Edited by Angelica Leicht
