How much does a $70,000 home equity loan cost per month after the Fed cut rates?

Homeowners should carefully calculate their potential monthly costs before borrowing with a home equity loan. thianchai sitthikongsak/Getty Images

An interest rate cut courtesy of the Federal Reserve in September was welcome news for homebuyers contending with elevated mortgage rates. But it can also be strategically leveraged by existing homeowners, especially those considering borrowing from their home equity.

Not only is the average home equity amount over $300,000 now, and cumulative home equity levels are at a new record level nationwide, but interest rates here are declining again. The average rate on a home equity line of credit (HELOC) declined last week to under 8%. And home equity loan rates, while marginally higher, are still lower than they were at the beginning of the year, and lower than they were last fall, when the Fed started cutting interest rates again.

Still, if you're borrowing from your home equity at all, it's critical that you can afford all that's been withdrawn. You can lose your home if you can't make payments as agreed to. If you're considering withdrawing a large amount like $70,000, then you should start by calculating your future costs. Fortunately, this is simple to do with a home equity loan, as it comes with a fixed interest rate that will remain the same unless refinanced. 

So, how much does a $70,000 home equity loan cost per month after the Fed cut rates? And how much more affordable is a loan of this size than it was over the last year? Below, we'll break down what potential borrowers need to know now.

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

How much does a $70,000 home equity loan cost per month after the Fed cut rates?

Want to take out a $70,000 home equity loan now? Here's what it could cost for qualified borrowers, calculated via available rates and common repayment periods:

• 10-year home equity loans at 8.34%: $861.92 per month
• 15-year home equity loans at 8.21%: $677.47 per month

And here's what a home equity loan of the same size would have cost if secured in February: 

• 10-year home equity loan at 8.54%: $869.40 per month
• 15-year home equity loan at 8.49%: $688.91 per month

Here's what homeowners would have paid if they applied for a $70,000 home equity loan last October:

• 10-year home equity loan at 8.47%: $866.78 per month
• 15-year home equity loan at 8.38%: $684.40 per month

Home equity loans are now less expensive than they were at the start of 2025 and more affordable than they were last fall, too. But the differences here are negligible and not so obviously better that homeowners should automatically choose this borrowing option, so homeowners should also explore alternatives like HELOCs, cash-out refinances and reverse mortgages. By comparing the costs of all four options, homeowners can better determine which makes the most financial sense for them now and in the years to come.

Compare your home equity loan and HELOC options online now.

The bottom line

A $70,000 home equity loan comes with monthly payments between $677 and $862, approximately, right now, after the Fed cut rates. That makes now one of the more affordable times in recent history to borrow a loan of this size. But with additional Fed rate cuts on the horizon this fall and alternative home equity borrowing products even more affordable, it's important to determine if a home equity loan applied for now makes sense. For some, waiting to take action could be the smart move, while others may be better served with a HELOC. Consider your timing carefully, then, and compare your options closely to determine your next steps.