How much does a $90,000 HELOC cost per month now that interest rates are dropping?

Don't borrow home equity without first calculating your potential monthly repayment costs. seksan Mongkhonkhamsao/Getty Images

Borrowing $90,000 should never be done quickly or haphazardly. And that's especially true when the funding source is your home. 

While a home equity line of credit (HELOC), for example, can be a cost-effective way to borrow large amounts of equity, it also inherently puts your home up as collateral. Fail to repay what you used and you can risk having the property foreclosed upon, putting you in a more precarious financial situation than where you started.

That noted, right now is one of the better times to use a HELOC in recent memory, making it an ideal option for those homeowners looking to borrow $90,000 or more. Not only are average home equity levels robust now, meaning that the $90,000 is readily available for many, but rates here are also lower than they've been in years. In fact, a HELOC is not only the cheapest way to borrow home equity now, it's also one of the cheapest ways to borrow money overall. That's mostly thanks to a cooling rate climate, courtesy of the Federal Reserve's recent rate cuts and, as many now predict, additional rate cuts to come later this year.

To better determine affordability, however, homeowners should start by calculating their potential costs. So, how much does a $90,000 HELOC cost per month now that interest rates are dropping? That's what we'll calculate below.

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

How much does a $90,000 HELOC cost per month now that interest rates are dropping?

Crunching the exact repayment costs of a HELOC is difficult to do accurately as the product employs a variable interest rate that can (and will) change over time in response to market conditions. Here's what it would cost monthly now, tied to today's average rate, two common repayment periods and the assumption that rates remain constant over time:

• 10-year HELOC at 7.84%: $1,084.35 per month
• 15-year HELOC at 7.84%: $851.79 per month

For context, here's how much more expensive a $90,000 HELOC was in February:

• 10-year HELOC at 8.12%: $1,097.66
• 15-year HELOC at 8.12%: $866.33

And here's what a HELOC of this amount would have cost in October 2024:

• 10-year HELOC at 8.94%: $1,137.16 per month
• 15-year HELOC at 8.94%: $909.63 per month

So, not only is a HELOC more affordable than it was earlier this year, it's significantly cheaper than it was at this point in 2024. And with Fed rate cuts that impact HELOCs likely for both later this October and possibly even in December, they're likely to become even more affordable, still.

See how low your current HELOC rate offers are here.

What does a $90,000 home equity loan cost now?

For those borrowers who prefer a fixed-rate product, even if it means having to pay a slightly higher rate, a $90,000 home equity loan could be worth exploring. Rates here are competitive with HELOCs, but they won't change over time, injecting some reliability and predictability into the home equity borrowing process in a way a HELOC will not. Here's what a $90,000 home equity loan costs monthly now, based on today's rates:

• 10-year home equity loan at 8.30%: $1,106.27 per month
• 15-year home equity loan at 8.20%: $870.51 per month

While payments here are higher than what a HELOC can offer now, they're not so much more expensive as to negate the benefits of this unique loan type, especially considering that the rate is fixed and that it will protect borrowers against market volatility. Consider both primary home equity borrowing options carefully, then, to better determine which makes the most sense for your financial goals, both now and over the long term.

The bottom line

A $90,000 HELOC comes with monthly payments ranging from $866 to $1,098, approximately, right now. And with a variable rate that may respond well to rate cuts ahead, it may soon become even cheaper. That said, home equity loans offer similar repayment costs, and the rate there will be fixed, which can be attractive for homeowners concerned about market adjustments still to come. Consider both carefully to determine which fits your budget best.