How much will a $50,000 home equity loan cost per month now after the Fed cut interest rates?

A $50,000 home equity loan comes with lower costs again now that the interest rate climate is cooling. BanksPhotos/Getty Images

Around $313,000. That's how much equity the average U.S. homeowner currently has at their disposal right now.

With home equity levels hitting a record high, according to an August report, depending on your circumstances, you may have even more to borrow right now. While most lenders will require owners to keep a 20% equity threshold in the home, it's easy to borrow a smaller amount, like $50,000. And with a home equity loan, specifically, you can do so with an interest rate that's materially lower than you'd otherwise receive with a personal loan or credit card.

With the first Federal Reserve rate cut of 2025 issued just this week, then, this unique home equity borrowing tool is positioned to become even more affordable. Before getting started, however, homeowners should first calculate their potential costs. Failure to repay a home equity loan could result in foreclosure, so it's important to get the figures right. But how much will a $50,000 home equity loan cost per month now that the Fed's cut interest rates again? That's what we'll examine below.

Start by seeing how much home equity you'd be eligible to borrow here.

How much will a $50,000 home equity loan cost per month now after the Fed cut interest rates?

Calculating the interest on a home equity loan is straightforward thanks to the fixed rate the product comes with. While these rates can be refinanced in the future, here's what a $50,000 home equity loan will cost per month now, after the Fed cut rates this week:

• 10-year home equity loan at 8.43%: $618.06 per month
• 15-year home equity loan at 8.31%: $486.82 per month

For context, here are the costs associated with a $50,000 home equity loan last fall, after the Fed issued its first rate cut since 2020:

• 10-year home equity loan at 8.47%: $619.13 per month
• 15-year home equity loan at 8.38%: $488.86 per month

And here's what it cost in February 2025, after rates had ticked up from those averages:

• 10-year home equity loan at 8.57%: $621.80 per month
• 15-year home equity loan at 8.52%: $492.96 per month

So expenses here haven't changed dramatically, but they are cheaper than they were at the start of 2025 and even a bit better than they were last September. And, if you're a qualified borrower with a good credit score and clean credit history, you may be able to find an even lower rate by shopping around online right now. 

Start comparing your low-rate home equity loan offers here to learn more.

What about a HELOC?

A home equity loan isn't your only cost-effective way to borrow home equity now. Right now, a home equity line of credit (HELOC) actually comes with a slightly lower average rate of just 8.05%. But HELOC rates are variable, more responsive to market conditions than a fixed-rate home equity loan and are likely to change each month for borrowers, making accurate budgeting difficult. Still, if you're looking for the lowest home equity rate available now and want to position yourself for additional rate reductions without having to refinance like you would with a home equity loan, a HELOC can be worth exploring.

The bottom line

A $50,000 home equity loan comes with monthly payments between $487 and $618, approximately, for qualified borrowers. And while those aren't materially cheaper than they were last fall or at the start of 2025, they are cheaper. Added up over 10 or 15 years, borrowers are now positioned to realize significant savings. So, if you know you need to borrow a five-figure sum of money and don't want to pay a lot in interest to do so, a $50,000 home equity loan could be worth pursuing now that the Fed's cutting interest rates again.