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If you’re a homeowner who needs to borrow money, you may be in luck right now. Not only are homeowners sitting on an estimated $11 trillion in tappable home equity currently, which could give you access to a hefty amount via a home equity loan or home equity line of credit (HELOC), but the cost of accessing that equity has also fallen significantly over the past year. That, in turn, could make it a lot more affordable to borrow the funds you need, even in this unusual economic landscape.
Case in point? HELOC rates have dropped more than two percentage points since September 2024, sliding from around 10% to about 7.17%, which is where they sit today. That substantial decline in HELOC rates means that they are now sitting well below the average personal loan rate and far below what most credit cards charge, making them one of the most cost-effective ways to borrow money currently.
Still, the real impact of that rate drop depends, in large part, on how much you’re borrowing. For example, if you’re considering a $75,000 HELOC, even a modest shift downward could have a big impact on your monthly payments. So, how much would the monthly payments on a $75,000 HELOC be at today’s rates — and how does that compare to other points over the last year? That’s what we’ll examine below.
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How much would a $75,000 HELOC cost each month at today’s lower rates?
It’s important to note that HELOCs typically have variable rates and borrowers are not required to use the full credit line. They can draw from the line of credit as needed, and that flexibility is a big perk of choosing a HELOC. To illustrate what you might expect to pay, though, we’ll use a fixed rate of 7.17% and a $75,000 HELOC balance.
With those parameters in mind, here’s what a $75,000 HELOC would cost monthly at today’s rates:
- 10-year HELOC at 7.17%: $877.40 per month
- 15-year HELOC at 7.17%: $681.27 per month
These estimates show a meaningful decline compared to late 2025 and earlier, when rates were higher. For example, here’s what that same $75,000 HELOC would have cost monthly in November 2025, when rates were averaging 7.81%:
- 10-year HELOC at 7.81%: $902.44 per month
- 15-year HELOC at 7.81%: $708.54 per month
And here’s what HELOC borrowers would have paid monthly in March 2025, when rates were averaging 8.12%:
- 10-year HELOC at 8.12%: $914.72 per month
- 15-year HELOC at 8.12%: $721.94 per month
That means a borrower who opens a $75,000 HELOC today and chooses the 10-year repayment term would save roughly $37 per month compared to March 2025. That adds up to more than $4,470 over the life of the HELOC, assuming rates held constant. The monthly savings on a 15-year term are similarly meaningful, amounting to more than $40 per month, and over $7,300 over the full HELOC term, compared to those March 2025 rates.
It’s also worth noting that existing HELOC borrowers who opened their lines of credit at higher rates would likely have seen these reductions automatically, without refinancing or paying closing costs. While the variable rate can be problematic when rates are rising, it’s also one of the structural advantages over fixed-rate alternatives when rates are falling.
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What to consider before taking out a HELOC now
The monthly cost figures above offer a useful snapshot, but they shouldn’t be the only factor borrowers evaluate. Because a HELOC is a variable-rate product, the payments will change over time, and while the current trajectory has been favorable, that can reverse if economic conditions shift or if the Federal Reserve reverses course and starts raising rates.
It’s also helpful to understand that many lenders only require you to make the interest payments on the money you borrow during the initial HELOC draw period. That can make a HELOC considerably less expensive every month at the outset, but it also means the principal balance isn’t being reduced during that time, which has long-term cost implications.
It’s equally important to factor in that, like a home equity loan, a HELOC uses your home as collateral. In turn, missed payments can carry real consequences, including the risk of foreclosure. So, before committing to a $75,000 line of credit, it’s crucial that you calculate what your payments could look like not just at today’s rate, but at higher rates too, to ensure your HELOC would remain affordable for your budget across a range of scenarios.
And, while today’s rate environment makes HELOCs particularly attractive, it’s still worth shopping around. Rates and terms will vary across lenders, and the best offer won’t always come from your current mortgage servicer.
The bottom line
At today’s rates, if you’re taking out a $75,000 HELOC, you can expect to pay about $877 per month on a 10-year term or $681 each month on a 15-year term. Those monthly costs are meaningfully lower than they were even just a few months ago, so the current rate environment makes a compelling case for this type of borrowing. Before you take out a HELOC, though, just be sure to stress-test your payments against the possibility of future rate increases to make sure you’re making the right move for your short- and long-term finances.