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While there’s been plenty of news about interest rates lately, especially after the Federal Reserve elected to keep them paused again earlier this month, there has been one affordable silver lining for borrowers – their home equity.
Home equity borrowing rates have already been much lower than most other products, and this month, rates on home equity lines of credit (HELOCs) declined once again. Now at an average of just 7.17%, rates are down from the 7.31% they were averaging four weeks ago, below 8.03% from one year ago, and more than two points below where they sat just 18 months ago. So this could be a viable way to borrow a large, five-figure amount, such as $80,000, right now. And with tappable home equity levels in the country sitting at $11 trillion right now, borrowing an amount of that size should be relatively achievable.
Still, your home functions as collateral in these exchanges, so you must get the math right before getting started. And that can be difficult to determine with precision thanks to the HELOC’s variable interest rate. Below, we’ll break down the math that homeowners need to know now.
Start by seeing how much home equity you’d be eligible to borrow here.
How much will an $80,000 HELOC cost monthly now?
To calculate your monthly HELOC costs, you’ll need three primary figures: the amount being deposited, the interest rate of the HELOC and the repayment period. Many lenders will only require interest payments during the initial draw period (up to 10 years, approximately), making today’s payments even more affordable if borrowers utilize the product that way.
Here’s how much an $80,000 HELOC will cost monthly now, using today’s low average rate, two repayment periods and the assumption that the full line of credit will be used (and repaid) immediately:
- 10-year $80,000 HELOC at 7.17%: $935.89 per month
- 15-year $80,000 HELOC at 7.17%: $726.69 per month
To better appreciate the affordability a HELOC of this size now represents, it helps to know how much it would have cost in September 2025, after the Fed issued a rate cut that month:
- 10-year HELOC at 7.88%: $965.56 per month
- 15-year HELOC at 7.88%: $758.99 per month
And here’s what it cost in February 2025, when rates were even higher:
- 10-year HELOC at 8.29%: $982.92 per month
- 15-year HELOC at 8.29%: $777.98 per month
Payments here, then, are both cheaper than they were six months ago and even less expensive than they were at the start of 2025. And if you were already a HELOC borrower, you would have realized these savings independently as the HELOC rate changes each month on its own – no refinancing or refinancing closing costs will be required on behalf of the borrower.
This makes a HELOC not only one of the better ways to borrow home equity, but one of the cheaper ways to borrow money in totality. Just be sure to budget for some variability in either direction before getting started to better ensure long-term affordability.
Get started with a HELOC online now.
The bottom line
An $80,000 HELOC comes with monthly payments ranging from $727 to $936, approximately, right now, making it more affordable than it’s been in many years. And with the above rate just being an average, qualified homeowners may be able to secure even better rates and terms by shopping around online now. While your current mortgage lender may be your best option, consider shopping around to see what other lenders are also offering to improve your chances of finding the most cost-effective line of credit right now.