Here's how much a $100,000 home equity loan costs monthly now that rates are lower
Summary
Interest rates on home equity loans have dropped recently, making borrowing $100,000 more affordable for homeowners. For example, a 10-year loan now costs about $1,160 per month, which is roughly $85 less monthly than it was in early 2025.Key Facts
- Homeowners in the U.S. have over $10 trillion in available home equity to borrow against.
- Current average interest rates for a home equity loan are around 6.97%, lower than earlier this year and in 2025.
- Monthly payment for a $100,000 home equity loan over 10 years at 6.97% is about $1,160.
- The same loan over 15 years costs about $897 per month at the current rate.
- In January 2026, rates were around 8.1%, leading to monthly payments over $1,220 for 10 years.
- Lower rates can save borrowers more than $1,000 each year and over $10,000 during the loan lifetime.
- Interest rates offered depend on credit scores, so good credit is important to qualify for the best rates.
- Borrowers should compare lenders to find the most affordable home equity loan options.
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