$100,000 home equity loan repayment costs to know

Home equity has become a substantial source of funding for homeowners across the country over the past few years as home equity levels have risen — $313,000, on average, meaning you have six figures worth to utilize. If your home equity is anywhere near the national average and you've got a financial plan that requires a robust amount of funding, then it's likely you're in a good position to leverage your equity to reach your goals. You could borrow $100,000, for example, and still have plenty of equity left for future expenses, too.

Like any financial decision involving borrowing money, however, it's important to analyze your funding options. Home equity loans and home equity lines of credit (HELOCs) are two popular ways to access your home equity. Home equity loans have a fixed rate and set monthly payments, while HELOCs have a variable rate and monthly payments that can change over time. As such, a home equity loan is a great fit if you want to borrow $100,000 and have a predictable monthly payment. 

But what can you expect from a $100,000 home equity loan's repayment period? We answer that question below.

See how much home equity you could borrow here now.

What to know about $100,000 home equity loan repayment periods

A home equity loan's repayment period begins after you receive your funding. When you apply for a loan, you'll typically have the option to choose how long that repayment period is. Lenders offer repayment periods of 10 to 15 years, on average. While some lenders may offer shorter or longer repayment periods, 10- and 15-year terms balance manageable monthly payments and total interest paid. 

The difference in monthly costs: 10 years vs. 15 years

If you're considering a 10- or 15-year repayment period for your $100,000 home equity loan, here's what you can expect to pay per month based on today's rates:

• 10-year home equity loan at 8.50%: $1,239.86 per month
• 15-year home equity loan at 8.44%: $981.23 per month

So, a 10-year home equity loan will cost around $260 more per month than a 15-year home equity loan based on current rates, but you'll wind up saving more in interest over the full repayment period.

See what home equity loan rate you'd qualify for here.

The difference in total interest costs: 10 years vs. 15 years

While the monthly payments for a 10-year home equity loan are higher than a 15-year home equity loan, a shorter repayment term provides significant interest savings over the life of the loan. Here's the total interest you can expect to pay on a $100,000 home equity loan based on today's rates: 

• 10-year home equity loan at 8.50%: $48,782.83 in interest, for a total of $148,782.83 for principal and interest
• 15-year home equity loan at 8.44%: $76,620.62 in interest, for a total of $176,620.62 for principal and interest

By choosing a 10-year repayment term, you can save nearly $28,000 in total interest payments compared to a 15-year repayment term.

Monthly costs for a $100,000 HELOC

HELOCs are an alternative to home equity loans that have several key differences from their loan counterpart: HELOCs are lines of credit instead of loans, you can withdraw money from them as needed (up to your limit), their interest rate is variable, your initial repayment period requires interest-only payments, and, right now, their interest rates are lower than home equity loans. 

Here's how much a $100,000 HELOC would cost monthly at today's rates, assuming rates remain constant: 

• 10-year HELOC at 8.01%: $1,213.80 per month
• 15-year HELOC at 8.01%: $956.23 per month

Calculating the interest costs for a 10- or 15-year HELOC is difficult since HELOC rates change over time. However, assuming a constant rate, here's how much total interest you could expect to pay on a $100,000 HELOC:

• 10-year HELOC at 8.01%: $45,656.53 in interest, for a total of $145,656.53 for principal and interest
• 15-year HELOC at 8.01%: $72,121.31 in interest, for a total of $172,121.31 for principal and interest

Choosing a HELOC with a 10-year repayment period could save you nearly $27,000 in interest payments over the life of your HELOC, again on the assumption that HELOC rates remain the same.

The bottom line

A $100,000 home equity loan can provide a substantial source of funding for homeowners looking for a way to fund their financial plans, whether it's needed for a home renovation, investment or other opportunity. Before getting your home equity loan, though, remember that your repayment period will start immediately and your home is used as collateral for the loan. So, be sure your monthly budget can handle your loan payments. 

If you can manage those risks, then you can take full advantage of a home equity loan's benefits, says Joseph Dionne, co-founder of mortgage broker appli Home Loans. 

"[Home equity loans] offer the advantage of a fixed interest rate and predictable monthly payments for the life of the loan," he says. "This stability is particularly valuable for those who prefer to lock in their borrowing costs now, rather than risk potential future rate fluctuations. As home values remain strong, homeowners have more equity to work with — positioning them well to take advantage of this loan option."