HELOC interest rates are falling closer to 7%. Here's how much a $100,000 HELOC costs monthly now.
Another week, another decline in interest rates in the home equity market. That was the notable news this week after the average home equity line of credit (HELOC) rate declined to just 7.31%, according to new Bankrate data. That's down 13 basis points from the week prior and more than two and a half percentage points below where it sat less than a year and half ago. In September 2024, for example, the average HELOC rate was approximately 10%.
These rate drops make a HELOC not only the cheapest way to borrow home equity right now, it also makes it one of the least expensive ways to borrow money overall. And with home equity levels reaching a record high in 2025, there's likely plenty of money to leverage in today's economy. So borrowing $100,000 should be both achievable and much more affordable than it was in recent years.
To better understand the value of borrowing this much equity with a HELOC now, it helps to know what it will actually cost each month to do so. Below, we'll crunch the numbers homeowners should know now that rates here have dropped once again.
Start by seeing how much equity you could borrow with a HELOC here.
Here's how much a $100,000 HELOC will cost monthly in 2026
To calculate the repayment costs of a HELOC, borrowers will need three primary figures and a little guesswork. The amount of equity being borrowed is one, the repayment term length is the second and the interest rate is the third. But calculating repayment costs will be difficult to do with precision since the product comes with a variable rate that will adjust each month for borrowers based on market conditions. Interest-only payments are also typically only required during the initial draw period before full repayments are mandated later on.
Here, then, is how much a $100,000 HELOC will cost monthly now using two different repayment periods, today's new lower average rate, the assumption that the rate remains constant, and the assumption that the full HELOC is used and repaid immediately:
- 10-year HELOC at 7.31%: $1,177.12 per month
- 15-year HELOC at 7.31%: $916.25 per month
For context, here's what a HELOC of this size would have cost in September 2025, following a Federal Reserve interest rate cut that month:
- 10-year HELOC at 8.05%: $1,215.92 per month
- 15-year HELOC at 8.05%: $958.54 per month
And here's what it cost around this same point in 2025:
- 10-year HELOC at 8.26%: $1,227.06 per month
- 15-year HELOC at 8.26%: $970.72 per month
So payments here are considerably cheaper than they were a few months ago and even less expensive than they were one year ago. And if you were an existing HELOC borrower, you would have been able to take advantage of these rate drops without having to refinance or pay refinancing fees, as you would have with alternative borrowing products. Remember, too, that if you elected to make interest-only payments during the initial draw period, the payments above will be even lower than illustrated (to start).
Get started with a HELOC online now.
The bottom line
Another drop in the HELOC interest rate environment could be just the thing homeowners need to support borrowing with this unique product now. Unlike some other borrowing options, rates here are both low and well-positioned to fall further in 2026, putting money directly back into the pocket of borrowers. Just be sure to account for some price changes over time, as rates will inevitably move up and down, and be careful to only borrow an amount that you can comfortably afford to repay at a variety of rates. With your home serving as collateral in these exchanges, it's critical that the math work in your favor, both now with rates low and in the future with them possibly being higher again.
