How much does a $100,000 home equity loan cost per month following the December Fed rate cut?

Borrowing six figures' worth of home equity may not seem like the most obvious borrowing choice on the surface. But with the average home equity amount worth hundreds of thousands of dollars right now and cumulative home equity levels in the country hitting a record high this year, it can be a viable borrowing option worth investigating right now. And that's especially true considering that interest rates on home equity loans and home equity lines of credit (HELOCs) are on the decline again.

The Federal Reserve this week issued another reduction to its benchmark rate, the third one in the last four months. And while the Fed's rate actions are just one driver behind home equity loan rates, they are a major one. That's partially why rates have been consistently declining over the past year, approximately, after the central bank started cutting rates again in 2024. This makes home equity borrowing one of the better ways to secure extra financing now. Not only is the borrowing source robust, but the associated costs for qualified borrowers are minimal.

That said, with your home as collateral in this exchange, it's critical that you know what you're getting involved with before securing the funds. Fortunately, it's easy to calculate a home equity loan's monthly costs as the product comes with a fixed interest rate. So, how much does a $100,000 home equity loan cost per month following the December Fed rate cut? Below, we'll calculate the monthly payments you need to know to get started.

See how much home equity you'd be eligible to withdraw here.

How much does a $100,000 home equity loan cost per month following the December Fed rate cut?

Home equity loan rates, which have declined for much of the past year, remained low the day after the December Fed rate cut, even if they showed little change from the days prior. Here's how much a $100,000 home equity loan will cost per month now, after the latest rate reduction, calculated against today's new rates and two common repayment periods:

• 10-year home equity loan at 8.18%: $1,222.81 per month
• 15-year home equity loan at 8.13%: $963.17 per month

For comparison purposes, here's what this same loan would have cost after the Fed's October rate cut:

• 10-year home equity loan at 8.21%: $1,224.40 per month
• 15-year home equity loan at 8.10%: $961.43 per month

And these were the monthly costs following the September 2025 Fed rate reduction:

• 10-year home equity loan at 8.43%: $1,236.12 per month
• 15-year home equity loan at 8.31%: $973.63 per month

So, payments on a 10-year $100,000 home equity loan this December are now more affordable than they were both in October and September. For 15-year home equity loans, however, payments are about the same as they were in October and a few dollars cheaper than they were in September. 

Still, the general cooling of the home equity borrowing climate is an unmistakable one, and if these payments fit your budget now, this could be a viable and cost-effective way to access a six-figure sum of money as you head into 2026.

Get started with a home equity loan online now.

Don't forget about refinancing

Do you think today's home equity loan rates are low enough to support an application, but find yourself concerned about missing out on future interest rate drops? Don't forget about refinancing. Home equity loans can and often should be refinanced if interest rates drop substantially in the future. 

While this will mean paying refinancing closing costs, it is a viable option to keep in mind. At the same time, waiting for home equity loan rates to fall further, particularly if you need the money now, is a risky move. Instead, if you can afford today's rates, consider locking in a home equity loan rate and simply look to refinance it if and when rates drop materially in the future.

The bottom line

A $100,000 home equity loan comes with monthly payments ranging from $963 to $1,223 for borrowers now, after the December Fed rate cut. While these aren't so much lower than they were in recent months, they are substantially cooler than they were in recent years. And with rates here fixed, home equity levels high and the future of additional rate cuts unknown, this could be the smart time to borrow with this unique product.