Here's how much a $25,000 home equity loan will cost monthly in 2026
Borrowing a lump sum such as $25,000 from your accumulated home equity may feel like a lot to withdraw on the surface. But upon closer inspection, it may not be, especially when understanding that the average homeowner has more than 10 times that amount in available equity right now. With home equity levels hitting a record high in 2025, in fact, borrowing an amount such as $25,000 should be relatively easy – and, for many, it will allow them to easily keep the 20% equity threshold most lenders mandate to approve an application.
And if these owners elect to borrow with a home equity loan, specifically, they'll be able to do so with a product that has an interest rate lower than most alternatives. As of January 12, 2026, home equity loan rates are lower than those available with home equity lines of credit (HELOCs), personal loans and credit cards (the latter of which has a rate hovering near a record high, over 20% right now).
At the same time, these loans leverage what is likely your most important financial asset - your home. And failure to repay could easily result in foreclosure, so it's critical that you crunch your repayment costs in advance to best determine affordability. Fortunately, this is easy to do thanks to the fixed interest rate these products employ. So, how much will a $25,000 home equity loan cost monthly now, in 2026 (and over the full repayment period)? Below, we'll break down the numbers you need to know now.
See how much home equity you'd be eligible to borrow here.
Here's how much a $25,000 home equity loan will cost monthly in 2026
Calculating your home equity loan costs comes down to three primary items: the amount being borrowed, the interest rate on your loan and the repayment term. Rates here won't change unless the borrower elects to refinance. This helps borrowers better determine affordability in a changing interest rate climate. Here, then, is what a $25,000 home equity loan will cost monthly now, in 2026, and until the repayment period has concluded, calculated against today's available rates and two common repayment periods:
- 10-year home equity loan at 8.16%: $305.44 per month
- 15-year home equity loan at 8.10%: $240.36 per month
For context, here's how much a $25,000 home equity loan would have cost monthly if secured around a year ago, before any Fed rate cuts were issued in 2025:
- 10-year home equity loan at 8.57%: $310.90 per month
- 15-year home equity loan at 8.52%: $246.48 per month
Payments here, then, are around $5 per month cheaper for 10-year loans and around $6 less per month for 15-year ones. That's around $60 and $72 cheaper annually, respectively. But the real savings come over the full repayment period, putting hundreds of dollars back into the pockets of homeowners. And remember that the above calculations have been completed via the average rates listed online. With a little time spent shopping around for rates and lenders, borrowers may be able to find even better deals and, thus, lower repayment costs.
Shop for home equity loan rates and lenders online today.
The bottom line
A $25,000 home equity loan comes with monthly payments ranging from $240 to $305 for borrowers right now, at the start of 2026. This makes this product one of the most affordable ones for homeowners currently. And, if the home equity loan is used for eligible home repair projects, this interest may even be tax-deductible. Consider evaluating your home equity loan options carefully, then, and reach out to a lender who can answer any questions you may have and better help determine your next steps.
