Here's how much a $50,000 HELOC can cost monthly after the December Fed rate cut
If you're looking to borrow $50,000 in today's economy and don't want to spend an exorbitant amount in interest to get it, you may not have to look very far. With home equity levels rising to a record high this year, you may easily have this much to borrow from your home. And if you do so with a home equity line of credit (HELOC), you'll secure an interest rate lower than what's available with home equity loans, personal loans and credit cards, the latter of which is around three times more expensive than a HELOC is right now.
And HELOC rates may decline even further now, following the December Federal Reserve interest rate cut. While the Fed is just a single driver behind HELOC rates, it remains a critical one. This is a major advantage for both existing HELOC borrowers and potential ones, as the product has a variable rate that changes monthly. So Fed rate cuts can (and have) easily reduced the associated borrowing costs tied to a HELOC. That makes now one of the better times in recent history to borrow $50,000 with this product. But with your home serving as the collateral, it's critical that you know the approximate monthly payments before beginning to avoid any foreclosure risks.
So, how much can a $50,000 HELOC cost monthly now, following the December Fed rate cut? That's what we'll break down below.
Start by seeing how much equity you could borrow with a HELOC here.
Here's how much a $50,000 HELOC can cost monthly after the December Fed rate cut
Calculating the costs of a HELOC requires a bit of speculation thanks to the product's variable rate. But with rates here much lower than they had been, it can still be a viable and cost-effective way to borrow $50,000 now, as long as this variability is accounted for in advance. Here's how much a $50,000 HELOC can cost monthly following the December Fed rate cut, assuming that rates remain constant, that the full line of credit is utilized upfront (and then repaid) and two typical repayment periods:
- 10-year HELOC at 7.81%: $601.63 per month
- 15-year HELOC at 7.81%: $472.36 per month
For context, here's what a $50,000 HELOC would have cost monthly following the Fed's previous rate cut in October:
- 10-year HELOC at 7.90%: $604.00 per month
- 15-year HELOC at 7.90%: $474.90 per month
And here's what it cost after the first Fed rate cut of 2025 in September:
- 10-year HELOC at 8.05%: $607.96 per month
- 15-year HELOC at 8.05%: $479.27 per month
Monthly payments on a HELOC of this size, then, are now lower than they were after the previous two Fed rate cuts. And HELOC borrowers wouldn't have had to take any action, like they would have with a home equity loan, as their costs would have just dropped independently, thanks to these Fed rate cuts.
A home equity loan, meanwhile, would require borrowers to both refinance and pay for refinancing closing costs. In other words, if you want to borrow home equity, want to be positioned to exploit additional rate reductions and don't want to have to pay closing costs to do so, a HELOC could be your best bet right now.
Get started with a HELOC online today.
The bottom line
A $50,000 HELOC comes with monthly payments between $472 and $602 for qualified borrowers now, making it lower than it's been in recent months. And if additional rate cuts are issued in 2026 or if additional economic points are released that encourage further cooling in the interest rate climate, monthly payments here could decline even further. Finally, remember that these are payments calculated on the assumption that the full line of credit will be utilized – and repaid – immediately. But many HELOC lenders will mandate just interest-only payments during the initial draw period, meaning that these monthly calculations may be even lower should you decide to take that route instead.
