How much does a $90,000 HELOC cost monthly following the Fed's October interest rate cut?
In today's economy, in which inflation and everyday expenses remain problematic and interest rates on credit cards are near a record high, it can be hard to make ends meet. In this climate, it's understandable if bills have piled up and, if other expenses are looming, you now find yourself in need of a large, five-figure sum like $90,000. While securing a $90,000 personal loan or credit card limit can be both difficult and expensive, there is a viable, affordable way to access this funding now. You'll just need to be a homeowner to do so.
With a home equity line of credit (HELOC), specifically, homeowners can apply for a $90,000 credit line. And thanks to the average homeowner having hundreds of thousands of dollars in equity in today's economy, this should be relatively accessible. Just as importantly, HELOC interest rates are on a significant downward trend, now coming in more than two full percentage points lower than they were in the fall of 2024, for example.
Still, calculating your repayment costs is critical when borrowing from your home equity. And that can be tricky to do with a HELOC thanks to the product's variable interest rate. But a HELOC of this size can also be surprisingly affordable now, especially considering that the Federal Reserve has reduced interest rates in both September and October. So, how much does a $90,000 HELOC cost monthly following the Fed's October interest rate cut, specifically? That's what we'll calculate below.
See how much home equity you'd be eligible to borrow with a HELOC here.
How much does a $90,000 HELOC cost monthly following the Fed's October interest rate cut?
HELOC interest rates are at their lowest level in years. But calculating your repayment costs will come with some speculation, as rates here can and will change over time. Here's how much a $90,000 HELOC will cost monthly now, calculated against today's average rate, two common repayment periods and the assumption that the rate remains static:
- 10-year HELOC at 7.81%: $1,082.93 per month
- 15-year HELOC at 7.81%: $850.24 per month
For reference, here's what a HELOC of this size cost in early October, following the Fed's September rate cut:
- 10-year HELOC at 7.84%: $1,084.35 per month
- 15-year HELOC at 7.84%: $851.79 per month
And here's what it cost in February, when rates were even higher:
- 10-year HELOC at 8.12%: $1,097.66
- 15-year HELOC at 8.12%: $866.33
So, rates and costs here are on an unmistakable decline. And, unlike a home equity loan, which has a fixed interest rate, borrowers who secured a HELOC earlier in the year would have been able to benefit from these rate drops without having to pay to refinance their line of credit; HELOC rates adjust monthly independently.
Finally, it's important to note that these payments are based on the assumption that the full line of credit is used immediately and that the borrower elects to make full repayments during their initial draw period. Many lenders, however, will require just interest-only payments during that period, making this potentially even more affordable than the above calculations would imply.
See how low your current HELOC interest rate offers are here.
The bottom line
A $90,000 HELOC is both more affordable than it was last month and considerably cheaper than it was in February, with current monthly costs ranging from $851 to $1,083, approximately. And remember that the above rates are just averages. If you have a good credit score, a clean credit background and a sizable amount of equity to leverage, you may be able to get an even lower rate. Take the time, then, to calculate your costs and consider shopping for lenders. A HELOC may be one of your better options for paying your growing expenses right now.
