Here's how much a $25,000 HELOC will cost monthly in 2026
It's now the cheapest time in three years to borrow equity via a home equity line of credit (HELOC), according to Bankrate data revealed earlier in January.
At an average rate of just 7.44%, HELOCs are now less expensive than home equity loans (ranging from 7.92% to 8.10%), personal loans (over 12%) and credit cards (over 20%). With home equity levels hitting a record high in 2025, there's likely plenty to utilize with this increasingly affordable borrowing tool, too. HELOCs also have variable interest rates subject to change monthly for homeowners, making this a great way to exploit today's cooling interest rate climate without having to pay refinancing costs to do so (as you would with a home equity loan).
Still, a HELOC does leverage your home equity, and if you're not careful, you can lose your home if you're unable to pay back all that's been withdrawn from it. So crunching the costs in advance, particularly if you're borrowing a large, five-figure amount such as $25,000, is vital before getting started. Fortunately, costs here are currently low, especially compared to what borrowers were paying in recent years. So, how much does a $25,000 HELOC actually cost monthly now, in 2026? Below, we'll do the math.
See how much home equity you'd be eligible to borrow here.
Here's how much a $25,000 HELOC will cost monthly in 2026
To calculate the costs of a HELOC, homeowners will need three primary figures: the amount being borrowed, the interest rate and the repayment term. For clarity purposes, the figures below assume that the full line of credit is borrowed immediately and then repaid (and that the interest rate remains constant). But many lenders will mandate just interest-only payments with this product for the initial draw period, so these payments could be even lower if you elect to repay that way or don't use the full amount right away:
- 10-year HELOC at 7.44%: $295.97 per month
- 15-year HELOC at 7.44%: $230.90 per month
For reference, here's what the same-sized HELOC would have cost monthly in February 2025, calculated using rates from that time but the same repayment parameters as above:
- 10-year HELOC at 8.28%: $307.03 per month
- 15-year HELOC at 8.28%: $242.97 per month
And here's what it was costing in August 2024, when rates were almost two percentage points higher:
- 10-year HELOC at 9.32%: $321.04 per month
- 15-year HELOC at 9.32%: $258.35 per month
So payments here are both cheaper than they were a year ago and even less expensive than they were in 2024, too. And if you were an existing HELOC borrower, you would have realized these savings independently, without having to refinance or pay refinancing fees as you would with alternative products. With the HELOC interest rate forecast for 2026 an encouraging one, these payments could also soon fall even further.
Get started with a HELOC online now.
The bottom line
A $25,000 HELOC will cost homeowners between $231 and $296 each month in 2026 approximately, and potentially through the full repayment cycle, should rates here stay the same. That makes now one of the least expensive times in recent history to borrow with a HELOC. If you use the funds here for eligible home repairs and projects, the minimal interest now attached could even be tax-deductible, too. Take the time, then, to calculate your costs with precision and familiarize yourself with the product's timely pros and cons to ensure maximum borrowing success.
