How much does a $70,000 home equity loan cost monthly after the December Fed rate cut?
Do you need to borrow a large amount of money and aren't sure where to start?
There are always plenty of options to evaluate, even in today's economy. From credit cards to personal loans and more, there are various ways to borrow a substantial amount, such as $70,000. But when it comes to affordable options, however, the list becomes much shorter.
For homeowners, in particular, it currently comes down to two credible choices: home equity loans and home equity lines of credit (HELOCs).
HELOCs have some of the lowest interest rates available now, but rates there are variable and likely to change in the future. Home equity loans, however, have comparable rates which are fixed, allowing for budget certainty and precision in a way that other products don't permit. And following the Federal Reserve rate cut on December 10, home equity loans now represent not only one of the cheapest ways to borrow equity, but one of the cheapest ways to borrow money overall.
So, how much does a $70,000 home equity loan cost monthly now, following the December Fed rate cut? Below, we'll crunch the numbers owners need to know.
See how much home equity you'd be eligible to borrow here.
How much does a $70,000 home equity loan cost monthly after the December Fed rate cut?
It's critical that homeowners can easily afford their home equity loan repayments as their home will be on the line in these exchanges. Inability to pay could mean risking foreclosure. But with a home equity loan, thanks to the fixed rate, borrowers will know exactly how much their bills will be before getting started. Following the December Fed rate cut, here's how much a $70,000 home equity loan will cost per month now, calculated via today's available rates and two common repayment periods:
- 10-year home equity loan at 8.18%: $855.97 per month
- 15-year home equity loan at 8.13%: $674.22 per month
For reference, here's how much of a loan of this same amount cost after the Fed's first rate cut of the year in September:
- 10-year home equity loans at 8.34%: $861.92 per month
- 15-year home equity loans at 8.21%: $677.47 per month
And here's what it cost in February 2025, before any 2025 Fed rate cuts had been issued:
- 10-year home equity loan at 8.54%: $869.40 per month
- 15-year home equity loan at 8.49%: $688.91 per month
So payments here are both less expensive than they were in the fall and even less expensive than they were at the beginning of the year. And while $5 to $15, approximately, may not seem like a lot to save each month, that difference adds up each year and especially over the extended 10- or 15-year repayment periods these products come with. Take the time, then, to shop around online to see what rate offers are currently available as these are just averages and qualified borrowers may be able to find even lower ones online now.
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The bottom line
A $70,000 home equity loan now comes with monthly payments between $674 and $856, approximately, after the Federal Reserve issued its third rate cut of 2025 earlier in December. That makes now one of the best times this year to borrow with a home equity loan and also one of the better times in recent history to pursue this unique product. Just be sure to take the time to crunch your costs and be comfortable in your long-term ability to make these payments to avoid any foreclosure risk. If you can do that, however, then a home equity loan could be one of your better borrowing choices, both now and into the future.
