How much will a $60,000 home equity loan cost monthly now that rates are falling?

For homeowners considering borrowing from their home's equity, this week brought more good news. Home equity loan rates, already considerably lower than they have been in recent years, dropped to their lowest level since 2023, according to Bankrate data released Wednesday. Now at an average of just 7.92% for 5-year home equity loans, this could be the smart and cost-effective way to borrow a large amount, such as $60,000 right now. And while rates on 10-year terms and 15-year options are a bit higher, even those are considerably lower than what can otherwise be secured with a personal loan or credit card right now.

And with a home equity loan used for eligible home repairs and renovations, borrowers may even qualify to deduct the interest paid on their loan for the years in which they used the tool. That makes concerns over today's rates even less pressing if homeowners know that they will be able to reduce their tax bill as a result. 

At the same time, home equity loans do borrow from your most prized financial asset – your home. And you can lose your property if you're ultimately unable to repay the loan, so you must do the math here in advance. Fortunately, those numbers are looking more and more favorable right now, at the start of 2026. So, how much, exactly, will a $60,000 home equity loan cost monthly now that rates are falling again? That's what we'll detail below.

Start by seeing how much home equity you'd be eligible to borrow here.

How much will a $60,000 home equity loan cost monthly now that rates are falling?

Calculating the costs of a home equity loan is relatively simple, thanks to the fixed interest rate the product employs. No matter what happens in the broader rate climate to cause rates to fluctuate, your home equity loan rate will remain the same unless refinanced. Here, then, is how much a $60,000 home equity loan will cost now, calculated against today's low rates and two common repayment periods:

• 10-year home equity loan at 8.10%: $731.14 per month
• 15-year home equity loan at 8.09%: $576.51 per month

For reference, here's how much this same loan would have cost monthly in September 2025, after the Federal Reserve issued its first rate cut of the year:

• 10-year home equity loan at 8.34%: $738.79 per month
• 15-year home equity loan at 8.21%: $580.69 per month

And here's how much it would have cost in February 2025:

• 10-year home equity loan at 8.55%: $745.52 per month 
• 15-year home equity loan at 8.50%: $590.84 per month

So payments here are both cheaper than they were in the fall and even less expensive than they were last winter. And with the ability to refinance a home equity loan at any time, users can take comfort in knowing that they'll be able to exploit additional rate drops in the future, when and if they ultimately materialize.

See how low your current home equity loan rate offers are here.

The bottom line

A home equity loan, already a viable borrowing tool for homeowners, is becoming an even more cost-effective one now, at the start of 2026. That makes it one of the better ways to borrow $60,000 currently. Just be sure to precisely calculate your costs here and don't forget about the closing costs that will be required to best ensure both short and long term affordability.