How much will an $80,000 home equity loan cost monthly after the December Fed rate cut?
For many Americans, it may not be necessary to wait until New Year's Eve to come up with their financial resolutions for 2026. Many already know that they're in need of extra financing in a five-figure amount. Whether that be for debt consolidation, to finance major home repairs or projects next spring, or to pay for a wedding or college education, a loan in the amount of $80,000 may be the difference between getting ahead and remaining in an economic standstill.
Fortunately, for homeowners, there's a viable and robust funding source worth exploring right now – their home equity. Home equity levels in the United States hit a record high this year, so borrowing $80,000 worth of equity, even if you just have the average amount, should be relatively easy.
And after the Federal Reserve issued another interest rate cut on December 10, the third one in the last four months, interest rates here are much more affordable than they were at similar points in 2024 or 2023. Still, with your home as collateral, borrowing this much of your equity should only be done once you know all of the exact costs. But that's also easy to calculate with a home equity loan, thanks to the product's fixed interest rate. So, how much will an $80,000 home equity loan cost monthly after the December Fed rate cut? That's what we'll break down below.
See how much home equity you'd be eligible to borrow here.
How much will an $80,000 home equity loan cost monthly after the December Fed rate cut?
Home equity loan rates haven't quite declined as dramatically as home equity lines of credit (HELOCs) have over the past year, but they're still one of the cheaper ways to borrow a large sum of money, especially after the recent Fed rate reduction. Here's how much an $80,000 home equity loan will cost monthly now, calculated against today's average rates and two typical repayment periods:
- 10-year home equity loan at 8.18%: $978.25 per month
- 15-year home equity loans at 8.13%: $770.54 per month
For reference, here's how much a loan of this size would've cost after the prior Fed rate cut was issued in October:
- 10-year home equity loan at 8.21%: $979.52 per month
- 15-year home equity loan at 8.10%: $769.15 per month
And here's what it would have cost at the start of 2025, when average rates were even higher:
- 10-year home equity loan at 8.57%: $994.88 per month
- 15-year home equity loan at 8.52%: $788.73 per month
Monthly payments on an $80,000 home equity loan, then, are marginally lower than they were earlier in the fall and considerably less expensive compared to where they were in February 2025. And while a difference of approximately $15 per month may not look like a lot on paper, it can add up to substantial savings each year and even more over the 10 or 15-year repayment periods.
In other words, if these rates and payments fit your budget now, it may be worth locking them in before any other economic developments cause them to change again.
Get started with a home equity loan online now.
The bottom line
Following the Federal Reserve's December 2025 rate reduction, an $80,000 home equity loan now comes with monthly payments between $771 and $978, approximately, for qualified homeowners. That makes a loan of this size more affordable than it was both earlier in the fall and much earlier this year, as well. And, considering that the funding source is substantial, the rate is fixed, and if used for select projects, the interest paid may even be tax-deductible, a home equity loan could be the financial solution many homeowners are looking for as they head into the new year.