How much will a $90,000 home equity loan cost monthly following the December Fed rate cut?
If you need to borrow a few hundred dollars, then swiping a credit card often suffices. And if you need to borrow a few thousand dollars, then a personal loan, albeit with a 12%-plus interest rate right now, may also be suitable. But what if you need a large, five-figure sum of money? Specifically, what happens if you need to borrow tens of thousands to finance major home repairs and projects or to pay for education costs? In these instances, a home equity loan for $90,000 may be exactly what you need.
Fortunately, right now, home equity levels are at a record high, so borrowing this much money should be relatively easy to accomplish. And following a series of Federal Reserve interest rate cuts, the latest of which was issued on December 10, home equity loans are now considerably cheaper than personal loans and credit cards. Plus, the interest paid with this product can even be tax-deductible if used for select projects.
At the same time, your home is the collateral when borrowing equity. Fail to repay it as agreed to and you could jeopardize your homeownership. So it's critical that you first know your monthly costs, which will now be cheaper thanks to the Fed's extended interest rate-cut campaign.
But how much will a $90,000 home equity loan cost monthly now, following the December Fed rate cut? Below, we'll calculate the payments you need to know.
Start by seeing how much home equity you'd be eligible to borrow here.
How much will a $90,000 home equity loan cost monthly following the December Fed rate cut?
Home equity loans, unlike their home equity line of credit (HELOC) counterparts, come with fixed interest rates that make budgeting with precision simple and quick. Here's how much a $90,000 home equity loan will cost monthly now, following the December Fed rate cut, calculated against today's average rates and two typical repayment periods:
- 10-year home equity loan at 8.18%: $1,100.53 per month
- 15-year home equity loan at 8.13%: $866.85 per month
For context, here's what monthly payments would have looked like following the Fed's prior interest rate cut in October:
- 10-year home equity loan at 8.20%: $1,101.48 per month
- 15-year home equity loan at 8.15%: $867.90 per month
And here's how much a $90,000 home equity loan would have cost per month if secured in February 2025:
- 10-year home equity loan at 8.55%: $1,118.28 per month
- 15-year home equity loan at 8.50%: $886.27 per month
So monthly payments here are around $1 cheaper than they were a few weeks ago, but about $20 cheaper than they were at the beginning of the year. That equates to hundreds of dollars per year and potentially thousands of dollars over the life of the loan, assuming it's not refinanced in the future. These new cost savings make now one of the better times in recent history to consider a home equity loan of this size.
See how low your current home equity loan rate offers are here.
Don't forget about home equity loan tax deductions
As noted above, home equity loan interest paid may be tax-deductible if used for eligible home repairs and projects. So if you're considering the $90,000 for one of these reasons, the costs outlined above may prove to ultimately be even lower, as the interest paid will lower your tax bill for the years in which the loan was used. Just make sure to understand which types of home improvement projects will qualify for this deduction (and which ones will not) before getting started.
The bottom line
A $90,000 home equity loan comes with monthly payments ranging from $867 to $1,100 for qualified borrowers now, making the weeks after the December 2025 Fed rate cut one of the best times in recent history to take out a home equity loan of this size. That said, never forget that your home is on the line in these exchanges, so precise and realistic budgeting is critical to ensure borrowing success right now and long into the future.
