How much will a $100,000 home equity loan cost monthly in 2025?
Home equity loans have multiple benefits for borrowers, especially at the start of 2025. The average homeowner currently has around $320,000 worth of equity, providing many a clear way to finance several major expenses. In today's evolving and unpredictable interest rate climate, home equity loan rates are fixed, giving borrowers both predictability and security by knowing that the payment they make on month one will be the same one they make every month until the loan is repaid.
Perhaps most significantly, however, in early February 2025, home equity loan rates are lower than they've been in more than a year. A 10-year home equity loan interest rate was 9.07% as of February 7, 2024, according to historic Bankrate data, but is now just 8.44% — more than half a percentage point lower. And while that may not seem to be a huge difference on paper, it could be a significant one over a 10 or 15-year repayment period, particularly for those looking to borrow a large, six-figure sum of equity.
To determine the value of a $100,000 home equity loan opened this year, borrowers should first calculate their potential monthly costs. Below, we'll do the math.
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How much will a $100,000 home equity loan cost monthly in 2025?
To determine how much a $100,000 home equity loan would cost if opened now, borrowers will need three figures: the loan amount, the interest rate and the repayment period. The average home equity loan rate now is 8.44% and a bit higher for two common repayment periods. Overall, home equity loan rates have ticked up slightly from where they were last fall but are still significantly lower than they were last February.
The following calculations assume that borrowers can secure today's average of 8.57% for a 10-year loan and 8.52% for a 15-year one, but qualified borrowers may be able to get a slightly lower rate while ones with poor credit may wind up being offered a higher one:
- 10-year home equity loan at 8.57%: $1,243.60 per month
- 15-year home equity loan at 8.52%: $985.91 per month
And here's what a $100,000 home equity loan could cost monthly if rates fall by 25 basis points later this year:
- 10-year home equity loan at 8.32%: $1,230.25 per month
- 15-year home equity loan at 8.27%: $971.30 per month
But the key here is to take action now, assuming your credit score and profile are in good standing. By waiting, home equity loan rates could potentially rise again or stagnate from where they currently are. And waiting will delay your financing needs (even when applied for it can take weeks or months to have your funds disbursed). Finally, if home equity loan rates were to fall much further later in 2025 or in the future, you could always refinance your existing loan to take advantage at that point.
Get started with a low rate home equity loan online now.
The bottom line
A $100,000 home equity loan comes with reasonable monthly payments now that rates have dropped. The payments could become even more affordable later this year if interest rates fall further. However, since predicting the interest rate climate is impossible and because other economic factors like inflation could delay cuts (if not cause rates to increase), waiting to secure this type of financing doesn't make sense when a low-rate option is readily available now. So crunch the numbers, double-check your credit report and start shopping for lenders today.
