How much will a home equity loan cost monthly in 2026?

With the holidays now over and with high-interest rate debt piling up, millions of Americans may now find themselves in need of an extra funding source. Combined with the high-interest-rate climate of recent years and the sticky impacts of inflation, the need for this financing is particularly high right now. Fortunately, for homeowners, there's a viable way to secure it via their home equity.

With a home equity loan, in particular, homeowners can potentially access hundreds of thousands of dollars right now. And they can do so with a product that has an interest rate lower than personal loans and credit cards. That rate is also fixed, allowing owners to budget with certainty, no matter how much they ultimately need to borrow. At the same time, with the home functioning as collateral in these exchanges, owners must know their exact costs before getting started. Failure to make repayments can lead to foreclosure on the property.

So, how much will a home equity loan cost monthly in 2026? Below, we'll break down the numbers homeowners should know tied to a variety of potential borrowing amounts.

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How much will a home equity loan cost monthly in 2026?

Considering a home equity loan in the new year? Here's how much it could cost for six different amounts, calculated against two different terms and the available rates for each:

$25,000 home equity loan

• 10-year home equity loans at 8.18%: $305.70 per month
• 15-year home equity loan at 8.13%: $240.79 per month

$40,000 home equity loan

• 10-year home equity loans at 8.18%: $489.12 per month
• 15-year home equity loan at 8.13%: $385.27 per month

$50,000 home equity loan

• 10-year home equity loans at 8.18%: $611.40 per month
• 15-year home equity loan at 8.13%: $481.59 per month

$100,000 home equity loan

• 10-year home equity loans at 8.18%: $1,222.81 per month
• 15-year home equity loan at 8.13%: $963.17 per month

$150,000 home equity loan

• 10-year home equity loans at 8.18%: $1,834.21 per month
• 15-year home equity loan at 8.13%: $1,444.76 per month

$200,000 home equity loan

• 10-year home equity loans at 8.18%: $2,445.62 per month
• 15-year home equity loan at 8.13%: $1,926.34 per month

So payments here are more affordable than they had been in recent years, providing homeowners a credible way to borrow a large amount of money right now. And, if rates were to decline considerably later this year, owners could simply look to refinance their loan at that point to take advantage. In the interim, however, they'll gain access to a large amount of money to help pay for expenses and reduce their debt right now.

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Don't forget about home equity loan tax deductions

Affordability and access to a large amount of money aren't the only attractive features a home equity loan offers owners right now. As tax season approaches, it's important to highlight the tax benefits of this unique product, too. With a home equity loan, owners may be eligible to deduct the interest paid on the loan for the years in which it was used, as long as it was used for eligible home repairs and renovation projects. This can make today's loans even cheaper if the interest paid now can result in a smaller tax bill. Just make sure you understand which specific projects will and won't qualify before getting started.

The bottom line

With home equity loan rates low, average home equity amounts high and the need for extra financing at the start of the year pressing, homeowners could be well-served by exploring their home equity loan options now. Take the time, then, to crunch your potential costs and shop around for lenders. The above rates are just averages but with a good credit score and sizable amount of equity to leverage, you may be able to find even better rates and terms by shopping around now.