Here's what a $50,000 HELOC costs monthly in 2025
Interest rates have been on a bit of a rollercoaster in recent years, as can be seen clearly with rates on home equity lines of credit (HELOCs). Rates on the product were over the 10% mark to start 2024 but they steadily declined over the following 12 months. By January 2025, HELOC rates had hit an 18-month low of just 8.27%, nearly two full percentage points lower than they were. But that's moderated a bit in recent weeks and, now, HELOC rates are closer to 8.30% for qualified borrowers.
These recent rate changes, combined with the variable rate nature of HELOCs, make determining future monthly payments tricky. But if you're borrowing a sum like $50,000, it's critical that you first determine your ability to pay all that's been withdrawn. If you can't, you could risk losing your home to the lender. So what will a $50,000 HELOC cost monthly if taken out now, in February 2025? Below, we'll break down a few different repayment scenarios.
See how much equity you'd be eligible to borrow with a HELOC here now.
Here's what a $50,000 HELOC costs monthly in 2025
Because HELOC interest rates change each month for borrowers, it's critical to calculate the potential costs of a HELOC by using a series of rates. Here, then, is what borrowers could expect to pay monthly for a $50,000 HELOC at today's prevailing rates:
- 10-year HELOC at 8.28%: $614.06 per month
- 15-year HELOC at 8.28%: $485.94 per month
And here's what they could be if rates drop by another 25 basis points:
- 10-year HELOC at 8.03%: $607.43 per month
- 15-year HELOC at 8.03%: $478.69 per month
But here's what they'd look like if HELOC rates rose by 25 basis points:
- 10-year HELOC at 8.53%: $620.73 per month
- 15-year HELOC at 8.53%: $493.25 per month
While borrowers will pay less for a 15-year HELOC, they'll ultimately pay more in interest over that extended period. So the short-term savings will need to be weighed carefully. And homeowners committed to this type of borrowing should calculate payments based on additional rate scenarios besides those described above, as HELOC rates could change significantly over an extended repayment period.
Start calculating your potential HELOC costs here now.
When will HELOC interest rates change again?
While it's not possible to precisely determine when HELOC rates will adjust again, borrowers could get an approximate idea of when they could change. Inflation is usually a good indicator of future Fed rate activity, both of which drive HELOC rates. So, if inflation rises, a potential Fed rate hike becomes more likely, thus raising HELOC rates. If the opposite happens, however, HELOC rates could decline further.
And remember that the rates lenders offer borrowers don't exactly mirror the federal funds rate (so don't expect a corresponding drop or rise in the same increment that that federal funds rate moves). Lenders also don't need to wait for formal Fed action to adjust their rate offers, so monitor rates here often – not just around the time the Fed meets or when the next inflation reading is released by the Bureau of Labor Statistics.
The bottom line
A $25,000 HELOC will cost qualified borrowers between $486 and $614 each month, depending on the repayment period in question. But those payments will undoubtedly change over the life of the line of credit, perhaps to a significant degree. So be sure of your ability to pay even if rates change and, if you're unsure, consider turning to a fixed-rate, home equity loan instead.
Learn more about your HELOC and home equity loan options online today.
