Here's what a $80,000 home equity loan costs monthly in 2025

Before borrowing money, it's always critical to first calculate your potential repayment costs. This is especially critical to do when borrowing home equity. Whether using a home equity loan, a home equity line of credit (HELOC) or some other product, your ability to afford your repayments must be known in advance. If you miscalculate and fail to make your payments as agreed upon, you could risk losing your home back to the lender. 

This can be an easy financial trap to fall into. With the average home equity amount near $320,000 currently, homeowners may be tempted to borrow more than they should. But what if they wanted to borrow just a quarter of that amount? What would a $80,000 home equity loan cost monthly now, at the start of 2025, with inflation still sticky and interest rate cuts on hold? That's what we'll calculate below.

See how much home equity you'd be eligible to borrow here.

Here's what a $80,000 home equity loan costs monthly in 2025

Home equity loan interest rates steadily declined in 2024 due in part to the Federal Reserve's interest rate cut campaign, in which the bank reduced its federal funds rate three times in the final months of the year. But rates have moderated a bit in recent weeks and have not significantly altered from where they were last fall. Here, then, is what an $80,000 home equity loan will cost monthly if opened now, tied to two common repayment periods:

• 10-year home equity loan at 8.57%: $994.88 per month
• 15-year home equity loan at 8.52%: $788.73 per month

While those rates are readily available for many qualified borrowers, the average home equity loan rate now is just 8.45%. That can likely be found if borrowers shop around for lenders and consider ones different from their existing mortgage lender. For reference, here's what an $80,000 home equity loan payment would look like monthly tied to that rate:

• 10-year home equity loan at 8.45%: $989.75 per month
• 15-year home equity loan at 8.45%: $785.45 per month

As usual with loan borrowing, homeowners in these circumstances will pay more each month for the shorter-term loan but less in overall interest over the life of the loan. So it's important to weigh both scenarios to determine which is more affordable for your financial circumstances before signing up.

Start exploring your home equity loan options here now.

What about cash-out refinancing?

The rise in home values in many parts of the country now may tempt homeowners to explore their cash-out refinancing options, too. This involves taking out a new mortgage loan in an amount larger than your balance. You then use the new loan to pay off the old one and keep the difference between the two as cash. 

The issue with this approach now, however, comes down to interest rates. Since you're taking out a new mortgage loan, you'll need to get a new interest rate. And, right now, today's mortgage interest rates are likely much higher than what you currently have secured. So be sure to compare both before proceeding.

The bottom line

Right now, an $80,000 home equity loan comes with monthly payments ranging from approximately $786 to $995. But those payments are tied to average rates for qualified borrowers. So if you don't have a good credit score and clean credit profile, you'll need to work on both before applying – or risk getting offered a much higher rate. 

See what home equity loan interest rate you could qualify for now here.