How much does a $75,000 home equity loan cost monthly following the Fed’s October rate cut?

Before borrowing any amount of money, large or small, it’s always critical to first account for the costs associated with the loan. But in today’s economic climate, in which unemployment and inflation are both up but interest rates are declining, it’s arguably more important than usual to get the numbers right. And, if you’re leveraging something as important as your home’s equity to borrow from, it’s even more important to first determine affordability. A misstep here could theoretically risk foreclosure.

But, if you can make the math work, there’s a lot to like about borrowing with a home equity loan right now. Home equity loan interest rates are on the decline and are considerably more affordable than personal loans or credit cards. And with the average amount of home equity sitting around $300,000, borrowing just 25% of that amount, or $75,000, should be fairly easy to accomplish for many homeowners.

So, how much does a $75,000 home equity loan cost monthly now, considering that the Federal Reserve just issued another interest rate cut in the final days of October? That’s what we’ll calculate below.

Start by seeing how much home equity you’d be eligible to borrow here.

How much does a $75,000 home equity loan cost monthly following the Fed’s October rate cut?

Calculating the monthly costs of a home equity loan is relatively straightforward, thanks to the fixed rate the product comes with. Here, then, is what a $75,000 home equity loan could cost qualified borrowers each month if secured now, calculated against readily available rates and common repayment periods:

• 10-year home equity loan at 8.21%: $918.30 per month
• 15-year home equity loan at 8.10%: $721.08 per month

For context, and to understand the affordability of this moment, here’s what a $75,000 home equity loan cost in September, following a Fed rate cut that month:

• 10-year home equity loans at 8.34%: $923.49 per month
• 15-year home equity loans at 8.21%: $725.86 per month

And here’s how much more expensive it was in February 2025:

• 10-year home equity loan at 8.55%: $931.90 per month
• 15-year home equity loan at 8.50%: $738.55 per month

So, while not dramatically cheaper than what costs were earlier this year, a $75,000 home equity loan is still more affordable now than it was in February and September. And, if an additional interest rate cut is issued by the Fed in its final 2025 meeting, it could become even cheaper at that point, perhaps even before the cut is issued if some lenders price in a reduction to their offers in advance.

See how low your current home equity loan rate offers are here.

Don’t forget about refinancing

It can be tempting to wait for the home equity loan rate climate to cool even further before taking action. But homeowners considering delaying should remember that there’s no guarantee that rates will fall further, and they could even rise, depending on how November economic data evolves. And homeowners who lock a rate now always reserve the option to refinance their home equity loan in the future, should rates materially decline then. In the interim, however, they’ll have their funds readily available to utilize as needed.

The bottom line

A $75,000 home equity loan comes with monthly payments ranging from $721 to $918, approximately, for qualified borrowers now following the Federal Reserve’s October rate cut. That makes now one of the most affordable times to borrow with this unique product in recent memory. And, if homeowners are worried about missing out on additional rate cuts ahead, they could always look to refinance at that point. In the interim, they’ll gain access to tens of thousands of dollars worth of equity at an affordable borrowing cost, making this one of the better ways to borrow in today’s economy.