How much will a $100,000 home equity loan cost monthly now that the Fed cut interest rates?

If you’re considering borrowing against your home equity, it’s important to understand that many lenders will require you to maintain a 20% threshold in the home.

But in today’s economic climate, in which home equity levels just hit a new record high, that’s not much of a concern. With the average home equity amount comfortably over $300,000 now, borrowing a large, six-figure sum like $100,000 is relatively easy. And, thanks to a new interest-rate cut campaign from the Federal Reserve, it’s poised to become less expensive, too.

The central bank issued its first rate cut of the year last week, with other cuts now widely expected for when the Fed meets again in October and December. That will inevitably cause home equity loans, which already offer homeowners an affordable way to borrow, to become even cheaper. And affordability is key when borrowing equity, particularly if you’re looking to withdraw $100,000 from your most prized financial asset.

Before getting started, it’s important to calculate these costs. Failure to pay a home equity loan, after all, could lead to foreclosure, so you’ll want to get the math right here. But how much will a $100,000 home equity loan cost monthly now that the Fed cut interest rates again? Below, we’ll crunch the numbers.

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

How much will a $100,000 home equity loan cost monthly now that the Fed cut interest rates?

Determining the future monthly payments on a home equity loan is simple to do since the product comes with a fixed interest rate. Here’s what a $100,000 home equity loan could cost monthly now, tied to two common repayment periods and available rates:

• 10-year home equity loan at 8.43%: $1,236.12 per month
• 15-year home equity loan at 8.31%: $973.63 per month

To clarify how much more affordable a home equity loan has become, here’s what it would have cost if secured in early February:

• 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 this is what it would have cost per month one year ago, after the Fed issued a half percentage point cut in September 2024:

• 10-year fixed home equity loan at 8.50%: $1,239.86 per month
• 15-year fixed home equity loan at 8.41%: $979.47 per month

So, rates here are both lower than they were at the start of 2025 and a bit lower than they were last fall. But the costs haven’t come down significantly, either. That said, rates and monthly payments are still lower, and that can add up to significant savings over a 10- or 15-year repayment period. And with rates expected to decline further later this fall and the ability to refinance your home equity loan always present, some owners in need of $100,000 may find this to be their best and safest way to secure it now.

Get started with a home equity loan online now.

What does a $100,000 HELOC cost now?

Home equity lines of credit (HELOCs) have lower rates than home equity loans do, but those rates are variable and likely to change monthly for borrowers, injecting some volatility into the process that will need to be managed carefully. For context, here’s what a $100,000 HELOC will cost monthly now that the Fed cut rates again, assuming rates remain constant over time:

• $100,000 10-year HELOC at 8.05%: $1,215.92 per month
• $100,000 15-year HELOC at 8.05%: $958.54 per month

While the difference between a $100,000 home equity loan and $100,000 HELOC is negligible, borrowers will need to weigh the potential for future rate cuts carefully. Only a HELOC will drop independently when and if those cuts are issued, while the home equity loan will need to be refinanced to take advantage. So, evaluate each option to determine which makes the most sense for your needs and goals, not just now, but in the months and years still to come.

The bottom line

A $100,000 home equity loan is more affordable than it was at the start of 2025 and slightly less expensive than it was one year ago. But the decline in rates here hasn’t been stark, either. Weigh the pros and cons of this borrowing option in this amount carefully, then, to better determine its value. And, if you’re confident that rates will continue to decline and you prefer to be in a position to exploit those drops, consider a HELOC as an alternative.