HELOC rates fall again: Here's what it costs monthly now
Interest rates on home equity lines of credit (HELOCs) aren't quite done falling. That was the welcome news in the home equity borrowing space this week when Bankrate announced the average HELOC interest rate declined yet again, this time to just 8.01%. That comes after HELOCs were in the double digits in early 2024.
In 2025, however, they've declined to 18-month lows and multiple two-year lows, making them one of the most affordable ways to borrow home equity now – and one of the cheapest ways to borrow money, period. At today's average rate, HELOCs are currently cheaper than home equity loans (8.37%), personal loans (12.37%) and credit cards (near a record 23%).
To better grasp how affordable today's HELOC rates truly are, however, it helps to do the math on a series of borrowing amounts. You may be surprised to see how much more you could be saving by using a HELOC now versus what it would have cost a year or so ago. Below, we'll do the math.
See how low a HELOC interest rate you could qualify for here.
Here's how much cheaper HELOC rates are now
To determine your monthly HELOC repayment costs, you'll need to know the amount of the credit line, the repayment period and the interest rate. The interest rate component, however, is variable as it will change monthly for borrowers. While that can be detrimental when interest rates are rising, it's a distinct advantage now as the interest rate climate cools.
Here's how much cheaper HELOC rates are, then, calculated against a series of amounts, compared to what they were in January 2024:
- 10-year $30,000 HELOC at 8.01%: $364.14 per month
- 10-year $30,000 HELOC at 10.16%: $399.12 per month
- Monthly savings differential: $34.98 per month
- 10-year $50,000 HELOC at 8.01%: $606.90 per month
- 10-year $50,000 HELOC at 10.16%: $665.19 per month
- Monthly savings differential: $58.29 per month
- 10-year $75,000 HELOC at 8.01%: $910.35 per month
- 10-year $75,000 HELOC at 10.16%: $997.79 per month
- Monthly savings differential: $87.44 per month
- 10-year $100,000 HELOC at 8.01%: $1,213.80 per month
- 10-year $100,000 HELOC at 10.16%: $1,330.28 per month
- Monthly savings differential: $116.48 per month
- 10-year $150,000 HELOC at 8.01%: $1,820.71 per month
- 10-year $150,000 HELOC at 10.16%: $1,995.58 per month
- Monthly savings differential: $174.87 per month
It's important to remember when reviewing these figures, however, that they're tied to 10-year repayment periods. In general, 15-year repayment periods will typically result in lower monthly payments thanks to the extended repayment schedule but will cost more in interest over the life of the line of credit. And, it's critical to note that today's low HELOC rates will be reserved for homeowners with good credit scores, so if your credit needs improving, it makes sense to work there first before shopping for a HELOC.
Learn more about your potential HELOC costs here.
The bottom line
HELOC interest rates are consistently on the decline, making this an increasingly affordable borrowing option for many homeowners right now. But it's important to calculate your potential repayment costs against both today's available rates and a series of potential ones in the future. Since rates here are variable, it's important to do the math across a wide range of possibilities to better ensure affordability both currently and over the full repayment period.
