How much would a $70,000 home equity loan cost per month?
Do you have a costly home repair or remodel planned? Are you thinking about opening a business? In either case - or for a multitude of other reasons - you may need access to $70,000. There are multiple options to consider when borrowing that amount of money. Credit cards and personal loans are two alternatives to think about. But, a home equity loan could be a better option.
These loans often come with lower interest rates because they're attached to your home. But, with your home as security, you should ensure you can afford the payments before borrowing the money.
So, how much would a $70,000 home equity loan cost per month and how would that cost compare to the monthly cost of credit cards and personal loans? That's what we'll calculate below.
See what home equity loan interest rate you're eligible for here.
How much would a $70,000 home equity loan cost per month?
There are a few factors that will dictate the monthly cost of your home equity loan. These include your interest rate and loan amount. Your term can also have a meaningful impact on your payments.
10-year and 15-year terms are some popular options to consider. And, the average interest rates for home equity loans with these are 8.74% and 8.73%, respectively. At 8.74%, your monthly payments on a 10-year $70,000 home equity loan would be $876.91. And, at 8.73%, you would pay $698.79 on a $70,000 15-year home equity loan.
But, the monthly cost of your loan isn't the only thing you should consider. There's a significant difference between the overall cost of a 10-year $70,000 home equity loan and its 15-year alternative. Over 10 years, you would pay a total of $105,229.28, which includes $35,229.28 in interest. Over 15 years, you would pay a total of $125,781.76, which includes $55,781.76 in interest.
So, while you can save on the monthly cost of your loan by opting for a 15-year term over a 10-year term, you could experience significant long-term savings by choosing the 10-year option.
Find out how much your home equity loan payments would be today.
How home equity loan costs compare to the alternatives
The difference in the monthly cost between home equity loans and personal loans or credit cards can be substantial. According to Bankrate, the average credit card interest rate is almost 21%, as of June 26, 2024. And, the average personal loan interest rate is 12.35%.
If you took out a $70,000 10-year personal loan at 12.35%, your monthly payments would be $1,018.51. If you opted for a 15-year term at the same rate, your monthly payments would be $855.94. If you opted for a 10-year term, you would pay $52,221.26 in interest while you would pay $84,069.90 in interest if you chose a 15-year term.
Your credit card payments on $70,000 at 21% interest would be between $1,925 and $3,500, depending on how your payments were calculated. If your payments were calculated as 1% of the balance plus interest (the lowest credit card payment mentioned above), you would pay $121,874.47 in interest. If your payments were calculated as 5% of your balance (the highest credit card payment mentioned above), you would pay $37,603.24 in interest.
Based on these figures, you could realize substantial savings over personal loans and credit cards by borrowing $70,000 with a home equity loan instead.
Tap into savings with a home equity loan now.
The bottom line
You would pay between $698.79 and $876.91 per month on the average $70,000 home equity loan, depending on your loan's term and interest rate. That pales in comparison to the payments ranging from $855.94 to $1,399 per month that you'd need to make if you borrowed the same amount of money with a personal loan or credit card. Compare today's leading home equity loans to access the money you need now.
