What will a $100,000 HELOC cost monthly in 2025?
Home equity lines of credit (HELOCs) allow homeowners to access their home's accumulated equity to finance a wide range of expenses. And in today's real estate market, they are a viable and cost-effective way to borrow a six-figure sum of money, with the average home equity amount sitting just under $320,000 right now. Thanks to a variable interest rate that changes for borrowers monthly, HELOCs are also well-positioned to become even cheaper in 2025.
The average HELOC interest rate as of January 31 was just 8.26%, which is slightly below the 18-month low rates on the product hit to start 2025. That makes it cheaper than home equity loans (averaging 8.44%), personal loans (around 13%) and credit cards (near an unprecedented 23%). So if you want to borrow money and have the home and good credit score to do so, a HELOC makes sense right now.
Before getting started, however, it's critical to first calculate your potential repayments. Below, we'll determine what a $100,000 HELOC could cost monthly this year, tied to a few realistic rate offers.
See how low of a HELOC interest rate you could qualify for here.
What will a $100,000 HELOC cost monthly in 2025?
Determining the exact repayments on a variable rate product is impossible to do with precision. But if the interest rate trajectory holds (HELOC rates have steadily declined for much of the last year), it's possible to determine what the payments could look like. Here, then, is what a $100,000 HELOC would cost monthly if applied for now, using two common repayment periods:
- 10-year HELOC at 8.26%: $1,227.06 per month
- 15-year HELOC at 8.26%: $970.72 per month
And here's what they could look like if those rates drop by 25 basis points later this year:
- 10-year HELOC at 8.01%: $1,213.80 per month
- 15-year HELOC at 8.01%: $956.23 per month
For reference, it also helps to know what they could look like if they rise by that same amount, should economic factors result in rate upticks:
- 10-year HELOC at 8.51%: $1,240.39 per month
- 15-year HELOC at 8.51%: $985.33 per month
As with any rates and loan terms, borrowers will pay more each month for a condensed term (in this case, 10 years), but they'll save significantly more over the life of the line of credit versus spreading out payments and interest over an extended period. Only the borrower will know which is better for their financial situation. Since rates on HELOCs change so often, though, the only way to truly determine affordability will be to calculate repayments against a range of possible scenarios.
Start calculating your potential HELOC costs here now.
The bottom line
Right now, a $100,000 HELOC would cost between $970 and $1,227 monthly, assuming you have good credit. But those payments will change over time, perhaps significantly if rates rise or fall. So it's critical to go into the HELOC borrowing process clear-eyed and focused. If you know you want to borrow home equity and want to avoid losing your home to the lender, a fixed-rate home equity loan may also be worth exploring now.
