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More than two full percentage points. That’s how far the average interest rate on a home equity line of credit (HELOC) has fallen in just the last 18 months. And with the potential for additional interest rate reductions later this spring and summer substantial at this point in 2026, it could fall further later in the year. That’s because a HELOC has a variable rate that changes monthly based on market conditions. That rate structure could be dangerous in a climate in which rates are consistently rising, but it could also be an advantage now. If rates decline again, HELOC rates will too, and borrowers won’t need to refinance or pay for refinancing closing costs as the product’s rate will adjust independently.
With an average rate of just 7.18% right now, a HELOC isn’t only the most affordable way to borrow home equity. It’s also one of the least expensive ways to borrow money overall. And there’s plenty to borrow from, considering that the average home equity level hit a record high last summer. So borrowing an amount such as $60,000 should be relatively easy to do now that median home equity levels are worth hundreds of thousands of dollars.
Still, borrowers will be leveraging their home in this borrowing exchange, and they could risk foreclosure if they don’t make payments as agreed to, so getting the math correct is critical here, in advance of an application. So, how much will a $60,000 HELOC cost monthly now that rates on the product have plunged? That’s what we’ll examine below.
See how much home equity you could borrow with a HELOC here.
How much will a $60,000 HELOC cost monthly now that rates have plunged?
To calculate your potential HELOC costs, you’ll need three primary numbers: the amount of equity being borrowed, the interest rate and the length of the repayment period. While many lenders will require interest-only payments on the HELOC during the initial draw period, the below estimates assume the full line of credit will be utilized – and repaid – immediately:
- 10-year HELOC at 7.18%: $702.23 per month
- 15-year HELOC at 7.18%: $545.35 per month
To better understand the affordability a HELOC now represents, it helps to know what a HELOC of this same size cost in September 2025following a Federal Reserve interest rate cut that month:
- 10-year HELOC at 8.05%: $729.55 per month
- 15-year HELOC at 8.05%: $575.12 per month
And here’s what it cost in October 2024in the middle of an end-of-year rate cut campaign from the Fed:
- 10-year HELOC at 8.74%: $751.64 per month
- 15-year HELOC at 8.74%: $599.31 per month
While all three above calculations assume a constant interest rate, the cost savings are unmistakable. And borrowers who opened the line of credit in 2024, for example, would have seen these changes in the form of lower monthly payments automatically. Take the time, then, to shop around for HELOCs online to see what rates you currently qualify for. You may be surprised to see how affordable this unique home equity borrowing tool is.
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The bottom line
A $60,000 HELOC now comes with monthly payments ranging from $546 to $702, approximately, if borrowers use the full line of credit immediately and elect to pay it in full, too. But with many lenders offering interest-only payments up to 10 years, these payments could be even lower depending on the borrower’s approach. And with the interest on a HELOC being tax-deductible if used for select home repair projectsthis may very well be the best borrowing product available for homeowners in need of a five-figure sum of money right now.