How much does a $60,000 home equity loan cost monthly now that interest rates have been cut?
If you need to borrow a large amount of money and don't want to deal with the headache of a product that has a variable interest rate, a home equity loan could make sense for you. And, now that the Federal Reserve has issued a rate cut again, and can potentially issue additional ones in their next meetings in October and December, this unique product is positioned to become even more affordable for homeowners.
At the same time, the affordability here is largely tied to the collateral in the exchange — namely, your home. So it's critical that you only borrow an amount that you can comfortably afford to repay or you could risk foreclosure on the property you're borrowing from. That starts with calculating the costs of your loan. And while a $60,000 home equity loan is relatively accessible for most homeowners now (the average equity amount sits over $300,000 currently), your monthly payments should still be calculated in advance of an application.
Thankfully, thanks to the home equity loan's fixed interest rate, this is easy to determine. Below, we'll break down the monthly costs of a home equity loan of this size now that interest rates have been cut and we'll compare it to recent costs for context so homeowners can better understand this new, timely opportunity.
Start by seeing how much home equity you'd be eligible to borrow here.
How much does a $60,000 home equity loan cost monthly now that interest rates have been cut?
Here's what a $60,000 home equity loan will cost borrowers monthly now, tied to two common repayment periods and today's average rates:
- 10-year home equity loan at 8.34%: $738.79 per month
- 15-year home equity loan at 8.21%: $580.69 per month
For context, here's what a $60,000 home equity loan cost monthly if secured in February:
- 10-year home equity loan at 8.55%: $745.52 per month
- 15-year home equity loan at 8.50%: $590.84 per month
And here's what it cost in October 2024, weeks after the Fed issued a half percentage point cut:
- 10-year home equity loan at 8.47%: $742.95 per month
- 15-year home equity loan at 8.38%: $586.63 per month
Rates and payments, then, are both lower than they were around this point a year ago and a bit lower than they were at the start of 2025, too. Still, it's important to remember that the above rates are all averages, so if you have a good credit score, clean credit history and substantial equity to borrow from, you may be able to secure a rate that's even lower.
Compare your current home equity loan rate offers here to learn more.
How much does a $60,000 HELOC cost monthly now?
A home equity line of credit (HELOC), on the other hand, comes with a slightly lower rate and payment now. And with a rate that's variable, it's positioned to become even more affordable as rate cuts are issued. Still, that variability works both ways so borrowers will need to calculate costs against a variety of different rates to better determine long-term affordability. For reference, here's what it can cost monthly now that rates have been reduced, on the assumption that today's rates remain the same over time:
- 10-year HELOC at 8.05%: $729.55 per month
- 15-year HELOC at 8.05%: $575.12 per month
Borrowers will need to determine for themselves, then, if the lower rate and payment they can secure with a HELOC now is worth the potential changes it can and likely will come with as the rate climate evolves.
The bottom line
A $60,000 home equity loan comes with monthly payments for qualified borrowers between $581 and $739 now and that will be predictable and reliable thanks to the loans fixed rate. That said, HELOCs are more affordable now and potentially can become even cheaper in the months ahead, unlike a home equity loan which will need to be refinanced to exploit rate cuts ahead. So carefully consider each and be realistic about the cost of payments, both now and into the future.