How much does a $300,000 HELOC cost monthly in today's rate environment?

Tapping into your home equity can be a smart move in today's economic landscape, but it also represents a significant financial decision, one that requires careful consideration of both immediate costs and long-term implications. With the average homeowner now sitting on about $313,000 in home equity, a record high, and some sitting on even more equity than that, though, it makes sense that so many people are exploring ways to leverage this wealth for debt consolidation, home renovations or major purchases. And, if you're thinking about tapping into that equity now, the good news is that your decision coincides with a favorable shift in borrowing costs. 

Following the Federal Reserve's first rate cut of 2025, the rates on home equity lines of credit (HELOCs), for example, are sitting at 7.84% on average, marking a notable decline from recent highs and positioning HELOCs among the most competitive borrowing options available. And, with further Federal Reserve rate reductions anticipated in the coming weeks and months, homeowners who are considering a six-figure HELOC may have an opportunity to borrow at attractive terms while potentially benefiting from future rate decreases. 

But before you tap into this equity, though, it's important to understand exactly what a HELOC costs monthly to avoid putting yourself in a precarious financial position. So, how much are the monthly payments on a $300,000 HELOC at today's rates?

Find out how affordable your home equity borrowing options could be now.

How much does a $300,000 HELOC cost monthly in today's rate environment?

The monthly cost of a $300,000 HELOC depends primarily on the interest rate and repayment period you select. While HELOCs feature variable rates that fluctuate over time, calculating payments based on current rates provides a reliable starting point for budgeting. Here's what borrowers can expect to pay monthly right now, assuming the rate holds steady:

• 10-year HELOC at 7.84%: $3,614.51 per month
• 15-year HELOC at 7.84%: $2,839.31 per month

To appreciate how much the rate environment has improved over the last few months, consider what these same borrowing terms would have cost earlier this year. In March, when rates averaged 8.06%, the monthly payments would have looked like this:

• 10-year HELOC at 8.06%: $3,649.35 per month
• 15-year HELOC at 8.06%: $2,877.36 per month

The difference becomes even more pronounced when comparing today's rates to the rate environment in October 2024, when HELOCs averaged 8.69%:

• 10-year HELOC at 8.69%: $3,750.13 per month
• 15-year HELOC at 8.69%: $2,987.73 per month

The year-over-year savings tell a compelling story. A borrower who takes out a 10-year $300,000 HELOC today will pay approximately $135 less per month compared to last October, a meaningful reduction that adds up to over $1,600 annually. The 15-year option shows similar improvement, with monthly payments dropping by roughly $148 compared to a year ago.

What makes these savings particularly attractive is that HELOC rates adjust automatically as market conditions change. Unlike a home equity loan, which locks in a fixed rate and requires refinancing to capture lower rates, a HELOC naturally reflects current rate trends. This means borrowers won't need to pay closing costs or navigate refinancing paperwork to benefit from future rate cuts, which many experts expect will continue through the coming months.

Compare today's top home equity loans and HELOCs to find the right fit for you.

What to know about HELOC costs over time

The variable-rate nature of HELOCs represents both an advantage and a consideration that demands careful planning. Unlike fixed-rate products, your monthly payment on a HELOC will fluctuate as the underlying interest rate responds to economic conditions and Federal Reserve policy decisions. This variability cuts both ways.

In a declining rate environment like the current one, variable rates work in your favor. As the Federal Reserve continues implementing rate cuts and overall borrowing costs trend downward, your HELOC rate will likely follow suit, automatically reducing your monthly payment without any action required on your part. This passive benefit can result in substantial long-term savings, particularly if you're carrying the loan over a 10- or 15-year period.

However, the opposite scenario also holds true, too. Should economic conditions shift and rates begin climbing again, your monthly payment will increase accordingly. This potential volatility makes budgeting more challenging and requires maintaining financial flexibility. Before committing to a large HELOC, stress-test your finances by calculating what your payments would look like if rates rose by one, two or even three percentage points. If your budget couldn't accommodate such increases, you might be better served by a fixed-rate home equity loan despite its typically higher initial rate.

Many lenders also offer interest-only payment options during the initial draw period, which typically lasts five to 10 years. While this feature can significantly lower your monthly obligations in the short term, remember that you'll eventually need to repay the principal, leading to higher payments later.

The bottom line

At current rates, a $300,000 HELOC costs between approximately $2,839 and $3,615 per month, depending on your chosen repayment term. These costs are trending favorably as rates continue their decline, and the variable-rate structure means you'll automatically benefit from future rate cuts without refinancing. That said, the same variability that makes HELOCs attractive in falling-rate environments creates uncertainty for long-term planning. So, make sure your budget can handle potential payment increases before committing to a six-figure HELOC, or consider whether a fixed-rate home equity loan might offer the predictability your financial situation requires.