How much are the monthly payments on a $30,000 home equity loan now, after the October Fed rate cut?

In today's economy, in which inflation and unemployment remain a concern and elevated interest rates cause borrowing to be more expensive than it was just a few years ago, many homeowners find themselves in need of extra financing. And that could be particularly true right now with the holiday season looming and spending expected to surge. While personal loans and credit cards are common solutions to this financial problem, the reality is that interest rates on both are currently in the double digits. Credit cards, in particular, currently come with rates near record highs.

But homeowners have a viable, affordable alternative borrowing source right at their fingertips: their home equity. Home equity levels hit a record high this year and the average homeowner has hundreds of thousands of dollars in equity to leverage right now. Borrowing an amount like $30,000 then should be relatively simple. With home equity loan rates in the low 8% range, it's also cheaper than most alternatives.

Still, home equity loans use your home as collateral, so it's critical that prospective borrowers calculate their exact repayment costs before getting started. Fortunately, that's simple to do thanks to the fixed rate the product comes with. That rate is also lower now, too, thanks to the Federal Reserve's current interest rate-cutting campaign. So, how much are the monthly payments on a $30,000 home equity loan now, after the October Fed rate cut? Below, we'll do the math.

See how much home equity you'd be eligible to borrow here.

How much are the monthly payments on a $30,000 home equity loan after the October Fed rate cut?

Home equity loan interest rates differ slightly depending on the repayment term. Here's what the monthly payments on a $30,000 home equity loan look like now, calculated against readily available rates and two traditional repayment lengths:

• 10-year home equity loan at 8.20%: $367.16 per month
• 15-year home equity loan at 8.15%: $289.30 per month

For context, here's what the same loan cost after the Fed's September rate cut:

• 10-year home equity loans at 8.34%: $369.39 per month 
• 15-year home equity loans at 8.21%: $290.34 per month

And here's what it cost in February 2025, when the Fed kept interest rates on pause:

• 10-year home equity loan at 8.55%: $372.76 per month 
• 15-year home equity loan at 8.50%: $295.42 per month

So while rates here are only around 35 basis points lower than they were earlier in the year, the trajectory is a clear one. While it may only equate to a few dollars less each month, that can add up to substantial savings over the life of the loan. It's important to remember, however, that the fixed home equity loan rate borrowers secure now will remain the same over the life of the loan. They'll need to refinance it to exploit any additional interest rate cuts ahead. There's no guarantee of future rate cuts, however, and the security a fixed-rate product offers in today's unpredictable rate climate can still be valuable for many borrowers.

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Is a HELOC a better alternative?

For those prospective home equity borrowers not convinced that a home equity loan is their best borrowing option, a home equity line of credit (HELOC) may also be worth exploring. HELOC interest rates are at their lowest level since 2023, down more than two full percentage points from where they sat in September 2024. Rates here could also decline naturally alongside additional Fed rate cuts still to come, thanks to the product's variable rate that responds monthly to market conditions. That variability can also be stressful, however, for homeowners who need a fixed payment each month. Weigh the costs of a lower interest rate, then, against the volatility the HELOC comes with to better determine if this is the right alternative to a home equity loan.

The bottom line

A $30,000 home equity loan comes with monthly payments ranging from $289 to $367, approximately, for qualified borrowers now, after the October Fed rate cut. That makes the product cheaper than it was in September and at earlier points this year. Still, the affordability here isn't so substantial as to negate the benefits of alternative products like HELOCs. Homeowners should consider both carefully to best determine not only which is most affordable now but which is likely to remain so for the future.