Here's what a $50,000 HELOC costs monthly after the October Fed rate cut
Borrowing money can be stressful enough, but when doing so with a product that has a variable rate, it may be so worrisome that borrowers elect to pay more with a fixed-rate alternative.
But that could be a costly mistake in today's economy, especially for homeowners looking to leverage their home equity. And it's largely one that can be easily avoided, considering the recent, consistent decline in home equity line of credit (HELOC) interest rates. Average rates here are down by more than two full percentage points over the last year, encouraged in part by the Federal Reserve's recent interest-rate cutting campaign.
The latest cut from the central bank, issued on October 29 in the amount of 25 basis points, ensures that HELOCs will remain one of the more affordable borrowing options for the foreseeable future, too. Still, with the home in question functioning as collateral in these exchanges, it's critical that borrowers understand the associated costs. And that's the same whether borrowing a small amount or a larger, five-figure amount like $50,000. So, how much will a $50,000 HELOC cost monthly now, following the October Fed rate reduction? That's what we'll detail below.
See how low your current HELOC interest rate offers are here.
Here's what a $50,000 HELOC costs monthly after the October Fed rate cut
Calculating the exact monthly costs of a HELOC always requires inherent speculation as the product's variable rate can and will change over time. Still, a HELOC now offers homeowners one of the cheapest ways to borrow money overall, so it can still be the most cost-effective way to borrow $50,000. Here's what it will cost monthly after the October Fed rate, assuming rates here remain the same over time, calculated against today's average and two traditional repayment periods:
- 10-year HELOC at 7.90%: $604.00 per month
- 15-year HELOC at 7.90%: $474.90 per month
For context, here's what it cost in September, following a Fed rate reduction in that month:
- 10-year HELOC at 8.05%: $607.96 per month
- 15-year HELOC at 8.05%: $479.27 per month
And here's what it cost in February 2025:
- 10-year HELOC at 8.28%: $614.06 per month
- 15-year HELOC at 8.28%: $485.94 per month
The trend here, then, is an unmistakable one: HELOC rates are consistently falling and monthly payments are, too. And considering that the product has a rate that will change independently each month, both existing borrowers and new ones can benefit from this decline. Plus, with additional rate cuts looming, possibly in the final Fed meeting of 2025, this unique product could become even cheaper. If you need extra financing, then it makes sense to look at a HELOC, specifically, in today's rate climate.
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How much does a $50,000 home equity loan cost monthly now?
While the HELOC is the cheaper option, some homeowners may prefer a home equity loan, with a slightly higher average rate but a fixed one that makes budgeting simpler.
Fortunately, home equity loan rates have also been declining, though not as significantly as HELOCs. Here's what a $50,000 home equity loan will cost now monthly, post-October Fed rate cut, calculated against available rates and common repayment periods:
- 10-year home equity loan at 8.21%: $612.20 per month
- 15-year home equity loan at 8.10%: $480.72 per month
The bottom line
A $50,000 HELOC comes with monthly payments ranging from around $475 to $604 now, after the Fed cut rates in October. And it's well-positioned to become even cheaper in the weeks and months ahead. So, if you're comfortable borrowing from your home equity, can afford some variability in monthly payments and currently find yourself in need of a large credit line, a HELOC could be the smart and cost-effective solution you've been looking for.