Here’s how much a $90,000 home equity loan costs monthly now that the Fed cut interest rates

If you’ve ever tried applying for a personal loan worth five figures or a credit card line valued at close to $100,000, you already know how difficult it can be to get approved. You’ll likely have to provide significant amounts of paperwork, be willing to have your credit checked (perhaps multiple times) and the time to be approved could be lengthy.

If you’re a homeowner, however, particularly right now, you’re in luck. With the average home equity amount sitting around $300,000 now, borrowing an amount like $90,000 is relatively simple. And, thanks to a cooling interest rate climate encouraged by the Federal Reserve’s new rate-cut campaign, it’s also less expensive than using a personal loan or credit card.

That noted, this is still a substantial amount to borrow, no matter the source, and it should be done judiciously if it comes from your home. You can lose your home with a home equity loan if you ultimately become unable to make your payments. Before getting started, then, it helps to calculate the monthly costs of a home equity loan of this size now that the Fed cut interest rates. Below, we’ll break down the math you need to know.

Start by seeing how much home equity you’d be eligible to borrow here.

Here’s how much a $90,000 home equity loan costs monthly now that the Fed cut interest rates

Home equity loans are typically repaid over 10- or 15-year periods. Here’s what a $90,000 home equity loan will cost monthly now, calculated using today’s available rates:

• 10-year home equity loan at 8.34%: $1,108.18 per month
• 15-year home equity loan at 8.21%: $871.03 per month

For comparison, here’s what that same $90,000 home equity loan would have cost monthly in February:

• 10-year home equity loan at 8.55%: $1,118.28 per month
• 15-year home equity loan at 8.50%: $886.27 per month

Going back around one year, here’s what it would have cost in early October 2024:

• 10-year home equity loan at 8.47%: $1,114.43 per month
• 15-year home equity loan at 8.38%: $879.95 per month

A $90,000 home equity loan is both less expensive than it was at the beginning of the year and also cheaper than it was around this point one year ago. But the costs haven’t come down so drastically that they make this an obvious choice, either. And with rates on home equity lines of credit (HELOCs) comfortably under 8% now, homeowners should also consider that borrowing product before deciding on their next steps.

Compare your home equity loan and HELOC options here now.

Should you wait for home equity loan rates to fall further?

With interest rate cuts largely expected for the Fed’s next two meetings in October and December, it’s tempting to wait for those to be formalized before securing a home equity loan. And, for some homeowners, this can be a savvy move if they can afford to wait. Others, however, may find it easier to secure the funding now, while rates are still comparatively lower than they’ve been over the past year. Home equity loans can be refinanced in the future, should rates be materially lower then. But that will require paying closing costs all over again. So, there’s a lot to consider when trying to determine if prompt action is worth taking.

The bottom line

A $90,000 home equity loan comes with monthly payments that are less expensive than what borrowers could have secured at multiple points in recent history. But rates haven’t fallen so dramatically, either, to make this a clearly better choice than a HELOC. Take the time to consider both closely and be realistic about your ability to make payments. With your home functioning as collateral, you’ll want to ensure that numbers work in your favor both now and for the foreseeable future.