Borrowing a sizable amount of home equity should always be done strategically and with caution. And when the equity amount is $150,000, which is almost half of the average $313,000 equity level homeowners have now, it should be done even more judiciously. Failure to make the repayments as agreed could lead to foreclosure on the property. Unlike a home equity line of credit (HELOC), in which interest-only payments will be mandated during the initial draw period of 10 or 15 years, full repayments will be required for home equity loan borrowers from the start.The good news, however? Home equity loan interest rates are on the decline. That means payments here are considerably more affordable than they were in the recent past. Following the October Federal Reserve interest rate cut and another cut widely expected in December, rates and payments could become even cheaper ahead. Before getting started with a $150,000 home equity loan, however, you’ll want to truly ensure that you can make the payments. So, how much does a $150,000 home equity loan cost per month now, after the Fed cut rates in October? That’s what we’ll break down below.See how much home equity you’d be eligible to borrow here.How much does a $150,000 home equity loan cost per month now after the Fed cut rates in October?Home equity loan interest rates are fixed, meaning that they will remain the same for the full repayment period, even if market conditions cause the rate climate to rise or fall during that time. This offers borrowers both financial security and predictability as they know what their payments will be each month. Here, then, is how much a $150,000 home equity loan costs per month now, calculated against readily available interest rates and two traditional repayment terms:10-year home equity loan at 8.20%: $1,835.80 per month15-year home equity loan at 8.15%: $1,446.50 per monthFor context, here’s what a home equity loan of this size would have cost monthly after the September 2025 Fed rate cut:10-year home equity loan at 8.34%: $1,846.97 per month15-year home equity loan at 8.21%: $1,451.72 per monthAnd here’s what it would have cost in February 2025, when average rates were even higher:10-year home equity loan at 8.54%: $1,863.00 per month15-year home equity loan at 8.49%: $1,476.23 per monthPayments here are both more affordable than they were in September and considerably cheaper than they were in February, when they were around $30 per month more for either loan term. Still, rates and payments here haven’t fallen so considerably as to make a home equity loan your obvious best choice for borrowing this amount of money. Consider HELOCs, too, to better determine which makes more financial sense for your current borrowing needs.Compare your top HELOC and home equity loan offers here now.How to get a below-average home equity loan rate nowWhile today’s 8.20% and 8.15% home equity loan rates are competitive, they’re just averages, meaning that it is possible for homeowners to secure even lower rates. By reviewing their credit report for errors or inaccuracies (and fixing them), these borrowers can potentially boost their credit score. They can also shop around for lenders besides their existing mortgage one to find even lower rates – and then return to their existing mortgage lender to see if they can beat that offer. And, if these owners time the market strategically and are ready to act during small windows of opportunity (like around the time of the next Fed rate cut), they may be rewarded with a below-average home equity loan rate for their efforts.The bottom lineA $150,000 home equity loan comes with monthly payments ranging from $1,447 to $1,836, approximately, for qualified borrowers now. That makes now not only one of the more affordable times to take out a home equity loan of this size in 2025, but also one of the more affordable times to borrow a loan of this size in recent memory. Take the time, then, to exploit this timely opportunity as best you can. With your home functioning as collateral, it’s critical that the math works in your favor, both now and over the full repayment period.
