How much does a $90,000 home equity loan cost monthly following the Fed’s October interest rate cut?

If you’re a homeowner in need of extra financing in today’s elevated interest rate climate, it may feel like you have few, affordable options. With personal loan interest rates hovering around 12% now and credit card rates near a record high of 22%, borrowing even a small amount of money comes with costly interest charges. And if you’re looking to borrow a large, five-figure sum like $90,000, the associated interest rates can be even more costly.But with home equity levels recently hitting a record high, you may have a cost-effective alternative right under your own roof. With the average homeowner in possession of approximately $300,000 worth of equity now, borrowing $90,000 of it should be relatively easy to do. After all, this amount still leaves a comfortable amount of equity in the home as security, as many lenders will require. And home equity loan interest rates are around 8% currently, materially less expensive than personal loans and credit cards.Following the Federal Reserve’s October interest rate cut, rates here are even more competitive than they had been over the past years. But with the home in question serving as collateral, prospective borrowers should first take the time to calculate their potential repayments. Fortunately, that’s easy to do with a home equity loan, as it comes with a fixed interest rate for borrowers. So, how much does a $90,000 home equity loan cost monthly following the Fed’s October interest rate cut? Below, we’ll break down the payments borrowers can expect.See how much home equity you’d be eligible to borrow here.How much does a $90,000 home equity loan cost monthly following the Fed’s October interest rate cut?Repaying close to $100,000 in home equity won’t be inexpensive. But it will be a lot more manageable now that home equity loan rates are on a slow but noticeable decline. Here’s how much it will cost monthly now, calculated against readily available interest rates and the two traditional repayment periods:10-year home equity loan at 8.20%: $1,101.48 per month15-year home equity loan at 8.15%: $867.90 per monthFor context, here’s what a loan of this size cost in early October, following the September Fed rate cut:10-year home equity loan at 8.34%: $1,108.18 per month15-year home equity loan at 8.21%: $871.03 per monthAnd here’s what it cost in February 2025:10-year home equity loan at 8.55%: $1,118.28 per month15-year home equity loan at 8.50%: $886.27 per monthPayments here, then, are a few dollars cheaper than they were just last month and about $15 cheaper each month than they were at the start of the year. So the trend is an encouraging one for borrowers. And, if they act now, they can lock in one of today’s lower rates and not have to worry about any adverse market conditions that could cause rates to rise again.See how low of a home equity loan rate you could lock in here.What about cash-out refinancing?For some homeowners, cash-out refinancing may be worth exploring, too. This occurs when the borrower takes out a new mortgage loan in an amount larger than their existing balance. They then use the former to pay off the latter, keeping the difference between the two as cash for themselves. The issue in today’s rate climate, however, is that current mortgage rates are likely higher than the rate you have locked. So you’ll need to weigh the benefits of getting that extra cash against the likely higher costs of changing rates. For many borrowers, it may be better to keep their low mortgage rate intact by utilizing a home equity loan or home equity line of credit (HELOC) instead.The bottom lineMonthly payments on a $90,000 home equity loan range from $868 to $1,101, approximately, this November, following the Federal Reserve’s October interest rate cut. And while that may not be cheap, it’s significantly less expensive than it was just at the start of 2025, not to mention in recent years. Still, it’s worth comparing these costs against those associated with HELOCs and cash-out refinances, too, to best determine which fits your budget both now and over the full repayment period.

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