Home equity loan rates ease, here's the monthly cost on $100,000

A $100,000 home equity loan now costs about $1,222.81 a month on a 10-year term at 8.18%, or $963.17 a month on a 15-year term at 8.13%. Those fixed payments matter because a home equity loan is a lump-sum second mortgage, so the bill stays steady even when market rates move around.

The Federal Reserve held its target range at 3.5% to 3.75% at its June 17 meeting, while home equity loan APRs for qualified borrowers have stayed in the high-7% to low-8% range. Current averages sit near 7.89% to 8.26%, depending on term and methodology, with a 10-year loan at 7.500% carrying a monthly payment of about $1,188, or a 20-year loan at 7.625% carrying a payment of about $814 on the same $100,000 balance.

Homeowners tapped an estimated $47 billion in equity in the first quarter of 2026, the highest first-quarter withdrawal figure since 2021.

A home equity loan gives rate certainty and a defined payoff schedule. A HELOC keeps the credit line open but comes with a variable rate, so the payment can change. A cash-out refinance rewrites the primary mortgage instead of adding a second lien, which makes the math depend heavily on the borrower’s existing mortgage rate and remaining term. Unsecured borrowing leaves the home out of the collateral package, but it does not offer the same structure as a home-secured loan.

Bankrate's national survey assumes a $30,000 loan amount, a 700 FICO score and an 80% combined loan-to-value ratio. Home equity loan fees are commonly estimated at 2% to 5% of the loan amount, which would run about $2,000 to $5,000 on a $100,000 loan before the first payment is due.

In January 2025, a $100,000 loan at the average 10-year rate cost $1,243.60 a month and a 15-year loan cost $985.91.