HELOC borrowing costs are declining again now that the Federal Reserve cut interest rates.
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While it can be fun to think about winning big sums of money or borrowing extravagantly, the reality is that sometimes you just need a little extra to cover your expenses. And, with inflation rising again and the costs of everyday living elevated, it’s understandable if you find yourself in this situation right now. So, while hundreds of thousands of dollars in extra funding would be nice, sometimes all you need is tens of thousands of dollars to make ends meet and regain your financial footing.
Fortunately, if you’re a homeowner right now, you likely have around 10 times this amount (or more) via your home equity. With the median equity level in the country now around $313,000, borrowing $30,000 should be relatively simple, and it will leave more than 90% of your equity untouched for an emergency or other needs in the future.
And, if you borrow it with a home equity line of credit (HELOC), you’ll pay less interest than you would with a home equity loan or personal loan or credit card. Since the Federal Reserve cut interest rates in September, this unique borrowing tool is even more affordable than it was, too.
Still, your home is put up as collateral in this borrowing exchange so you must start by realistically calculating your potential repayment costs. But how much will a $30,000 HELOC cost monthly now that the Fed cut rates? And will it soon become even cheaper? Below, we’ll break down the answers to both critical questions.
Start by seeing how much home equity you’d be eligible to borrow here.
Here’s how much a $30,000 HELOC costs monthly now that the Fed cut rates
Determining the future monthly payments on a HELOC, regardless of the amount, is impossible to do with precision because the line of credit has a variable interest rate that can and will change over time based on market conditions. Here’s what it could cost if secured now, via today’s available average rate and two common repayment periods:
10-year HELOC at 7.88%: $362.08 per month15-year HELOC at 7.88%: $284.62 per month
For context, here’s what a $30,000 HELOC would have cost monthly back in February:
10-year HELOC at 8.28%: $368.4415-year HELOC at 8.28%: $291.57
And here’s what it would have cost in October 2024:
10-year HELOC at 8.69%: $375.01 per month15-year HELOC at 8.69%: $298.77 per month
HELOC interest rates and, therefore, monthly payments are now cheaper than they were at the start of 2025 and less expensive than they were in the final months of 2024, too. That makes this one of the better ways to borrow money right now, especially considering that they’re positioned to become even cheaper in the short term.
See how low a HELOC rate you could qualify for here.
Why a HELOC could soon become cheaper
The interest rate climate appears to be cooling again. Not only did the Federal Reserve recently issue its first rate cut of 2025 in September, but it’s widely expected to issue additional cuts in its October and December meetings, too. If those cuts materialize, HELOC rates will tumble further. And that could happen even before a cut is officially announced, as many lenders tend to reduce their rates preemptively as a cut becomes more likely. In other words, the rates and payments you see listed above may be even lower by the end of October and, almost certainly, before the end of the year.
The bottom line
A $30,000 HELOC now comes with monthly payments ranging from $285 to $362, approximately. And thanks to current market conditions and the rate structure of the product, it can soon (and likely will) become even more affordable. That all noted, prospective HELOC borrowers should note that the above calculations are all done on the assumption that the borrower will immediately start making payments (and that the full line of credit has been used). In reality, interest-only payments are generally only required during the initial draw period, making this even more affordable than it may seem on the surface.
Have more questions about borrowing with a HELOC? Learn more about your options here.