Comparison of Monthly Costs for $50,000 Home Equity Loan and HELOC

Homeowners currently have access to record levels of home equity for borrowing. Interest rates on home equity loans and home equity lines of credit (HELOCs) have declined in recent months, unlike rates for some other products such as mortgages, which have increased.

The average HELOC interest rate has decreased by more than two percentage points compared to 18 months ago. Home equity loans provide fixed interest rates, while HELOCs have variable rates that adjust monthly based on market conditions.

a $50,000 home equity loan at 6.96% interest, the monthly payment is $579.51 for a 10-year term and $448.30 for a 15-year term. For a $50,000 HELOC at 7.11% interest, the monthly payment is $583.38 for a 10-year term and $452.49 for a 15-year term. These calculations assume the home equity loan rate remains fixed without refinancing and the HELOC rate stays constant.

2025, a $50,000 home equity loan at 8.18% for 10 years cost $611.40 per month, and at 8.13% for 15 years cost $481.59 per month. A $50,000 HELOC at 7.81% cost $601.63 for 10 years and $472.36 for 15 years. In September 2025, costs were higher: a $50,000 home equity loan at 8.43% for 10 years was $618.06 per month, and at 8.31% for 15 years was $486.82 per month.

A $50,000 HELOC at 8.05% cost $607.96 for 10 years and $479.27 for 15 years.

products use the home as collateral, and failure to repay could result in foreclosure. Borrowers with HELOCs should assess costs under various rate scenarios due to potential fluctuations. Homeowners are advised to compare options from multiple lenders, not limited to their current mortgage provider, to find suitable rates and terms.