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There are plenty of ways to borrow $30,000, particularly if you have a good credit score. From personal loans to credit cards to home equity borrowing products, there are plentiful options to choose from. But in today’s elevated interest rate climate, home equity loans and home equity lines of credit (HELOCs) come with interest rates in the single digits. And they have attractive tax benefits that many other alternatives simply do not.
Before getting started with a home equity loan, however, borrowers should first understand their potential monthly costs. While home equity loans have interest rates that are fixed, allowing savers to accurately predict their future costs, they also use the home in question as collateral. Fail to repay the loan as agreed on and the lender could take the home back. So these repayments must be calculated carefully before formally applying. It’s especially critical to do this math now, with inflation rising again and interest rate relief uncertain.
But, how much would a $30,000 home equity loan cost each month now, in mid-February 2025? That’s what we’ll calculate below.
See how much a $30,000 home equity loan would cost you here.
What does a $30,000 home equity loan cost each month in 2025?
Home equity loan rates steadily declined for much of 2024 before moderating a bit to begin in 2025. Here’s what a qualified borrower can expect to pay monthly for a $30,000 home equity loan withdrawn now, at today’s average interest rates:
- 10-year home equity loan at 8.55%: $372.76 per month
- 15-year home equity loan at 8.50%: $295.42 per month
Although those are common rates for those repayment terms, overall, home equity loan rates right now are averaging 8.41%. So it helps to know what that $30,000 loan would be at that rate, too:
- 10-year home equity loan at 8.41%: $370.51 per month
- 15-year home equity loan at 8.41%: $293.84 per month
In short, borrowers will pay more each month for the shorter term but save in interest costs thanks to the condensed repayment time frame, so consider both before applying. And understand that these rates are fixed and won’t adjust downward should the rate climate cool again. In that scenario, home equity loans will need to be refinanced instead.
Learn more about your current home equity loan options here.
How much are the alternatives?
To understand why a home equity loan is one of your better borrowing options now, in February 2025, it helps to compare it to the costs of the alternatives. While a 10-year home equity loan will come with costs between $294 and $371, a personal loan at the current average of 12.38% would have a monthly payment of around $437 now. And credit cards, with the average rate near a record 23% currently, would be even more expensive at around $641 monthly. So, when stacked against the alternatives, a home equity loan becomes the clear, cost-effective choice right now.
The bottom line
A home equity loan for $30,000 comes with monthly payments of around $294 to $373 right now for qualified borrowers. But if you’re not a homeowner with a good credit score and clean credit profile, you could risk having to pay significantly more. So first check your credit report and make sure your score is as high as possible. Then start shopping for lenders and rates online to find the best offer for your individual needs.
