No matter how you borrow money, it’s critical that you first have a plan for paying it back. Whether you’re planning to borrow with a personal loan, swipe a credit card or tap into your home equity via a home equity loan, your ability to repay is critical to ensure financial stability. This is especially true in the economic climate of February 2025, with inflation rising again, interest rate relief uncertain and unpredictability in the stock market. Against this backdrop, it’s even more important that borrowers first calculate their repayment costs, particularly if they elect to use a home equity loan.

Home equity loans come with interest rates materially lower than those tied to personal loans or credit cards. But since they use the home as collateral, borrowers can easily lose it back to the bank if they’re unable to make their monthly payments. So borrowers will want to determine their monthly payments in advance. Fortunately, a home equity loan for $70,000 comes with relatively affordable payments right now and, with the average home equity amount sitting around $320,000 currently, a loan for $70,000 is largely obtainable for many homeowners. But, how much will it cost now, in the early weeks of 2025? Below, we’ll do the math.

Start by seeing how much home equity you’d be eligible to borrow here.

How much will a $70,000 home equity loan cost monthly in 2025?

Right now, the average home equity loan rate is 8.40% but is a bit higher for 10-year repayment periods (8.54%) and 15-year repayment periods (8.49%). All of those rates are slightly higher than they were after the Federal Reserve’s September 2024 rate cut but are approximately 20 basis points lower than they were last summer, emphasizing the cost-benefit of applying for a loan now, in early 2025. 

Here, then, is what qualified borrowers can expect to pay monthly for a $70,000 home equity loan applied for now:

• 10-year home equity loan at 8.54%: $869.40 per month
• 15-year home equity loan at 8.49%: $688.91 per month

And here’s what those payments would be if borrowers could lock in that lower average rate:

• 10-year home equity loan at 8.40%: $864.16 per month
• 15-year home equity loan at 8.40%: $685.22 per month

The longer your repayment period, the lower your monthly payment. And that’s not different now. But borrowers should also calculate their interest costs by extending the repayment period for that extra half-decade. In many cases, they may be better served by making the higher monthly payments over the condensed period, particularly if they’re using the loan for select home projects and can qualify for a tax deduction for the interest paid anyway.

See what home equity loan interest rate you could lock in here.

Other home equity loan considerations

An affordable monthly payment, as critical as it may be, isn’t (and shouldn’t be) the only consideration when borrowing via a home equity loan. Homeowners should also consider:

• Their intended purposes: As noted, home equity loan funds used for eligible home repairs and renovations may qualify for a tax deduction. Funds used for big-ticket purchases will not. So be sure to know the difference before borrowing.
• The interest rate climate: Right now, home equity lines of credit (HELOCs) actually have lower interest rates than home equity loans. However, HELOC rates are variable and likely to move up and down in 2025. Home equity loan rates are fixed, offering protection from an unpredictable rate climate.
• Their credit score: Remember, the above rates will only be reserved for qualified borrowers with good credit scores and clean backgrounds. If you don’t have both and have a high debt-to-income ratio, it may be worth working on those before formally applying for the loan.

The bottom line

In early 2025, a $70,000 home equity loan comes with monthly payments between $686 and $870, approximately. For many borrowers, this may be the most affordable way to borrow such a large sum of money. But these potential payments should be carefully weighed against all other borrowing options, too, to truly determine the worth of a home equity loan now. For some, the risk of having their home as collateral could easily outweigh the benefits of a lower monthly payment.