Home equity loans come with a series of benefits for borrowers. Since they use the home in question as collateral, they give the borrower access to a large sum of money that would otherwise be difficult to secure. They also come with interest rates many percentage points lower than popular alternatives like credit cards and personal loans. And, if used for select home projects, homeowners may even be eligible to deduct the interest paid on the home equity loan from their taxes for the year in which the funds were used.

To realize all of these benefits, however, borrowers must first calculate their potential monthly costs. With the home as collateral, they could easily lose it back to the lender if they’re unable to make the repayments as agreed upon. So even though the average homeowner has around $320,000 worth of home equity to utilize now, it’s critical that they first calculate their potential costs, even if they elect to borrow just $60,000 of that amount. These calculations are even more important to accurately calculate now, at the start of 2025, with inflation consistently rising again and interest rate cut relief on pause.

But how much does a $60,000 home equity loan cost monthly now, in the early weeks of 2025? That’s what we’ll calculate below.

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

How much does a $60,000 home equity loan cost monthly in 2025?

Costs associated with a home equity loan are determined by three primary factors: the amount of money being withdrawn, the interest rate and the length of the repayment period. Borrowers with higher credit scores will be able to secure lower rates than those whose credit needs repairing. Here, then, is what a $60,000 home equity loan will cost monthly in 2025, assuming the borrower can obtain average interest rates:

• 10-year home equity loan at 8.55%: $745.52 per month 
• 15-year home equity loan at 8.50%: $590.84 per month

The key to finding a low interest rate on a borrowing product is to shop around to compare rates and lenders. That’s no different for home equity loan borrowing. So, with the overall average interest rate of just 8.41% now, borrowers should calculate the monthly costs of a $60,000 home equity loan at that rate, too:

• 10-year home equity loan at 8.41%: $741.03 per month
• 15-year home equity loan at 8.41%: $587.68 per month

While the difference between the two rate ranges noted above is negligible, borrowers may be able to find an even lower rate if they take the time to compare offers from online lenders and banks different from their existing mortgage lenders. When those are found, then, consider calculating the repayment costs at those rates, too, to better determine affordability.

Start shopping for home equity loans online now.

The bottom line

In February 2025, a $60,000 home equity loan comes with monthly payments ranging from $588 to $746 for qualified borrowers, approximately. But with inflation problematic once again and interest rates seemingly on pause, prospective borrowers should utilize this time to shop for rates and lenders to find the most affordable option. Since home equity loan rates are fixed, and thus won’t be positioned to drop the way a variable rate home equity line of credit (HELOC) would, it behooves borrowers to take the time to find the lowest option they can right now.