With the average homeowner in possession of approximately $320,000 worth of home equity currently, many may be tempted to borrow a small portion of that amount before first knowing the exact costs of doing so. A home equity line of credit (HELOC), for example, for $25,000 can help cover a wide range of expenses and, depending on the usage, may even qualify for a tax deduction when you file your next return in 2026. With a remaining average of $295,000 worth of equity to potentially borrow from in the future, borrowers will leave a healthy portion of the equity in the home.

When borrowing money, however, it’s always critical to first calculate the potential repayment costs, particularly when using your home as collateral as you could lose it back to the lender if you’re unable to make your repayments. This consideration is even more important in the economic climate of early 2025, however. With inflation rising, costs of everyday living elevated and relief in the interest rate climate delayed, homeowners should be particularly judicious about how they borrow their home equity. And this caution begins with precisely calculating your future costs. So, how much will a $25,000 HELOC cost per month in 2025? Below, we’ll complete the calculations.

See how much equity you could borrow with a HELOC here.

How much will a $25,000 HELOC cost per month in 2025?

To start, prospective HELOC borrowers should understand that many lenders will require owners to withdraw a minimum of approximately $35,000 worth of equity to be approved. Other lenders, however, may have a minimum as low as $10,000 or $20,000. So a $25,000 HELOC is generally obtainable, but perhaps not as easy to find as a HELOC for $50,000 or $100,000. 

Understanding this, then, here’s what homeowners with good credit can expect to pay monthly for a $25,000 HELOC if opened now:

• 10-year HELOC at 8.28%: $307.03 per month
• 15-year HELOC at 8.28%: $242.97 per month

And since HELOC rates are variable (they change monthly), it helps to do the math for a few other rate scenarios. Here’s what a $25,000 HELOC would cost if rates jump by half a percentage point from today’s average:

• 10-year HELOC at 8.78%: $313.72 per month
• 15-year HELOC at 8.78%: $250.31 per month

And here’s what they’d look like if they dropped by the same amount:

• 10-year HELOC at 7.78%: $300.42 per month
• 15-year HELOC at 7.78%: $235.75 per month

While these rates can give homeowners a rough estimate of what their monthly payments will be, it won’t be precise. Considering that HELOC rates were comfortably over the 10% mark around a year ago, these rates could still move considerably, particularly over a decade or more. So if you’re unsure of your ability to pay a changing rate each month, you may be better served by exploring fixed-rate home equity loans instead, which come with average interest rates just slightly higher than HELOCs do now.

See what home equity loan rate you’d qualify for here.

The bottom line

A $25,000 HELOC opened at today’s rates would cost between $243 and $308 each month. But those payments will change significantly over time as rates rise, fall and rise again. So be sure to calculate the potential costs tied to a series of realistic rate scenarios. And compare them to the fixed-rate nature of home equity loans to determine which is more affordable for you, both now and over the full repayment period. With your home serving as collateral in either borrowing exchange, it’s critical that you get the math right before formally withdrawing the funds.