Home equity line of credit (HELOC) rates are on the decline. Rates hit an 18-month low in January, reached a two-year low in February and are positioned to fall even further this month. Not only that, but HELOC rates are lower than home equity loan, personal loan and credit card rates right now. That’s great news for homeowners with equity looking for an affordable borrowing option. And, chances are, there’s plenty of equity to draw from. 

The average homeowner has $313,000 worth of home equity. If you wanted to use 25% or so of that total — say, $75,000 — you’d still have plenty of room for another HELOC or home equity loan in the future. But, how much would a $75,000 HELOC cost you monthly if applied for now? Below, we’ll do the calculations.

See how much home equity you could borrow with a HELOC now. 

How much will a $75,000 HELOC cost monthly in 2025?

HELOCs are a line of credit with a variable interest rate, similar to credit cards. You can use your HELOC if you need it, but you don’t have to use it. Your interest rate will largely be determined by your debt-to-income ratio and credit score. If you were able to secure the average HELOC rate right now — 8.12% — here’s how much a $75,000 HELOC would cost monthly in 2025, assuming a constant rate tied to two common repayment periods:

• 10-year HELOC at 8.12%: $914.72
• 15-year HELOC at 8.12%: $721.94

Here’s what you’d pay monthly in 2025 for a $75,000 HELOC if your rate fell by 0.50%: 

• 10-year HELOC at 7.62%: $894.97
• 15-year HELOC at 7.62%: $700.38

And here’s what your monthly payment would look like this year if your $75,000 HELOC’s rate rose by 0.50%:

• 10-year HELOC at 8.62%: $934.71
• 15-year HELOC at 8.62%: $743.84

A HELOC’s variable rate can be an advantage in 2025, as some experts believe the Federal Reserve will lower its benchmark rate as soon as June. While the Fed rate is just one of several factors that impact HELOC rates, it’s possible that Fed rate cuts could cause your HELOC rates to drop even further.

Whether rates rise or fall, having control of your finances is critical when borrowing with a HELOC, says Amanda Berry, a mortgage loan advisor with Community Lending Powered by Lower LLC.

“Because equity lines are attached to a [variable] rate, they can easily get out of control if you aren’t mindful of your budget,” she says. Berry says that having a good credit score and a purpose for your HELOC are additional ways to keep your rates manageable and spending within your means. 

See what your HELOC rate is here.

How a $75,000 HELOC compares to the alternatives

To get a sense of how a HELOC’s monthly costs are right now compared to other borrowing options, it helps to know how a $75,000 HELOC’s monthly payment stacks up against home equity loans, personal loans and credit cards based on today’s average rates: 

10-year repayment

• 10-year HELOC at 8.12% (assuming a constant rate): $914.72
• 10-year home equity loan at 8.54%: $931.50
• 10-year personal loan at 12.37%: $1,092.13
• 10-year credit card payoff at 22.80% (assuming a constant rate): $1,591 

15-year repayment

• 15-year HELOC at 8.12%: $721.94
• 15-year home equity loan at 8.48%: $737.68
• 15-year personal loan at 12.37%: $918.06
• 15-year credit card payoff at 22.80% (assuming a constant rate): $1,474

HELOCs are slightly cheaper per month than home equity loans and significantly cheaper per month than personal loans and credit cards at today’s rates, underlining the benefit of using this specific borrowing product now.

The bottom line

HELOC rates are at their lowest point in two years and home equity levels remain high. Consequently, now is a good time to take out a HELOC if you’ve been considering one. Just be careful if you’re planning on selling your home in the next few months, Berry says. In most cases, a lender won’t give you a HELOC if your home is listed for sale. In these instances, alternative borrowing sources may be more appropriate. 

“A lot of people get very disappointed when they have their home on their market and they try to access their equity and the lender won’t allow it because the home is listed,” she says. “Be a prepared borrower — know what you’re getting into upfront.”