How much does a $50,000 home equity loan cost monthly in 2025?

The interest rate climate over the last five years has been volatile. Rates were near 0% in 2020 as the Federal Reserve aggressively responded to the pandemic. But once that waned, inflation rose dramatically, hitting a decades-high in June 2022. In response, the Fed reversed course and issued a series of interest rate hikes. But those were halted toward the end of 2023 and by the end of 2024, with inflation declining, the Fed issued three consecutive cuts to the federal funds rate.

This has all made borrowing trickier for Americans. One of the cheaper ways to borrow, however, remains via a home equity loan. Interest rates on the product have declined steadily over the last 12 months, approximately, and, right now, home equity loan rates are around three times cheaper than what can be secured with a credit card. Borrowers considering this unique funding source, however, should first calculate their potential repayments before getting started, particularly if they're considering a large, five-figure loan. 

Fortunately, this is easy to do, thanks to the fixed-rate structure of home equity loans. Below, we'll break down how much a $50,000 home equity loan could cost monthly if opened now, at the start of 2025.

See how much equity you'd be eligible to borrow here now.

How much does a $50,000 home equity loan cost monthly in 2025?

Despite the new year and an interest rate cut in December, home equity loan rates haven't materially changed from where they were last October, right after the Fed issued a larger-than-expected 50 basis point cut in September. At that point, the average home equity loan rate was 8.47% for a 10-year loan and 8.38% for a 15-year loan. Now, those rates are slightly higher, with the average 10-year home equity loan rate being 8.57%, while the 15-year one is 8.52%. 

That's due to a series of factors that drive home equity loan rates being less favorable. Inflation rose in October, November and December. After December's rate cut, the Fed paused rates in January – and the bank won't meet again until mid-March. With this context, then, here's what borrowers can expect to pay monthly for a $50,000 home equity loan withdrawn now:

• 10-year home equity loan at 8.57%: $1,243.60 per month
• 15-year home equity loan at 8.52%: $985.91 per month

Homeowners will pay almost $300 less per month by selecting the 15-year term, although that will extend their repayments another five years and ultimately result in more interest paid. Carefully weigh both terms, then, and your realistic ability to pay either to better determine which is more advantageous for you right now. And don't forget to shop around to compare rates and lenders, as you may be able to find a loan with lower rates than those calculated here.

Start shopping for home equity loans online now.

What other ways can you borrow $50,000 in home equity?

A home equity loan isn't the only way to borrow $50,000 worth of home equity now. Here are three others worth exploring:

HELOCs: A home equity line of credit (HELOC) allows homeowners to withdraw from their equity via a revolving credit line, similar to a credit card. Right now, HELOC rates are a bit lower than home equity loans, but these rates are variable and liable to change each month, so borrowers will need to account for that inherent risk before applying.

Learn more about borrowing with a HELOC here.

Cash-out refinancing: With a cash-out refinance homeowners take out a new loan in an amount larger than what they currently owe on their mortgage. They then use the new one to pay off the old one and pocket the difference between the two as cash. This is a risky approach now, however, as the new loan may come with a higher rate than your current mortgage loan, negating much of the help this alternative seemingly offers.

Reverse mortgages: Only generally applicable to homeowners age 62 and older, this option works as its name suggests: Lenders send payments to the homeowner from the accumulated equity each month. But that money will need to be repaid if the homeowner dies or if the home is sold, so it could theoretically reduce the home's value for beneficiaries.

The bottom line

At the beginning of 2025, a $50,000 home equity loan will cost borrowers somewhere between $986 and $1,244 each month. But those payments can change depending on your credit profile, when you apply, the length of your term and more. So if you know you want to borrow money this way and want the funds soon, it makes sense to start researching your options and calculating your potential repayments now.