Overview
- - Bankrate’s January 7 averages show about 7.97% for 5-year home equity loans, 8.16% for 10-year terms and 8.10% for 15-year options.
- - A $100,000 loan now runs roughly $1,222.81 per month on a 10-year term at about 8.18% or $963.17 on a 15-year term at about 8.13%, reflecting lower costs than early 2025.
- - For $40,000, estimated payments are about $488.70 per month over 10 years at 8.16% or $384.57 over 15 years at 8.10%.
- - These loans are currently far cheaper than unsecured credit, with typical personal loan rates above 10% and credit card rates above 20%.
- - Offers vary by lender and borrower profile, rates are fixed unlike HELOCs, and using home equity as collateral carries foreclosure risk if payments lapse.