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Home repairs and renovations can be costly. If you’re interested in remodeling your kitchen or taking care of other home repairs or renovations, you could use a home equity loan to access the money you need. And, doing so can come with an added advantage. You could benefit from tax incentives by using the money you borrow to improve the home you borrow it against.
Then again, it’s important to make sure you can afford the loan before you take it out. With home equity loans being secured by your home, you could lose it if you don’t make your payments as agreed.
So, how much would an $80,000 home equity loan cost monthly at today’s average rates? We did the math below.
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How much would an $80,000 home equity loan cost per month?
Today’s average interest rates on 10- and 15-year home equity loans are 8.74% and 8.73%, respectively. Here’s how much an $80,000 home equity loan would cost monthly at those rates:
- 10-year home equity loan: A 10-year $80,000 home equity loan at 8.74% interest would come with a monthly payment of $1,002.18. And, you would pay $40,262.04 in interest by the time you paid the loan off if you made minimum payments.
- 15-year home equity loan: A 10-year $80,000 home equity loan at 8.73% interest would come with a monthly payment of $798.61. And, you would pay $63,750.58 in interest by the time you paid the loan off if you made minimum payments.
If you can afford a $1,002.18 payment, the 10-year home equity loan may be your better option as it would save you $23,488.54 in interest over the life of the loan. But, it may be worth paying the extra interest for the lower, $798.61 monthly payment if the monthly cost of the loan is your primary concern.
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How much would other home equity loans cost per month?
While some home projects may cost you $80,000 or more, other home renovations and repairs come with different price tags. So, if you want to access your home equity for a different amount, it helps to know what it would cost. Here’s what you can expect to pay monthly on other starting home equity loan balances:
$10,000 starting home equity loan balance
- 10-year term: A $10,000 home equity loan with a 10-year term at 8.74% interest would cost $125.27 per month and $5,032.75 in interest over the life of the loan.
- 15-year term: A $10,000 home equity loan with a 15-year term at 8.73% interest would cost $99.83 per month and 7,968.82 in interest over the life of the loan.
$20,000 starting home equity loan balance
- 10-year term: A $20,000 home equity loan with a 10-year term at 8.74% interest would cost $250.55 per month and $10,065.51 in interest over the life of the loan.
- 15-year term: A $20,000 home equity loan with a 15-year term at 8.73% interest would cost $199.65 per month and $15,937.64 in interest over the life of the loan.
$25,000 starting home equity loan balance
- 10-year term: A $25,000 home equity loan with a 10-year term at 8.74% interest would cost $313.18 per month and $12,581.89 in interest over the life of the loan.
- 15-year term: A $25,000 home equity loan with a 15-year term at 8.73% interest would cost $249.57 per month and $19,922.06 in interest over the life of the loan.
$40,000 starting home equity loan balance
- 10-year term: A $40,000 home equity loan with a 10-year term at 8.74% interest would cost $501.09 per month and $20,131.02 in interest over the life of the loan.
- 15-year term: A $40,000 home equity loan with a 15-year term at 8.73% interest would cost $399.31 per month and $31,875.29 in interest over the life of the loan.
$50,000 starting home equity loan balance
- 10-year term: A $50,000 home equity loan with a 10-year term at 8.74% interest would cost $626.36 per month and $25,163.77 in interest over the life of the loan.
- 15-year term: A $50,000 home equity loan with a 15-year term at 8.73% interest would cost $499.13 per month and $39,844.11 in interest over the life of the loan.
$60,000 starting home equity loan balance
- 10-year term: A $60,000 home equity loan with a 10-year term at 8.74% interest would cost $751.64 per month and $30,196.53 in interest over the life of the loan.
- 15-year term: A $60,000 home equity loan with a 15-year term at 8.73% interest would cost $598.96 per month and $47,812.93 in interest over the life of the loan.
$75,000 starting home equity loan balance
- 10-year term: A $75,000 home equity loan with a 10-year term at 8.74% interest would cost $939.55 per month and $37,745.66 in interest over the life of the loan.
- 15-year term: A $75,000 home equity loan with a 15-year term at 8.73% interest would cost $748.70 per month and $59,766.17 in interest over the life of the loan.
$100,000 starting home equity loan balance
- 10-year term: A $100,000 home equity loan with a 10-year term at 8.74% interest would cost $1,252.73 per month and $50,327.55 in interest over the life of the loan.
- 15-year term: A $100,000 home equity loan with a 15-year term at 8.73% interest would cost $998.27 per month and $79,688.22 in interest over the life of the loan.
$150,000 starting home equity loan balance
- 10-year term: A $150,000 home equity loan with a 10-year term at 8.74% interest would cost $1,879.09 per month and $75,491.32 in interest over the life of the loan.
- 15-year term: A $150,000 home equity loan with a 15-year term at 8.73% interest would cost $1,497.40 per month and $119,532.33 in interest over the life of the loan.
$200,000 starting home equity loan balance
- 10-year term: A $200,000 home equity loan with a 10-year term at 8.74% interest would cost $2,505.46 per month and $100,655.09 in interest over the life of the loan.
- 15-year term: A $200,000 home equity loan with a 15-year term at 8.73% interest would cost $1,996.54 per month and $159,376.45 in interest over the life of the loan.
$300,000 starting home equity loan balance
- 10-year term: A $300,000 home equity loan with a 10-year term at 8.74% interest would cost $3,758.19 per month and $150,982.64 in interest over the life of the loan.
- 15-year term: A $300,000 home equity loan with a 15-year term at 8.73% interest would cost $2,994.80 per month and $239,064.67 in interest over the life of the loan.
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The bottom line
The monthly cost of your home equity loan depends on the starting amount you borrow, your term and your interest rate. You can reduce your monthly cost by choosing a longer loan term or a lower loan value. But, if you choose a longer term, it’s important to consider the long-term interest cost associated with the loan and weigh that against your monthly savings. Compare today’s top home equity loans now.