How much does a $100,000 home equity loan cost per month following the December Fed rate cut?

Borrowing six figures’ price of house fairness might not look like the obvious borrowing selection on the floor. However with the common house fairness quantity price a whole lot of 1000’s of {dollars} proper now and cumulative house fairness ranges within the nation hitting a document excessive this yr, it may be a viable borrowing possibility price investigating proper now. And that is very true contemplating that rates of interest on house fairness loans and house fairness strains of credit score (HELOCs) are on the decline once more.

The Federal Reserve this week issued one other discount to its benchmark fee, the third one within the final 4 months. And whereas the Fed’s fee actions are only one driver behind house fairness mortgage charges, they’re a serious one. That is partially why charges have been persistently declining over the previous yr, roughly, after the central financial institution began slicing charges once more in 2024. This makes house fairness borrowing one of many higher methods to safe further financing now. Not solely is the borrowing supply sturdy, however the related prices for certified debtors are minimal.

That stated, along with your house as collateral on this trade, it’s vital that you understand what you are getting concerned with earlier than securing the funds. Fortuitously, it is simple to calculate a house fairness mortgage’s month-to-month prices because the product comes with a fastened rate of interest. So, how a lot does a $100,000 house fairness mortgage value monthly following the December Fed fee lower? Under, we’ll calculate the month-to-month funds you should know to get began.

See how a lot house fairness you would be eligible to withdraw right here.

How a lot does a $100,000 house fairness mortgage value monthly following the December Fed fee lower?

Dwelling fairness mortgage charges, which have declined for a lot of the previous yr, remained low the day after the December Fed fee lower, even when they confirmed little change from the times prior. Here is how a lot a $100,000 house fairness mortgage will value monthly now, after the newest fee discount, calculated towards right now’s new charges and two widespread compensation durations:

10-year house fairness mortgage at 8.18%: $1,222.81 per month15-year house fairness mortgage at 8.13%: $963.17 monthly

For comparability functions, this is what this identical mortgage would have value after the Fed’s October fee lower:

10-year house fairness mortgage at 8.21%: $1,224.40 per month15-year house fairness mortgage at 8.10%: $961.43 monthly

And these had been the month-to-month prices following the September 2025 Fed fee discount:

10-year house fairness mortgage at 8.43%: $1,236.12 per month15-year house fairness mortgage at 8.31%: $973.63 monthly

So, funds on a 10-year $100,000 house fairness mortgage this December at the moment are extra reasonably priced than they had been each in October and September. For 15-year house fairness loans, nonetheless, funds are about the identical as they had been in October and some {dollars} cheaper than they had been in September. 

Nonetheless, the overall cooling of the house fairness borrowing local weather is an unmistakable one, and if these funds suit your price range now, this could possibly be a viable and cost-effective solution to entry a six-figure sum of cash as you head into 2026.

Get began with a house fairness mortgage on-line now.

Remember about refinancing

Do you assume right now’s house fairness mortgage charges are low sufficient to assist an utility, however end up involved about lacking out on future rate of interest drops? Remember about refinancing. Dwelling fairness loans can and infrequently must be refinanced if rates of interest drop considerably sooner or later. 

Whereas it will imply paying refinancing closing prices, it’s a viable possibility to bear in mind. On the identical time, ready for house fairness mortgage charges to fall additional, significantly if you happen to want the cash now, is a dangerous transfer. As a substitute, if you happen to can afford right now’s charges, take into account locking in a house fairness mortgage fee and easily look to refinance it if and when charges drop materially sooner or later.

The underside line

A $100,000 house fairness mortgage comes with month-to-month funds starting from $963 to $1,223 for debtors now, after the December Fed fee lower. Whereas these aren’t a lot decrease than they had been in current months, they’re considerably cooler than they had been in recent times. And with charges right here fastened, house fairness ranges excessive and the way forward for extra fee cuts unknown, this could possibly be the sensible time to borrow with this distinctive product.

Edited by

Angelica Leicht