Do you need $90,000? Do you want to open a business, put a down payment on a second home or cover another large expense? No matter why you need the money, you have multiple borrowing options to consider. And if you own your home, home equity loans may give you access to $90,000 or more at competitive interest rates. 

But, before you take out a home equity loan, you should ensure you can afford the payments. These loans, often considered second mortgages, are fixed-rate loans that use your house as collateral. So, if you miss your payments, you may jeopardize your ability to maintain ownership of your home. 

But, how much would those payments be? That depends on multiple factors. We did the math below. 

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How much would a $90,000 home equity loan cost per month?

Multiple factors will determine your home equity loan payment. Factors like your interest rate and starting balance play a role in how much you pay monthly. The length of your loan’s term is also an important factor to consider. 

While your credit score and credit profile will help determine the interest rate you qualify for, we can use averages to get a ballpark figure of what your loan would cost monthly. Borrowers currently pay an average 8.74% interest rate on 10-year home equity loans and 8.73% interest rate on 15-year loans. Here’s what your monthly payments would be on these loans if you borrowed $90,000 at today’s average rates: 

• 10-year home equity loan: Your monthly payments on a $90,000 10-year home equity loan with an 8.74% interest rate would be $1,127.46. If you made minimum payments for the entire term of the loan, you would pay $45,294.79 in interest for a total payoff cost of $135,294.79. 
• 15-year home equity loan: Your monthly payments on a $90,000 15-year home equity loan with an 8.73% interest rate would be $898.44. Making minimum payments for the life of this loan would result in $71,719.40 in interest payments for a total payoff cost of $161,719.40

While the 15-year option would save you $229.02 per month, it would cost you $26,424.61 more in interest over the life of the loan. So, think about whether a lower monthly payment or overall interest expense is more important to you before choosing your home equity loan term. 

Find out how much your home equity loan would cost monthly here. 

How much would a $90,000 home equity loan cost annually?

As is true with the monthly cost of a home equity loan, the annual cost of these loans can vary. The same factors your monthly payments are based on will determine how much you pay annually. Of course, loans with shorter terms or higher interest rates will cost more per year than loans with longer terms or lower interest rates. So, how much would a $90,000 home equity loan cost annually?

• 10-year loan: Since a 10-year $90,000 home equity loan will cost $1,127.46 per month at today’s average interest rate, it would cost $13,529.52 annually.
• 15-year loan: With a $898.44 monthly payment, a 15-year $90,000 home equity loan at today’s average interest rate would cost $10,781.28 per year. 

While a 10-year home equity loan will cost more than one with a 15-year term annually, you’ll make payments for five less years with the shorter-term option. So, annual savings will result in a higher long-term cost if you choose a 15-year term over a 10-year term. 

You could also save on cost by opting for a smaller loan value. For example, if you borrowed $80,000 instead of $90,000, your monthly and annual payments on a 15-year home equity loan at today’s average interest rate would be $798.61 and $9,583.32, respectively. You would also pay $1,002.18 monthly or $12,026.16 annually on a 10-year $80,000 home equity loan at today’s average interest rate. 

Tap into your equity with a leading home equity loan today. 

The bottom line

A $90,000 home equity loan typically costs between $898.44 and $1,127.46 monthly, depending on the loan’s term and your credit profile. It’s also important to carefully consider the loan term you use. While you may save monthly with a 15-year term compared to a 10-year term, you’ll typically pay significantly more interest over the life of the loan with a longer term. Compare today’s leading home equity loans to find the best option now.