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How much would a $90,000 home equity loan cost per month?
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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.
Police arrested a man on murder charges this month, 14 years after he allegedly killed a man in Virginia, but the victim’s body has never been found.
Shane Ryan Donahue, a Virginia man, is presumed deceased, the Prince William County Police Department said Tuesday. He was last seen leaving his parents’ home in Nokesville, Virginia, on March 22, 2010. Donahue, 23, was headed to his house in Nokesville, but never made it there.
Donahue was added to the National Missing and Unidentified Persons System after he vanished. According to records, Donahue did not have a car and regularly got rides from friends. He frequented Washington, D.C., Baltimore, Fauquier County, Virginia, and Northern Virginia.
The case stumped investigators, who followed a number of leads over the years. This spring, detectives reactivated the investigation and started looking at every detail of the case from scratch, officials said. They revisited people who had been interviewed during the initial investigation and reviewed “digital evidence in greater detail due to advances in analytical technology and modern police investigative practices,” according to a news release.
Officers said Donahue was last seen leaving his parents’ home with Timothy Sean Hickerson, now a 43-year-old Florida resident. Investigators connected Hickerson to a burglary at Donahue’s home that happened just days before the Virginia man disappeared.
Detectives got an arrest warrant this month and, with the help of Florida’s Flagler County Sheriff’s Office, Hickerson was taken into custody in Palm Coast, Florida. Hickerson was charged with murder and burglary, is now set to be extradited to Virginia.
Former President Donald Trump, an avowed proponent of tax cuts, is floating the idea of reversing a measure passed during his tenure in the White House that effectively raised taxes for many U.S. homeowners.
In a post Tuesday on Truth Social, Trump suggested he would scrap a $10,000 cap on deducting state and local taxes (SALT) that was passed as part of the 2017 Tax Cuts and Jobs Act — a massive revamp that he has said boosted economic growth.
Now, in the run-up to the November election, Trump said in the post he would “get SALT back, lower your taxes, and so much more,” although he stopped short of offering details. Trump made the post ahead of a speech he’s giving Wednesday at the Nassau Coliseum on Long Island.
Trump’s new proposal for getting rid of his $10,000 SALT deduction cap comes as the presidential hopeful is pitching several additional tax cuts that would, if enacted, reduce taxes for major groups of voters. He’s also vowed to eliminate taxes on Social Security benefits, a pledge that could get support from the nation’s senior citizens, as well as to end income taxes on tipped workers and on overtime pay, ideas that would help lower- and middle-income Americans.
Yet Trump’s reversal on the SALT deduction has sparked skepticism from lawmakers as well as economists and policy experts.
“So … now Trump is against the SALT tax cap which *checks notes* is a key part of the — only — major piece of legislation passed during his administration?” noted Chris Koski, a political science professor at Reed College in Portland, Oregon, on X.
Rep. Tom Suozzi, a Democrat from Nassau, Queens, said in a statement on Wednesday that he is “happy that the former president is saying that he has finally reversed his devastating decision in 2017 to cap the State and Local Tax (SALT) deduction.” He also urged Trump to convince Republican lawmakers to vote to restore the full deduction “if he is truly serious.”
The SALT deduction cap “has been a body blow to my constituents for the past 7 years,” Suozzi added.
Senator Chuck Schumer, a Democrat from New York, wrote on X,”Donald Trump took away your SALT dedications and hurt so many Long Island families. Now, he’s coming to Long Island to pretend he supports SALT. It won’t work.”
Asked for details about Trump’s proposal to restore the SALT writeoff, a spokeswoman for the Trump campaign told CBS MoneyWatch: “While his pro-growth, pro-energy policies will make life affordable again, President Trump is also going to quickly move tax relief for working people and seniors.”
Here’s what to know about the SALT deduction.
What is the SALT deduction?
The state and local tax deduction allows taxpayers who itemize to deduct property taxes, sales taxes and state or local income taxes from their federal income taxes. Prior to the Tax Cuts and Jobs Act, there was no limit on how much people could deduct through the SALT deduction.
But the 2017 tax overhaul passed under Trump limited the deduction to $10,000 – a blow to many homeowners in states with high property taxes, many of which are Democratic leaning. At the time of the law’s passage, the Treasury Department estimated that almost 11 million taxpayers in high-tax states like New York and New Jersey would forfeit $323 billion in deductions.
Who benefits from the SALT deduction?
Homeowners with high property taxes, such as people in New York, New Jersey and California, were the biggest beneficiaries of the the full SALT deduction.
But some experts also noted that the SALT deduction primarily put more money in the pockets of higher-earning Americans. About 80% of the full SALT deduction had helped people earning more than $100,000 a year, according to the Tax Foundation.
What happened after Trump capped the SALT deduction at $10,000?
The limit has increasingly impacted middle-class homeowners across the U.S. because of rising property taxes and incomes. Some lawmakers have also sought to either repeal or increase the SALT cap, but none of those efforts have borne fruit.
Earlier this year, some lawmakers sought to double the SALT deduction cap to $20,000 for married couples, with the change retroactive for the 2023 tax year. But that bill was blocked in the House in February.
Won’t the SALT deduction cap expire anyway?
Yes, the SALT deduction cap is a provision that’s due to expire in 2025, as are many other parts of the Tax Cuts and Jobs Act, such as a reduction of the individual tax brackets. But Trump has previously indicated he wants to extend the provisions in his signature tax law.
How much would it cost the U.S. to repeal the SALT deduction cap?
It won’t be cheap, according to the the Committee for a Responsible Federal Budget, a think tank that focuses on budget and policy issues.
Eliminating the $10,000 deduction limit “would increase the cost of extending the 2017 Tax Cuts and Jobs Act (TCJA) by $1.2 trillion over a decade,” the group estimates, adding that such a measure would be a “costly mistake.”
Extending the TCJA’s tax cuts would increase the nation’s deficit by $3.9 trillion over the next decade, the group estimates. By adding in a expiration or repeal of the SALT deduction cap, that would grow to $5.1 trillion, it added.
“Lawmakers should not extend the TCJA without a plan to – at a minimum – offset the costs of extension, but ideally the plan would raise revenues relative to current law and help put the nation’s debt on a better trajectory,” the group said in a statement.
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