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How much would a $50,000 home equity loan cost per month now that rates are cut?

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If you need to borrow a large sum of money a home equity loan could be the inexpensive way to do so now.

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Before borrowing a large sum of money, it’s critical to calculate the potential monthly costs. This has always been a best practice but particularly so in recent years as interest rates soared, making borrowing with a credit card or personal loan much more expensive than in prior years. With inflation hitting a decade-high and interest rates surging alongside it, it was difficult to find a cost-effective borrowing source. It was difficult, but not impossible for homeowners, who were able to find a cost-effective option via their home equity. While interest rates on credit cards and personal loans were in the double digits, home equity loans and home equity lines of credit (HELOCs) were often well below 10%.

And now, with inflation dramatically cooler than what it was in 2022, the Federal Reserve has started what appears to be a series of cuts to the federal funds rate. The first one, issued in September, was a larger-than-expected 50 basis point reduction. Two others, possibly for 25 basis points each, are in play for when the Fed meets again in November and December. 

Understanding this dynamic, then, homeowners should start calculating the monthly costs of a home equity loan now. And with the average homeowner having close to $215,000 worth of equity to utilize, a $50,000 home equity loan will allow them to maintain a healthy portion of equity while still covering many major expenses. So, how much would a $50,000 home equity loan cost per month now that rates are cut? That’s what we’ll break down below.

See how low of a home equity loan rate you could lock in here.

How much would a $50,000 home equity loan cost per month now that rates are cut?

The average home equity loan interest rate is 8.37% as of October 8, but it’s slightly higher for two common repayment terms. A 10-year home equity loan interest rate is averaging 8.47% right now while a 15-year home equity loan interest rate comes in at 8.38%. Here’s what payments on a $50,000 home equity loan would look like each month, then, tied to both repayment periods:

  • 10-year home equity loan at 8.47%: $619.13 per month
  • 15-year home equity loan at 8.38%: $488.86 per month

While the 15-year loan term will result in monthly payments $130 lower than the 10-year loan, the longer term will also result in approximately $38,000 spent in interest during that time while the 10-year loan will have a total interest cost of around $24,000 – a $14,000 difference between the two. So, it’s critical to weigh the short-term benefits versus the longer, more expensive interest you’ll need to pay. 

In many cases, the 10-year loan may make more sense. That said, as interest rates are cut, rates on home equity loans will fall too, just not in direct proportion, so these loans could and likely will become cheaper in the coming months.

Get started with a home equity loan online now.

The bottom line

A $50,000 home equity loan comes with payments between $489 and $620 per month now for qualified borrowers. However, there is an emphasis on qualified borrowers. If you don’t have a good credit score and clean credit history you won’t be offered the best rates and terms. Do your best to get your credit in shape, then, before applying. Since home equity loan rates are fixed (unless you refinance), it makes sense to do all you can to get the lowest rate possible to avoid having to pay to refinance at a later date.

Have more questions? Learn more about your best home equity loan options here.



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How wildlife reacts to changing climate

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How wildlife reacts to changing climate – CBS News


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The 2024 World Wildlife Fund report found that animal populations are declining due to human-caused climate change and the global loss of nature. CBS News Los Angeles meteorologist and environmental reporter Marina Jurica reports on which species are most at risk and what can be done to reverse the trend.

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Should you keep your expired COVID tests?

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The U.S. government announced last month it would ship out more free COVID-19 tests, a batch that appears to have a short shelf life. However, the Food and Drug Administration said it has extended the expiration dates for them. Dr. Amesh Adalja, a senior scholar at the Johns Hopkins Center for Health Security, joins “CBS News Weekender” to discuss if the tests are still accurate and how to tell if they work.

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Satellite photos reveal major destruction caused by Hurricane Milton

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Florida begins recovery process after Milton


Florida begins recovery process with power still out for millions after Hurricane Milton

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Satellite images show the extent of the damage from Hurricane Milton, which spawned tornadoes across Florida and struck the state as a Category 3 hurricane

The fatal storm surge that forecasters feared never arrived, but photos show heavy flooding, especially in coastal areas and on the state’s barrier islands. Homes were torn to pieces and power lines were ripped down by strong winds and heavy rain. 

One satellite image shows flooded streets in St. Armands Key, a barrier island near Sarasota.  

A satellite view shows flooded streets in St. Armands Key after the passing of Hurricane Milton, in Sarasota, Florida
Flooded streets in St. Armands Key after Hurricane Milton, in Sarasota, Florida.

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On Ana Maria Island, a barrier island in Manatee County, Florida, a satellite photo shows storm debris and flooded coastal homes. 

A satellite view shows flooded streets and storm debris after the passing of Hurricane Milton, in Anna Maria Island, Florida
Flooded streets and storm debris after Hurricane Milton, in Ana Maria Island, Florida.

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Another photo from the region shows sand blown down the main streets of the neighborhood. 

A satellite view shows sand and water on the streets after the passing of Hurricane Milton, in Holmes Beach, Anna Maria Island
Sand and water on the streets after Hurricane Milton, in Holmes Beach, Ana Maria Island, Florida.

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At a condo building in Cortez, Florida, before-and-after photos show the extent of the damage. A photo taken in the aftermath of the storm shows a portion of the building’s roof ripped off, and debris scattered on the ground. The photo also shows flooding and other debris spread across the area. 

Combination picture of the Waterway Condominium Association building before and after the passing of Hurricane Milton, in Cortez, Florida
A satellite view of the Waterway Condominium Association building before (top) and after (bottom) Hurricane Milton, in Cortez, Florida.

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Another before-and-after photo shows the devastation at Tropicana Field, the home stadium of the Tampa Bay Rays. Before the storm, the stadium had been used as a staging site for first responders. Heavy winds shredded the fabric roof of the building.

Photos show the massive gaps where the fabric that served as the domed building’s roof had been ripped to shreds. St. Petersburg Fire Rescue confirmed that there were no injuries in the incident. It was not immediately clear how much damage there was inside the stadium, but debris can be seen on the field. 

Combination picture of the Tropicana Field before and after the passing of Hurricane Milton, in St. Petersburg, Florida
A satellite view of the Tropicana Field before (top) and after (bottom) Hurricane Milton, in St. Petersburg, Florida.

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