How much would a $20,000 home equity loan cost per month now that rates are cut?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. The monthly costs of a home equity loan will drop now that interest rates have been reduced. chavalit0777/Getty Images Home equity borrowing has traditionally been one of the cheaper ways to access large sums of cash. And this cost-effectiveness has been particularly pronounced in recent years due to interest rates surging on everything from mortgages and personal loans to credit cards, which are now hovering near a record 23%, on average. However, home equity loans and home equity lines of credit (HELOCs) are still in the single digits . Now, with a major interest rate cut already issued earlier in September, and potential other cuts being discussed for November and December, they could become even cheaper. Currently, home equity loans are less expensive than HELOCs. And they come with the added advantage of a fixed interest rate , so borrowers can easily determine their exact monthly costs. But what would a $20,000 home equity loan cost per month now that interest rates have been cut?