Homeowners across the nation are finding it increasingly viable to tap into the substantial equity sitting in their properties, driven by record-high home equity levels reached in 2025 and interest rates for home equity loans that remain well below many alternative borrowing options. According to data from Money.com, the average interest rate for a home equity loan as of September 16, 2026, stands at 8.14%, a figure that may be lower for borrowers with strong credit profiles.
For those considering borrowing $90,000, the monthly obligations depend heavily on the repayment term selected. Under the current average rate, a 10-year loan would require monthly payments of $1,098.62, while a 15-year term would lower that figure to $867.38 per month.
These current costs represent a decline from previous periods. In December 2025, following a Federal Reserve rate cut, a 10-year loan at 8.18% carried a payment of $1,100.53, and a 15-year loan at 8.13% cost $866.85. Looking back further to October 2025, when rates were higher, a 10-year loan at 8.34% resulted in payments of $1,108.18, with a 15-year loan at 8.21% costing $871.03. During October 2024, the same loan size would have required $1,114.43 monthly for a 10-year term and $879.95 for a 15-year term.
While the reduced costs make home equity financing more accessible, financial experts emphasize a strategic approach. Because these loans are secured by the borrower’s home and require immediate repayment of a lump sum, failure to meet payment obligations can lead to foreclosure. Borrowers are advised to ensure they can comfortably afford the repayments before proceeding.
As rates remain relatively low compared to the past two years, consumers are encouraged to shop around online to secure favorable terms before market conditions shift. Lenders can provide personalized guidance to help borrowers navigate the process and maintain long-term financial stability.
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