HELOC Payment Calculator: HELOC - Home Equity Line of Credit Calculator | Ent (2024)

FAQs

What is the monthly payment on a $50,000 home equity line of credit? ›

What is the monthly payment on a $50,000 HELOC? To calculate the monthly payment on a $50,000 HELOC, you need to know the interest rate and the loan term length. For example, if the interest rate is 9% and the loan term is 30 years, the monthly payment would be approximately $402.

Multiply the current HELOC balance by the annual interest rate charged on loan. Divide the value by 12 to determine how much you will pay monthly.

The current average rate nationwide for a 10-year home equity loan is 9.07%. If you take out a loan for $200,000 with those terms, your monthly payment would come to $2,541.10.

While a HELOC works like a credit card — giving you a maximum amount you can borrow with a variable interest rate — a home equity loan works more like your mortgage. You get a lump sum of money, and you repay it on a set schedule with a fixed interest rate.

Here are the monthly payments you can expect on HELOCs with 20-year terms (as calculated with the Mortgage Calculator): $25,000 HELOC with a 20-year term: $25,000 HELOC balance at 9.8%: $204.17 per month. $25,000 HELOC balance at 10.3%: $214.58 per month.

If you took out a 10-year, $100,000 home equity loan at a rate of 8.75%, you could expect to pay just over $1,253 per month for the next decade. Most home equity loans come with fixed rates, so your rate and payment would remain steady for the entire term of your loan.

The lenders who offer HELOCs will extend a percentage of your home's value as your credit limit. They determine this amount by dividing the appraised value of the house by the amount remaining on your mortgage, and the amount you'd like extended.

The current average rate for a 10-year fixed-rate home equity loan is 9.07%. If you took out a $150,000 loan at that rate, you'd pay $1,905.82 per month for ten years. You'd end up paying a total of $78,698.86 in interest.

HELOCs benefit most from rate decreases. With the Fed looking to lower rates later in 2024, a HELOC may be more beneficial than a home equity loan because the rate could go down.

What are the cons of a HELOC? ›

Cons of a home equity line of credit

While home equity loans come with a fixed interest rate, HELOCs have variable rates. This means that your rate can go up or down based on economic conditions, the Fed's monetary policy and other factors, which in turn affects your payments.

For example, payments on a $100,000 HELOC with a 6% annual percentage rate (APR) may cost around $500 a month during the first ten years when only interest payments are required. That jumps to approximately $1,110 monthly for ten years when the repayment begins.

A home equity line of credit or HELOC is another type of second mortgage loan. Like a home equity loan, it's secured by the property but there are some differences in how the two work. A HELOC is a line of credit that you can draw against as needed for a set period of time, typically up to 10 years.

Home equity financing is a low-cost option because there are no closing costs for installment loans or lines of credit. Rates for an installment loan may be marginally higher than for a credit line but the term also is usually longer, so your monthly payments may be similar for both.

Calculating the monthly cost for a $50,000 loan at an interest rate of 8.75%, which is the average rate for a 10-year fixed home equity loan as of September 25, 2023, the monthly payment would be $626.63.

As of November 10, 2023, the average rate on a 10-year fixed-rate home equity loan is 9.09%. If you have a $75,000 home equity loan with these terms, you'd pay $39,447.03 in interest over the course of the loan. The monthly payment on this loan would be $952.73.

How is a $50,000 home equity loan different from a $50,000 home equity line of credit? The person who takes the loan receives the full $50,000 at once; the person with the line of credit can borrow against the credit line for any amount up to $50,000 as money is needed.