How much will a $100,000 HELOC cost monthly if opened this September?

A homeowner borrowing $100,000 through a home equity line of credit would face an estimated monthly payment of $1,218.04 on a 10-year repayment schedule, based on an average rate of 8.09%.

The same borrowing amount would cost about $960.86 per month over 15 years. Those estimates assume the borrower draws the full line and begins repaying principal and interest immediately.

HELOCs use variable interest rates, which can change each month. Some lenders require only interest payments during the initial draw period, so the actual payment pattern may differ.

The borrowing option can offer lower rates than personal loans and credit cards, but the homeowner’s property serves as collateral. The article urges prospective borrowers to calculate long-term affordability before applying, particularly as inflation, higher costs, rising credit card balances and a possible rate increase add pressure on household finances.