What would monthly payments be on a $25,000 home equity loan?

A $25,000 home equity loan would cost about $305.17 a month over 10 years or $240.94 over 15 years, based on an average interest rate of 8.14% as of September 4, 2026.

Those figures are higher than the estimated payments in April, when the rate was 6.95%. At that rate, a 10-year loan would have cost $289.63 a month, while a 15-year loan would have cost $224.01. The current payments are nearly identical to January’s estimates, when rates were around 8.10% to 8.16%.

Home equity loans offer fixed interest rates, which can make monthly budgeting more predictable than a home equity line of credit. But the borrowing is secured against the home. If a borrower cannot repay, the lender can foreclose on the property.

The article says borrowing a smaller amount can help limit that risk. It also says taking out a loan before a possible Federal Reserve rate increase could protect borrowers from higher rates while giving them access to funds immediately.