How much does a $100,000 home equity loan cost monthly after the Fed's October rate cut?

The monthly costs tied to a $100,000 home equity loan are dropping now that the Fed's been cutting rates. Getty Images/iStockphoto

Home equity loan costs are continuing to fall.

That was the big takeaway in the home equity borrowing space this week after the average home equity loan rate dropped to just 8.02%, according to Bankrate . That's the lowest rate since March 2023, opening up a new, affordable window of opportunity for homeowners in need of extra financing.

And, if they act now, not only will they benefit from the Federal Reserve's October 29 rate cut , which helped cause rates to decline, but they'll also have a lot of equity to leverage. With home equity levels recently hitting a record high, the average homeowner now possesses around $300,000 in equity