How much will a $40,000 home equity loan cost monthly following the Fed's October rate cut?

The costs associated with a $40,000 home equity loan are declining again now that the Fed cut interest rates. BanksPhotos/Getty Images

For those adults in need of extra financing now, it may be tempting to simply ask for a credit line increase from a credit card company. Or they can apply for a personal loan to help make ends meet. But the reality is that interest rates on both products are comfortably in the double digits now with credit card rates , in particular, over 20%. So applying for either comes with hefty costs.

Homeowners, however, can comfortably avoid both by turning to their home equity instead. Home equity levels are robust now, and the average equity amount sits around $300,000, so borrowing a five-figure amount like $40,000 should be relatively easy. A