Home equity loan costs have been declining thanks to recent Federal Reserve interest rate cuts. Wong Yu Liang/Getty Images

A $25,000 personal loan or credit card limit may be relatively easy to secure, but the current interest rates that both come with make borrowing with these products cost-prohibitive now. The average personal loan interest rate is around 12% now, while the median credit card rate is 21%, just under a recent record high. Borrowing a five-figure amount of money with either one, then, will be costly, even for borrowers with good credit scores and clean credit history.

If you're a homeowner, however, borrowing this amount with a home equity loan makes a lot of sense in today's economy, especially after the Federal Reserve just issued another interest rate

See Full Page