Home equity loans are currently available with interest rates in the low 8% range, with even lower rates possible for borrowers with strong credit, according to recent reports. These loans allow homeowners to borrow against the equity they've built in their homes, offering fixed interest rates that make budgeting more predictable. However, because the home serves as collateral, it’s crucial for borrowers to ensure they can afford the monthly payments before applying. Defaulting on the loan could lead to foreclosure, where the lender could take possession of the home. As of September 9, 2026, the average rate for a home equity loan is 8.14%, according to Money.com. Borrowers should expect some variation in rates when comparing offers, particularly if they have a lower credit score. For example, an $80,000 loan over 10 years at 8.14% would result in a monthly payment of $976.55. If the same loan is spread over 15 years, the monthly payment would be $771.00. These figures depend on both the loan amount and the length of the repayment term. Earlier in 2025, after the Federal Reserve cut interest rates, home equity loan rates were slightly higher. For instance, in December 2025, a 10-year loan at 8.18% would have required a monthly payment of $978.25, while a 15-year loan at 8.13% would have had a payment of $770.54. In November 2025, after another rate cut in October, the rates were 8.21% for a 10-year loan and 8.10% for a 15-year loan, resulting in payments of $979.52 and $769.15, respectively. Despite these minor fluctuations, rates have remained relatively stable over the past year due to the Federal Reserve not lowering rates since December 2025. While a home equity line of credit (HELOC) may offer slightly lower rates than a fixed-rate home equity loan, it typically has a variable interest rate, which could rise if the Federal Reserve increases rates in the future. For now, an $80,000 home equity loan has monthly payments ranging from $771 to $977, similar to what borrowers have paid in the past. However, with the possibility of rising rates in the near future, it may be wise to consider applying sooner rather than later. If rates drop in the future, borrowers can always refinance, but current favorable rates may not last indefinitely.