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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 , in particular, over 20%. So applying for either comes with hefty costs.

Homeowners, however, can comfortably avoid both by turning to their  instead. are robust now, and the sits around $300,000, so borrowing a five-figure amount like $40,000 should be relatively easy. And with  falling after a series of , this is now one of the most affordable ways to borrow money. Plus, home equity loans have , so if the rate climate heats up in the future, the low rate you lock in now will remain the same for the duration of your .

That all noted, home equity loans do leverage your equity. And with the and the associated risks obvious, it's critical that you can afford to make the monthly payments as agreed to. But how much will a $40,000 home equity loan cost monthly now, following the Fed's October rate reduction? Below, we'll do the math.

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No matter the amount, calculating the exact home equity loan repayment costs is simple to do thanks to that fixed interest rate. Here's how much a $40,000 home equity loan will cost monthly if secured now, post-October Fed rate cut, calculated against two common repayment periods:

Those rates are already lower than . Here's what a $40,000 home equity loan would have cost at that point:

And here's what it cost :

So, while only down a few dollars per month, regardless of the repayment term, and costs are heading in the right, more affordable direction for homeowners. And that adds up to real savings over the extended repayment period. But it's important to remember that these rates don't have to remain the same over time if you don't want them to. You can always your loan if and when rates decline in the future.

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A $40,000 home equity loan comes with monthly payments ranging from $385 to $490 currently, making a loan of this size more affordable than it was earlier this fall and even in the winter of 2025. And with and with rates here already materially lower than they are with credit cards and personal loans, this could be the smart time to start exploring your home equity loan options.