$100K Home Equity Loan vs. HELOC Cost Comparison

6d Developing 1 source

After the Federal Reserve cut interest rates in September 2025, CBS News analyzed which way to borrow $100,000 of home equity is cheaper today. The piece compares fixed‑rate home equity loans and variable‑rate HELOCs using current market examples (10‑ and 15‑year terms), showing HELOCs are slightly cheaper at present but carry variable‑rate risk and different budgeting tradeoffs for U.S. homeowners.

Economy Finance

📰 Sources (1)

$100,000 home equity loan vs. $100,000 HELOC: Which is cheaper now that the Fed cut rates?

https://www.facebook.com/CBSMoneyWatch/ September 24, 2025

New information:

10‑year $100,000 home equity loan example: 8.43% → $1,236.12 monthly
10‑year $100,000 HELOC example: 8.05% → $1,215.92 monthly (HELOC variable rate used for comparison)
15‑year examples: home equity loan at 8.31% → $973.63/month; HELOC at 8.05% → $958.54/month; article notes future Fed cuts (Oct./Dec. meetings) could change the dynamic