$75,000 HELOC Monthly Cost Falls After Fed Rate Cut
CBS News reports that a $75,000 home‑equity line of credit (HELOC) now carries monthly payments of roughly $712–$906 at current variable rates, reflecting the Federal Reserve’s recent September 2025 rate cut. The piece gives specific payment examples for 10‑ and 15‑year amortization schedules at a quoted HELOC rate of 7.89% and compares those amounts with March 2025 (8.12%) and August 2024 (9.37%) to show how borrowing costs have declined for homeowners.
Economy
Personal Finance
📌 Key Facts
- Current example rates: HELOC at 7.89% produces payments of $905.60 (10‑year amortization) and $711.98 (15‑year amortization) for a $75,000 draw.
- Comparative figures: March 2025 HELOC at 8.12% → $914.72 (10‑yr) and $721.94 (15‑yr); August 2024 at 9.37% → $965.15 (10‑yr) and $777.30 (15‑yr).
- Context: Article ties lower HELOC payments to the Federal Reserve’s September 2025 rate cut and expectations of further cuts, noting HELOCs’ variable rates will automatically reflect declines without refinancing.