$25,000 HELOC monthly cost falls after Fed rate cut
CBS News reports that following the Federal Reserve's recent interest-rate cut in early October 2025, typical monthly payments on a $25,000 home‑equity line of credit (HELOC) have eased. Using current market rates, the article gives specific payment examples for 10‑ and 15‑year amortizations, compares them with February and October 2024 rates, and discusses interest‑only draw periods and budgeting for variable‑rate risk.
Economy
Finance
📌 Key Facts
- Current HELOC example rate used: 7.89%; 10‑year payment on $25,000 = $301.87/month; 15‑year = $237.33/month
- Comparative past rates: Feb 2025 example at 8.28% (10‑year $307.03; 15‑year $242.97); Oct 2024 example at 8.73% (10‑year $313.05; 15‑year $249.57)
- Article notes borrowers may opt for interest‑only payments during a typical 10‑year draw period, which would lower near‑term payments but raise future principal obligations