Home equity lines of credit (HELOCs) have come to the forefront of affordable borrowing options over the past few years as homeowners watched their equity grow considerably while home values shot higher in the past five years.
Homes had an average of around $319,000 in equity in late 2024. Equity of that size opens up a considerable funding source for homeowners who need cash to fund financial goals, consolidate debt, or pay off any number of expenses.
Before you take out a HELOC, it helps to know how much it will cost you monthly when repayment begins. We’ll explain below how much it costs monthly to take out a $70,000 HELOC.
See how much a $70,000 HELOC could cost you here.
Here’s what a $70,000 HELOC costs monthly in 2025
Estimating how much you’ll pay each month for a HELOC is an ever-changing calculation. HELOCs use a variable interest rate that lenders typically adjust each month, so it’s likely that the rate you have one month won’t be the same the following month. That being said, HELOC rates averaged 8.28% in mid-February. Here’s what your monthly payment would look like for a $70,000 HELOC at 8.28%, assuming the rate remains constant:
- 10-year HELOC at 8.28%: $859.69 per month
- 15-year HELOC at 8.28%: $680.32 per month
From February through October last year, HELOC rates stayed above home equity loan rates, according to historic data from Bankrate. By October, though, HELOC rates started to fall. If you got a HELOC in late October, your rate would’ve been 8.69%, and here’s how much it would’ve cost you monthly for a $70,000 HELOC then:
- 10-year HELOC at 8.69%: $875.03 per month
- 15-year HELOC at 8.69%: $697.14 per month
The difference in monthly costs for a $70,000 HELOC in October 2024 and February 2025 points to the conflict of variable-rate products: It’s hard to tell where rates are headed. Rates fell after the Fed lowered interest rates in September, November and December. So, homeowners who waited through the summer for lower HELOC rates were rewarded.
However, the unpredictable nature of variable rates means for every homeowner who got a better HELOC rate by waiting, there’s likely a homeowner who paid a higher HELOC rate in the past because they waited.
“HELOC’s variable rates rise and fall with the Fed’s decision to slash or increase interest rates,” says Michael Gifford, CEO of home equity firm Splitero. “While this can be good news if rates decline, it can also put homeowners in a tough spot if rates increase.”
Find out what your HELOC rate might be now before rates change again.
Monthly costs of a $70,000 HELOC vs. $70,000 personal loan
One of the perks of a HELOC is that rates tend to be low compared to products such as personal loans.
As an example, the average personal loan rate is 12.38%, or more than four percentage points higher than the average HELOC rate of 8.28%. Here’s how that looks based on monthly cost using the longest repayment term you’ll typically get from personal loan lenders (seven years):
- 10-year HELOC at 8.28%: $859.69 per month
- 15-year HELOC at 8.28%: $680.32 per month
- 7-year personal loan at 12.38%: $1,249.96 per month
A shorter repayment term and higher interest rate make a personal loan’s monthly cost considerably higher than a HELOC.
While seven years is the usual maximum repayment term for personal loans, certain lenders may offer a 10-year repayment period for specific purposes such as home renovations. In that case, your monthly costs would still be higher than a HELOC because of the difference in interest rates:
- 10-year HELOC at 8.28%: $859.69 per month
- 15-year HELOC at 8.28%: $680.32 per month
- 10-year personal loan at 12.38%: $1,019.73 per month
Comparing HELOC and personal loan monthly costs comes with one crucial caveat: Personal loans are unsecured, while HELOCs require you to use your home as collateral to get funding. So be sure to know the difference, or you could risk losing your home to the lender if you’re unable to make your HELOC repayments.
The bottom line
A $70,000 HELOC is a relatively affordable way to use your home equity to fund your financial needs, whether you want to renovate your home, consolidate debt, or pay for your child’s college tuition. Now could be a great time to get a HELOC because interest rates are hovering around a competitive 8.30%. HELOC rates are considerably lower than personal loan rates, too, making them an affordable option for accessing five- and six-figure sums.
