How much would a $175,000 HELOC cost monthly in 2025?
If you're a
homeowner
with a big financial expense on the horizon or have plans for projects around the house, a
home equity line of credit (HELOC)
is a popular way to fund your endeavors. Now is an excellent time to consider opening a HELOC, as
the average homeowner has $313,000 of home equity
built up in their home and
HELOC rates have dipped under 8%
.
A
HELOC
is a line of credit you can borrow from whenever you need it, up to your account limit. It's a flexible source of funding that requires interest-only repayments for what you borrow during your
draw period
. So, if you open a $175,000 HELOC to fund home
renovations
and
repairs
, you could pull money from your line of credit incrementally as your projects progress and pay back only the interest on what you take out.
Home equity loans
and
cash-out refinances
are two
other ways
to
tap your home equity
but neither offers the flexibility a HELOC does.
So, if you're ready to get a $175,000 HELOC, it helps to know how much it would cost you per month to have a HELOC of that size. We've done the calculations for you, noting your monthly costs for two different HELOC repayment terms.
Find out how low your HELOC rate could be here
.
As you calculate the cost of having a HELOC, it's important to know that HELOC rates are
variable
. Whereas a
home equity loan
has a fixed rate that doesn't change,
HELOC rates
can change regularly based on a variety of factors. Right now, a variable rate is an advantage because HELOC rates are low and have been consistently declining. However, rates could rise as easily as they fall, so be prepared for shifts in your monthly payments over time. That being said, here's how much a $175,000 HELOC would cost monthly in 2025 at
today's rates
if rates remain the same:
Knowing that HELOC rates can change, here's what your monthly payment for a $175,000 HELOC would look like if rates fell 0.5%:
Here's what your rates for a $175,000 HELOC would look like if rates rose 0.5% compared to today's rates:
A 0.5% increase or decrease in rates could change the monthly payment on a 10- or 15-year $175,000 HELOC by around $50 a month.
Take your first step in securing a HELOC today
.
HELOC rates have steadily declined this year, hitting
18-month
and
two-year
lows. For context, HELOC rates were above 10% in January 2024 and exceeded 9.80% in May and September last year, according to
Bankrate data
.
On December 31, rates were 8.36% and have dropped by more than 0.40 percentage points since. Here's a monthly overview of how far rates have fallen to date in 2025, according to Bankrate:
Low HELOC rates
right now make them an attractive way to access your home equity. However, the downward trend in rates doesn't guarantee that rates will
continue to fall
. There's always a chance rates can creep up just as they've done in the past. Keep this in mind as you incorporate your HELOC payment in your monthly spending, says Tom Holtam, vice president, senior regional delivery manager at UMB Bank.
"Most HELOCs have a variable interest rate, meaning your rate, and therefore your minimum payment requirement, are subject to change, which can make it trickier to budget over the repayment period," Holtam says.
With an average rate of 7.90% right now, a HELOC is an
affordable
way to get access to $175,000 for homeowners with sufficient equity. With such a big sum of money at play, though it's important to remember a few basic principles of responsible HELOC borrowing. Primarily, only borrow what you need, make sure you have a clear purpose for the line of credit and remember that your home is used as collateral for your line of credit, says Michael Branson, CEO of All Reverse Mortgage.
"A HELOC can be a great tool, but since your home is the collateral, you don't want to borrow more than you actually need or take it out without a solid plan," Branson says. "Before applying, make sure you have a clear reason — whether it's home renovations, debt consolidation or another major expense — and figure out how you'll pay it back. The flexibility of a HELOC is great, but it's easy to overspend if you're not careful."
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