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Home equity line of credit (HELOC) interest rates remain low in early 2025, providing a glimmer of hope for homeowners looking to borrow from their home equity. HELOC rates are now lower than home equity loan rates and remain well below personal loan and credit card APRs.
Though HELOC rates might be higher than they were a few years ago, homeowners are enjoying substantial home equity amounts — the average house has $319,000 in equity, according to a recent ICE Mortgage Monitor report. In fact, most homeowners could easily tap into around 10% of their equity — $30,000 — and still have an average of $290,000 left for future financial needs.
If you’re ready to use your home equity but aren’t quite sure how much a $30,000 HELOC will cost now, in the early part of 2025, we’ve calculated payments for two common repayment lengths.
See how much equity you could borrow with a HELOC here now.
How much does a $30,000 HELOC cost monthly in 2025?
When shopping for a HELOC, you may find that some lenders will require you to take out more than $30,000 in equity. However, other home equity lenders have a $10,000 minimum. You won’t have as many options as you would for, say, a $70,000 or $80,000 HELOC, but, you’ll likely have multiple lenders to choose from.
Here’s how much you can expect to pay monthly for a $30,000 HELOC with today’s average rate:
- 10-year HELOC at 8.28%: $368.44
- 15-year HELOC at 8.28%: $291.57
HELOC rates are variable, though — they adjust monthly. That means your rate can rise or fall every month depending on multiple factors including your lender and market conditions. Knowing that, here’s what you could expect to pay monthly if rates fell by 0.50%:
- 10-year HELOC at 7.78%: $360.50
- 15-year HELOC at 7.78%: $282.90
And here’s what you’d pay monthly if rates rose by 0.50%:
- 10-year HELOC at 8.78%: $376.46
- 15-year HELOC at 8.78%: $300.37
While HELOCs offer several advantages, including low interest rates compared to other funding options, you have to use your home as collateral to get your line of credit. If you default on your payments, your lender could repossess your house. This consequence makes it critically important to understand what your monthly payment amount will be.
Find out what the lowest HELOC rates are here.
Don’t forget about HELOC tax benefits
HELOCs are a convenient way to access your home equity. The benefits don’t stop there, though. HELOCs also provide a tax advantage, which will be applicable if you use the line of credit this year.
The IRS allows you to deduct the interest you pay on HELOC funds you use to “buy, build, or substantially improve” your primary or secondary residences.
However, you only get the deduction for work completed on a primary or secondary home. So, if you use a $30,000 HELOC to pay for $20,000 in home improvements and a $10,000 vacation, you can only deduct the interest you paid on the $20,000.
The bottom line
At today’s rate for a $30,000 HELOC, you’ll pay less than $400 a month for a 10-year line of credit and less than $300 for a 15-year line of credit. Taking out a $30,000 HELOC right now will cost you a little more than it did several years ago when rates were lower, but since the average home equity amount is so high, a $30,000 line of credit still leaves you with a lot of equity for a future HELOC or home equity loan.
