The home equity borrowing space has been an especially interesting one in recent months. Even as interest rates on other borrowing products stagnated or, in the case of mortgages, ticked up, rates on home equity loans and home equity lines of credit (HELOCs) have remained affordable and even declined in many weeks. 

The average HELOC interest rate, for example, is down by more than two full percentage points compared to where it stood around 18 months ago. And thanks to the product's variable rate that will change each month based on market conditions, borrowing with a HELOC could theoretically become even more affordable over time. Home equity loans, meanwhile, come with low, fixed interest rates that could be advantageous for homeowners worried about the long-term interest rate projections.

With home equity levels in the country hitting a record high last year, however, and with trillions of dollars considered borrowable right now, withdrawing $50,000 worth of home equity should be relatively easy for current homeowners. Before submitting an application, however, borrowers should know which of these two options is likely to cost less per month now. Below, we'll crunch the numbers.

Start by seeing how much home equity you could borrow here.

$50,000 home equity loan vs. $50,000 HELOC: Here's which costs less per month now

While calculating your home equity loan costs can be done with precision, it's harder to complete with a HELOC as the variable rate can rise or fall over time, particularly when rate cuts are issued or if market conditions are volatile. Here's how much each will cost now, assuming the home equity loan rate isn't refinanced and that the HELOC rate remains constant:

$50,000 home equity loans

• 10-year home equity loan at 6.96%: $579.51 per month
• 15-year home equity loan at 6.96%: $448.30 per month

$50,000 HELOCs

• 10-year HELOC at 7.11%: $583.38 per month
• 15-year HELOC at 7.11%: $452.49 per month

For context, here's what it cost to borrow with these products in December 2025:

$50,000 home equity loans

• 10-year home equity loan at 8.18%: $611.40 per month
• 15-year home equity loan at 8.13%: $481.59 per month

$50,000 HELOCs

• 10-year HELOC at 7.81%: $601.63 per month
• 15-year HELOC at 7.81%: $472.36 per month

And here's how much more expensive it was in September 2025:

$50,000 home equity loans

• 10-year home equity loan at 8.43%: $618.06 per month
• 15-year home equity loan at 8.31%: $486.82 per month

$50,000 HELOCs

• 10-year HELOC at 8.05%: $607.96 per month 
• 15-year HELOC at 8.05%: $479.27 per month

Both products, then, are considerably less expensive than they were in 2025. And, if you open a HELOC, you may be able to realize additional savings should rates on the product fall yet again. That said, your home does function as collateral in these exchanges, and failure to make repayments could lead to foreclosure. So don't borrow with a HELOC assuming today's rate won't move. Instead, calculate your potential costs against a series of realistic rate scenarios to better ensure long-term affordability.

Learn more about your current HELOC and home equity loan options here.

The bottom line

A $50,000 home equity loan comes with slightly lower monthly payments than a $50,000 HELOC does now, though the HELOC is positioned to become even more affordable, should current rate trends continue, while the home equity loan won't change unless refinanced by the borrower. That doesn't mean that a home equity loan isn't the right choice, but it does mean that you should evaluate both carefully before applying. Consider speaking with lenders who can help you determine your next steps, too, and look to those besides just the one that services your current mortgage loan, as you may be able to find better rates and terms elsewhere.