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If you’re a homeowner looking to borrow $50,000 right now, you may not have to look very far to find it.
With home equity levels rising to a new record high in recent months, one of the easier ways to borrow money is by using the equity you’ve built in your home. And if you use a home equity loan or a home equity line of credit (HELOC), you can often borrow at a lower interest rate than with a personal loan or credit card. After the Federal Reserve issued its first interest rate cut of 2025 last week, both are even more affordable for homeowners.
But more affordable doesn’t mean they’re the same.Home equity loans and HELOCs work in similar but different ways, and come with different interest rates and things to think about. So, between a $50,000 home equity loan and a $50,000 HELOC, which is cheaper now, after the Fed’s September rate cut? Let’s figure that out.
See how low your current HELOC and home equity loan rate offers are here.
$50,000 home equity loan vs. $50,000 HELOC: which is cheaper now, post-Fed rate cut?
The monthly payments for this amount with either a home equity loan or HELOC
Worth a look