If you need a substantial sum of money this September, using your home equity could be a viable option. Home equity loans typically offer lower interest rates than personal loans or credit cards. You can easily access a large sum of money, such as $200,000, with a home equity loan because your home serves as collateral.
However, be aware that using your home as collateral comes with risks. If you fail to repay the loan, you risk foreclosure. Understanding the terms is crucial before applying. Fortunately, home equity loans have fixed interest rates, making it easier to determine costs.
Monthly Costs of a $200,000 Home Equity Loan
As of September 8, 2026, the average interest rate for a home equity loan is 8.14%. Here’s a breakdown of what monthly payments will look like for common repayment periods:
- 10-year loan at 8.14%: $2,441.37 per month
- 15-year loan at 8.14%: $1,927.50 per month
For comparison, here were the costs at previous rates:
- November 2025, 8.20%: $2,447.74 per month for a 10-year loan, $1,928.66 per month for a 15-year loan
- September 2025, 8.34%: $2,462.63 per month for a 10-year loan, $1,935.63 per month for a 15-year loan
Rates and costs are lower compared to some points in the past year. Shopping around for a loan is advantageous. You do not need to use your current mortgage servicer. Look for better rates and terms through competitors.
Shopping for Loans
Consider using online marketplaces to compare options. This allows you to find the best rates in one location. You can then return to your current mortgage servicer to see if they can beat the best offer you find.
Shop for home equity loans online now.
The Bottom Line
For a $200,000 home equity loan, expect monthly payments ranging from $1,927 to approximately $2,448. Rates may be higher if applying with average credit. If necessary, work on improving your credit before leveraging your home equity. If your credit is already good, consider locking in a loan at today’s rates, which are better compared to the recent past. Look for opportunities to refinance in the future.