How much would a $15,000 home equity loan cost per month?

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A $15,000 loan is likely to cost between $149.47 and $187.75 per month, but your cost may vary.

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If you're a homeowner and need to borrow $15,000, you're probably in luck. You may be able to borrow the money you need home heritage at a competitive interest rate. In fact, the average interest rate on home equity loans it ranges from 8.70% to 8.72%. This is one significant savings on the average interest rates provided by personal loans or credit cards – 12.18% and more than 21%respectively.

And, you likely have plenty of equity available. If you're like the average homeowner, you have around $299,000 in home values and you can safely borrow about $193,000 from it. Then, you should only tap into your home equity if you're sure you can afford to make the payments. After all, these loans are backed by your home.

But how much would a $15,000 be? monthly cost of the home loan? This is what we will calculate next.

Access competitive interest rates with a home equity loan today.

How much would a $15,000 per month loan cost?

The monthly cost of a home loan it depends on a few factors.

Factors affecting cost

The factors that affect the cost of a home loan are as follows:

  • The size of the loan: The amount of money you borrow plays an important role in the monthly cost of your loan. The larger the loan amount, the higher your monthly payments can be expected to be.
  • The term of the loan: Longer terms they usually come with lower monthly payments. But there is a trade-off. Shorter terms typically result in a significantly lower interest cost over the life of the loan.
  • The interest rate: Your interest rate will play a significant role in the monthly cost of your loan, with higher interest rates resulting in higher monthly payments. Therefore, it is important to buy.
  • Your credit rating: Those who have better credit scores they typically qualify for lower interest rates, resulting in lower monthly payments.

But, maybe you can reduce the cost of your loan. “There are only a couple of ways to lower the cost of a home equity loan and that is by borrowing less or having a higher credit rating. Both would lower the rate and the resulting payments,” explains Mark Charnet, founder and CEO of financial planning firm, American Prosperity Group.

Find out how much your home loan will cost each month.

What a 10-year $15,000 loan would cost

The average interest rate for a 10-year loan is 8.72%. A 10-year $15,000 loan with an interest rate of 8.72% would cost $187.75 per month. In addition, you would pay $7,529.77 in interest over the 10-year payment period. So your total payment cost would be $22,529.77.

It's also worth noting Home equity loans usually have fixed interest rates. Therefore, your payment will be the same each month for the life of the loan. But, if you decide to refinance your home equity loanyour payments could change.

What a 15-year $15,000 loan would cost

The average interest rate for a 15-year loan is currently 8.70%. A $15,000 15-year loan at 8.70% would cost $149.47 a month. The loan would have a total interest cost of $11,905.45 and a total payment cost of $26,905.45.

Although these payments are lower, it is important to consider the difference in time and interest. If you choose a 15-year term and make minimum payments, it will take you five more years to pay off your loan and you will pay an additional interest cost of $4,375.68 compared to a 10-year term with an interest rate of 8.72 %. Therefore, you should weigh the pros and cons of a longer term before contracting the loan.

Benefits of using a home equity loan right now

There are a few big ones advantages that come with home equity loans compared to other loan options in today's lending environment. Some of the biggest benefits include:

  • Less interest: Equity loans usually have lower interest rates than other popular loan options such as credit cards and personal loans.
  • Fixed interest: The Federal Reserve often raises its federal funds rate when inflation is high. And while the federal funds rate doesn't directly affect lending rates, it's often used as a benchmark for them. So when it rises, lenders tend to raise the interest rates they charge. Considering the stubbornly high inflation ratethe fixed-rate home equity loans that typically include can be more attractive than the variable rates that home equity lines of credit (HELOC) usually come with If inflation continues on its current path, rates could rise, leading to higher HELOC payments in the future.
  • Financing available: Since most homeowners have an equity value of $193,000 that they can safely tap into, you'll likely have access to plenty of funds to meet your $15,000 financing needs if you go the home loan route.

Take advantage of the benefits of a home loan today.

The bottom line

You'll likely pay between $149.47 and $187.75 per month on a $15,000 loan. And if you need $15,000, a home equity loan may be the best way to access it. After all, these loans usually come with plenty of available financing and lower rates than other options, and the fixed rates they come with can be welcome in today's inflationary environment. Find out how affordable your home equity loan can be today.



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