$100,000 home equity loan vs. $100,000 HELOC: Which has the cheaper monthly payments now?

MoneyWatch: Managing Your Money $100,000 home equity loan vs. $100,000 HELOC: Which has the cheaper monthly payments now? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Matt Richardson Matt Richardson Sr. Managing Editor, Managing Your Money Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance. Read Full Bio Matt Richardson April 20, 2026 / 2:54 PM EDT / CBS News Add CBS News on Google The average homeowner has a record amount of equity from which to borrow now. Muhammad Aqib/Getty Images Borrowing home equity, whether it be via a home equity loan or home equity line of credit (HELOC) is a simple and effective way for homeowners to make ends meet. But they won't be able to withdraw all of their accumulated equity as many lenders require a 20% threshold to be kept in the home as a buffer. In today's economic climate, however, this is hardly an obstacle for the average homeowner with equity levels in the country sitting at a record high. There's around $11 trillion in equity that's considered borrowable by homeowners now, according to a March report. So, withdrawing a large, six-figure amount like $100,000 should be relatively easy. And with interest rates on home equity loans and HELOCs considerably lower than they were in recent years, this is also one of your cheapest ways to not only borrow equity but also to borrow money overall.Still, your home does function as collateral in these exchanges, so it's critical that you go into the process clear-eyed and informed, particularly about the costs you'll be expected to repay each month. Between a $100,000 home equity loan and a $100,000 HELOC, then, which will have the cheaper monthly payment...