Here's how much more affordable a $40,000 home equity loan is now compared to 2025

MoneyWatch: Managing Your Money Here's how much more affordable a $40,000 home equity loan is now compared to 2025 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 23, 2026 / 3:05 PM EDT / CBS News Add CBS News on Google Home equity loan borrowing costs have been consistently dropping over the past year. Alfieri/Getty Images Borrowing $40,000 worth of home equity has often been achievable for a wide range of homeowners. And it's become more so in recent years after home equity levels in the country hit a record high and the amount of borrowable equity surged past $10 trillion, on average. With most lenders requiring owners to keep a 20% equity threshold in the home as a buffer, $40,000 is still relatively accessible considering the surge in equity amounts across the country. While the amount of equity to borrow from has risen, the costs of doing so have declined as well, making now an opportune time to leverage the equity under your roof.And that's especially true for those considering borrowing their $40,000 with a home equity loan. This product employs a fixed interest rate that won't change unless the homeowner elects to refinance. Because of that, it's simple to budget with precision, which is important when leveraging your home because you could theoretically have it foreclosed on if you're ultimately unable to make repayments as agreed to. But that may be less of an issue now, as home equity loan costs have been consistently declining, as can be seen clearly with a $40,000 loan....