How much will a $100,000 HELOC cost monthly if opened this September?

If you find yourself in need of extra financing this September, it's not difficult to understand why. With inflation still elevated following years of higher costs, an interest rate hike looming that will make borrowing more expensive and credit card balances increasing yet again in the most recent quarter, the need for a large, six-figure sum of money is especially pronounced for millions of Americans right now. And while those who don't own a home will have to look toward alternative borrowing options, current homeowners likely have a robust and accessible funding source at their disposal via their home equity .

With a home equity line of credit (HELOC) , specifically, homeowners can borrow a large, six-figure sum of their equity with a product that functions like a revolving line of credit. If you don't ultimately need all of the money, you won't be responsible for paying it. But if you're unsure of how much you'll exactly need but know that it will likely be $100,000 or more, this could be the flexible borrowing option worth considering now. And with HELOC interest rates considerably less expensive than those tied to personal loans and credit cards, this is currently one of the more affordable borrowing tools available.

With your home serving as collateral, however, you'll want to ensure long-term affordability before formally applying. That starts with understanding the potential repayment costs. So, how much will a $100,000 HELOC cost monthly if opened this September? That's what we'll estimate below.

Start by seeing how much home equity you'd be eligible to borrow here .

Because HELOCs employ variable interest rates that will change monthly, prospective borrowers will only be able to estimate their potential monthly costs, not know them with certainty. Still, with a HELOC offering an average rate of 8.09% right now, according to Money.com , this isn't just the cheapest way to borrow equity currently; it's also one of the more affordable ways to borrow overall this September.

Assuming that rate holds steady, then, and assuming that the full HELOC is borrowed and repayments begin immediately (many lenders will simply mandate interest-only payments during the initial draw period ), here's how much a $100,000 HELOC will cost monthly if opened this September, calculated against two common repayment periods:

For context, here's how much a $100,000 HELOC cost monthly in early February , when the interest rate environment was much cooler than it currently is:

And here's what it would have cost in April , when rates were even lower:

Today's interest rates, as outlined, are considerably higher, as are the corresponding payments. And those aren't just numbers on a screen, as borrowers will feel these changes as the account's rate adjusts monthly based on market conditions at the time. It's critical, then, to calculate your potential costs not just against what today's rates are, but what they can look like in the future, too.

That means doing the math for rates that are both higher and lower than 8.09% to best ensure your ability to continue to make payments.