Monthly payment on a $500,000 home equity loan
Fixed payments on a $500,000 home equity loan at every common rate and term, total interest by term, and the home value you'd need.
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What is the monthly payment on a $500,000 home equity loan?
At a fixed 8.25% interest rate, a $500,000 home equity loan costs about $4,851 a month over 15 years, or $6,133 over 10. The same amount on a HELOC at 7.75% APR would start at about $3,229 a month interest-only, but that rate can change.
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Payments by rate and term
| Interest rate | 5 yr | 10 yr | 15 yr | 20 yr | 30 yr |
|---|---|---|---|---|---|
| 7.00% | $9,901 | $5,805 | $4,494 | $3,876 | $3,327 |
| 7.50% | $10,019 | $5,935 | $4,635 | $4,028 | $3,496 |
| 8.00% | $10,138 | $6,066 | $4,778 | $4,182 | $3,669 |
| 8.50% | $10,258 | $6,199 | $4,924 | $4,339 | $3,845 |
| 9.00% | $10,379 | $6,334 | $5,071 | $4,499 | $4,023 |
| 9.50% | $10,501 | $6,470 | $5,221 | $4,661 | $4,204 |
| 10.00% | $10,624 | $6,608 | $5,373 | $4,825 | $4,388 |
| 10.50% | $10,747 | $6,747 | $5,527 | $4,992 | $4,574 |
Principal and interest at example interest rates; taxes and insurance not included. The APR includes fees and will be higher than the interest rate. See the representative example below.
Use a free calculator, or get your HELOC rate from Shawn.
Total interest at 8.25%
| Term | Monthly | Total interest |
|---|---|---|
| 5 years | $10,198 | $111,888 |
| 10 years | $6,133 | $235,916 |
| 15 years | $4,851 | $373,126 |
| 20 years | $4,260 | $522,479 |
| 30 years | $3,756 | $852,280 |
Home value you'd need
At an 85% combined loan-to-value cap:
| Mortgage balance | Home value needed |
|---|---|
| $0 | $588,235 |
| $150,000 | $764,706 |
| $300,000 | $941,176 |
| $450,000 | $1,117,647 |
What a $500,000 home equity loan usually fits
$500,000 fixed second mortgages come from a small number of portfolio lenders for high-value homes, with full documentation and substantial remaining equity. Borrowers at this level often compare a first-lien HELOC on a paid-off home, a cash-out refinance and a jumbo loan. The right answer usually depends on your current first-mortgage rate and how long you'll carry the balance.
Paying it off faster
On $500,000 at 8.25% over a 15-year term, the payment is $4,851 and total interest is $373,126. Adding a little each month shortens the payoff and cuts interest:
| Extra each month | New payment | Paid off in | Interest saved |
|---|---|---|---|
| +$50 | $4,901 | 14.7 years | $8,534 |
| +$100 | $4,951 | 14.4 years | $16,658 |
| +$250 | $5,101 | 13.6 years | $38,851 |
Income you'd need to qualify
On a 15-year term at 8.25%, the payment is about $4,851 a month. With most lenders capping total debts near 43% of gross income, the income needed depends on your other obligations:
| Your other debts and housing costs | Gross income needed | Per year |
|---|---|---|
| 20% of income | $21,090/mo | $253,080/yr |
| 25% of income | $26,948/mo | $323,380/yr |
| 30% of income | $37,313/mo | $447,757/yr |
| 35% of income | $60,634/mo | $727,605/yr |
HELOCs near $500,000 that Shawn's team funded
Shawn's team funded 210 HELOCs between $375,000 and $625,000 from January 2023 through October 2026. The median starting rate was 8.53%, the median home value was $1,445,000, and the median line was 30% of the home's value. 75% used a fixed-rate option and 90% were on a primary home. The most common states were California, Florida, Arizona.
| Credit score | Loans | Median starting rate |
|---|---|---|
| 760 or higher | 82 | 8.22% |
| 720 to 759 | 30 | 8.38% |
| 680 to 719 | 10 | 8.86% |
Historical starting rates on funded loans, not an offer or quote. Rates moved over this period, and yours depends on your credit, home value, line size, property and the date you apply. Method and full data: HELOC statistics.
Should you take a $500,000 home equity loan or a HELOC?
A $500,000 home equity loan fits if you'll use it all at once and want a fixed payment: about $4,851 a month over 15 years at 8.25% ($373,126 total interest). A HELOC fits money drawn over time, starting near $3,229 a month interest-only at 7.75% APR, which can change. See the $500,000 HELOC payment page.
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Sources
Official sources behind this guide.
- What is the difference between a home equity loan and a HELOC? · Consumer Financial Protection Bureau
- What you should know about home equity lines of credit (booklet, PDF) · Consumer Financial Protection Bureau