Here's how much a $40,000 home equity loan costs monthly now that the Fed cut interest rates

The costs of borrowing with a home equity loan could decline now that interest rate cuts are being issued again. Getty Images/iStockphoto

Being approved for a $40,000 line of credit isn't always easy. And, right now, with the average credit card interest rate just under a recent record high, it isn't exactly cheap either.

If you're a homeowner, though, you have a viable source of funding that's readily available at a reasonable interest rate. And, thanks to the Federal Reserve's interest rate cut this month – and presumed additional ones in October and December – a home equity loan is now one of your cheaper ways to borrow money. With the average home equity amount worth hundreds of thousands of dollars, borrowing a $40,000 lump sum should be relatively simple to do.

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