$50,000 home equity loan vs. $50,000 HELOC: Which is cheaper after the October Fed rate cut?

The costs of borrowing $50,000 worth of home equity have diminished thanks to recent Fed rate cuts. BanksPhotos/Getty Images

If you were considering borrowing $50,000 in the high-interest-rate environment of 2022 through 2024, just a quick glance at average interest rates was likely enough to discourage you from acting. With rates on personal loans, credit cards and home equity loans all at one point in or just under the double digits, there were few cost-effective ways to borrow a five-figure sum of money. So, borrowers were either stuck with exorbitant rates or left to delay paying for major expenses.

But the interest rate climate has changed over the past 13 months or so. And that's arguably been seen most dramatically in the home equity borrowing space. Home equity line o