Home Equity Loans: Is Now the Right Time to Borrow?

With interest rates declining, homeowners must weigh the benefits of borrowing against their property value now versus waiting for potential further rate drops.

• Current home equity loan rates average around 8.40%, significantly lower than credit card rates exceeding 23% and personal loans at about 13%.
• The Federal Reserve's recent rate cuts have contributed to a decline in home equity loan rates, making them an attractive option for borrowers.
• Homeowners can benefit from tax deductions on interest if the loan is used for home improvements, potentially reducing their 2024 tax bill.
• Lenders like TD Bank and Rocket Mortgage offer flexible terms and lower credit score requirements, making home equity loans accessible to more borrowers.
• Borrowers should carefully calculate potential monthly payments to ensure affordability and avoid the risk of foreclosure, as the home serves as collateral.

3 Articles

CBS News CBS News CNBC