Connect with us

CBS News

How is home equity paid out?

Avatar

Published

on


gettyimages-1247278622.jpg
How you receive your home equity depends on the type of loan you use to access it. 

Getty Images


If you own a home, chances are that you know there’s value in your home equity. It’s the portion of your house that you own free and clear. Moreover, you can tap into it when you need to. For example, you can use your home equity to get rid of pesky credit card debt, make home repairs or even invest in your education

Of course, if you haven’t used your home equity in the past, you may have a few questions. One of the biggest being: How is home equity paid out? The answer depends on the way you choose to tap into it.

Discover how easy it can be to tap into your home equity now

How is home equity paid out?

There are three common ways to tap into your home’s equity – a home equity loan, a cash out refinance, or a HELOC. Here’s how each works: 

How a home equity loan is paid out

You can typically access around 80% of your home’s equity using a home equity loan. Moreover, home equity loans are paid out in a single lump sum. So, if you apply, and are approved, for a $100,000 home equity loan, you can expect to receive a single, lump sum payment in the amount of $100,000 when you close on your loan. 

How a cash out refinance is paid out

In a cash out refinance, you’ll refinance your current mortgage, taking the equity you have in your home out in the process. As is the case with a home equity loan, you’ll receive a single, lump-sum payment for the amount of cash you can access upon the closing of the new loan. 

Compare your home equity loan options today

How a HELOC is paid out 

Home equity lines of credit (HELOCs) are similar to home equity loans and cash out refinance options in that they use your equity as security for the loan. However, they differ in that a HELOC is a revolving line of credit. 

In most cases, HELOCs have a draw period that lasts anywhere from five to 15 years. During this period, you can borrow the money you need up to your credit limit – typically around 80% of your available equity. So, if you have a $50,000 HELOC, you can borrow and repay up to $50,000 as many times as you’d like during the draw period. Moreover, you’ll typically make interest-only payments while the loan is in the draw period. 

When the draw period ends, the repayment period starts. During this period, you’ll usually be required to make payments toward interest and principal until the loan is paid in full. 

Which option is better based on how they’re paid out?

Whether a home equity loan or HELOC is better based on how they’re paid out depends on what you plan on using the money for. For example, if you need money to consolidate high interest rate debt, you’ll need a large lump sum of money up front. In this case, a home equity loan may be your best option. 

On the other hand, if you’re using the money to renovate your home, a HELOC may be better. After all, you never know how much renovations will cost in the end. So, having the ability to access additional funds during the draw period may come in handy. 

How the money is paid out shouldn’t be your only consideration

It’s important to consider how you can access money when it comes to choosing the best avenue for tapping into your home equity, but that shouldn’t be your only consideration. Here are a few other factors to think about when you decide whether a home equity loan, cash out refinance or HELOC is the better option: 

  • Impact on your current mortgage: If you purchased your home at least a couple of years ago, chances are you have a lower interest rate than is currently available. So, a cash out refinance may not be a wise idea. Consider a home equity loan or HELOC in these circumstances instead. 
  • Interest rates: Home equity loans generally come with fixed interest rates while HELOC rates are usually variable. 
  • Payment structure: When you take out a home equity loan, you’ll know exactly what your monthly payment will be. Since HELOCs are revolving credit lines with variable interest rates, their payments are typically variable as well – which can make budgeting more difficult.   

Compare your home equity options now

The bottom line

Different home equity products pay out in different ways. Although it’s important to consider how you’ll receive your money, you should also consider other factors. Make sure to compare your options in terms of fees, interest, payment structure and the potential impact on your current mortgage before you decide which home equity product is right for you. 



Read the original article

Leave your vote

Continue Reading

CBS News

Rep. Mike Turner says all “candidates need to deescalate” after Trump assassination attempts

Avatar

Published

on


Rep. Mike Turner, an Ohio Republican who chairs the House Intelligence Committee, responded Sunday to Eric Trump’s implication that his father’s Democratic opponents were responsible for the attempts on former President Trump’s life, saying the innuendo was “of course” inaccurate but political candidates on both sides of the aisle “need to deescalate” their rhetoric.

“No, of course not,” Turner said in his latest appearance on “Face the Nation with Margaret Brennan,” after being asked whether he believes there was truth to claims made by the former president, his son Eric, and his vice presidential running mate, Sen. JD Vance, at a rally where each either implied or suggested Democrats tried to kill him.

Trump returned Saturday to Butler, Pennsylvania, to speak to supporters gathered at the Butler Farm Show fairgrounds, the site of the July 13 assassination attempt against him. A gunman facing Trump on the podium at that rally opened fire into the crowd, grazing Trump’s ear, killing one attendee and injuring two others, according to authorities. The gunman was killed by a Secret Service sniper, officials said. 

Another apparent assassination attempt happened in September when a suspect pointed a gun in Trump’s direction on the Florida course where he was playing golf. The FBI has opened probes into both incidents. 

ftn-1.jpg
Rep. Mike Turner on “Face the Nation with Margaret Brennan,” Oct. 6, 2024.

CBS News


Trump, his son and Vance all acknowledged the assassination attempt in Butler at Saturday’s campaign event.

“Over the past eight years, those who want to stop us from achieving this future have slandered me impeached me indicted me tried to throw me off the ballot and, who knows, maybe even tried to kill me,” said the former president, while Eric Trump claimed his father’s political opponents “tried to kill him, and it’s because the Democratic party, they can’t do anything right.”

Vance, in his remarks, addressed Trump’s Democratic challenger in the presidential race, Vice President Kamala Harris, and suggested that the Republican nominee “took a bullet for democracy.”

Brennan asked Turner: “You don’t mean to imply here anything that would suggest Eric Trump’s allegations that Democrats are trying to kill him?”

“No, of course not,” Turner responded. “But I do think that Vice President Harris needs to actively state and acknowledge that her administration is saying a foreign power, which would be an act of war, is actively trying to kill her opponent.”

The attempts on Trump’s life came after a citizen of Pakistan with ties to Iran was arrested and charged with allegedly planning a murder-for-hire scheme targeting Trump, among others. Although the timing of the charges coincided with the first attempt, there was no indication that the two incidents were related.

Turner criticized Harris for what he viewed as a failure to openly condemn the alleged plot.

“I think there’s certainly a role for her to play and for the president to play in this, in both identifying that there are threats against Donald Trump that need to be acknowledged and responded to, to deter,” he said. “I think all the candidates need to de-escalate, certainly in their language.”

But the congressman did acknowledge that a Biden-Harris Justice Department official, Matthew Olsen, the head of the national security division, said the U.S. government has been “intensely tracking Iranian lethal plotting efforts targeting former and current U.S. government officials — and that includes the former president.”

“I would say that we are very concerned — gravely concerned — about Iranian plotting,” Olsen told CBS News in a recent interview.



Read the original article

Leave your vote

Continue Reading

CBS News

Maps show track of Hurricane Milton as forecasters predict landfall in Florida this week

Avatar

Published

on


South Florida prepares for heavy rainfall, flooding in wake of Tropical Storm Milton


South Florida prepares for heavy rainfall, flooding in wake of Tropical Storm Milton

04:09

Hurricane Milton rapidly intensified into a Category 1 storm on Sunday, and it has set its path on Florida’s Gulf Coast.

Forecasters predict Milton will make landfall around the Tampa Bay area on Wednesday, bringing with it upwards of 120 mph winds and drenching an area still reeling from Hurricane Helene.

As of 2 p.m. ET on Sunday, Milton was centered about 290 miles west-northwest of Progreso, Mexico, and about 815 miles west-southwest of Tampa. It had maximum sustained winds of nearly 80 mph and was inching north-northeast at 6 mph.

Path of Hurricane Milton

A map from the National Hurricane Center shows Milton continuing to strengthen into a major hurricane as it approaches Florida’s western coast.

“Milton is forecast to rapidly intensify during the next couple of days and become a major hurricane on Monday,” forecasters said.

cone-milton.png
The projected path of Hurricane Milton as of Oct. 6, 2024

NOAA/National Hurricane Center


The storm is expected to remain north of Mexico’s Yucatan peninsula, with heavy rainfall expected as Milton makes its way northeast toward Florida. Tropical storm watches are currently in effect from Celestun to Cancún, Mexico.

153329-current-wind-sm.png
The current wind field for Hurricane Milton as of Sunday, Oct. 6, 2024.

NOAA/National Hurricane Center


The hurricane center said hurricane and storm surge watches could be issued for parts of Florida later Sunday.

Florida officials prepare for more impact

Florida Gov. Ron DeSantis said Sunday that while it remains to be seen just where Milton will strike, it’s clear that Florida is going to be hit hard. “I don’t think there’s any scenario where we don’t have major impacts at this point,” he said.

“You have time to prepare — all day today, all day Monday, probably all day Tuesday to be sure your hurricane preparedness plan is in place,” the governor said. “If you’re on that west coast of Florida, barrier islands, just assume you’ll be asked to leave.”

Tropical Weather
This GOES-16 GeoColor satellite image taken at 4:50 p.m. EDT and provided by National Oceanic and Atmospheric Administration (NOAA) shows Tropical Storm Milton, center, off the coast of Mexico in the Gulf of Mexico, Saturday, Oct. 5, 2024.

NOAA via AP


DeSantis expanded his state of emergency declaration Sunday to 51 counties and said Floridians should prepare for more power outages and disruptions, making sure they have a week’s worth of food and water and are ready to hit the road. 

The Federal Emergency Management Agency, meanwhile, coordinated with the governor and briefed President Biden Sunday on how it has staged lifesaving resources.

“I highly encourage you to evacuate” if you’re in an evacuation zone, said Kevin Guthrie, executive director of the Florida Division of Emergency Management. “We are preparing … for the largest evacuation that we have seen, most likely since 2017, Hurricane Irma. “

As many as 4,000 National Guard troops are helping state crews to remove debris, DeSantis said.

“All available state assets … are being marshaled to help remove debris,” DeSantis said. “We’re going 24-7 … it’s all hands on deck.”



Read the original article

Leave your vote

Continue Reading

CBS News

American and U.K. climbers rescued after 2 days stranded on Himalayan mountains in India

Avatar

Published

on


An American climber was rescued after she and another alpinist from the U.K. were stranded for two days at more than 20,000 feet in the Himalayan mountains.

Michelle Dvorak, 31, and Fay Manners, 37, went missing on Thursday after their equipment and food tumbled down a ravine while trekking up India’s Chaukhamba mountain, CBS News partner BBC reported.

The pair sent an emergency message but search and rescue teams were unable to find them.

Rescued British and U.S. climbers pose for a photo with rescuers in Joshimath, Uttarakhand
Rescued British and U.S. climbers pose for a photo with rescuers in Joshimath, Uttarakhand, India on October 6, 2024.

INDIAN AIR FORCE/Handout via REUTERS


Manners told the BBC they were “terrified” as they tried to make part of the descent down the treacherous mountains without supplies.

“I watched the bag tumble down the mountain and I immediately knew the consequence of what was to come,” she said. “We had none of our safety equipment left. No tent. No stove to melt snow for water. No warm clothes for the evening.”

The terrifying ordeal intensified when it started to snow. They took cover on a ledge while waiting for rescuers.

“I felt hypothermic, constantly shaking and with the lack of food my body was running out of energy to keep warm,” Manners said.

The rescue was made difficult because of the conditions, including bad weather, fog and high altitude.

“The helicopter flew passed again, couldn’t see us. We were destroyed,” Manners told the BBC.

British and U.S. climbers are rescued at the location given as Uttarakhand
British and U.S. climbers are rescued at the location given as Uttarakhand, India on October 6, 2024.

INDIAN AIR FORCE/Handout via REUTERS


On the second day, the pair began to cautiously abseil down the mountain. They spotted a team of French climbers coming toward them. Manners said they shared their equipment and food and contacted the helicopter company with an exact location.

“I cried with relief knowing we might survive,” she said.

The Indian Air Force said in a post on the X social media platform that their helicopter airlifted the climbers from 17,400 feet after “battling two days of bad weather.”

Chaukhamba is a mountain massif in the Garhwal Himalaya in northern India.



Read the original article

Leave your vote

Continue Reading

Copyright © 2024 Breaking MN

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.