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Why you should get a home equity loan with interest rates paused

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With interest rates paused, now could be an opportune time for homeowners to tap into their home equity.

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Borrowers hoping for some quick relief were left disappointed this week after the Federal Reserve elected to keep interest rates paused. While the benchmark interest rate range will stay the same between 5.25% and 5.50% — a 23-year high — there were indications that rate cuts could come later this year and into 2025. Against this backdrop, borrowers should remain judicious about how they access credit and which credit forms they use. 

Homeowners, for example, have a great resource at their disposal: their home equity. Considering that the average homeowner has around $200,000 to utilize in today’s market, right now may be a great time to do so, even with elevated interest rates on pause. Below, we’ll break down three reasons why you should get a home equity loan now.

Start by seeing what home equity loan rate you could qualify for here.

Why you should get a home equity loan with interest rates paused

Here are three compelling reasons why homeowners should get a home equity loan or home equity line of credit (HELOC) with rates frozen. 

Rates will stay where they are (for now)

An interest rate pause is still better than an interest rate hike, particularly for those considering accessing their home equity. The average home equity loan interest rate as of Thursday was 8.59% while the average HELOC was 8.99%. And that’s after the Fed’s announcement, meaning that the repercussions of keeping rates the same have likely been accounted for — and rates are still under 9%. 

And if hints of a rate cut become more substantive in the weeks to come, rates on both borrowing products may drop lower. This gives borrowers some more flexibility and an extended window of opportunity to find the best lender for their needs (homeowners don’t need to use their current home loan lender if they don’t want to).

Start shopping for home equity loans online now.

Rates are still lower than popular alternatives

Have you looked at the interest rates on other popular credit alternatives lately? Credit card interest rates are around 20% right now while the average personal loan interest rate is better, but still around 12%, for borrowers. Both are significantly higher than what home equity and HELOC lenders will offer right now — and neither comes with the interest tax deductions if used for eligible home repairs and renovations. And with interest rates on pause, the rate climate is likely to remain as is, at least until the Fed meets again at the end of April. 

Your rate could drop later this year

While home equity loan rates are fixed and will require refinancing to secure a lower rate, HELOC rates are not. As such, if you take out a HELOC this spring and rates drop fall later in the season, the payment you’ll need to make on the line of credit will fall in tandem. This could result in immediate savings back to you.

“This is simply an interest rate question,” Mark Charnet, founder and CEO of American Prosperity Group, a financial planning firm, recently told CBS News. “If the borrower feels rates will fall in the short-term, a HELOC, which normally adjusts the interest rate monthly, may be a better opportunity.”

Explore your HELOC options to learn more.

The bottom line

With interest rates on pause — and cuts likely for later in the year — now is an opportune time for homeowners to tap into their home equity. By doing so now they can still get a relatively low rate and save money versus using alternatives with much higher rates. And if they use a HELOC over a home equity loan, owners can position themselves for further savings due to the HELOC’s variable rate nature. As is the case when considering home equity borrowing, however, owners should thoroughly consider all options as their home will be used as collateral. If they can’t adequately pay back what they borrow, then they could risk losing their home in the transaction. 



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Tajikistan nationals with alleged ISIS ties removed in immigration proceedings, U.S. officials say

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When federal agents arrested eight Tajikistan nationals with alleged ties to the Islamic State terror group on immigration charges back in June, U.S. officials reasoned that coordinated raids in Los Angeles, New York and Philadelphia would prove the fastest way to disrupt a potential terrorist plot in its earliest stages. Four months later, after being detained in Immigration and Customs Enforcement (ICE) facilities, three of the men have already been returned to Tajikistan and Russia, U.S. officials tell CBS News, following removals by immigration court judges. 

Four more Tajik nationals – also held in ICE detention facilities – are awaiting removal flights to Central Asia, and U.S. officials anticipate they’ll be returned in the coming few weeks. Only one of the arrested men still awaits his legal proceeding, following a medical issue, though U.S. officials speaking on the condition of anonymity to discuss the sensitive proceedings indicated that he remains detained and is likely to face a similar outcome. 

The men face no additional charges – including terrorism-related offenses – with the decision to immediately arrest and remove them through deportation proceedings, rather than orchestrate a hard-fought terrorism trial in Article III courts, born out of a pressing short-term concern about public safety. 

Soon after the eight foreign nationals crossed into the United States, the FBI learned of the potential ties to the Islamic State, CBS News previously reported. The FBI identified early-stage terrorist plotting, triggering their immediate arrests, in part, through a wiretap after the individuals had already been vetted by U.S. Customs and Border Protection, law enforcement sources confirmed to CBS News in June. 

Several months later, their removals following immigration proceedings mark a departure from the post-9/11 intelligence-sharing architecture of the U.S. government. 

Now facing a more diverse migrant population at the U.S.-Mexico border, a new effort is underway by the Department of Homeland Security, Department of Justice and the Intelligence Community to normalize the direct sharing of classified information – including some marked top-secret – with U.S. immigration judges. 

The more routine intelligence sharing with immigration judges is aimed at allowing U.S. immigration courts to more regularly incorporate derogatory information into their decisions. The endeavor has led to the creation of more safes and sensitive compartmented information facilities – also known as SCIFs – to help facilitate the sharing of classified materials. Once considered a last resort for the department, Secretary Alejandro Mayorkas has sought to use immigration tools, in recent months, to mitigate and disrupt threat activity.

The immigration raids, back in June, underscore the spate of terrorism concerns from the U.S. government this year, as national security agencies point to a system now blinking red in the aftermath of the Oct. 7 attacks by Hamas on Israel, with emerging terrorism hot spots in Central Asia. 

A joint intelligence bulletin released this month, and obtained by CBS News, warns that foreign terrorist organizations have exploited the attack nearly one year ago and its aftermath to try to recruit radicalized followers, creating media that compares the October 7 and 9/11 attacks and encouraging “lone attackers to use simple tactics like firearms, knives, Molotov cocktails, and vehicle ramming against Western targets in retaliation for deaths in Gaza.”

In May, ICE arrested an Uzbek man in Baltimore with alleged ISIS ties after he had been living inside the U.S. for more than two years, NBC News first reported. 

In the past year, Tajik nationals have engaged in foiled terrorism plots in Russia, Iran and Turkey, as well as Europe, with several Tajik men arrested following March’s deadly attack on Crocus City Hall in Moscow that left at least 133 people dead and hundreds more injured. 

The attack has been linked to ISIS-K, or the Islamic State Khorasan Province, an off-shoot of ISIS that emerged in 2015, founded by disillusioned members of Pakistani militant groups, including Taliban fighters. In August 2021, during the U.S. military withdrawal from Afghanistan, ISIS-K launched a suicide attack in Kabul, killing 13 U.S. service members and at least 170 Afghan civilians. 

In a recent change to ICE policy, the agency now recurrently vets foreign nationals arriving from Tajikistan, Uzbekistan and other Central Asian countries, detaining them while they await removal proceedings or immigration hearings.

Only 0.007% of migrant arrivals are flagged by the FBI’s watchlist, and an even smaller number of those asylum seekers are ultimately removed. But with migrants arriving at the Southwest border from conflict zones in the Eastern Hemisphere, posing potential links to extremist or terrorist groups, the White House is now exploring ways to expedite the removal of asylum seekers viewed as a possible threat to the American public. 

“Encounters with migrants from Eastern Hemisphere countries—such as China, India, Russia, and western African countries—in FY 2024 have decreased slightly from about 10 to 9 percent of overall encounters, but remain a higher proportion of encounters than before FY 2023,” according to the Homeland Threat Assessment, a public intelligence document released earlier this month. 

A senior homeland security official told reporters in a briefing Wednesday, that the U.S. is engaged in an “ongoing effort to try to make sure that we can use every bit of available information that the U.S. government has classified and unclassified, and make sure that the best possible picture about a person seeking to enter the United States is available to frontline personnel who are encountering that person.”

Approximately 139 individuals flagged by the FBI’s terror watchlist have been encountered at the U.S.‑Mexico border through July of fiscal year 2024. That number decreased from 216 during the same timeframe in 2023. CBP encountered 283 watchlisted individuals at the U.S.-Canada border through July of fiscal year 2024, down from 375 encountered during the same timeframe in 2023.

“I think one of the features of the surge in migration over recent years is that our border personnel are encountering a much more diverse and global population of individuals trying to enter the United States or seeking to enter the United States,” a senior DHS official said. “So, at some point in the past, it might have been primarily a Western Hemisphere phenomenon. Now, our border personnel encounter individuals from around the world, from all parts of the world, to include conflict zones and other areas where individuals may have links or can support ties to extremist or terrorist organizations that we have long-standing concerns about.”

In April, FBI Director Christopher Wray warned that human smuggling operations at the southern border were trafficking in people with possible connections to terror groups.

“Looking back over my career in law enforcement, I’d be hard-pressed to think of a time when so many different threats to our public safety and national security were so elevated all at once, but that is the case as I sit here today,” Wray, told Congress in June, just days before most of the Tajik men were arrested.

The expedited return of three Tajiks to Central Asia required tremendous diplomatic communication, facilitated by the State Department, U.S. officials said.  

Returns to Central Asia routinely encounter operational and diplomatic hurdles, though regular channels for removal do exist. According to agency data, in 2023, ICE deported only four migrants to Tajikistan.

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Here Comes the Sun: Ralph Macchio and more

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Here Comes the Sun: Ralph Macchio and more – CBS News


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Actor Ralph Macchio sits down with Lee Cowan to discuss the sixth and final season of “Cobra Kai.” Then, Tracy Smith visits The Broad museum in Los Angeles to learn about Mickalene Thomas’ exhibition “All About Love.” “Here Comes the Sun” is a closer look at some of the people, places and things we bring you every week on “CBS Sunday Morning.”

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The Depraved Heart Murder – CBS News

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A surgeon is accused of drugging his girlfriend in order to control her. “48 Hours” contributor Nikki Battiste reports.

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