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3 reasons to use a HELOC this April
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March is drawing to an end and spring is in full swing. While the season change may provide a breath of fresh air, it may also come with new expenses. If you need to make home repairs, cover the cost of a wedding or pay for a wide range of potential expenses, you may be looking for the most affordable way to do so. One option is a home equity line of credit (HELOC).
HELOCs are lines of credit that make it possible to borrow against your home equity. These lending options typically come with relatively low interest rates because they’re secured by your home. So, if you need to cover large expenses this April, a HELOC could be an effective way to get the money you need.
Find out how much money you can access with a HELOC now.
3 reasons to use a HELOC this April
The average American homeowner has quite a bit of equity at their fingertips – about $299,000 worth. Although you can’t usually tap into 100% of your home equity, you can typically access a significant amount of it. The average American homeowner can safely access around $193,000 of their equity right now. So, what are the benefits of using a HELOC to cover large expenses this April? Here are three:
Rates are still lower than popular alternatives
The biggest cost that’s typically associated with borrowing money is interest. And in today’s high interest rate environment, it’s important to look for low rates when you compare your borrowing options. HELOCs typically fit that bill.
Today’s average HELOC interest rate is 9.01%. That low rate can offer significant savings over popular alternatives. The average credit card interest rate hovers near 20% currently while the average personal loan interest rate is about 12%, according to Bankrate.
Find out how affordable a HELOC can be today!
Variable interest rates could position you for savings ahead
Significant COVID-era inflation led the Federal Reserve to push interest rates to the heights we see today. The federal funds rate is currently frozen at a 23-year high. Although the inflation rate continues to outpace the Federal Reserve’s 2% target, and there have been months with upticks, the overall inflation rate trend since it hit 9.1% in June of 2022 has been a downward one.
As inflation continues to cool, experts expect the Federal Reserve to reduce its federal funds rate multiple times in 2024. That’s important because the federal funds rate is the primary benchmark for consumer interest rates. Should the Fed cut its rate later this year, consumer interest rates will likely follow.
That’s good news if you opt for a HELOC since these loans typically come with variable interest rates. If the Federal Reserve does cut rates later this year, the cost of your HELOC could fall.
Your interest may be tax deductible
If you plan on using your HELOC to make spring home repairs or renovations, there’s an added benefit to consider. According to the IRS, “interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.”
So, while you can’t deduct your interest if you use a HELOC on your first home to repair your second home and vice versa, your interest may be deductible if you use your HELOC to repair the home that secures it.
Compare your HELOC options now to get your hands on the money you need.
The bottom line
If you’re in need of a competitive cost loan this April, a HELOC may be what you’re looking for. These loans typically come with lower rates than other popular options because they’re backed by your home. Moreover, interest rates on these loans are usually variable, giving you the ability to take advantage of expected rate cuts ahead. Finally, depending on how you plan on using your HELOC, your interest may be tax deductible.
CBS News
Kamala Harris will speak with “60 Minutes” tomorrow. Here’s what to know for the interview.
Voters will get the chance to hear from Vice President Kamala Harris on Monday as she presents her case for why she should be president in a “60 Minutes” election special.
For decades, “60 Minutes” has featured both Republican and Democratic nominees for presidents, but this year, former President Donald Trump backed out after previously indicating he would be on the show. Correspondent Scott Pelley, who’d been set to interview Trump, will instead travel to Arizona’s Maricopa County, home to more than 60% of Arizona’s voters and a critical battleground in a key swing state.
One thing is certain about the election; with the U.S. deeply involved in both the wars in Ukraine and the Middle East, whoever wins on Nov. 5 will become a wartime president.
What Harris will discuss
Israel’s war started one year ago after Hamas launched a surprise terror attack and correspondent Bill Whitaker will discuss the ongoing war with Harris.
Harris will also discuss the economy, immigration, her record as vice president and the differences between herself and Trump.
Democratic vice presidential candidate Gov. Tim Walz will also appear.
Whitaker joined the Democratic ticket on the campaign trail this week to gain insight into their platform’s priorities and values, and what the candidates believe voters should know.
Why Trump pulled out of the “60 Minutes” interview
Leading up to the candidate hour, Trump, through campaign spokespeople, was the first candidate to accept the “60 Minutes” request to be interviewed for the special, according to CBS News. It had been agreed that both candidates would receive equal time during the broadcast.
Trump last sat down with 60 Minutes in 2020. He walked out during the interview with Lesley Stahl. Trump referenced the incident on Tuesday night at a Milwaukee press conference when asked about his decision not to participate in the Oct. 7 “60 Minutes” election special.
“Well, right now, I went to – they came to me and would like me to do an interview, but first I want to get an apology, because the last time I did an interview with them, if you remember, they challenged me on the computer,” Trump said. “They said the ‘laptop from hell’ was from Russia, and I said it wasn’t from Russia. It was from Hunter, and I never got an apology, so I’m sort of waiting. I’d love to do ’60 Minutes.’ I do everything.”
The Republican nominee for president emphasized that he felt he was owed an apology from “60 Minutes.”
“Let’s see if they do it. I wouldn’t mind doing 60,” Trump continued. “I’ve done ’60 Minutes’ a lot.”
In a statement on Tuesday, Trump campaign communications director Steven Cheung said that Trump’s team had not agreed to an interview.
“Fake News,” Cheung said in a post on X. “60 Minutes begged for an interview, even after they were caught lying about Hunter Biden’s laptop back in 2020. There were initial discussions, but nothing was ever scheduled or locked in. They also insisted on doing live fact checking, which is unprecedented.”
Previous Trump, Harris appearances on 60 Minutes
Trump previously sat down with “60 Minutes'” Mike Wallace in 1985, Pelley in 2015 and Lesley Stahl twice in 2016, first in July of that year and then again in November of 2016. He also spoke with Stahl again in 2018 and 2020.
Harris previously sat down with Whitaker last year. She also was interviewed by Norah O’Donnell, “CBS Evening News” anchor and “60 Minutes” contributing correspondent, in 2020.
How to watch the “60 Minutes” election special
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