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United Methodist Church moves closer to enabling regional decisions, paving the way for LGBTQ rights within church
United Methodist delegates have overwhelmingly endorsed a constitutional amendment seen by advocates as a way of defusing debates over the role of LGBTQ people in the church by giving rule-making autonomy to each region of the international church.
Delegates voted 586-164 on Thursday for the “regionalization” proposal on the third day of their 11-day General Conference, the legislative body of the United Methodist Church, meeting in Charlotte, North Carolina.
The plan would create multiple regional conferences — one for the United States and others covering areas ranging from the Philippines to Europe to Africa.
Existing regions outside the United States — known as central conferences — already have the flexibility to adapt church rules to their local contexts, but the jurisdictions in the United States do not. This constitutional change would give the U.S. church that flexibility, while defining autonomy more closely for all of the regions.
The vote total easily passed the two-thirds majority required for an amendment to the United Methodist Church’s constitution. To become official, however, it will require approval by two-thirds of its annual conferences, or local governing bodies.
If ratified, one effect of the change is that it could allow for the American church — where support has been growing for the ordination of LGBTQ people and for same-sex marriage — to authorize such rites, even as international churches with more conservative positions on sexuality would not.
“The big change this petition brings is really for our brothers and sisters here in the United States, where you would finally be given the right to decide things which only concern you among yourselves, the same right that we have enjoyed for a long time,” said Christine Schneider-Oesch of Switzerland, a member of the committee proposing the changes.
The measure comes during the first General Conference since one-quarter of U.S. congregations left the denomination over the past four years — most of them conservative churches reacting to the denomination’s failure to enforce rules against same-sex marriage and LGBTQ ordination.
Advocates hailed the proposal as a way of decolonizing a church some say is too focused on U.S. issues, though one opponent, a Zimbabwean pastor, said the details of the plan are reminiscent of colonial-era divide-and-conquer strategies.
LGBTQ issues weren’t central to the debate on Thursday, but they are expected to arise in the coming days at the General Conference.
“We have members who are part of the LGBTQ community and who have loved ones a part of the community,” said Rev. Paul Perez, the lead minister at Detroit Central UMC, in an interview with CBS affiliate WWMT. “So, in many ways, our church has chosen to be who it’s going to be, and it has stood on inclusion for a long time. But many of my members are watching closely at what happens at the General Conference because they want the values of our congregation to be reflected in the denomination.”
Some proposals would lift the current bans on ordaining LGBTQ people and on same-sex marriage.
“I believe that the values upon which worldwide regionalization is rooted will give renewed strength, life and vitality to the church,” said the Rev. Jonathan Ulanday of the Philippines. He said it gives autonomy while maintaining connection to the worldwide denomination, which he noted has been helpful in areas ranging from disaster relief to aiding Filipinos working abroad.
But the Rev. Forbes Matonga of Zimbabwe said the plan actually perpetuates colonial structures by creating multiple regional conferences in Africa along national lines, compared with a single one in the United States. He noted that many African national borders were created arbitrarily by European colonial mapmakers.
“It is this divide and rule,” Matonga said. “Create a region for Africans. Creates a platform for Africans so that we speak as a continent and not as small colonies.”
The Rev. Ande Emmanuel of Nigeria said he has been to multiple General Conferences and that many of the discussions are “U.S.-centric,” not relevant to African delegates. Regionalization would let each area of the church manage such issues, he said. “We are not here to control the Americans,” he said. “Neither are our brothers from America here to control us. We are trying to build a platform that is mutual. We’re trying to build an understanding that would move our church together.”
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Homeowners looking to access a large sum of money in today’s economic climate don’t have to look too far to find it. By turning to their accumulated home equity, owners can potentially finance a major expense (or multiple major expenses) simply by using the money they already have via their home’s value.
While there are multiple ways to do this, many may be considering a traditional mortgage refinance or cash-out refinance. But in today’s unique and constantly changing interest rate climate, that could prove to be a costly mistake. Instead, right now, both home equity loans and home equity lines of credit (HELOCs) are arguably better than refinancing. Below, we’ll explain why.
Start by seeing what home equity loan interest rate you could qualify for here.
Why home equity loans are better than refinancing right now
Here are three reasons why a home equity loan may be more beneficial than a refinance now:
You’ll maintain your existing mortgage rate
The average home equity loan interest rate is 8.41% as of November 19, 2024, but the average mortgage refinance rate for a 30-year loan is 6.93%. So, on the surface, it appears that refinancing is cheaper. But that refinance rate will require you to exchange your current mortgage rate to get the new one.
That could be a costly mistake if you have a rate under 6.93%, as millions of Americans do right now. By applying for a home equity loan, however, you’ll still gain access to your equity, but you won’t need to bump your mortgage rate to get it. And if home equity loan rates drop in the future, as they have for most of 2024, you can simply refinance your loan to the better rate then.
Get started with a home equity loan online today.
You may qualify for a tax deduction
When you use a cash-out refinance, you apply for a loan larger than what you currently owe to your lender. You then use the former to pay off the latter and keep the difference as cash for yourself. Interest paid on mortgage loans is tax-deductible, but so is the interest on home equity loans if used for qualifying purposes. At that higher interest rate, you may qualify for a larger deduction (while still maintaining your current lower mortgage rate).
The average home equity amount is high right now
A combination of low mortgage interest rates during the pandemic, a drop in available inventory and a hesitation to sell now that rates are high again (amid other complex but interrelated factors) has caused the average home equity amount to soar to just under $330,000 right now. If you want to access that with a refinance, as noted, you’ll need to give up your current mortgage rate to do so. And if you want to access it via a credit card or personal loan, the restrictions will be significant. It makes sense, then, to take advantage by using a home equity loan or HELOC instead of taking a gamble with a refinance right now.
The bottom line
With mortgage refinance rates elevated, the unique feature of a potential tax deduction tied to home equity borrowing and a six-figure average equity sum available now, for many homeowners in need of financing it makes sense to skip a refinance for a home equity loan now. That said, this type of financing is tied to your most important financial asset so the decision to withdraw it from it should be carefully weighed against the risks. Consider speaking to a financial advisor or home equity lender who can answer any questions you may have before getting started.
Speak to a home equity loan lender now.
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Home equity is calculated by deducting your existing mortgage loan balance from your home’s current value. And, in today’s unique economic climate, that calculation has led to the average homeowner accumulating approximately $330,000 worth of equity.
This can be accessed in a variety of ways, with both home equity loans and home equity lines of credit (HELOCs) being two of the less expensive options. Still, your home serves as collateral in these borrowing exchanges, so it’s critical that you use the money for the right reasons or you could jeopardize your homeownership if you fail to repay all that was withdrawn.
Fortunately, in the final weeks of 2024, there are still smart ways to use this home equity, some of which are more timely than others. Below, we’ll detail three great ways homeowners can start using their home equity before January 1, 2025.
Start by seeing what home equity loan interest rate you’d be eligible for here.
3 great ways to use home equity in the final weeks of 2024
Here are three smart — and effective — ways homeowners can utilize their home equity in the waning weeks of 2024:
Home projects
Not every home project is worth utilizing home equity for, particularly those that you can afford to pay for comfortably out of your everyday budget. For other, larger ones, however, it makes sense to turn to home equity. That’s because select home improvements and repairs can qualify for a tax deduction.
In other words, interest paid on home equity loans and HELOCs can be tax-deductible if used for qualifying home projects. So if that’s your intended purpose, consider applying now. If you wait much longer, you may not get the funds disbursed in time to qualify for the tax deduction in 2024 — meaning you’ll delay the deduction until you file your next tax return in the spring of 2026.
Get started with a home equity loan online today.
Credit card debt consolidation
Credit card interest rates have been on a steady upward trend, the latest coming in recent weeks with the average interest rate soaring to 23.37%. So, if you have significant credit card debt (and many Americans do currently), it’s worth consolidating with a home equity loan or HELOC now, especially when considering that both products come with interest rates almost three times lower than the average credit card rate. This is traditionally one of the smarter ways to use home equity, but it’s particularly critical today, with credit card interest rates at a record high and with a minuscule likelihood of those rates falling.
Business opportunities
A new year could mean new business opportunities to explore, and that often requires the need for startup capital to fund these possibilities. Home equity loans and HELOCs can provide that source of funding in a much more affordable way than a personal loan, with a near 13% average interest rate, could.
And even if the need for this funding isn’t until the first quarter of 2025, it makes sense to take steps now, considering that it may be weeks until your home equity funds are disbursed. Start by ensuring your credit is in top shape. Then determine your exact financial needs and start shopping for lenders (since you don’t need to use your current mortgage lender) to improve your chances of finding the lowest rates and best terms.
Start shopping for home equity loans here.
The bottom line
Because your home is on the line when tapping into your home equity, it’s important to only utilize it for appropriate means. But in the final weeks of 2024, there are still timely and effective uses for this financing. Home repairs, debt consolidation, new business opportunities or a mix of all three could be smart reasons to use home equity now, positioning yourself for financial success into 2025 and beyond.
