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How much would a $40,000 HELOC cost per month?
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There are countless reasons you may need access to money. Whether you have home repairs that need to be made, high interest debt that needs to be paid off or a wide range of other expenses to cover, your home may provide all the liquidity you need.
That liquidity can come by the way of home equity, which is the difference between your home’s value and the money you owe on it. For example, say your home is valued at around $400,000 and you only owe $100,000 on it. In this example, you would have $300,000 in equity.
So, what if you wanted to access $40,000 of your equity? A home equity line of credit (HELOC) is one way to do so. But, it’s important that you make sure you can cover the monthly cost of borrowing against your equity. If you fail to do so you could put your home in jeopardy.
So, how much would the monthly payment be on a $40,000 HELOC?
The monthly cost of a HELOC depends on multiple factors. And, it’s important to note that HELOC interest rates and payments are variable. So, they may change over time. Below, we calculated the monthly cost of a $40,000 HELOC if you pursued this option now.
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How much would a $40,000 HELOC cost per month?
The size of your monthly HELOC payments depends on your HELOC balance, your interest rate, and your repayment period term (typically ranging from 10 to 20 years). The average HELOC interest rate is currently 9.89%. And remember that HELOC interest rates are variable and these payments may change over the term of your credit line:
- 10-year repayment period: Your monthly payment on a $40,000 HELOC with a 10-year repayment period at today’s average interest rate would be $526.17. If your interest rate stayed the same through the entire 10-year repayment period, you would pay a total of $23,140.33 in interest.
- 15-year repayment period: You would pay $427.15 per month on a $40,000 HELOC at today’s average interest rate with a 15-year repayment period. Assuming that your rate stayed the same through the entire repayment period, you would pay $36,887.77 in interest.
- 20-year repayment period: Your monthly payment would be $383.10 on a $40,000 HELOC at today’s average interest rate with a 20-year repayment period. If your interest rate stayed the same for the entire 20 years, you would pay $51,943.52 in interest while paying this HELOC off.
It’s important to note that while shorter repayment periods come with higher monthly payments, they offer substantial long-term interest savings. So, you should weigh the pros and cons of different HELOC repayment periods before you decide which you’ll take advantage of.
Find out how affordable your HELOC could be today.
Consider taking out a home equity loan instead
A home equity loan may give you even lower cost access to the equity you need (with sub-9% interest rates currently available). And, these loans typically come with fixed interest rates. Your monthly payments on a $40,000 home equity loan would range from $400.96 to $502.38, depending on whether you opted for a 10-year or 15-year term. And, since home equity loans come with fixed interest rates, these payments won’t change over time as may be the case if you use a variable-rate HELOC to access the funding you need.
Why you should tap into your home equity now
Regardless of whether you decide to use a HELOC or a home equity loan to access the equity you need, it’s wise to do so now. Here’s why:
- Inflation is high: Persistent inflation continues, and rising prices are straining budgets across the country. So, if you need to make home repairs, pay off debt or cover any other large expense, you may not have the money you need for those expenses in your budget. But a HELOC or home equity loan could give you the liquidity you need.
- Your financial need won’t wait: If you’re in need of funding, your need may not be one that can wait. For example, if you need funds to repair your roof, waiting could lead to more damage. And, there are countless other examples of potential financial needs that simply need to be addressed promptly.
- Interest rates are low compared to other options: Home equity lending products typically come with better interest rates than personal loans and credit cards. That means you can reduce your overall financing cost by opting for a home equity lending product with a competitive interest rate.
Tap into your home equity to get the funding you need now.
The bottom line
A $40,000 HELOC could come with monthly payments ranging from $383.10 to $526.17 based on today’s average HELOC interest rate. But since HELOCs come with variable rates, your monthly payment could change over time. If you need a predictable payment, you may be better served with a home equity loan.
Regardless of how you access your equity, now may be a good time to do so. As persistent inflation continues to squeeze budgets, a HELOC or home equity loan could give you the funding you need at competitive rates.
Bela Karolyi, the charismatic if polarizing gymnastics coach who turned young women into champions and the United States into an international power, has died. He was 82.
A spokesperson for USA Gymnastics confirmed to CBS News by email that Karolyi died Friday. No cause of death was given.
Karolyi and wife Martha trained multiple Olympic gold medalists and world champions in the U.S. and Romania, including Nadia Comaneci and Mary Lou Retton.
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“A big impact and influence on my life,” Comaneci, who was just 14 when Karolyi coached her to gold for Romania at the 1976 Montreal Olympics, posted on Instagram.
The Karolyis defected to the United States in 1981 and over the next 30-plus years became a guiding force in American gymnastics, though not without controversy. Bela helped guide Retton — all of 16 — to the Olympic all-around title at the 1984 Games in Los Angeles and memorably helped an injured Kerri Strug off the floor at the 1996 Games in Atlanta after Strug’s vault secured the team gold for the Americans.
Karolyi briefly became the national team coordinator for USA Gymnastics women’s elite program in 1999 and incorporated a semi-centralized system that eventually turned the Americans into the sport’s gold standard. It did not come without a cost. He was pushed out after the 2000 Olympics after several athletes spoke out about his tactics.
It would not be the last time Karolyi was accused of grandstanding and pushing his athletes too far physically and mentally.
During the height of the Larry Nassar scandal in the late 2010s — when the disgraced former USA Gymnastics team doctor was effectively given a life sentence after pleading guilty to sexually assaulting gymnasts and other athletes with his hands under the guise of medical treatment — over a dozen former gymnasts came forward saying the Karolyis were part of a system that created an oppressive culture that allowed Nassar’s behavior to run unchecked for years.
Still, some of Karolyi’s most famous students were always among his staunchest defenders. When Strug got married, she and Karolyi took a photo recreating their famous scene from the 1996 Olympics, when he carried her onto the medals podium after she vaulted on a badly sprained ankle.
Despite losing his boxing match to Jake Paul, Mike Tyson in a social media post Saturday said he had “no regrets” to getting “in ring one last time.”
The boxing legend was defeated by social media star Jake Paul in a highly anticipated fight on Friday night with an age difference of over three decades between the two contenders.
Netflix said Saturday that 60 million households worldwide tuned in to watch the match. The two fighters went eight full rounds, with each round two minutes long. Paul defeated Tyson by unanimous decision and the 27-year-old upset boxer and 58-year-old former heavyweight champion hugged afterward.
Paul was expected to earn about $40 million from the fight, and Tyson was expected to take around $20 million for the fight, according to DraftKings and other online reports.
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Tyson said on his social media that “this is one of those situations when you lost but still won. I’m grateful for last night.”
The fight almost didn’t happen after Tyson experienced an ulcer flare-up while on a plane in March. He addressed his illness Saturday, writing that he “almost died in June.” He said he had eight blood transfusions and “lost half my blood and 25lbs in hospital and had to fight to get healthy to fight so I won.”
Tyson retired from boxing in 2005 after a 20-year career. He last fought in a 2020 exhibition match against former four-division world champ Roy Jones Jr.
“To have my children see me stand toe to toe and finish 8 rounds with a talented fighter half my age in front of a packed Dallas Cowboy stadium is an experience that no man has the right to ask for. Thank you,” he said.
Alex Sundby and
contributed to this report.
In their final meeting, China’s leader Xi Jinping told U.S. President Biden that his nation was “ready to work with a new administration,” as President-elect Donald Trump prepares to take over.
The two leaders gathered Saturday on the sidelines of the annual Asia-Pacific Economic Cooperation summit. Mr. Biden was expected to urge Xi to dissuade North Korea from further deepening its support for Russia’s war on Ukraine. It marked their first in-person meeting since they met in Northern California last November.
Without mentioning Trump’s name, Xi appeared to signal his concern that the incoming president’s protectionist rhetoric on the campaign trail could send the U.S.-China relationship into another valley.
“China is ready to work with a new U.S. administration to maintain communication, expand cooperation and manage differences so as to strive for a steady transition of the China-U.S. relationship for the benefit of the two peoples,” Xi said through an interpreter.
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Mr. Biden, meanwhile, spoke in broader brushstrokes about where the relationship has gone and reflected not just on the past four years, but on their long relationship.
“Over the past four years, China-U.S. relations have experienced ups and downs, but with the two of us at the helm, we have also engaged in fruitful dialogues and cooperation, and generally achieved stability,” he said.
Mr. Biden and Xi, with top aides surrounding them, gathered around a long rectangle of tables in an expansive conference room at Lima’s Defines Hotel and Conference Center.
There’s much uncertainty about what lies ahead in the U.S.-China relationship under Trump, who campaigned promising to levy 60% tariffs on Chinese imports.
Bobby Djavaheri, president of Los Angeles-based Yedi Houseware Appliances — which manufactures its products in China — told CBS News in an interview this week that such tariffs “would decimate our business, but not only our business. It would decimate all small businesses that rely on importing.”
Trump has also proposed revoking China’s Most Favored Nation trade status, phasing out all imports of essential goods from China and banning China from buying U.S. farmland.
Already, many American companies, including Nike and eyewear retailer Warby Parker, have been diversifying their sourcing away from China. Shoe brand Steve Madden says it plans to cut imports from China by as much as 45% next year.
White House national security adviser Jake Sullivan said Biden administration officials will advise the Trump team that managing the intense competition with Beijing will likely be the most significant foreign policy challenge they will face.
It’s a big moment for Mr. Biden as he wraps up more than 50 years in politics. He saw his relationship with Xi as among the most consequential on the international stage and put much effort into cultivating that relationship.
Mr. Biden and Xi first got to know each other on travels across the U.S. and China when both were vice presidents, interactions that both have said left a lasting impression.
“For over a decade, you and I have spent many hours together, both here and in China and in between. And I think we’ve spent a long time dealing with these issues,” Mr. Biden said Saturday.
But the last four years have presented a steady stream of difficult moments.
The FBI this week offered new details of a federal investigation into Chinese government efforts to hack into U.S. telecommunications networks. The initial findings have revealed a “broad and significant” cyberespionage campaign aimed at stealing information from Americans who work in government and politics.
U.S. intelligence officials also have assessed China has surged sales to Russia of machine tools, microelectronics and other technology that Moscow is using to produce missiles, tanks, aircraft and other weaponry for use in its war against Ukraine.
And tensions flared last year after Mr. Biden ordered the shooting down of a Chinese spy balloon that traversed the United States.
