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4 times you should get a home equity loan (and 4 times you shouldn’t)

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Borrowing money with a home equity loan could be a strategic move right now, but it won’t be the best option for every homeowner.

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If you’ve been comparing your loan options in today’s economy, you’re well aware that borrowing money comes with a hefty price tag right now due to interest rates being elevated across the board. What you may not realize, though, is that while the average rates on credit cards and personal loans are sitting in the double digits, there are still a handful of relatively inexpensive borrowing options available. 

And, one of the best right now is a home equity loan. After all, not only do homeowners have high levels of home equity currently, but the average home equity loan rates are low compared to many alternatives. So, with home prices soaring over the past few years, the average homeowner is now sitting on nearly $300,000 in home equity currently — which can be borrowed against at a rate less than 9% on average. 

In turn, many homeowners are now opting for home equity loans as their preferred borrowing method. And, for the right person in the right circumstances, a home equity loan can make a lot of sense as an affordable way to access funds. However, a home equity loan isn’t the right move in all cases, so it’s important to understand when you should, and shouldn’t, take advantage of this borrowing option.

Here’s what a home equity loan could cost you if you borrow now.

4 times you should get a home equity loan

Here are a few times it makes sense to consider a home equity loan:

When you want a fixed, predictable rate on the money you borrow

Home equity loans are an attractive borrowing option because they provide a fixed interest rate for the life of the loan, versus the variable rates that come with home equity lines of credit (HELOCs), which can fluctuate over time and can cause payment amounts to swing month-to-month. This fixed-rate structure gives you a clear understanding of your costs and payment schedule from the outset. So, if you’re seeking payment predictability, this aspect of home equity loans can be a big benefit.

Compare today’s best home equity borrowing rates here.

When you need to borrow a large sum of money

Home equity loans allow qualified borrowers to access substantial amounts of money at relatively low interest rates compared to other loan types. While maximum loan amounts vary by lender, many will allow borrowing up to 85% of your home’s equity value. So for those who need to borrow $50,000, $100,000 or more for a major expense, a home equity loan can be an ideal solution, provided you meet the borrowing qualifications.

When you want to consolidate high-interest debt

With rates on credit cards, personal loans, student loans and other debts as high as they are right now, it makes sense to lower your interest rates if you can. And, one of the most effective uses of home equity loans is to consolidate and pay off outstanding high-interest debts like these. By consolidating multiple high-interest obligations into a single, lower-interest home equity loan payment, you can reduce your overall interest costs and potentially become debt-free years sooner.

When you’re confident you can make the monthly payments

Since home equity loans require putting up your home as collateral, ensuring you have a reliable, sufficient income stream to keep up with the additional monthly obligation is crucial. Lenders will closely examine your income, debts and creditworthiness during the underwriting process, which is a good start for determining whether you can afford to borrow this way. But you should also be honest with yourself about whether you can truly afford the new loan payments on top of your existing bills and living costs.

4 times you shouldn’t get a home equity loan

And, there are a few times that a home equity loan may be the wrong choice, including:

When you’re using it to bail out of bad habits

A home equity loan can help you consolidate debt at a lower rate, but it won’t fix long-standing debt issues or a spending problem plaguing your household finances. If your debt issues are caused by this type of problem, using a lump-sum loan to pay off your debts will only reset the clock until those balances potentially accumulate again in the future. And, if you don’t address the root overspending causes, a loan can make an upside-down budget even more unsustainable.

When you need money to buy things you don’t need 

Ideally, home equity loans should be used to finance major one-time needs, purchases and investments that will pay off or increase in value over time. They should not be used as a money pool to fund discretionary, recurring expenses and wants like luxury vacations, frequent shopping splurges or other frivolous expenditures that will drain the funds without any lasting return.

When you’re planning to sell your home within the next few years 

Since home equity loans typically have a term of five to 10 years with full repayment due by the end date, you may not have enough time remaining in the home to fully benefit and recoup the costs of taking out the loan if you plan on selling in the near future. In these cases, you should consider the loan’s term versus your expected ownership timeline.

When you expect interest rates to drop in the near future

If signs are pointing to interest rates declining over the next six to 12 months, taking out a fixed-rate home equity loan now could mean locking yourself into a higher rate than if you waited. In this scenario, a HELOC may be a better option.

Unlike home equity loans where you receive funds in a lump sum, HELOCs provide you with a revolving credit line to draw from as needed, similar to a credit card. More importantly, HELOCs come with variable interest rates that fluctuate based on the wider rate environment. So if interest rates drop in the future, your HELOC payments would decrease accordingly, helping you save on borrowing costs.

The bottom line

Before tapping into your home’s equity with a home equity loan, be sure to carefully assess your short- and long-term financial situation to determine if a home equity loan is truly advantageous for your needs. When used responsibly, home equity loans can be a powerful financial tool. However, they require prudent planning and monitoring to avoid putting your most important asset – your home’s equity – at unnecessary risk.



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Preserving stories of the Israel-Gaza conflict through art

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Preserving stories of the Israel-Gaza conflict through art – CBS News


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After the terror group Hamas massacred Israelis on October 7, 2023, the National Library of Israel in Jerusalem began collecting art, memorabilia, tributes and oral testimonies that speak to the horror of that time for its archives. Their growing collection of millions of items, called “Bearing Witness,” aims to be the definitive record of that terrible day and its aftermath. Likewise, the Palestinian Museum in the West Bank city of Birzeit has been collecting and displaying artwork by Gazan artists that document the devastation of the ongoing war. Correspondent Seth Doane talks with curators about bridging the cultural and political rift through art, and preserving the human stories that, they say, must be told.

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Preserving the stories of the Israel-Gaza conflict through art

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As head of collections at the National Library of Israel, Raquel Ukeles’ job took on a new focus, and an emotional turn, after Hamas’ massacre last year. “Our idea is to capture all the different angles and perspectives, both of what happened on that terrible day, October 7th, and during this period,” she said.

Among the millions of items being saved is artwork, including a spiral of text messages from the morning of the attack. Ukeles choked up reading it: “It’s very urgent: My children are alone in the house of Dvir. It’s tough to read.”

How does art fit in? “Art is a way that human beings try to make sense of reality,” Ukeles said.

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Artwork collected by the National Library of Israel conjures the red anemone flower that typically blooms in Southern Israel, where the October 7th Hamas terror attack took place. 

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Other items being preserved: ribbons and memorabilia, posters, prayers and tributes. A T-shirt, a bumper sticker, coffee cups.

This growing collection, called “Bearing Witness,” is housed in the library’s striking new stone building in the heart of Jerusalem. An exhibition near the entrance marks October 7th. Librarians researched the 251 hostages, connecting each with a book. “The goal was to make us understand who these people are,” said Ukeles.

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An exhibit at the National Library of Israel commemorates hostages taken by Hamas, each with a book. 

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Pointing to an image of a child taken hostage, Doane asked, “How is it to work here and to come and see this?”

Ukeles replied, “It breaks my heart, because I imagine this is my child.”

That pain is brutally clear in the roughly 500 oral testimonies that have been recorded so far. One, from Nehoray Levy, recalls fleeing the Nova Music Festival while being shot at on October 7th. “And I remember the moment I started to hear people screaming for their lives,” he said. 

Ukeles said, “It’s a massive amount of material, the digital equivalent of 50 billion pages.”

Doane asked, “How do you know what to select and what not to select?”

“Our goal is to collect as much as possible,” said Ukeles, “because we don’t know what’s going to be significant 50, 100, 200 years from now.”

Ukeles said the library has a very large collection of GoPro videos that Hamas took on October 7th as they moved through and murdered people. She added, “We are capturing the history and the stories of what is happening in Gaza as well.”

Just about 20 miles from the library, in the occupied West Bank, across a physical separation barrier and a gaping cultural rift, is the Palestinian Museum. Here, in an impressive, contemporary structure set amid gardens not far from Ramallah, they are amassing a collection that marks the conflict from the Palestinian perspective.

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Correspondent Seth Doane with Amer Shomali of the Palestinian Museum. 

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“We contacted our colleagues in Gaza, and we offered them this space,” said Amer Shomali, the museum’s director general. “I was assigned to the museum on October the 5th, and I entered my office on October the 8th.”

He sees this as a “museum on the front lines.” “We had big questions about what could be the role of a museum during a genocide,” Shomali said.

“You use a pretty loaded term, genocide,” said Doane.

“Yeah. They might not call it genocide for technicalities, but for us, this is how it feels,” Shomali said.

Pieces from Gazan artists fill the walls, around the debris from an earlier exhibition symbolizing the destruction in Gaza. Holes in the artwork from shrapnel, Shomali said, “became part of its history.”

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A display of works by Gazan artists at the Palestinian Museum. 

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It was a challenge just amassing these works. Sometimes pieces were smuggled out, or painted outside of Gaza and not allowed in.

Doane asked, “In the middle of a war, aren’t there more important things to think about than art?”

“Yes, and no,” said Shomali. “Culture and art is centered in this conflict because it’s all about memory and imagination. Can we remember who we are and what Palestine looked like before?  Can we imagine a better future other than the status quo we are facing and we are forced to live now?”

When one of the artists dies, they add a black ribbon to their name plate. So far, about five percent of the Gazan artists represented here have been killed.

In the next gallery, West Bank artist Mohamed Saleh Khalil told us he used to paint with bright colors; now he uses the “colors of conflict.”

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Correspondent Seth Doane with West Bank artist Mohamed Saleh Khalil.

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The role of an artist during war, he said, is “a humanist one. These works are a condemnation of the suffering.”

Shomali, the museum director, admitted to us he was reluctant to even appear in the same story as that library in Israel – a reflection of the deep divisions these artists depict in their work.

Doane asked, “Is there a recognition of October 7th here?”

“October 7th, or October 8th? It’s a complicated question,” Shomali said. “I don’t feel comfortable to talk about it, but in general I think to take that day out of the context is a bit tricky. … Things didn’t start in October the 7th, 2023. It started way back. And if we want to discuss October the 7th, we should discuss it within the overall context.”

We found unease on both sides, despite the massive effort to document, collect and chronicle.

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Artwork by Or Yogev at the National Library of Israel depicts a mother holding two babies.

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Doane asked Raquel Ukeles of the National Library in Jerusalem, “I wonder just on this, how much when you look at these images, you think about the other side, of Israeli soldiers and of civilians in Gaza?”

“I don’t make that connection, because I distinguish between Hamas unilaterally crossing that border and entering people’s homes and murdering the people in the homes,” she said. “What is happening now is a war that Israel didn’t start. I have to say, I’m uncomfortable with this whole line, because in the library, we try not to cross into talking about politics. And I feel like you’d ask me a political question.”

“Okay, but it’s a pretty political situation, don’t you think?” asked Doane.

“Right. No, no. But when I’m here, I’m here as the representative of the library and not Raquel Ukeles. And the library doesn’t have a position on what you just asked.”

Ukeles told us this is one of the “terrible human stories” that “must be told” as part of the 21st century. But for it to be told, understood and, ideally, learned from, these stories must first be preserved. “The library is a place to collect infinite stories,” she said. “And regardless of whether you and I get along, both of our work can sit comfortably on a shelf together. This is not binary. This is extraordinarily complicated. And each individual deserves to have their story told.”

      
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Story produced by Sari Aviv. Editor: George Pozderec.



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Tennessee nurse died searching for a man stranded in Hurricane Helene floodwaters

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As the Hurricane Helene-driven waters rose around the Nolichucky River in Tennessee, Boone McCrary, his girlfriend and his chocolate lab headed out on his fishing boat to search for a man who was stranded by floodwaters that had leveled his home. But the thick debris in the water jammed the boat’s motor, and without power, it slammed into a bridge support and capsized.

McCrary and his dog Moss never made it out of the water alive.

Search teams found McCrary’s boat and his dog’s body two days later, but it took four days to find McCrary, an emergency room nurse whose passion was being on his boat in that river. His girlfriend, Santana Ray, held onto a branch for hours before rescuers reached her.

David Boutin, the man McCrary had set out to rescue, was distraught when he later learned McCrary had died trying to save him.

Hurricane Helene Rescuer Death
This undated photo shows Boone McCrary, of Greeneville, Tenn., who died after his boat capsized while he was trying to rescue a man trapped in the river during Hurricane Helene.

Laura Harville via AP


“I’ve never had anyone risk their life for me,” Boutin told The Associated Press. “From what I hear that was the way he always been. He’s my guardian angel, that’s for sure.”

The 46-year-old recalled how the force of the water swept him out his front door and ripped his dog Buddy — “My best friend, all I have” — from his arms. Boutin was rescued by another team after clinging to tree branches in the raging river for six hours. Buddy is still missing, and Boutin knows he couldn’t have survived.

McCrary was one of at least 225 people confirmed dead as of Friday across six states — Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia —  after Hurricane Helene brought raging waters and falling trees to the region. That number included 114 killed in North Carolina alone.

Officials said they expected the death toll to rise further as recovery efforts continued. A spokesperson for the police department in Asheville told CBS News in an email late Friday that it was also “actively working 75 cases of missing persons.” The spokesperson said there were 50 people in total reported missing since Helene hit but 270 of them had been located.

McCrary was among a group of first responders who perished while trying to save others. The hurricane caused significant damage in nearby Unicoi County, where flooding swept away 11 workers at a plastics factory and forced a rescue mission at an Erwin, Tennessee, hospital.

McCrary, an avid hunter and fisherman, spent his time cruising the waterways that snake around Greenville, Tennessee. When the hurricane hit, the 32-year-old asked friends on Facebook if anyone needed help, said his sister, Laura Harville. That was how he learned about Boutin.

McCrary, his girlfriend and Moss the dog launched into a flooded neighborhood at about 7 p.m. on Sept. 27 and approached Boutin’s location, but the debris-littered floodwaters clogged the boat’s jet motor. Despite pushing and pulling the throttle, McCrary couldn’t clear the junk and slammed into the bridge about two hours into the rescue attempt.

Hurricane Helene Rescuer Death
Boone McCrary and his dog Moss were both swept away by raging floodwaters.

Laura Harville via AP


“I got the first phone call at 8:56 p.m. and I was a nervous wreck,” Harville said. She headed to the bridge and started walking the banks.

Harville organized hundreds of volunteers who used drones, thermal cameras, binoculars and hunting dogs to scour the muddy banks, fending off copperhead snakes, trudging through knee-high muck and fighting through tangled branches. Harville collected items that carried McCrary’s scent — a pillowcase, sock and insoles from his nursing shoes — and stuffed them into mason jars for the canines to sniff.

On Sunday, a drone operator spotted the boat. They found Moss dead nearby, but there was no sign of McCrary.

Searchers had no luck on Monday, “but on Tuesday they noticed vultures flying,” Harville said. That was how they found McCrary’s body, about 21 river miles from the bridge where the boat capsized, she said.

The force of the floodwaters carried McCrary under two other bridges, under the highway and over the Nolichucky Dam, she said. The Tennessee Valley Authority said about 1.3 million gallons of water per second was flowing over the dam on the night McCrary was swept away, more than double the flow rate of the dam’s last regulated release nearly a half-century ago.

Boutin, 46, isn’t sure where he will go next. He is staying with his son for a few days and then hopes to get a hotel voucher.

He didn’t learn about McCrary’s fate until the day after he was rescued.

“When the news hit, I didn’t know how to take it,” Boutin told the AP. “I wish I could thank him for giving his life for me.”

Dozens of McCrary’s coworkers at Greenville Community Hospital have posted tributes to him, recalling his kindness and compassion and desire to help others. He “was adamant about living life to the fullest and making sure along the way that you didn’t forget your fellow man or woman and that you helped each other,” Harville said.

McCrary’s last TikTok video posted before the hurricane shows him speeding along the surface of rushing muddy water to the tune, “Wanted Dead or Alive.” He wrote a message along the bottom that read:

“Some people have asked if I had a ‘death wish.’ The truth is that I have a ‘life wish.’ I have a need for feeling the life running through my veins. One thing about me, I may be ‘crazy,’ Perhaps a little reckless at times, but when the time comes to put me in the ground, you can say I lived it all the way.”





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