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Is a $10,000 home equity loan worth it?
The average homeowner has hundreds of thousands of dollars worth of equity right now. And, that’s good news considering the fact that home equity loans often have more competitive interest rates than other options. So, if you need to borrow money, and want a competitive interest rate, a home equity loan may be the way to go.
But, there’s a trade. While you can borrow relatively small amounts of money when you use some other options, you’ll typically have to borrow at least $10,000 in order to tap into your home equity. So, that begs the question, “Is a $10,000 home equity loan worth it?” There are some times when it is and others when it’s not.
Find out how easy it is to take out a $10,000 home equity loan now.
Is a $10,000 home equity loan worth it?
Making blanket statements like “a $10,000 home equity loan is worth it,” or “a $10,000 home equity loan isn’t worth it,” doesn’t usually work in finance. Financial decisions are best made when considering the unique circumstances surrounding those decisions. Understanding this, here’s when a home equity loan in this amount may or may not be valuable for you.
When a $10,000 home equity loan may be worth it
A $10,000 home equity loan may be worth it if you’re using it to cut the cost of other debts. For example, say you have $10,000 in high interest credit card debt. In this case, a $10,000 home equity loan may help you consolidate your credit card debt at a lower interest rate – offering meaningful short-term and long-term savings.
A $10,000 home equity loan may also be a good fit if you have home repairs you need to take care of. For example, say you have a leaky roof. According to Angi, the average cost of a roof replacement is $9,398. So, a $10,000 home equity loan could be enough to cover that cost. Not to mention, when you use your equity to improve the home you borrowed it against, you may qualify for tax advantages.
And, a $10,000 home equity loan may be worth it if you’re using it to address your health. For example, say you have a high deductible health plan and you can’t afford to cover your deductible out of pocket. If you need to undergo a procedure or pay for expensive medications, a $10,000 home equity loan could give you the funding you need to cover the cost of your medical needs.
Get the funding you need with a $10,000 home equity loan today.
When a $10,000 home equity loan may not be worth it
Though there are times when taking out a $10,000 home equity loan may be worth it, there are other times when you should probably avoid doing so. One reason a $10,000 home equity loan wouldn’t be worth it is if you can’t afford to make the payments.
The average interest rate on a 15-year home equity loan is 8.75%. At that rate, a $10,000 home equity loan with a 15-year term would cost $99.94 per month. So, if you can’t absorb an extra cost of around $100 per month, a $10,000 home equity loan wouldn’t be worth it.
It’s also worth noting that a $10,000 home equity loan may not be worth it to cover the cost of non-urgent items. For example, if you want to take an expensive vacation or buy a new car, a home equity loan may not be the best option. Keep in mind that your home is the security that backs a home equity loan. So, defaults on these loans could put your home in jeopardy. As such, it’s typically best to use these loans to cover necessary expenses rather than consider them as a source of funding when you want something that’s non-essential.
Compare leading home equity borrowing options now.
The bottom line
There are times when it’s worth taking out a $10,000 home equity loan and times when it isn’t. If you plan on using the loan to cover the cost of medical treatments, home repairs or even to cut the cost of high interest debt, a home equity loan may be worth taking out. On the other hand, if you can’t afford at least $100 per month in payments or you plan on using the loan to cover the cost of things you want, rather than things you need, a home equity loan may not be your best option.
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Former Trump national security adviser says next couple months are “really critical” for Ukraine
Washington — Lt. Gen. H.R. McMaster, a former national security adviser to Donald Trump, said Sunday that the upcoming months will be “really critical” in determining the “next phase” of the war in Ukraine as the president-elect is expected to work to force a negotiated settlement when he enters office.
McMaster, a CBS News contributor, said on “Face the Nation with Margaret Brennan” that Russia and Ukraine are both incentivized to make “as many gains on the battlefield as they can before the new Trump administration comes in” as the two countries seek leverage in negotiations.
With an eye toward strengthening Ukraine’s standing before President-elect Donald Trump returns to office in the new year, the Biden administration agreed in recent days to provide anti-personnel land mines for use, while lifting restrictions on Ukraine’s use of U.S.-made longer range missiles to strike within Russian territory. The moves come as Ukraine marked more than 1,000 days since Russia’s invasion in February 2022.
Meanwhile, many of Trump’s key selection for top posts in his administration — Rep. Mike Waltz for national security adviser and Sens. Marco Rubio for secretary of state and JD Vance for Vice President — haven’t been supportive of providing continued assistance to Ukraine, or have advocated for a negotiated end to the war.
McMaster said the dynamic is “a real problem” and delivers a “psychological blow to the Ukrainians.”
“Ukrainians are struggling to generate the manpower that they need and to sustain their defensive efforts, and it’s important that they get the weapons they need and the training that they need, but also they have to have the confidence that they can prevail,” he said. “And any sort of messages that we might reduce our aid are quite damaging to them from a moral perspective.”
McMaster said he’s hopeful that Trump’s picks, and the president-elect himself, will “begin to see the quite obvious connections between the war in Ukraine and this axis of aggressors that are doing everything they can to tear down the existing international order.” He cited the North Korean soldiers fighting on European soil in the first major war in Europe since World War II, the efforts China is taking to “sustain Russia’s war-making machine,” and the drones and missiles Iran has provided as part of the broader picture.
“So I think what’s happened is so many people have taken such a myopic view of Ukraine, and they’ve misunderstood Putin’s intentions and how consequential the war is to our interests across the world,” McMaster said.
On Trump’s selections for top national security and defense posts, McMaster stressed the importance of the Senate’s advice and consent role in making sure “the best people are in those positions.”
McMaster outlined that based on his experience, Trump listens to advice and learns from those around him. And he argued that the nominees for director of national intelligence and defense secretary should be asked key questions like how they will “reconcile peace through strength,” and what they think “motivates, drives and constrains” Russian President Vladimir Putin.
Trump has tapped former Rep. Tulsi Gabbard to be director of national intelligence, who has been criticized for her views on Russia and other U.S. adversaries. McMaster said Sunday that Gabbard has a “fundamental misunderstanding” about what motivates Putin.
More broadly, McMaster said he “can’t understand” the Republicans who “tend to parrot Vladimir Putin’s talking points,” saying “they’ve got to disabuse themselves of this strange affection for Vladimir Putin.”
Meanwhile, when asked about Trump’s recent selection of Sebastian Gorka as senior director for counterterrorism and deputy assistant to the president, McMaster said he doesn’t think Gorka is a good person to advise the president-elect on national security. But he noted that “the president, others who are working with him, will probably determine that pretty quickly.”
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Sen. Van Hollen says Biden is “not fully complying with American law” on Israeli arms shipments
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Rep.-elect Sarah McBride says “I didn’t run” for Congrees “to talk about what bathroom I use”
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