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How much would a $25,000 HELOC cost per month?

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A home equity line of credit (HELOC) could be a smart way to access the cash you have in your home now.

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Borrowers looking for a cost-effective way to access a large sum of money haven’t had many attractive options in recent years. Thanks to a combination of high inflation and an elevated federal funds rate designed to combat it, rates on borrowing products soared. Now, personal loans hover around 12% on average while credit cards rates are over 20%. Homeowners, however, can still secure financing in the single digits by accessing their home equity.

With a home equity loan or home equity line of credit (HELOC), owners can tap into hundreds of thousands of dollars worth of equity (on average) and they can do so at cost-effective rates. And while a home equity loan has unique features, there’s a compelling case to be made for opening a HELOC now, thanks to its variable interest rate, which many expect to decline in the weeks and months to come. But how much would a HELOC cost owners who use it to borrow $25,000 now? That’s what we will calculate below.

Are you considering a HELOC? See what interest rate you’d be eligible for here now.

How much would a $25,000 HELOC cost per month?

When calculating the potential costs of a HELOC, it’s critical to understand that the rate you open the line of credit with is subject to change over the repayment period (often monthly). So, the figures you calculate at the start are unlikely to remain constant. 

Still, before borrowing any amount of money, it’s critical to crunch the potential costs so that you know what you can and can’t afford. Using today’s average 9.32% HELOC interest rate, then, here’s how much you could expect to pay over two different repayment periods (assuming the rate doesn’t change):

  • 10-year HELOC at 9.32%: $321.04 monthly for a total of $13,524.22 in interest paid
  • 15-year HELOC at 9.32%: $258.35 monthly for a total of $21,502.58 in interest paid

If you have excellent credit and pursue this borrowing option, you can expect to pay anywhere between $258.35 and $321.04 per month. But that payment could drop, perhaps significantly, as the Fed moves to cut its federal funds rate. And while that won’t directly affect what borrowers offer for home equity products, rates on both home equity loans and HELOCs are expected to drop as a result, too.

Get started with a low-rate HELOC online today.

What about cash-out refinancing?

If you’re not interested in a home equity loan or HELOC, a cash-out refinance is something you may be considering. With this option, you take out a new mortgage loan for a larger amount than what you currently owe. You then use the new loan to pay off the old one and take the difference between the two as cash for yourself. 

The issue with this sort of financing option? It’ll involve giving up your current mortgage rate for today’s average one, instead. And if you have a mortgage rate below 6.53% right now (the average on a 30-year loan), you’d be giving up a low rate for a higher one to get that extra cash. So be sure to calculate the potential benefits before acting to make sure it’s truly better than a home equity loan or HELOC.

The bottom line

If you’re in need of $25,000 now and own a home with equity, a HELOC could be your best choice to obtain that financing. Not only will monthly payments be manageable (less than $325 monthly for qualified borrowers), but the chance that those payments will decline is significant now that inflation is cooling and interest rate cuts are on the horizon. Plus, if you use a HELOC for IRS-eligible purposes, you may be able to deduct the interest you paid on the line of credit when you file your taxes for 2024.

Have more HELOC questions? Learn more about your options here now.



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Mick Fleetwood plays to the future in Maui

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The island of Maui is a mere dot in the enormity of the vast Pacific Ocean, but it’s not hard to see why millions visit every year, and why there are some who never want to leave. Fleetwood Mac founder Mick Fleetwood fell in love with Maui decades ago, and put down deep roots. “Long story, a long love affair,” he said.

“But it really is your heart and your home?” I asked.

“Uh-huh. People often think, ‘Oh yeah, how often are you on Maui?'” Fleetwood said. “This is my home. No other place.”

As a young man he’d dreamed of a place, a club, where he could get his friends together, and 12 years ago he made it happen in the west Maui city of Lahaina:  Fleetwood’s on Front Street. The menu was eclectic – they served everything from Biddie’s Chicken (just like Fleetwood’s mom, Biddie, made it) to cookie dough desserts dreamed up by his children. It was also a place where Mick and friends could play. “We created, I created, a band of people under a roof,” he said. “Instead of a traveling circus, it was a resident circus at Fleetwood’s on Front Street.”

And then, in August of 2023, the music stopped.

A wind-driven fire tore through western Maui, killing more than a hundred people, and consuming more than 2,000 buildings. Fleetwood was in Los Angeles when the fire started, and he hurried back to a scene of utter devastation. 

And his beloved restaurant? A charred sign was about all that was left.  

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The burned sign of Fleetwood’s on Front Street. 

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I said, “I understand your not wanting to be, ‘Me, me, me,’ especially in light of the lives that were lost, the homes that were lost; you don’t want to make too big of a deal out of a restaurant.”

“No.”

“But at the same time, this was your family. This was your home. That must’ve been a huge loss.”

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Mick Fleetwood.

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“It was a huge loss,” Fleetwood said. “And in the reminding of it, that wave comes back. Today knowing we’re doing this, I go, like, Okay, this is gonna be … a day.

We took a walk with Fleetwood down the street where his place once stood: the last time he was here, the place was still smoldering. “Literally, parts of it were still hot,” he said.

More than a year later, the Lahaina waterfront is still very much a disaster zone.

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Correspondent Tracy Smith with Mick Fleetwood on Front Street in Lahaina. 

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The decision about what to do with the land is still up in the air; the priority is housing for the displaced residents. But Fleetwood says he’s determined to rebuild, just maybe not in the same place.

Asked what he pictures in a new place, he said, “For me, it has to encompass being able to handle playing music. There has to be music. We had it every day. That’s a selfish request!”

But before anything is rebuilt, there’s still a massive cleanup that needs to be completed here.

“We will see,” he said. “You have a blank [canvas] to paint on, and there’s a lot of painting to do.

“You have to be careful, even in this conversation, of going like, ‘How sad that was,’ when really it’s about, ‘Yes, but now we need this.’ In the end you go like, it happened. And what’s really important is absorbing maybe how all these things happened, and can they be circumnavigated to be more safe in the future, and be more aware? Of course that’s part of it. But the real, real essence is the future.”

Fleetwood’s ukelele is one of the few things that survived the fire, and he’s hoping his dream survives as well.

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Mick Fleetwood near the site of his former club, Fleetwood’s on Front Street, which was destroyed by fire. He’s determined to build a new place – and it must have music. 

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For details about helping those impacted by the August 2023 fires, and for the latest on recovery and rebuilding efforts, including housing, environmental protection and cultural restoration, visit the official county website Maui Recovers.


For more info:

      
Story produced by John D’Amelio. Editor: Steven Tyler. 


“Sunday Morning” 2024 “Food Issue” recipe index
Delicious menu suggestions from top chefs, cookbook authors, food writers, restaurateurs, and the editors of Food & Wine magazine.  



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Dishing up space food – CBS News

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Dishing up space food – CBS News


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At the Johnson Space Food Systems Laboratory in Houston, NASA scientists develop dishes – freeze-dried, heat-stabilized, or irradiated – to serve on the International Space Station. Correspondent David Pogue checks out what’s on the menu in Earth orbit.

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In praise of Seattle-style teriyaki

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In praise of Seattle-style teriyaki – CBS News


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Seattle has more teriyaki shops per capita than any other metropolis in America. Correspondent Luke Burbank talks with the man whose 1976 restaurant, Toshi’s Teriyaki Grill, began it all.

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