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How much would a $40,000 HELOC cost monthly now that rates are cut?
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Borrowing costs are gradually coming down again. That seems to be the economic message resonating throughout the country after the Federal Reserve issued a 50 basis point rate cut on September 18, double what many economists had expected. The cut followed a series of encouraging reports from the Bureau of Labor Statistics showing a consistently cooling inflation rate. If the trends continue, the Fed could issue additional rate cuts when it meets in November and December.
While the Fed doesn’t directly dictate the rates private lenders offer borrowers, its actions are a major influencer. And for homeowners looking to access large sums of money, it’s helpful to know that interest rates on products like home equity loans and home equity lines of credit (HELOCs) will also start to fall now. Understanding this dynamic, borrowers may want to start calculating the potential monthly costs of a HELOC, in particular. Since this product has a variable rate subject to change monthly, the low rates HELOCs are known for could drop even lower soon. For reference, below we’ll break down how much a $40,000 HELOC will cost monthly now that rates are cut.
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How much would a $40,000 HELOC cost monthly now that rates are cut?
The average HELOC interest rate is 8.94% right now, down by more than 25 basis points from where it was earlier in September. That said, calculating future costs of a HELOC is difficult, if not impossible, due to the variable rate. Using today’s average, then, and two different repayment periods, here’s what it could cost monthly assuming the rate remains constant:
- 10-year HELOC at 8.94%: $505.41 per month
- 15-year HELOC at 8.94%: $404.28 per month
As noted, rates on private borrowing products won’t precisely move the way the federal funds rate does. But considering that HELOC rates are variable and the realistic potential for two additional reductions of 25 basis points each, it’s helpful to know where these costs could be heading in the months to come. Here’s what your monthly HELOC payment would be if rates fall by another 25 basis points:
- 10-year HELOC at 8.69%: $500.02 per month
- 15-year HELOC at 8.69%: $398.36 per month
And here’s what they would be assuming a half a percentage reduction from today’s average:
- 10-year HELOC at 8.44%: $494.66 per month
- 15-year HELOC at 8.44%: $392.49 per month
And because of the way a HELOC is structured, you’ll automatically see your rate and payment adjust. If you need the money now you don’t need to wait for rates to drop. No refinancing or closing costs will be required. So don’t delay. Take advantage of this opportunity as rates are declining.
Get started with a HELOC here now.
The bottom line
A HELOC is a cheap way to access large sums of money and it could be cheaper as rates continue to fall. WIth the average homeowner having approximately $320,000 worth of equity, there’s likely a lot of money to utilize. But don’t forget one of the primary reasons that home equity borrowing is cheaper than the alternatives – it’s because your home serves as collateral in these circumstances. So be judicious with how much you ultimately withdraw and make sure that any amount borrowed can comfortably be repaid or you could risk losing your home in the process.
Have more questions? Learn more about your HELOC options here.
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Federal prosecutors have secured criminal charges against multiple Iranian hackers for allegedly targeting members of former President Donald Trump’s presidential campaign as part of a malicious cyber scheme, multiple sources familiar with the investigation confirmed to CBS News.
The Iranian hackers were indicted by a grand jury on Thursday and the charges could be announced as early as Friday, the sources said. The nature of the allegations and the names of the defendants were unknown as charging documents remain under seal. The exact number of people charged was also not confirmed.
ABC News and Politico first reported on elements of the charges.
A Justice Department spokesperson declined to comment on CBS News’ reporting. A spokesperson for the Trump campaign also did not immediately respond to a request for comment.
Once publicly announced, the charges will mark an escalation in the federal government’s work to combat Iran’s alleged efforts to interfere in the 2024 presidential election. Federal officials have warned Iran is seeking to undermine Trump’s campaign.
The FBI launched probes earlier this summer after both the Trump and then-Biden campaigns experienced attempted phishing schemes targeting people associated with the candidates, sources told CBS News in August.
Last week, federal officials with the FBI and other intelligence agencies released a statement confirming, “Iranian malicious cyber actors in late June and early July sent unsolicited emails to individuals then associated with President Biden’s campaign that contained an excerpt taken from stolen, non-public material from former President Trump’s campaign as text in the emails. There is currently no information indicating those recipients replied.”
The statement went on to say that “Iranian malicious cyber actors have continued their efforts since June to send stolen, non-public material associated with former President Trump’s campaign to U.S. media organizations…Foreign actors are increasing their election influence activities as we approach November.”
Iran’s United Nations mission previously denied it had plans to interfere or launch cyberattacks in the U.S. presidential election, telling CBS News in a statement last week that “the Islamic Republic of Iran does not engage in the internal uproars or electoral controversies of the United States,” adding that “Iran neither has any motive nor intent to interfere in the U.S. election; and, it therefore categorically repudiates such accusations.”
Trump’s campaign revealed last month that it had been hacked and said Iranian actors were involved in stealing and distributing sensitive internal documents to members of the press.
FBI agents worked with both Google and Microsoft — two major tech firms and providers of email services — to dig into the apparent spearphishing attacks targeting those close to both presidential campaigns, according to two people familiar with the probe. A report published by Microsoft earlier this summer revealed Iran is evolving its tactics to affect the upcoming election.
Trump and former members of his administration have been increased targets of Iranian actors following the killing of Iranian military commander Qassem Soleimani in 2020. Some former officials received increased protection because of death threats, and in July, federal prosecutors filed charges against a Pakistani national with ties to Iran for allegedly planning to assassinate American politicians, including possibly Trump.
Iran is not the only foreign adversary that U.S. officials say is seeking to undermine the upcoming presidential election. Intelligence agencies have warned Russia and China have launched cyber campaigns of their own to sew chaos, with Russia allegedly seeking to damage Vice President Kamala Harris’ bid for the White House.
Speaking at an event hosted by the Atlantic Council on Thursday, Deputy Attorney General Lisa Monaco said, “We are seeing more threat actors, more threat actors getting into the game” of election interference, exacerbated by advancements in artificial intelligence.
The goal, according to Monaco, is to “sow discord, sow distrust in our election system and undermine confidence in our democratic process.”
and
contributed to this report.
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