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Here’s what an $80,000 home equity loan costs per month now that rates are falling
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Homeowners in need of extra cash may be tempted to turn to popular options like credit cards and personal loans to make ends meet, especially now, with the repercussions of inflation and higher interest rates still being felt. But instead of pursuing these high-rate alternatives, many would be better served by accessing money that they already have via their home equity. With a home equity loan, specifically, homeowners can potentially tap into hundreds of thousands of dollars (the average homeowner currently has approximately $330,000 in equity). And they can do so at an interest rate far lower than that which accompanies personal loans (average of 13%) and credit cards (nearing a record 23%).
Before pursuing this option, however, it makes sense to first calculate the potential costs, especially now that the Federal Reserve has started cutting interest rates – and is hinting at additional reductions to come later in the year. A home equity loan for $80,000 could provide borrowers the money they need while still maintaining a healthy portion of their equity to potentially use in the future. But what will an $80,000 home equity loan cost per month now that rates are falling? That’s what we’ll calculate below.
See what home equity loan rate you could qualify for here.
How much does an $80,000 home equity loan cost monthly now that rates are falling?
The average home equity loan interest rate as of October 4 is 8.37%. That rate is slightly higher, however, when tied to two common repayment terms. Here’s what qualified borrowers can expect to pay monthly for both:
- 10-year fixed home equity loan rate at 8.47%: $990.60 per month
- 15-year fixed home equity loan rate at 8.38%: $782.17 per month
While you’ll pay more than $200 per month with the shorter term, you’ll also have the loan paid off five years earlier than if you had gone with the longer, lower rate 15-year term. So crunch the numbers before acting so you can better determine which one is more affordable for your financial circumstances, both now and over the full repayment period.
Start exploring your current home equity loan options online today.
Other considerations
While the above home equity loan rates are what’s currently available, it’s critical to remember that these rates change often and can and likely will fall again as additional rate cuts are issued. So borrowers will want to weigh the costs of waiting versus what can be locked in right now. It’s also important to remember that these low rates and terms will only be provided to those homeowners with the highest credit scores. So, if your credit needs some repair, it may make sense to first spend the time boosting your score to better position yourself for lower offers in the future. With a little luck, you can improve your score now and then open a home equity loan at a lower rate later this year.
The bottom line
An $80,000 home equity loan will cost qualified borrowers somewhere between $783 and $991 per month right now. But if you don’t have a great credit score, it could cost significantly more. So make sure your credit is in top shape before applying. And be sure to only withdraw as much as you feel comfortable repaying, whether it’s $80,000 or a smaller amount. If you can’t repay all that you’ve withdrawn you could risk your home as it serves as collateral in these borrowing circumstances.
NEW YORK — Former New York Gov. David Paterson and his stepson were attacked in New York City on Friday night, authorities said.
The incident occurred just before 9 p.m. on Second Avenue near East 96th Street on the Upper East Side, according to the New York City Police Department.
Police said officers were sent to the scene after an assault was reported. When officers arrived, police say they found a 20-year-old man suffering from facial injuries and a 70-year-old man who had head pain. Both victims were taken to a local hospital in stable condition.
In a statement, a spokesperson for the former governor said the two were attacked while “taking a walk around the block near their home by some individuals that had a previous interaction with his stepson.”
The spokesperson said that they were injured “but were able to fight off their attackers.”
Both were taken to Cornell Hospital “as a precaution,” he added.
Police said no arrests have been made and the investigation is ongoing.
The 70-year-old Paterson, a Democrat, served as governor from 2008 to 2010, stepping into the post after the resignation of Eliot Spitzer following his prostitution scandal. He made history at the time as the state’s first-ever Black and legally blind governor.
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A 17-year-old boy was critically injured and a person is in custody after a gunman opened fire on a SEPTA bus in North Philadelphia Friday evening, police said.
At around 6:15 p.m., Philadelphia police were notified about a shooting on a SEPTA bus traveling on Allegheny Avenue near 3rd and 4th streets in North Philadelphia, Inspector D F Pace told CBS News Philadelphia.
There were an estimated 30 people on the bus at the time of the shooting, Pace said, but only the 17-year-old boy was believed to have been shot. Investigators said they believe it was a targeted attack on the teenager and that he was shot in the back of the bus at close range.
According to Pace, the SEPTA bus driver alerted a control center about the shooting, which then relayed the message to Philadelphia police, who responded to the scene shortly.
Officers arrived at the scene and found at least one spent shell casing and blood on the bus, but no shooting victim, Pace said. Investigators later discovered the 17-year-old had been taken to Temple University Hospital where he is said to be in critical condition, according to police.
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Through their preliminary investigation, police learned those involved in the SEPTA shooting may have fled in a silver-colored Kia.
Authorities then found a car matching the description of the Kia speeding in the area and a pursuit began, Pace said. Police got help from a PPD helicopter as they followed the Kia, which ended up crashing at 5th and Greenwood streets in East Mount Airy. Pace said the Kia crashed into a parked car.
The driver of the crashed car ran away but police were still able to take them into custody, Pace said.
Investigators believe there was a second person involved in the shooting who ran from the car before it crashed. Police said they believe this person escaped near Allegheny Avenue and 4th Street, leaving a coat behind.
According to Pace, police also found a gun and a group of spent shell casings believed to be involved in the shooting in the same area.
“It’s very possible that there may have been a shooting inside the bus and also shots fired from outside of the bus toward the bus,” Pace said, “We’re still trying to piece all that together at this time.”
This is an active investigation and police are reviewing surveillance footage from the SEPTA bus.