CBS News
What’s the best home equity borrowing option right now?
Getty Images
Inflation is almost at the Federal Reserve’s target 2% goal. Unemployment figures are low. And interest rates were just cut for the first time in more than four years. It’s clear that the economic climate is changing again and both savers and borrowers need to be prepared for it. While cost-effective borrowing options are still scarce – it will take time for these developments to reverberate through the wider rate climate – there are still some that make sense now. Home equity borrowing is one of them.
Right now, homeowners have approximately $330,000 worth of home equity, on average. And they can access it via a variety of inexpensive ways. But the interest rate a home equity borrowing product comes with isn’t (and shouldn’t be) the only factor worth considering now. Instead, borrowers should take a more complete look at their options before acting. But what is the best home equity borrowing option right now? That’s what we’ll help answer below.
See how low of a home equity loan rate you could secure here.
What’s the best home equity borrowing option right now?
While the “best” home equity borrowing option will be relative to the individual homeowner, there’s a compelling case to be made for each of the following:
Home equity loans
Home equity loans come with some of the lowest interest rates around right now – just 8.36%, compared to nearly 13% for personal loans and a dramatic 23% for credit cards. And, if used for eligible home repairs and renovations, you’ll be able to deduct this minimal interest when you file your taxes next spring.
Who is it best for right now? Home equity loans are best right now for those homeowners who are looking to access their equity at the lowest cost possible but don’t have the ability to weather the risk that variable rate home equity lines of credit (HELOCs) come with. Since home equity loan interest rates are fixed, borrowers will know exactly what their monthly costs will be for the full repayment period. And, if rates fall significantly during that time, they can refinance to the lower rate.
Get started with a home equity loan online today.
HELOCs
HELOCs work the same way credit cards do in the sense that they provide the borrower a revolving line of credit to utilize. While HELOC interest rates are slightly higher than home equity loans (averaging 8.73% currently), it may not matter much longer. HELOC rates are variable and subject to change monthly, which is a major advantage in today’s cooling rate climate (no refinancing required). They also come with the same tax benefits that home equity loans do.
Who is it best for right now? Right now, a HELOC is best for a borrower looking to capitalize on future rate cuts without having to wait for those cuts to be formally issued, since the rate will adjust independently without action on behalf of the homeowner. HELOCs are also generally better for those homeowners who can afford the inherent risk of a variable rate as they can rise as easily as they can fall.
Reverse mortgages
Reverse mortgages allow homeowners to rearrange the normal borrowing flow. Instead of repaying a lender the money borrowed from the accumulated home equity, those who take out a reverse mortgage will receive monthly payments to use as they see fit. This will still reduce the home equity, but it will only need to be repaid if the owner sells the property in question or dies.
Who is it best for right now? This is an easy one: seniors. Homeowners age 62 and older are the only ones who can qualify for this borrowing option (with rare exceptions). Still, it’s critical to remember that every dollar borrowed will be deducted from your equity (with interest), so be careful with how much you ultimately decide to withdraw.
Learn more about your reverse mortgage options here.
What about cash-out refinancing?
In a different rate climate, cash-out refinancing could be beneficial for homeowners. This occurs when you take out a new mortgage loan in an amount larger than your current one. You then use the former to pay off the latter and take the difference between the two as cash for yourself. But that trade-off involves swapping mortgage interest rates. While that would’ve been hardly noticeable in 2020 and 2021, for example, it could be a significant trade-off now, particularly with average mortgage rates still in the low 6% range. So, consider this option, just maybe not right now.
The bottom line
Home equity loans, HELOCs and reverse mortgages could all be the “best” home equity borrowing option now depending on your financial needs and circumstances, so consider all three. But be cautious with how much you ultimately decide to withdraw, as your home should not be viewed as an endless source of funding. If you can’t pay back what you borrowed, you could risk losing it altogether.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
CBS News
How to watch the Minnesota Vikings vs. Chicago Bears NFL game today: Livestream options, more
Getty Images
The Minnesota Vikings will take on the Chicago Bears today. The Vikings are currently 8-2, an impressive run so far this season, and will be looking to add a fourth win to their current streak after last Sunday’s 23-13 win against the Tennessee Titans. The Bears, on the other hand, are entering this game on the heels of a four-game losing streak after a tough 20-19 loss against the Green Bay Packers last Sunday.
Here’s how and when you can watch the Vikings vs. Bears game today, whether or not you have cable.
How and when to watch the Minnesota Vikings vs. Chicago Bears
The Vikings vs. Bears game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Minnesota Vikings vs. Chicago Bears game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Fubo offers you an easy, user-friendly way to watch NFL games on CBS, Fox, NBC, ABC, ESPN, and NFL Network, plus NCAA football channels. The Pro tier includes 200+ channels and unlimited DVR, while the Elite with Sports Plus tier adds NFL RedZone and 4K resolution. New subscribers get a seven-day free trial and all plans allow streaming on up to 10 screens simultaneously.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.
CBS News
How to watch the Detroit Lions vs. Indianapolis Colts NFL game today: Livestream options, more
Nic Antaya/Getty Images
The Detroit Lions will face off against the Indianapolis Colts today. The Lions enter this game as top contenders with a near-perfect record of 9-1 so far this season. The Colts, who are 5-6 this season, could have a tough game on their hands against the Lions but will be looking to rack up another win after prevailing over the New York Jets in a tight game last Sunday.
Here’s how and when you can watch the Colts vs. Lions game today, whether or not you have cable.
Here’s how and when to watch the Detroit Lions vs. Indianapolis Colts
The Lions vs. Colts game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Detroit Lions vs. Indianapolis Colts game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Experience NFL action like never before with Fubo’s comprehensive sports streaming platform. From Sunday showdowns to primetime matchups, catch every NFL game across major networks including CBS, Fox, NBC, ABC, ESPN and NFL Network. Choose the Pro package to unlock 200+ channels and limitless DVR storage, or elevate your game-day experience with the Elite with Sports Plus package, featuring NFL RedZone’s commercial-free scoring highlights and stunning 4K quality.
Test drive the service with a no-commitment seven-day free trial, and share the excitement with family and friends — Fubo supports simultaneous streaming on up to 10 devices, so everyone can watch their favorite teams.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games, and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.