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Here’s what a $150,000 HELOC costs monthly now that rates have dropped

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Before borrowing with a HELOC it’s important to calculate your potential monthly payments.

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In the interest rate climate of recent years, borrowers could be forgiven if they passed on products with variable rates. These products became less attractive as inflation soared and the Federal Reserve issued a series of rate hikes to keep it in check. That action caused interest rates on all borrowing products to rise and it made monthly payments on products with variable rates increasingly expensive and difficult to budget for.

But that was then.

Now, with inflation at a 3-year low and hovering barely above the Federal Reserve’s target 2% goal, the Fed is preparing to embark on a series of interest rate reductions. The first 50 basis point cut was issued in September. Additional cuts look likely for November and December, too. And, now, borrowers looking for a big but inexpensive source of funding have options again, including home equity lines of credit (HELOCs). With the average homeowner in possession of around $330,000 worth of equity now, a HELOC for approximately half that amount could both help them cover a series of large expenses while still allowing them to maintain a healthy portion of equity for future use. 

But what will a $150,000 HELOC cost monthly now that rates have dropped? That’s what we’ll calculate below.

See what HELOC interest rate you could qualify for here.

Here’s what a $150,000 HELOC costs monthly now that rates have dropped

The average HELOC interest rate is 8.73% as of October 14. Here’s what monthly payments would be tied to two common repayment periods, assuming that the rate remains constant for the full life of the credit line:

  • 10-year HELOC at 8.73%: $1,878.29 per month
  • 15-year HELOC at 8.73%: $1,497.40 per month

So while a $150,000 HELOC comes with relatively inexpensive monthly payments now, they could become even more affordable as the year progresses. Here’s what they’d be if today’s rates dropped by 25 basis points, as many expect the federal funds rate to drop by next month:

  • 10-year HELOC at 8.48%: $1,858.18 per month
  • 15-year HELOC at 8.48%: $1,475.35 per month

And here’s what they would be if they fell again in December (HELOC rates change monthly) by another 25 basis points:

  • 10-year HELOC at 8.23%: $1,838.19 per month
  • 15-year HELOC at 8.23%: $1,453.47 per month

So, if you open a $150,000 HELOC now, you could wind up seeing your monthly payments drop by approximately $40 with 10-year loans and by a bit more with 15-year loans. That said, HELOC rates are unlikely to fall by the precise amount that the federal funds rate does, so these numbers could look slightly different once rate cuts are formalized.

Start exploring your current HELOC options online now.

Risks to know

As noted above, it would be a mistake to assume that HELOC rates will move precisely as the federal funds rate does. So don’t assume rate drops in exact proportion to that rate. It’s also important to remember that a variable rate works both ways and the rate (and your payments) could rise as quickly as the could fall. Finally, it’s critical to remember that your home serves as the collateral in these unique borrowing circumstances. Crunch the numbers with a variety of realistic rates, then, so you only borrow as much as you can easily afford to repay. If you borrow too much, you could jeopardize your homeownership in the process.

The bottom line

Right now, a $150,000 HELOC comes with approximate monthly payments between $1,500 and $1,880 for qualified borrowers. And while those payments are likely to fall as interest rates are cut, they could rise as well, should any unforeseen economic factors cause rate cuts to be paused. So be prepared for a number of scenarios in advance. By calculating your potential costs now, you’ll better position yourself for home equity borrowing success both currently and in the months and years ahead.



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Head of Russia’s nuclear defense forces killed in Moscow blast triggered by device hidden in scooter, officials say

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Markarova: Ukraine is “not asking for other troops”


Ambassador Oksana Markarova says Ukraine is “not asking for other troops”

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Moscow — The head of Russia’s Nuclear, Biological, and Chemical Defense Forces, Lt. General Igor Kirillov, was killed along with his deputy early Tuesday in an explosion in Moscow, Russia’s Investigative Committee said.

An explosive device hidden in an electronic scooter went off outside a residential building as the two men left the structure, Agence France-Presse cites investigators as saying.

RUSSIA-BLAST-MILITARY
A body is seen at the scene of an explosion in Moscow that killed the commander of the Russian armed forces’ chemical, biological and radiation defense troops, Igor Kirillov, and his deputy, on Dec. 17, 2024, according to the Russian Investigative Committee.

ALEXANDER NEMENOV / AFP via Getty Images


“Investigators, forensic experts and operational services are working at the scene,” committee spokesperson Svetlana Petrenko said in a statement. “Investigative and search activities are being carried out to establish all the circumstances around this crime.”

RUSSIA-BLAST-MILITARY
A view of scene of a Dec. 17, 2024 explosion that killed the commander of the Russian military’s chemical, biological and radiation defense troops, Igor Kirillov, and his deputy, according to the Russian Investigative Committee.

ALEXANDER NEMENOV / AFP via Getty Images


The committee carries out responsible major investigations in Russia.  

Kirillov was sentenced in absentia by a Ukrainian court on Dec. 16 for the use of banned chemical weapons in Ukraine during Russia’s military operation in Ukraine that started in Feb. 2022.

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In this screengrab from AFPTV footage, Igor Kirillov, head of the Russian Defense Ministry’s radiological, biological and chemical protection unit, speaks at a press briefing in June 2018.

AFPTV / AFP via Getty Images


Ukraine’s Security Service, the SBU, said it had recorded more than 4,800 uses of chemical weapons on the battlefield since February 2022, particularly K-1 combat grenades.

During the almost 3-year operation, Russia has made small but steady territorial gains to the nearly one-fifth of Ukraine it already controls.

Kirillov had been in his post since 2017, AFP notes.



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Earthquake rocks Pacific island nation of Vanuatu, deaths feared, U.S. embassy damaged

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A powerful earthquake hit the Pacific island nation of Vanuatu Tuesday, smashing buildings in the capital, Port Vila, including one housing the embassies of the U.S. and other nations. A witness told Agence France-Presse of bodies seen in the city.

Dan McGarry, a journalist with the Organized Crime and Corruption Reporting Project based in Vanuatu, told the Reuters news agency in an interview that police said at least one person had been killed and injured people had been taken to hospital.

“It was the most violent earthquake I’ve experienced in my 21 years living in Vanuatu and in the Pacific Islands. I’ve seen a lot of large earthquakes, never one like this,” he said.

The 7.3-magnitude quake struck at a depth of 35 miles, off the coast of Efate, Vanuatu’s main island, at 12:47 p.m. local time, according to the U.S. Geological Survey.

The ground floor of a building housing the U.S, French and other embassies had been crushed under higher floors, resident Michael Thompson told AFP by satellite phone after posting images of the destruction on social media.

“That no longer exists. It is just completely flat. The top three floors are still holding but they have dropped,” Thompson said.

“If there was anyone in there at the time, then they’re gone.”

Thompson said the ground floor housed the U.S. embassy, but that couldn’t be immediately confirmed.

A photo showed significant damage to the building:

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This photo shows a general view of a severely damaged building housing the embassies of the United States, United Kingdom and New Zealand after a powerful earthquake struck Port Vila, the capital city of Vanuatu, on December 17, 2024.

STR / AFP via Getty Images


The United States has closed the embassy until further notice, citing “considerable damage” to the mission, the U.S. embassy in Papua New Guinea said in a message on social media. “Our thoughts are with everyone affected by this earthquake,” the embassy said.

The New Zealand High Commission, housed in the same building, suffered “significant damage,” a statement from Foreign Minister Winston Peters’ office said, adding that, “New Zealand is deeply concerned about the significant earthquake in Vanuatu, and the damage it has caused.”

Thompson, who runs a zipline adventure business in Vanuatu, said, “There’s people in the buildings in town. There were bodies there when we walked past.”

A landslide on one road had covered a bus, he said, “so there’s obviously some deaths there.”

The quake also collapsed at least two bridges, and most mobile networks were cut off, Thompson said.

“They’re just cracking on with a rescue operation. The support we need from overseas is medical evacuation and skilled rescue, (the) kind(s) of people that can operate in earthquakes,” he said.

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Rescue workers are seen at the site of a collapsed building after a powerful earthquake struck Port Vila, the capital city of Vanuatu, on December 17, 2024.

STR / AFP via Getty Images


Video footage posted by Thompson and verified by AFP showed uniformed rescuers and emergency vehicles working on a building where an external roof had collapsed onto a number of parked cars and trucks.

The streets of the city were strewn with broken glass and other debris from damaged buildings, the footage showed.

Nibhay Nand, a Sydney-based pharmacist with businesses across the South Pacific, said he had spoken to staff in Port Vila who said most of the store there had been “destroyed” and that other buildings nearby had “collapsed.”

“We are waiting for everyone to get online to know how devastating and traumatic this will be,” Nand told AFP.

A tsunami warning was issued after the quake, with waves of up to three feet forecast for some areas of Vanuatu, but it was soon lifted by the Pacific Tsunami Warning Center.

Earthquakes are common in Vanuatu, a low-lying archipelago of 320,000 people that straddles the seismic Ring of Fire, an arc of intense tectonic activity that stretches through Southeast Asia and across the Pacific Basin.

Vanuatu is ranked as one of the countries most susceptible to natural disasters such as earthquakes, storm damage, flooding and tsunamis, according to the annual World Risk Report.



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