CBS News
How much does a $200,000 home equity loan cost per month now that rates are cut?
As inflation and interest rates rose in recent years, so did the home equity for many homeowners. Right now, levels are at record highs, with the average homeowner possessing close to $330,000 worth of equity. That means owners can easily borrow a six-figure sum while still maintaining a healthy portion of the equity to potentially use at a later date. And there are multiple, cost-effective ways to do so right now, with home equity loans and home equity lines of credit (HELOCs) two of the more attractive alternatives.
Many would prefer a home equity loan now, thanks to its fixed, lower interest rate compared to the higher, variable rate that HELOCs come with. And home equity loans are becoming more affordable now that the Federal Reserve has started cutting interest rates. Before getting started, however, it’s critical to calculate the potential monthly costs of a home equity loan to determine how affordable it is for your unique circumstances. A $200,000 home equity loan could provide homeowners with that aforementioned balance between funding now and maintaining a six-figure sum of equity for the future. Below, we’ll calculate how much a $200,000 home equity loan costs per month now that rates have been cut.
See how low of a home equity loan rate you could secure here.
How much does a $200,000 home equity loan cost per month now that rates are cut?
The average home equity loan interest rate is 8.36% right now but it’s slightly higher when tied to two common repayment periods: 8.46% for 10-year home equity loans and 8.37% for 15-year loans. Here’s what a $200,000 loan would cost monthly, then, tied to those two terms:
- 10-year home equity loan at 8.46%: $2,475.44 per month
- 15-year home equity loan at 8.37%: $1,954.27 per month
While you’d save hundreds of dollars per month by pursuing the longer-term home equity loan, it’ll cost you much more in interest over the life of the loan. The 10-year version, for example, has a total of $97,052.46 in interest to be paid while the 15-year one has $151,768.31 – a difference of approximately $54,700. But only you will know what you can afford each month.
So, in some circumstances, the 15-year home equity loan may still be better, even if it means paying more in interest over time. And remember that home equity loan interest is tax deductible if used for eligible home repairs, so it may ultimately prove to be less of a concern than it seems on paper.
Get started with a home equity loan online today.
Don’t forget about your credit score
Remember that the above interest rates are what’s available right now for qualified borrowers – emphasis on “qualified.” That means that you’ll only be eligible for the above rates if you have a good to excellent credit score and a clean credit history. If you don’t, the rates offered may be higher and your monthly payments will be higher, too. So take steps now – before applying – to boost your credit score as high as possible. With interest rates on a downward trend, you may have some extra time to improve your credit before pursuing a home equity loan, specifically.
The bottom line
Right now, a $200,000 home equity loan comes with monthly payments between $1,475 and $1,955, approximately. But as rates decline further, home equity loan rates are likely to fall as well. Still, if you don’t have a good credit score, you won’t be eligible for those lower rates. So, first, boost your credit as much as you can. Then, start shopping for lenders to find the best one for your unique borrowing circumstances.
Start shopping for home equity loans here now.
CBS News
Biden’s top hostage envoy Roger Carstens in Syria to ask for help in finding Austin Tice
Roger Carstens, the Biden administration’s top official for freeing Americans held overseas, on Friday arrived in Damascus, Syria, for a high-risk mission: making the first known face-to-face contact with the caretaker government and asking for help finding missing American journalist Austin Tice.
Tice was kidnapped in Syria 12 years ago during the civil war and brutal reign of now-deposed Syrian dictator Bashar al-Assad. For years, U.S. officials have said they do not know with certainty whether Tice is still alive, where he is being held or by whom.
The State Department’s top diplomat for the Middle East, Barbara Leaf, assistant secretary of state for Near Eastern Affairs, accompanied Carstens to Damascus as a gesture of broader outreach to Hay’at Tahrir al-Sham, known as HTS, the rebel group that recently overthrew Assad’s regime and is emerging as a leading power.
Near East Senior Adviser Daniel Rubinstein was also with the delegation. They are the first American diplomats to visit Damascus in over a decade, according to a State Department spokesperson.
They plan to meet with HTS representatives to discuss transition principles endorsed by the U.S. and regional partners in Aqaba, Jordan, the spokesperson said. Secretary of State Antony Blinken traveled to Aqaba last week to meet with Middle East leaders and discuss the situation in Syria.
While finding and freeing Tice and other American citizens who disappeared under the Assad regime is the ultimate goal, U.S. officials are downplaying expectations of a breakthrough on this trip. Multiple sources told CBS News that Carstens and Leaf’s intent is to convey U.S. interests to senior HTS leaders, and learn anything they can about Tice.
Rubinstein will lead the U.S. diplomacy in Syria, engaging directly with the Syrian people and key parties in Syria, the State Department spokesperson added.
Diplomatic outreach to HTS comes in a volatile, war-torn region at an uncertain moment. Two sources even compared the potential danger to the expeditionary diplomacy practiced by the late U.S. Ambassador Christopher Stevens, who led outreach to rebels in Benghazi, Libya, in 2012 and was killed in a terrorist attack on a U.S. diplomatic compound and intelligence post.
U.S. special operations forces known as JSOC provided security for the delegation as they traveled by vehicle across the Jordanian border and on the road to Damascus. The convoy was given assurances by HTS that it would be granted safe passage while in Syria, but there remains a threat of attacks by other terrorist groups, including ISIS.
CBS News withheld publication of this story for security concerns at the State Department’s request.
Sending high-level American diplomats to Damascus represents a significant step in reopening U.S.-Syria relations following the fall of the Assad regime less than two weeks ago. Operations at the U.S. embassy in Damascus have been suspended since 2012, shortly after the Assad regime brutally repressed an uprising that became a 14-year civil war and spawned 13 million Syrians to flee the country in one of the largest humanitarian disasters in the world.
The U.S. formally designated HTS, which had ties to al Qaeda, as a foreign terrorist organization in 2018. Its leader, Mohammed al Jolani, was designated as a terrorist by the US in 2013 and prior to that served time in a US prison in Iraq.
Since toppling Assad, HTS has publicly signaled interest in a new more moderate trajectory. Al Jolani even shed his nom de guerre and now uses his legal name, Ahmed al-Sharaa.
U.S. sanctions on HTS linked to those terrorist designations complicate outreach somewhat, but they haven’t prevented American officials from making direct contact with HTS at the direction of President Biden. Blinken recently confirmed that U.S. officials were in touch with HTS representatives prior to Carstens and Leaf’s visit.
“We’ve heard positive statements coming from Mr. Jolani, the leader of HTS,” Blinken told Bloomberg News on Thursday. “But what everyone is focused on is what’s actually happening on the ground, what are they doing? Are they working to build a transition in Syria that brings everyone in?”
In that same interview, Blinken also seemed to dangle the possibility that the U.S. could help lift sanctions on HTS and its leader imposed by the United Nations, if HTS builds what he called an inclusive nonsectarian government and eventually holds elections. The Biden administration is not expected to lift the U.S. terrorist designation before the end of the president’s term on January 20th.
Pentagon spokesperson Pat Ryder disclosed Thursday that the U.S. currently has approximately 2,000 US troops inside of Syria as part of the mission to defeat ISIS, a far higher number than the 900 troops the Biden administration had previously acknowledged. There are at least five U.S. military bases in the north and south of the country.
The Biden administration is concerned that thousands of ISIS prisoners held at a camp known as al-Hol could be freed. It is currently guarded by the Syrian Democratic forces, Kurdish allies of the U.S. who are wary of the newly-powerful HTS. The situation on the ground is rapidly changing since Russia and Iran withdrew military support from the Assad regime, which has reset the balance of power. Turkey, which has been a sometimes problematic U.S. ally, has been a conduit to HTS and is emerging as a power broker.
A high-risk mission like this is unusual for the typically risk averse Biden administration, which has exercised consistently restrained diplomacy. Blinken approved Carstens and Leaf’s trip and relevant congressional leaders were briefed on it days ago.
“I think it’s important to have direct communication, it’s important to speak as clearly as possible, to listen, to make sure that we understand as best we can where they’re going and where they want to go,” Blinken said Thursday.
At a news conference in Moscow Thursday, Russian President Vladimir Putin said he had not yet met with Assad, who fled to Russia when his regime fell earlier this month. Putin added that he would ask Assad about Austin Tice when they do meet.
Tice, a Marine Corps veteran, worked for multiple news organizations including CBS News.
CBS News
12/19: CBS Evening News – CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
CBS News
Delivering Tomorrow: talabat’s Evolution in the Middle East
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.