Connect with us

CBS News

How much does a $25,000 HELOC cost monthly now that rates were cut?

Avatar

Published

on


gettyimages-1143515296.jpg
It’s key to calculate your potential HELOC payments before applying for the line of credit.

Getty Images/iStockphoto


Home equity borrowing has been one of the cheapest ways to borrow large sums of money in recent years. Whether with a home equity loan or home equity line of credit (HELOC), borrowers were able to secure interest rates significantly lower than those offered with credit cards and personal loans. And, now, with one interest rate cut issued in September and additional ones looming for when the Federal Reserve meets again in November and December, home equity borrowing is poised to become even cheaper soon.

This is especially true for those who pursue a HELOC. These come with variable interest rates subject to change each month. That may have been a disadvantage when interest rates were climbing but it’s a major benefit now with interest rates on the decline. With the average homeowner having approximately $330,000 worth of equity to utilize now, a $25,000 HELOC can help borrowers cover some major expenses while still maintaining a large amount of equity to potentially use in the future. Before getting started, however, borrowers should calculate their potential monthly payments. So, what will a $25,000 HELOC cost monthly now that rates have been cut?

See how low of a HELOC interest rate you could qualify for here.

How much does a $25,000 HELOC cost monthly now that rates were cut?

When calculating your potential HELOC monthly payments it’s critical to remember that rates on this product are variable. In other words: the payment you calculate today is unlikely to be the same one in a few months or over the full repayment period of 10 or 15 years. That noted, here’s what qualified borrowers can expect to pay monthly for a $25,000 HELOC at today’s interest rate:

  • 10-year HELOC at 8.73%: $313.05 per month
  • 15-year HELOC at 8.73%: $249.57 per month

While HELOC rates are unlikely to fall (or increase) in direct proportion to the federal funds rate, it helps to know what they could look like if they drop by 25 basis points from today’s average:

  • 10-year HELOC at 8.48%: $309.70 per month
  • 15-year HELOC at 8.48%: $245.89 per month

And here’s what they’d be if they fall by half a percentage point from today’s 8.73%:

  • 10-year HELOC at 8.23%: $306.37 per month 
  • 15-year HELOC at 8.23%: $242.24 per month

As demonstrated, a $25,000 HELOC comes with affordable monthly payments now and those payments are likely to become even cheaper in the months ahead. And, unlike home equity loans, borrowers won’t need to refinance to secure a lower rate as the HELOC will simply adjust each month on its own.

Get started with a HELOC here.

What about home equity loans?

If you’re looking for the lowest rate on a home equity product, home equity loans are the better choice. They come with an average of 8.36% now, more than 25 basis points lower than HELOCs. But, unlike HELOCs, that rate will be fixed and borrowers won’t be able to exploit any future rate drops without refinancing to secure that lower rate. And that refinance will come at a cost (typically 1% to 5% of the total loan amount). So weigh the lower home equity loan rate currently available versus what can soon be accessible with a HELOC to better determine which one works best for you now.

The bottom line

A $25,000 HELOC comes with monthly payments between $250 and $313, approximately, right now. And those payments are likely to drop in the months to come as the larger rate climate cools. But don’t let those lower payments tempt you to overborrow, either. Your home serves as collateral in these borrowing circumstances so it’s critical to withdraw only an amount that you can comfortably afford to pay back or you’ll risk your homeownership in the process.



Read the original article

Leave your vote

Continue Reading

CBS News

Catholic Archdiocese of LA agrees to $880 million settlement over hundreds of sex abuse claims

Avatar

Published

on


The Catholic Archdiocese of Los Angeles has agreed to pay $880 million to settle sex abuse claims made by more than 1,3000 alleged victims dating back to the 1940s. 

“I am sorry for everyone one of these incidents, from the bottom of my heart,” said Archbishop José H. Gomez in a statement. “My hope is that this settlement will provide some measure of healing for what these men and women have suffered.”

The settlement brings the overall amount the Archdiocese of Los Anegeles has paid out to settle sex abuse lawsuits to nearly $1.5 billion, following a $660 million settlement with about 500 alleged victims in 2007.

Officials say the agreement in principle was reached to settle the remaining claims filed under Assembly Bill 218, which temporarily waived the statute of limitations for alleged victims to seek damages in sex abuse claims, according to Archbishop Gomez’s statement. 

“This is the largest single child sex abuse settlement with a Catholic archdiocese,” said a release from the law firm representing the victims. 

Archbishop Gomez approved the settlement and confirmed the administrative office of the Archdiocese will bear the financial responsibility. 

“We have determined that funding for this settlement will be drawn from reserves, investments, and loans, along with other Archdiocesan assets and payments that will be made by religious orders and others named in the litigation,” Gomez’s statement said. “No designated donations to parishes or schools or to archdiocesan-wide collections and campaigns … will be used for the financing of this settlement.”

In his letter, Gomez also promised that the church will remain vigilant to make sure that no one serving in the ministry will harm a minor again. 

Of the more than 3,000 remaining lawsuits alleging sexual abuse of children that have been filed in California under AB-218, 1,600 were filed in Northern California, 500 in San Diego County and 200 in Orange County, attorneys said. Several California dioceses have filed for bankruptcy protection in the wake of the lawsuits. 

“The massive amount of this settlement reflects the amount of grievous harm done to vulnerable children and the decades of neglect, complicity and cover-up by the Archdiocese which allowed known serial predators to inflict this harm. I encourage other religious institutions within the Catholic Church to meet their responsibilities and take accountability,” said the victims’ attorney Morgan A. Stewart.



Read the original article

Leave your vote

Continue Reading

CBS News

Georgia judge invalidates controversial new state election rules, calling them “illegal, unconstitutional and void”

Avatar

Published

on


A Georgia judge has declared that seven new election rules recently passed by the State Election Board are “illegal, unconstitutional and void.”

Fulton County Superior Court Judge Thomas Cox issued the order Wednesday after holding a hearing on challenges to the rules. The rules that Cox invalidated include three that had gotten a lot of attention — one that requires that the number of ballots be hand-counted after the close of polls and two that had to do with the certification of election results.

The State Election Board, which is controlled by three Republicans endorsed by former President Donald Trump, has passed several rules in recent months mostly dealing with the processes that happen after ballots are cast. Trump narrowly lost Georgia to President Biden in the 2020 presidential election but claimed without proof that widespread fraud cost him victory in the state.

Democratic Party organizations, local election officials and a group headed by a former Republican state lawmaker have filed at least half a dozen lawsuits over the rules. Democrats, voting rights groups and some legal experts have raised concerns that some rules could be used by Trump allies to delay or avoid certification or to cast doubt on results if he loses next month’s presidential election to Democratic Vice President Kamala Harris.

One new rule that a judge blocked requires that three separate poll workers count the number of Election Day ballots by hand to make sure the number of paper ballots matches the electronic tallies on scanners, check-in computers and voting machines.

Georgia voters make selections on a touchscreen voting machine that prints out a piece of paper with a human-readable list of the voter’s choices as well as a QR code. That is the ballot that the voter puts into a scanner, which records the votes. The hand-count would be of the paper ballots — not the votes.

Critics, including many county election officials, argued that a hand-count could slow the reporting of election results and put an extra burden on poll workers at the end of an already long day. They also said there isn’t enough time to adequately train poll workers.

The rule’s supporters argued the count would take extra minutes, not hours. They also noted that scanner memory cards with the vote tallies could be sent to central tabulation centers in each county while the hand-count is completed so the reporting of results would not be slowed.

Fulton County Superior Court Judge Robert McBurney on Tuesday had temporarily blocked the hand-count for the November election while he considers the legal merits. He said the hand-count may ultimately prove to be good policy, but it’s too close to the general election to implement it now. The State Election Board could appeal.

Two other new rules that Cox invalidated were passed by the Georgia State Election Board in August and have to do with certification. One provides a definition of certification that includes requiring county officials to conduct a “reasonable inquiry” before certifying results, but it does not specify what that means. The other includes language allowing county election officials “to examine all election related documentation created during the conduct of elections.”

Supporters argued those rules are necessary to ensure the accuracy of the vote totals before county election officials sign off on them. Critics said they could be used to delay or deny certification.



Read the original article

Leave your vote

Continue Reading

CBS News

Liam Payne dies after fall from Argentina hotel balcony, officials say

Avatar

Published

on


Liam Payne dies after fall from Argentina hotel balcony, officials say – CBS News


Watch CBS News



Former One Direction singer Liam Payne has died after falling from a hotel balcony in Buenos Aires, Argentina, authorities say. He was 31.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

Copyright © 2024 Breaking MN

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.