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Why a HELOC is better than a home equity loan going into November

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If you’re looking to withdraw home equity, a HELOC could be more beneficial than a home equity loan now.

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To get the most out of a particular financial product or service, it’s critical to know when to act. For those considering their home equity as a funding source, that’s been most of the last two years. When interest rates soared on credit cards and personal loans they remained relatively low for home equity loans and home equity lines of credit (HELOCs). And after the Federal Reserve issued a 50 basis point rate cut in September they’ve become even cheaper for borrowers. In this climate, home equity loan lending, in particular, hit a 16-year high.

Going into November, however, there’s a strong argument to be made for favoring a HELOC over a home equity loan, even if the latter has a slightly lower interest rate right now. Below, we’ll explain why.

See how low of a HELOC interest rate you’d be eligible for here.

Why a HELOC is better than a home equity loan going into November

Not sure if a HELOC is the right move for you now? Here are three timely reasons why it could be preferred to a home equity loan:

Rates will fall

Interest rates were cut in September but additional cuts of 25 basis points each are being predicted for November and December, too. If you open a home equity loan, however, you won’t be able to exploit these cuts either time. That’s because home equity loans have fixed interest rates that will remain the same for the full repayment period (unless refinanced). HELOCs, however, have variable interest rates that can and will change monthly. While that was detrimental in the interest rate climate of recent years, it’s a unique advantage now as rates head downward. 

Get started with a HELOC here now.

No need to refinance

You may be able to take advantage of a lower home equity loan rate when available but it won’t be simple. You’ll need to refinance your loan to get that new lower rate. And that will require all of the traditional refinancing actions you may already be accustomed to – shopping for lenders, checking (and improving your credit score), etc. A HELOC, however, won’t require any additional action on behalf of the borrower if rates fall in November and the months after as it will automatically adjust every month independently. 

Save on refinancing closing costs

Not only can borrowers who chose a HELOC over a home equity loan avoid refinancing, but they’ll also save the costs of doing so. A home equity loan refinance can cost anywhere from 1% to 5% of the total loan amount. And it may take months, if not years, to break even on that upfront cost – at which point rates may have dropped again, raising the need to start the refinancing process all over again. So save the money, skip the extra steps and just go right to a HELOC application instead this November.

The bottom line

With another interest rate cut looming for November (and yet another for December), homeowners looking for extra financing would be well-served by opening a HELOC instead of a home equity loan now. Not only will they be automatically positioned for future rate cut benefits but they’ll save on out-of-pocket costs they’d otherwise have to pay to refinance a home equity loan. But November is quickly approaching and you’ll want to do your due diligence by shopping for lenders (you don’t need to use your current mortgage lender). So get started with a HELOC today and set yourself up for lower payments in the months ahead. 



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

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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.



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

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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.



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

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


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

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