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How much does a $250,000 HELOC cost now that rates are dropping?

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House finance
Here’s what your HELOC payments could look like if you borrow $250,000 in today’s rate environment.

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If you’re seeking a substantial amount of funding, traditional borrowing options like personal loans and credit cards often fall short, as their high interest rates and limited borrowing capacities can make them more hassle — and more expensive — than they’re worth. Part of the issue is that credit card rates recently climbed to unprecedented levels above 23%, while rates on personal loans, though more reasonable, still hover around 13%. 

However, homeowners have a potentially more attractive option: tapping into their home equity. Today’s homeowners are in a particularly advantageous position, with the average household holding approximately $330,000 in home equity — about $214,000 of which is tappable, meaning that it can be borrowed against while retaining a healthy amount of equity in your home. This substantial cushion opens up several borrowing possibilities, including home equity lines of credit (HELOCs), home equity loans and cash-out refinancing

Among these options, though, HELOCs stand out right now due to their variable rates, which can benefit borrowers as interest rates continue to decline. But while a HELOC could be a good option, understanding the cost implications of a HELOC is crucial for making an informed borrowing decision. To help you make a decision, let’s take a look at how much a $250,000 HELOC could cost each month now that rates are dropping.

Find out what home equity rates you could qualify for here.

How much does a $250,000 HELOC cost now that rates are dropping?

HELOC rates can and will adjust automatically with the wider rate environment. So, the rate you start with will likely not be the rate you end with, as your HELOC rate will change over time. That said, the average HELOC rate is currently 8.68% (as of October 31, 2024). Using that average rate, we can estimate the cost of a $250,000 HELOC based on two popular repayment timelines: 10 and 15 years. 

Here’s what those payments would look like at today’s rate:

  • 10-year HELOC at 8.68%: The monthly cost would amount to $3,123.76 with this rate and term.
  • 15-year HELOC at 8.68%: The monthly cost would amount to $2,488.30 with this rate and term.

If there are more rate cuts by the Fed in the coming months, as the Fed has indicated could happen and as most analysts forecast, HELOC costs could decline even further. For example, if Fed rates drop by 0.25%, as anticipated, and HELOC rates drop by the same amount, your monthly costs could look like this:

  • 10-year HELOC at 8.43%: The monthly cost would amount to $3,090.29 with this rate and term.
  • 15-year HELOC at 8.43%: The monthly cost would amount to $2,451.60 with this rate and term.

A more substantial decrease of 0.50% over time would make monthly payments even more affordable. Here’s what your monthly payments would look like when factoring in a potential 50-basis-point drop:

  • 10-year HELOC at 8.18%: The monthly cost would amount to $3,057.02 with this rate and term.
  • 15-year HELOC at 8.18%: The monthly cost would amount to $2,415.18 with this rate and term.

As you can see, the potential for reduced monthly costs as rates decline makes HELOCs an appealing option for homeowners. Still, it’s essential to carefully consider your borrowing capacity as you make a decision. Interest rates are expected to continue to drop over time, but they could fluctuate unexpectedly, so it’s wise to budget for a range of possible payment scenarios to ensure affordability.

Compare today’s best home equity borrowing rates now.

Does a home equity loan make more sense right now?

While home equity loans offer the security of fixed rates, they’re generally not the optimal choice in the current rate environment. Here’s why: The Federal Reserve is expected to implement more rate cuts in the coming months, which would directly benefit HELOC borrowers through lower monthly payments. With a home equity loan, you’d be locked into today’s higher rates unless you refinance – a process that incurs additional closing costs and fees.

On the other hand, HELOCs automatically adjust to rate decreases without requiring refinancing or additional expenses. This flexibility makes them particularly attractive when rates are expected to fall. HELOCs also allow you to draw funds as needed (up to your borrowing limit) rather than borrowing a lump sum, which can potentially reduce your interest costs if you don’t need the full amount.

The bottom line

Today’s $250,000 HELOCs have payments ranging from roughly $2,415 to $3,124 per month depending on the term and current rate. Given the Federal Reserve’s anticipated rate reductions, these payments could decrease further, making HELOCs an attractive option for accessing substantial funds affordably. So, if you need to borrow a large sum of money with minimal cost, a HELOC could be your best choice in today’s shifting financial landscape.



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Compromise deal reached at COP29 climate talks for $300 billion a year to poor nations

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Countries agreed on a deal to inject at least $300 billion annually in humanity’s fight against climate change, aimed at helping poor nations cope with the ravages of global warming at tense United Nations climate talks in the city where industry first tapped oil.

The $300 billion will go to developing countries who need the cash to wean themselves off the coal, oil and gas that causes the globe to overheat, adapt to future warming and pay for the damage caused by climate change’s extreme weather. It’s not near the full amount of $1.3 trillion that developing countries were asking for, but it’s three times the $100 billion a year deal from 2009 that is expiring. Delegations said this deal is headed in the right direction, with hopes that more money flows in the future.

“Everybody is committed to having an agreement,” Fiji delegation chief Biman Prasad said as the deal was being finalized. “They are not necessarily happy about everything, but the bottom line is everybody wants a good agreement.”

It’s also a critical step toward helping countries on the receiving end create more ambitious targets to limit or cut emissions of heat-trapping gases that are due early next year. It’s part of the plan to keep cutting pollution with new targets every five years, which the world agreed to at the U.N. talks in Paris in 2015.

The Paris agreement set the system of regular ratcheting up climate fighting ambition as away to keep warming under 1.5 degrees Celsius above pre-industrial levels. The world is already at 1.3 degrees Celsius and carbon emissions keep rising.

Countries also anticipate that this deal will send signals that help drive funding from other sources, like multilateral development banks and private sources. That was always part of the discussion at these talks — rich countries didn’t think it was realistic to only rely on public funding sources — but poor countries worried that if the money came in loans instead of grants, it would send them sliding further backward into debt that they already struggle with.

“The $300 billion goal is not enough, but is an important down payment toward a safer, more equitable future,” said World Resources Institute President Ani Dasgupta. “This deal gets us off the starting block. Now the race is on to raise much more climate finance from a range of public and private sources, putting the whole financial system to work behind developing countries’ transitions.”

It’s more than the $250 billion that was on the table in the first draft of the text, which outraged many countries and led to a period of frustration and stalling over the final hours of the summit. After an initial proposal of $250 billion a year was soundly rejected, the Azerbaijan presidency brewed up a new rough draft of $300 billion, that was never formally presented, but also dismissed roundly by African nations and small island states, according to messages relayed from inside.

The several different texts adopted early Sunday morning included a vague but not specific reference to last year’s Global Stocktake approved in Dubai. Last year there was a battle about first-of-its-kind language on getting rid of the oil, coal and natural gas, but instead it called for a transition away from fossil fuels. The latest talks only referred to the Dubai deal, but did not explicitly repeat the call for a transition away from fossil fuels.

Countries also agreed on the adoption of Article 6, creating markets to trade carbon pollution rights, an idea that was set up as part of the 2015 Paris Agreement to help nations work together to reduce climate-causing pollution. Part of that was a system of carbon credits, allowing nations to put planet-warming gasses in the air if they offset emissions elsewhere. Supporters said a U.N.-backed market could generate up to an additional $250 billion a year in climate financial aid.

Despite its approval, carbon markets remain a contentious plan because many experts say the new rules adopted don’t prevent misuse, don’t work and give big polluters an excuse to continue spewing emissions.

“What they’ve done essentially is undermine the mandate to try to reach 1.5,” said Tamara Gilbertson, climate justice program coordinator with the Indigenous Environmental Network. Greenpeace’s An Lambrechts, called it a “climate scam” with many loopholes.

With this deal wrapped up as crews dismantle the temporary venue, many have eyes on next year’s climate talks in Belem, Brazil.



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GOP senator blocks promotion of general involved in Afghanistan withdrawal, sources say

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The promotion of a three-star general who was part of the 2021 U.S. withdrawal from Afghanistan has been paused by Republican Sen. Markwayne Mullin of Oklahoma, three sources familiar with the move confirmed to CBS News Saturday.

Lt. Gen. Christopher Donahue was slated to be promoted to a four-star rank and take command of the U.S. Army in Europe. However, he was not included in a batch of nearly 1,000 promotions that moved through the Senate Armed Services Committee this week despite receiving a Pentagon recommendation.

Mullin has put a hold on the promotion. The intention is to allow for the new Republican-controlled Congress and President-elect Donald Trump to weigh in on the promotion given Donahue’s involvement in the Afghanistan withdrawal, two sources familiar with the situation told CBS News.

Behind the scenes, there is an effort underway by the Army and other allies to convince Congress to move forward and lift the hold, which appears to be politically motivated, sources said.

Lt. Gen. Christopher Donahue
Lt. Gen. Christopher Donahue speaks during a re-designation ceremony officially renaming Fort Bragg into Fort Liberty, near Fayetteville, North Carolina, on June 2, 2023. 

ALLISON JOYCE/AFP via Getty Images


During the campaign, Trump frequently mentioned his surprise that no officers were consequently fired by President Biden for the chaotic withdrawal.

Military officers execute U.S. policy but do not create it. It was the Trump administration that in February 2020 brokered the deal with the Taliban to withdraw U.S. forces from Afghanistan, but it was Mr. Biden who decided to execute that withdrawal despite the Taliban breaking the terms of that U.S. agreement.

Donahue was the last U.S. soldier to exit Afghanistan in 2021. The U.S. evacuated about 125,000 people, including 6,000 Americans, over the course of its withdrawal, during which dozens of Afghans and 13 U.S. service members were killed in a suicide bombing outside Hamid Karzai airport in Kabul.

The U.S. underestimated the speed with which the Taliban would capture Kabul and the well-documented U.S. logistical and planning failures have been a focus of multiple internal probes at the Pentagon, State Department, and in Congress.

An extensive State Department report released last year found that “insufficient” planning, communication failures and an inability to grasp “the scale and scope of the operation” contributed to the chaotic operation.

CBS News has reached out to Mullin’s office but did not receive a response. It is not clear whether Trump is aware of the hold.

contributed to this report.



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Trump picks former White House aide Brooke Rollins to lead the USDA

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President-elect Donald Trump said Saturday that he will nominate former White House aide Brooke Rollins to be his agriculture secretary, the last of his picks to lead executive agencies and another choice from within his established circle of advisers and allies.

The nomination must be confirmed by the Senate, which will be controlled by Republicans when Trump takes office Jan. 20, 2025. Rollins would succeed Tom Vilsack, President Biden’s agriculture secretary who oversees the sprawling agency that controls policies, regulations and aid programs related to farming, forestry, ranching, food quality and nutrition.

Rollins, who graduated from Texas A&M University with a degree in agricultural development, is a longtime Trump associate who served as his former domestic policy chief. She is president and CEO of the America First Policy Institute, a group helping to lay the groundwork for a second Trump administration.

Brooke Rollins
Brooke Rollins, speaks during a discussion hosted by AFPI and The Abraham Accords Peace Institute, in Washington, D.C., on Sept. 12, 2022. 

Tom Williams/CQ-Roll Call, Inc via Getty Images


Rollins, 52, previously served as an aide to former Texas Gov. Rick Perry and ran a think tank, the Texas Public Policy Foundation.

Rollins’ pick completes Trump’s selection of the heads of executive branch departments, just two and a half weeks after the former president won the White House once again. Several other picks that are traditionally Cabinet-level remain, including U.S. Trade Representative and head of the Small Business Administration.

Trump didn’t offer many specifics about his agriculture policies during the campaign, but farmers could be affected if he carries out his pledge to impose widespread tariffs. During the first Trump administration, countries like China responded to Trump’s tariffs by imposing retaliatory tariffs on U.S. exports like the corn and soybeans routinely sold overseas. Trump countered by offering massive multibillion-dollar aid to farmers to help them weather the trade war.

President Abraham Lincoln founded the USDA in 1862, when about half of all Americans lived on farms. The USDA oversees multiple support programs for farmers; animal and plant health; and the safety of meat, poultry and eggs that anchor the nation’s food supply. Its federal nutrition programs provide food to low-income people, pregnant women and young children. And the agency sets standards for school meals.

Robert F. Kennedy Jr., Trump’s nominee to lead the Department of Health and Human Services, has vowed to strip ultraprocessed foods from school lunches and to stop allowing Supplemental Nutrition Assistance Program beneficiaries from using food stamps to buy soda, candy or other so-called junk foods. But it would be the USDA, not HHS, that would be responsible for enacting those changes.

In addition, HHS and USDA will work together to finalize the 2025-2030 edition of the Dietary Guidelines for Americans. They are due late next year, with guidance for healthy diets and standards for federal nutrition programs. 



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