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What’s a good HELOC interest rate now that rates are falling again?
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For borrowers looking to access some extra financing, interest rates play a key role in their considerations. Unfortunately, rates on everything from mortgages to personal loans to credit cards have all been high in recent years. Credit card interest rates, for example, just hit an average of 23% last week, the highest they’ve ever been. And while personal loans are better, they’re still hovering around 13% right now, which could easily negate any benefits obtained by choosing this option.
Home equity lines of credit (HELOCs) for current homeowners, then, become the natural best alternative. With the average homeowner having over $300,000 worth of equity to use and interest rates on this product almost three times lower than credit cards, this could be the smart way to borrow a large amount of money right now. But interest rates do also factor into the decision to use your home equity. And owners should calculate their potential monthly payments closely as the home functions as collateral in these circumstances.
That said, HELOC rates are relatively low and they could become even lower as the Federal Reserve continues cutting interest rates this week (their first cut in more than four years was issued in September). Before getting started, then, borrowers should know what a good HELOC interest rate is now that rates are falling again.
See how low of a HELOC interest rate you’d be eligible for here.
What’s a good HELOC interest rate now that rates are falling again?
The average HELOC interest rate is 8.68% right now, so if you can get a rate slightly lower than that, then you can consider it “good.” The better news is that that rate is set to drop again, possibly as soon as this week. While the Fed doesn’t directly dictate the rates lenders offer on home equity borrowing products, they do greatly influence them. So if a 25 basis point cut to the federal funds rate is issued when the Fed concludes its next meeting on November 7, HELOC rates could fall again, even if they’re unlikely to fall by the same increment.
That said, waiting for HELOC rates to fall isn’t necessary. HELOC interest rates are variable and subject to change on a monthly basis as the rate climate evolves. So if you open a HELOC with an 8.68% rate right now and then rates fall in the weeks that follow, don’t worry. Your HELOC rate will likely fall as well when December arrives. And it could fall again in January and the months that follow, as long as the declining interest rate trend continues.
Get started with a HELOC online now.
How to get a low HELOC rate now
While there’s no precise way to secure a below-average HELOC interest rate, taking the following steps in conjunction with one another can help:
- Improve your credit score: The lowest HELOC rate offers will be reserved for those with the highest credit scores. So if your credit needs improving, boost it now – before applying. Since rates are seemingly on the decline, you may have some more time to work on this than you would have in recent years when rates were continually hiked.
- Shop around for lenders: Just like you wouldn’t buy the first home you saw or the first car you test-drove, don’t jump on the first HELOC rate offer you’re given. Instead, shop around for lenders to find one offering the lowest rate and best terms. Consider getting quotes from at least three different lenders before proceeding.
- Monitor select dates: This week is a perfect time to open a HELOC after the Fed issues another rate cut. But there could be other upcoming dates, like when the next unemployment or inflation report is released, in which rates could dip. Monitor these select dates, then, for a potential opportunity to capitalize on a lower rate.
The bottom line
Right now, a “good” HELOC interest rate is anything that’s 8.68% or lower. But this is a moving target as the Fed continues on its rate-cutting campaign and as HELOC interest rates fall in response. So use this time to improve your credit score, start shopping for lenders and monitoring select dates for opportunities to secure an even lower HELOC interest rate. With rates on the decline and variable HELOC rates poised to take advantage, now could be a smart time to borrow money with this unique product.
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A couple in their 70s who served as election poll workers were among at least five people killed in Missouri after torrential rains caused flash flooding across the state.
Up to 8 inches of rain fell over two days in parts of Missouri, leading to widespread flooding and dozens of water rescues. It was part of a storm system that also spawned tornadoes in Oklahoma and Arkansas.
In Wright County, Missouri, a county of about 19,000 residents 210 miles southeast of Kansas City, a 70-year-old man and 73-year-old woman were in a vehicle swept away by flooding at Beaver Creek around 4:30 a.m. Tuesday, the state patrol said. The bodies of the couple from Manes, Missouri, were found more than four hours later.
Wright County Clerk Loni Pedersen confirmed that both of the people who died were poll workers.
“This is a tragic loss for Wright County,” Pedersen said in an email. “They were dedicated citizens who valued fair and honest elections.”
Three people in two other cars swept away by the fast-rising creek were able to swim to safety, the patrol said.
Missouri State Highway Patrol via AP
Two other deaths were reported in St. Louis County. Firefighters were called Tuesday morning after a submerged SUV was spotted near flooded Gravois Creek, near Interstate 55. Crews broke through the sunroof and pulled out a woman, who was pronounced dead, Lemay Fire Protection District spokesperson Jason Brice said.
Hours later, a man’s body was found in the same flooded creek, Brice said. Authorities were investigating how the body got there. Fire crews rescued 10 other people from flooded vehicles, Brice said.
On Monday, Missouri state troopers recovered a 66-year-old man’s body after a car was swept off a bridge in Ironton, about 90 miles (145 kilometers) south of St. Louis.
The National Weather Service said four likely tornadoes, and possibly more, touched down in parts of Oklahoma and Arkansas on Monday. There were no reports of deaths or injuries from the tornadoes.
Keli Cain, spokesperson for the Oklahoma Department of Emergency Management, said assessments of the damage were underway.
The storms struck a day after tornadoes injured at least 11 people in the Oklahoma City area in central Oklahoma.
Cain said the department worked with the Oklahoma State Election Board to ensure that polling places were not disrupted.
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