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3 home equity moves to make before 2025

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Now could be a smart time for homeowners to withdraw money from their equity.

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Timing is everything, especially when it comes to borrowing money. As borrowers are well aware, recent years haven’t been ideal for those who needed extra financing. Mortgage interest rates surged to their highest level in decades and have only come down slightly since. Credit card interest rates, meantime, just broke a new record, moving past 23%. Even personal loan rates are closing in on 13% for qualified borrowers, and higher for those with bad credit

Home equity borrowing, whether via a home equity loan or home equity line of credit (HELOC), however, has been significantly more cost-effective than these alternatives. Still, they’re not immune from wider trends, making the timing surrounding an application critical to get right. And with just weeks left in 2024, prospective home equity borrowers should consider making some timely moves right now. Below, we’ll break down three of them. 

Start by seeing how low of a home equity loan rate you could qualify for here.

3 home equity moves to make before 2025

With little time to spare before the end of the year, homeowners who are considering accessing their home equity should consider making these moves now:

Choose a home equity loan over a HELOC

Inflation just rose slightly in October and while it’s too soon to tell if that’s part of a broader trend or a signal of additional issues to come, it’s not what borrowers need. Higher inflation, after all, led to higher interest rates on a variety of borrowing products, including home equity loans. And if rates are hiked again, rates on these products will inevitably follow. 

It’s beneficial, then, to choose a home equity loan over a HELOC in these circumstances. The former has a fixed interest rate that won’t change over the life of the loan while the latter has a variable one that will change each month. And with inflation rising and the potential for interest rates to stay static (or even rise), a fixed rate is safer. Plus, the average 8.41% home equity loan rate is lower than the 8.61% accompanying HELOCs now, anyway.

Get started with a home equity loan online today.

Shop around for lenders

Did you know that you don’t need to use your current mortgage lender to tap into your home equity? With this flexibility, then, and with the average amount of home equity high right now, it makes sense to shop around for lenders as soon as possible. It may take weeks or even months to have your funds disbursed. So by shopping around now for the best rates and terms, you can potentially get approved before the end of the year, allowing you to use the funds as needed within weeks. And this will position you for other benefits, too. 

Apply now (if using for home projects)

If you know you’re planning to use your home equity loan for a home project, then it behooves you to apply now (assuming your creditworthiness is applicable). Here’s why: Interest paid on both home equity loans and HELOCs is tax-deductible if used for eligible home repairs and improvements. But if you wait to apply much longer and get approved in 2025 or simply use the money in that year, you’ll delay a critical tax deduction until you can file your next return in 2026. This is arguably one of the most important home equity moves to make in the final weeks of the year, assuming this is the intended purpose of the financing.

Learn more about your potential home equity loan tax benefits here.

The bottom line

The time is still right for many homeowners to access their home equity. To improve their chances of financial success, however, they should strongly consider making the above moves now, before January 1, 2025. By opening a home equity loan over a HELOC, shopping around for the best rates and terms and opening the loan now to take advantage of potential tax benefits in 2024, borrowers will better position themselves for success both in the short-term, in 2025 and in the years that follow.



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Head of Russia’s nuclear defense forces killed in Moscow blast triggered by device hidden in scooter, officials say

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Markarova: Ukraine is “not asking for other troops”


Ambassador Oksana Markarova says Ukraine is “not asking for other troops”

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Moscow — The head of Russia’s Nuclear, Biological, and Chemical Defense Forces, Lt. General Igor Kirillov, was killed along with his deputy early Tuesday in an explosion in Moscow, Russia’s Investigative Committee said.

An explosive device hidden in an electronic scooter went off outside a residential building as the two men left the structure, Agence France-Presse cites investigators as saying.

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A body is seen at the scene of an explosion in Moscow that killed the commander of the Russian armed forces’ chemical, biological and radiation defense troops, Igor Kirillov, and his deputy, on Dec. 17, 2024, according to the Russian Investigative Committee.

ALEXANDER NEMENOV / AFP via Getty Images


“Investigators, forensic experts and operational services are working at the scene,” committee spokesperson Svetlana Petrenko said in a statement. “Investigative and search activities are being carried out to establish all the circumstances around this crime.”

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A view of scene of a Dec. 17, 2024 explosion that killed the commander of the Russian military’s chemical, biological and radiation defense troops, Igor Kirillov, and his deputy, according to the Russian Investigative Committee.

ALEXANDER NEMENOV / AFP via Getty Images


The committee carries out responsible major investigations in Russia.  

Kirillov was sentenced in absentia by a Ukrainian court on Dec. 16 for the use of banned chemical weapons in Ukraine during Russia’s military operation in Ukraine that started in Feb. 2022.

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In this screengrab from AFPTV footage, Igor Kirillov, head of the Russian Defense Ministry’s radiological, biological and chemical protection unit, speaks at a press briefing in June 2018.

AFPTV / AFP via Getty Images


Ukraine’s Security Service, the SBU, said it had recorded more than 4,800 uses of chemical weapons on the battlefield since February 2022, particularly K-1 combat grenades.

During the almost 3-year operation, Russia has made small but steady territorial gains to the nearly one-fifth of Ukraine it already controls.

Kirillov had been in his post since 2017, AFP notes.



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Earthquake rocks Pacific island nation of Vanuatu, deaths feared, U.S. embassy damaged

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A powerful earthquake hit the Pacific island nation of Vanuatu Tuesday, smashing buildings in the capital, Port Vila, including one housing the embassies of the U.S. and other nations. A witness told Agence France-Presse of bodies seen in the city.

Dan McGarry, a journalist with the Organized Crime and Corruption Reporting Project based in Vanuatu, told the Reuters news agency in an interview that police said at least one person had been killed and injured people had been taken to hospital.

“It was the most violent earthquake I’ve experienced in my 21 years living in Vanuatu and in the Pacific Islands. I’ve seen a lot of large earthquakes, never one like this,” he said.

The 7.3-magnitude quake struck at a depth of 35 miles, off the coast of Efate, Vanuatu’s main island, at 12:47 p.m. local time, according to the U.S. Geological Survey.

The ground floor of a building housing the U.S, French and other embassies had been crushed under higher floors, resident Michael Thompson told AFP by satellite phone after posting images of the destruction on social media.

“That no longer exists. It is just completely flat. The top three floors are still holding but they have dropped,” Thompson said.

“If there was anyone in there at the time, then they’re gone.”

Thompson said the ground floor housed the U.S. embassy, but that couldn’t be immediately confirmed.

A photo showed significant damage to the building:

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This photo shows a general view of a severely damaged building housing the embassies of the United States, United Kingdom and New Zealand after a powerful earthquake struck Port Vila, the capital city of Vanuatu, on December 17, 2024.

STR / AFP via Getty Images


The United States has closed the embassy until further notice, citing “considerable damage” to the mission, the U.S. embassy in Papua New Guinea said in a message on social media. “Our thoughts are with everyone affected by this earthquake,” the embassy said.

The New Zealand High Commission, housed in the same building, suffered “significant damage,” a statement from Foreign Minister Winston Peters’ office said, adding that, “New Zealand is deeply concerned about the significant earthquake in Vanuatu, and the damage it has caused.”

Thompson, who runs a zipline adventure business in Vanuatu, said, “There’s people in the buildings in town. There were bodies there when we walked past.”

A landslide on one road had covered a bus, he said, “so there’s obviously some deaths there.”

The quake also collapsed at least two bridges, and most mobile networks were cut off, Thompson said.

“They’re just cracking on with a rescue operation. The support we need from overseas is medical evacuation and skilled rescue, (the) kind(s) of people that can operate in earthquakes,” he said.

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Rescue workers are seen at the site of a collapsed building after a powerful earthquake struck Port Vila, the capital city of Vanuatu, on December 17, 2024.

STR / AFP via Getty Images


Video footage posted by Thompson and verified by AFP showed uniformed rescuers and emergency vehicles working on a building where an external roof had collapsed onto a number of parked cars and trucks.

The streets of the city were strewn with broken glass and other debris from damaged buildings, the footage showed.

Nibhay Nand, a Sydney-based pharmacist with businesses across the South Pacific, said he had spoken to staff in Port Vila who said most of the store there had been “destroyed” and that other buildings nearby had “collapsed.”

“We are waiting for everyone to get online to know how devastating and traumatic this will be,” Nand told AFP.

A tsunami warning was issued after the quake, with waves of up to three feet forecast for some areas of Vanuatu, but it was soon lifted by the Pacific Tsunami Warning Center.

Earthquakes are common in Vanuatu, a low-lying archipelago of 320,000 people that straddles the seismic Ring of Fire, an arc of intense tectonic activity that stretches through Southeast Asia and across the Pacific Basin.

Vanuatu is ranked as one of the countries most susceptible to natural disasters such as earthquakes, storm damage, flooding and tsunamis, according to the annual World Risk Report.



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