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How much does a $15,000 HELOC cost per month now that rates are cut?
With interest rates on the decline again, the costs of some borrowing products have become more favorable. Rates on both home equity loans and home equity lines of credit (HELOCs), for example, have been dropping consistently for much of 2024. And with another Federal Reserve rate reduction expected for when the Fed meets again on December 17 and December 18 — the third such cut this year — both products are expected to become even cheaper in the final days of the year.
This is a key feature for those owners considering a HELOC. This product has a variable interest rate subject to change monthly based on market conditions. While that was a significant drawback in recent years, it has now morphed into an advantage as rates fall. Still, before acting, homeowners must calculate their potential monthly costs, especially when borrowing from a critical financial asset like their home. This is true whether they’re borrowing $150,000 or simply $15,000.
If you’re a homeowner considering the latter amount, then, read on to determine what your monthly payments would look like now that rates are cut.
Access your home equity with a low-rate HELOC here now.
How much does a $15,000 HELOC cost per month now that rates are cut?
To determine how much your monthly HELOC payment will be you’ll need three factors: the interest rate, the amount of money being borrowed and the length of the repayment period. Here, then, is what a $15,000 HELOC costs per month now that rates were reduced, tied to two common repayment lengths:
- 10-year HELOC at 8.53%: $186.22 per month
- 15-year HELOC at 8.53%: $147.97 per month
For comparison purposes, here’s what those payments would have been in January when rates on this product were in the double digits:
- 10-year HELOC at 10.16%: $199.56 per month
- 15-year HELOC at 10.16%: $162.66 per month
So payments have come down by around $15 per month for both. But with the potential for rates to fall further in the weeks and months ahead and a variable rate that will allow HELOC borrowers to capitalize on those changes without having to refinance, it makes sense to secure your funding now.
Get started with a HELOC online today.
Other considerations
While the above payments are what borrowers could be looking at, should they apply for a HELOC now, they’re not guaranteed to be identical. The rates above are the average, meaning that qualified borrowers will likely secure a rate close to 8.53% or maybe even lower.
Home equity borrowers with bad credit, however, will likely pay more. And the above calculations are timely. Should rates go up or down in the upcoming months, the projected payments will adjust, too. So if you’re worried about an inability to make your payments should rates rise in the future, a home equity loan with a fixed interest rate may be preferable.
The bottom line
A $15,000 HELOC is now around $15 cheaper per month than it was at the beginning of the year with the potential to become less expensive as additional rate cuts are issued. And while that may not seem like a lot of money saved each month, it could add up to a substantial amount saved over the life of the loan. So, if you can afford the monthly payments, a HELOC may be one of your better borrowing options right now.
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Mitch McConnell warns RFK Jr. against effort to undermine polio vaccines
Senate Republican Leader Mitch McConnell issued an apparent warning Friday to Robert F. Kennedy, President-elect Donald Trump’s pick to lead the Health and Human Services Department, after The New York Times reported that one of Kennedy’s top advisers had filed petitions to revoke the approval of a polio vaccine and several other shots.
“Anyone seeking the Senate’s consent to serve in the incoming Administration would do well to steer clear of even the appearance of association with such efforts,” McConnell said in a statement.
McConnell, a polio survivor, denounced efforts “to undermine public confidence in proven cures” like the polio vaccine.
“The polio vaccine has saved millions of lives and held out the promise of eradicating a terrible disease. Efforts to undermine public confidence in proven cures are not just uninformed — they’re dangerous,” McConnell said.
McConnell credited the “miraculous combination of modern medicine and a mother’s love” with saving him from paralysis when he contracted the disease at two years of age, and he praised the “miracle” of “the saving power of the polio vaccine” for the millions of children who came after him.
The Times article focused in large part on the work of attorney Aaron Siri for the nonprofit Informed Consent Action Network, or ICAN, which petitioned the Food and Drug Administration in 2022 “demanding that the FDA suspend or withdraw approval” of Sanofi Pasteur’s inactivated polio vaccine, called IPOL.
Siri has been acting as an adviser to the transition team for Kennedy, who, if confirmed by the Senate, would oversee the FDA and the nation’s other public health agencies.
Siri called the Times article a “hit piece” that did not engage with the substance of the “legitimate” concern at the center of the petition he filed for ICAN.
“ICAN’s petition, filed in 2022, makes the reasonable request that the FDA, as required by federal law, require a proper clinical trial for IPOL prior to licensure,” Siri posted on X.
The Times report on Siri’s work sparked a renewed round of backlash against Kennedy by Democrats, too, who have criticized Trump for months over his ties with Kennedy.
As HHS secretary, Kennedy would have significant direct authority as the nation’s health secretary over how vaccines are studied, approved and recommended in the U.S. He and his FDA commissioner would also oversee how government lawyers respond to many of the legal battles Siri has launched against the agency over vaccines.
Kennedy himself has said he would not ban vaccines and has tried to distance himself from the “anti-vaccine” label, instead calling for further study of the shots. He recently resigned as chair of Children’s Health Defense, a nonprofit that watchdog groups have found for years to be spreading misinformation over fears about vaccines.
President-elect Donald Trump has said he might be open to getting rid of some vaccines “if I think it’s dangerous,” pledging to listen to Kennedy.
“We’re going to have a big discussion. The autism rate is at a level that nobody ever believed possible. If you look at things that are happening, there’s something causing it,” Trump said in an interview with Time magazine published this week, when he was asked if he’d sign off on a move by Kennedy to end childhood vaccination programs.
Extensive medical research has conclusively shown that vaccines do not cause autism.
Siri’s petition for ICAN has not progressed much at the FDA since it was filed in 2022. It is one of several legal efforts Siri has filed for groups against several shots, including a petition in 2020 over hepatitis B vaccines.
In a 2023 letter responding to the polio petition, the agency’s top vaccine official, Dr. Peter Marks, wrote that the FDA “has been unable to reach a decision on your petition because it raises issues requiring further review and analysis by agency officials.”
Siri’s petition targets IPOL, which is the only “single-antigen” polio vaccine currently recommended for use in the U.S. The vaccine was approved in the 1990s.
Many children who receive immunizations for polio often do not receive IPOL, but rather, one of several combination vaccines that blend a harmless version of the poliovirus with other recommended antigens for various vaccine-preventable diseases.
The CDC says IPOL is “mainly used as a travel vaccine for adults.” The agency says that the “body of scientific evidence overwhelmingly supports” the safety of polio vaccines.
Siri has hinted at plans for more petitions to the FDA, after Kennedy is in charge at HHS.
“It will help if there are outsiders, from the outside attacking in. For example, the FDA acts on petitions. If you want to license a product, you have to petition them. If you want a product to be withdrawn or reevaluated, you typically often have to petition them,” Siri told Del Bigtree, ICAN’s founder and a former campaign spokesperson for Kennedy, on his podcast last month.
“Somebody on the outside needs to be petitioning them,” Siri added.
contributed to this report.
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