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Climate change may cause crisis amid important insect populations, researchers say
They might be tiny, but insects rule the planet, making up over two-thirds of the world’s 1.5 million known animal species and the backbone of the food chain. But despite their immense impact and large numbers, bugs might be in trouble.
Scientists estimate that 40% of insect species are in decline, and a third are endangered. Habitat loss, the use of pesticides and climate change are threatening insects of all shapes and sizes, including the not-so-glamorous dung beetle.
Kimberly Sheldon, an entomologist at the University of Tennessee, is working with a team to study what happens to dung beetles in a warming climate. The insects are responsible for aerating and putting nutrients back into the soil, which is a critical process for agriculture and vegetation. They also reduce greenhouse gas emissions from things like cow manure.
In greenhouses, Sheldon simulates a warming planet to see how the beetles react. Sheldon and her team have found that smaller dung beetles struggle to dig deep enough to protect their offspring from the warming climate and extreme temperature swings.
That’s a troubling sign for the species, said Oliver Milman, the author of “The Insect Crisis.”
While climate change is contributing to insect population declines, the loss of dung beetles may in turn exacerbate extreme swings in temperature, creating a climate doom loop.
“Getting rid of feces, getting rid of dead bodies, getting rid of all the kind of horrible decomposing work is done on this kind of grand scale,” he explained. “The dung beetle … is really important, disposing of waste, that would otherwise carry all kinds of diseases, pathogens that would be passed between animals and humans.”
While people often look at animals like the polar bear as the poster child of the climate crisis, Milman said that insects are just as deserving of people’s attention.
“That’s why people have described insects as the little things that run the world,” Sheldon said. “They’re really that important.”
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Homeowners looking to access a large sum of money in today’s economic climate don’t have to look too far to find it. By turning to their accumulated home equity, owners can potentially finance a major expense (or multiple major expenses) simply by using the money they already have via their home’s value.
While there are multiple ways to do this, many may be considering a traditional mortgage refinance or cash-out refinance. But in today’s unique and constantly changing interest rate climate, that could prove to be a costly mistake. Instead, right now, both home equity loans and home equity lines of credit (HELOCs) are arguably better than refinancing. Below, we’ll explain why.
Start by seeing what home equity loan interest rate you could qualify for here.
Why home equity loans are better than refinancing right now
Here are three reasons why a home equity loan may be more beneficial than a refinance now:
You’ll maintain your existing mortgage rate
The average home equity loan interest rate is 8.41% as of November 19, 2024, but the average mortgage refinance rate for a 30-year loan is 6.93%. So, on the surface, it appears that refinancing is cheaper. But that refinance rate will require you to exchange your current mortgage rate to get the new one.
That could be a costly mistake if you have a rate under 6.93%, as millions of Americans do right now. By applying for a home equity loan, however, you’ll still gain access to your equity, but you won’t need to bump your mortgage rate to get it. And if home equity loan rates drop in the future, as they have for most of 2024, you can simply refinance your loan to the better rate then.
Get started with a home equity loan online today.
You may qualify for a tax deduction
When you use a cash-out refinance, you apply for a loan larger than what you currently owe to your lender. You then use the former to pay off the latter and keep the difference as cash for yourself. Interest paid on mortgage loans is tax-deductible, but so is the interest on home equity loans if used for qualifying purposes. At that higher interest rate, you may qualify for a larger deduction (while still maintaining your current lower mortgage rate).
The average home equity amount is high right now
A combination of low mortgage interest rates during the pandemic, a drop in available inventory and a hesitation to sell now that rates are high again (amid other complex but interrelated factors) has caused the average home equity amount to soar to just under $330,000 right now. If you want to access that with a refinance, as noted, you’ll need to give up your current mortgage rate to do so. And if you want to access it via a credit card or personal loan, the restrictions will be significant. It makes sense, then, to take advantage by using a home equity loan or HELOC instead of taking a gamble with a refinance right now.
The bottom line
With mortgage refinance rates elevated, the unique feature of a potential tax deduction tied to home equity borrowing and a six-figure average equity sum available now, for many homeowners in need of financing it makes sense to skip a refinance for a home equity loan now. That said, this type of financing is tied to your most important financial asset so the decision to withdraw it from it should be carefully weighed against the risks. Consider speaking to a financial advisor or home equity lender who can answer any questions you may have before getting started.
Speak to a home equity loan lender now.
