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Here’s what a $300,000 home equity loan would cost monthly
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Did you know that the average American homeowner has $299,000 worth of equity in their homes? Around $190,000 of that equity is accessible. And tapping into that equity could be relatively inexpensive. Since home equity lending options are backed by your home, the interest rates on these loans are often lower than other popular borrowing options – like personal loans and credit cards.
One popular way to access the equity in your home is with a home equity loan. These loans are generally funded in one lump sum and usually come with a fixed interest rate and payment. So, they offer a way to get your hands on a meaningful amount of money as well as payments that stay the same through the life of the loan, making the loan payments easy to budget for.
But what if you wanted to tap into $300,000 worth of your home equity? How much money would you have to pay monthly? That’s what we will calculate below.
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Here’s what a $300,000 home equity loan would cost monthly
The monthly cost of a $300,000 home equity loan depends on two important factors:
- How long the loan term is: Shorter terms typically come with higher monthly payments than longer terms because the time you have to repay what you borrowed is compressed. Then again, shorter terms also typically lead to a significant overall interest savings when compared to longer terms.
- Your interest rate: Your interest rate also plays a meaningful role in your monthly payment. Moreover, those interest rates typically vary by loan term. At the moment, 10-year home equity loans have an average interest rate of 8.73% while 15-year home equity loans have an 8.70% average interest rate.
So, what does that mean in terms of monthly payments? Find a few examples below.
Find out what your home equity loan would cost today.
Example #1: 10-year fixed-rate home equity loan at 8.73%
If you borrow $300,000 against your home equity with a 10-year fixed-rate home equity loan at 8.73%, your payments would be $3,756.58 per month. Over the course of the 10-year loan, you would pay $150,789.02 in interest. Adding interest to the $300,000 principal loan amount means you would pay a total of $450,789.02 over the life of the loan.
The good news is that the fixed rates associated with home equity loans mean that the payments won’t change. That is, unless you refinance the loan at some point. But that may be a good thing. With inflation on the rise again, there’s no telling where interest rates may go. Should inflation continue heading up, rate hikes will become more likely. But since these loans offer fixed rates, if the average home equity loan interest rate did increase, the change would have no impact on your monthly payments.
Example #2: 15-year fixed-rate home equity loan at 8.70%
A $300,000 15-year fixed-rate home equity loan at 8.70% would come with a $2,989.49 monthly payment. While that payment is lower than the 10-year fixed-rate option, you would end up paying far more interest over the life of the loan. The 15-year option would result in total interest payments of $238,108.97, as compared to $150,789.02 in interest payments with a 10-year home equity loan. Moreover, your total payoff cost (inclusive of interest and principal) on a $300,000 15-year fixed-rate home equity loan at 8.70% would be $538,108.97.
What about a HELOC?
A home equity line of credit (HELOC) is a variable interest home equity borrowing option. These loans usually start with a draw period which is followed by a repayment period. You’ll make interest-only payments during the draw period and payments toward interest and principal during the repayment period.
Today’s average HELOC interest rate is 9.04%. But there’s no telling what that rate might be when your repayment period starts. After all, HELOC interest rates change regularly. And the leading driver of changes to interest rates – inflation – has, thus far, proven unpredictable. So it’s not possible to predict with certainty what a $300,000 HELOC would cost over time.
Moreover, a variable rate loan may not be the best choice in today’s inflationary environment. While experts thought rates would start to fall in 2024, robust inflation and jobs data suggest that may no longer be the case. And if inflation continues to rise, rate hikes could come in the future (though it’s too early to tell if that might be a probable outcome). On the other hand, if rates fall before your repayment period begins (or during it), you could save money with a HELOC.
Compare your home equity borrowing options with leading financial institutions.
The bottom line
A $300,000 home equity loan would likely come with payments ranging from $2,989.49 to $3,756.58 per month, but may be higher or lower. You could also choose a HELOC to access the money you need, but determining what the monthly cost of a HELOC might be is difficult due to the variable interest on the loan. Not to mention, with inflation ticking up, HELOC rates could rise in the future. So, a fixed-rate home equity loan may be your better option.
Some residents east of Atlanta were evacuated while others were told to shelter in place to avoid contact with a chemical plume after a fire at a chemical plant.
Rockdale County Fire Chief Marian McDaniel told reporters that a sprinkler head malfunctioned around 5 a.m. Sunday at the BioLab plant in Conyers. That caused water to mix with a water-reactive chemical, which produced a plume of chemicals. The chief said she wasn’t sure what chemicals were included.
A small roof fire was initially contained, but reignited Sunday afternoon, Sheriff Eric Levett said in a video posted on Facebook as gray smoke billowed into the sky behind him. He said authorities were trying to get the fire under control and urged people to stay away from the area.
People in the northern part of Rockdale County were ordered to evacuate and others were told to shelter in place with windows and doors closed. Sheriff’s office spokesperson Christine Nesbitt did not know the number of people evacuated.
The federal Environmental Protection Agency and the Georgia Environmental Protection Division were both on site, county Emergency Management Director Sharon Webb said. The agencies are monitoring the air “to give us more of an idea of what the plume consists of.”
McDaniel said crews were working on removing the chemical from the building, away from the water source. Once the product is contained, the situation will be assessed and officials will let residents know whether it is safe to return to their homes, she said.
An evacuation center was opened at Wolverine Gym in Covington.
Washington — Sen. JD Vance and Minnesota Gov. Tim Walz will face off on Tuesday in the first and only vice presidential debate of the cycle, as the two candidates look to prop up the Republican and Democratic tickets with fewer than 40 days until Election Day.
The debate, hosted by CBS News at the CBS Broadcast Center in New York City, will be moderated by “CBS Evening News” anchor and managing editor Norah O’Donnell and “Face the Nation” moderator and CBS News chief foreign affairs correspondent Margaret Brennan.
Here’s what to know about how the candidates are preparing for the debate:
How JD Vance is preparing for the VP debate
The Ohio Republican has been preparing for the debate for more than a month, a source directly involved told CBS News, including with “murder board” sessions with a small team that includes Vance’s wife and his advisers, along with senior Trump adviser Jason Miller.
Among Vance’s main focuses during the preparation has been studying Walz’ debate style and policy record, the source said, noting that Vance will attempt to highlight what he sees as the Minnesota governor’s left-wing views during the debate.
Vance told reporters last week that his plan is to break down what the Trump-Vance administration would do to make “life better” and connect that to policy.
“So, we’re studying up as much as we can on the issues that matter to the American people, and I’m looking forward to it,” Vance said.
House Majority Whip Tom Emmer, a Minnesota Republican, is standing in for Walz during Vance’s debate prep, four sources familiar with the preparations told CBS News. Emmer and Walz have deep roots in Minnesota and are close in age.
Emmer told ABC’s “This Week” on Sunday that he’s known Walz for decades and has spent the last month working to “get his phrases down, his mannerisms.”
“My job was to be able to play Tim Walz so JD Vance knows what he’s going to see,” Emmer said.
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How Tim Walz is preparing for the VP debate
Walz has been preparing for the debate with a close team of advisers, a source familiar with the preparations told CBS News. Some of the people involved also helped Vice President Kamala Harris take on former President Donald Trump, among others, like a long-time aid to Walz who worked with him during his bids for governor.
For Walz, whose name recognition was until recently limited outside of Minnesota, the focus is on continuing to introduce himself to the American people, according to the source. He’ll also work to highlight Harris’ vision for the nation’s path forward.
“You’ll hear me talk like I have about things that impact Americans, making sure they have the opportunity to thrive, making sure that we’re being factual in how we talk about that,” Walz told MSNBC’s Rachel Maddow of the debate earlier this month. “And so I’m looking forward to it. I’ll work hard, that’s what I do.”
During debate prep, Transportation Secretary Pete Buttigieg is standing in for Vance, a campaign official familiar with the preparation told CBS News. The former mayor of South Bend, Indiana, also assisted Harris during her debate prep in 2020, and is close in age to Vance.
When and how to watch the presidential debate
Debate coverage on CBS News 24/7 begins at 4 p.m. ET, with the debate getting underway at 9 p.m. ET on Oct. 1.
The 90-minute debate will be streamed on CBS News 24/7 and Paramount+ across all available platforms and CBSNews.com. The debate will also be simulcast across other broadcast and cable networks.
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Actor John Ashton, best known for his role as the by-the-book detective in the “Beverly Hills Cop” franchise, has died, his publicist Alan Somers confirmed to CBS News on Sunday. He was 79.
Ashton died Thursday in Ft. Collins, Colorado, after a battle with cancer.
“John was a loving husband, brother, father, and grandfather who will be deeply missed by all who knew him,” a statement said.
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Ashton was born in Springfield, Massachusetts on Feb. 22, 1948, and raised in Enfield, Connecticut. He received a Bachelor of Arts from the University of Southern California.
Throughout his 50-year career in show business, Ashton appeared in nearly 100 movies after making his debut in 1973’s “The Psychopath.”
He was probably best known for his role as Det. Sgt. John Taggart in the first two installments of the “Beverly Hills Cop” series alongside Eddie Murphy and Judge Reinhold. He reprised his role in 2024’s “Beverly Hills Cop: Axel F.”
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Other film credits include “Some Kind of Wonderful,” “She’s Having a Baby,” “Midnight Run,” “Little Big League” and “Gone Baby Gone.”
On television, he played Willie Joe Garr on several episodes of “Dallas” and made an appearance on such shows like “Columbo,” “Police Squad!” “Hardball” and others.
“John devoted his career to honing his craft and bringing characters to life on the screen. His presence will be greatly missed,” Somers said.
Ashton is survived by his wife Robin Hoye, three children, three step-children and a grandson. He also leaves behind two sisters and a brother.
“John leaves behind a legacy of love, dedication, and service. His memory will forever be treasured by his wife, children, grandchildren, as well as his brother, sisters, his extended family and all who loved him,” Somers said. “John’s impact on the world will be remembered and celebrated for generations to come.”
The family requests any donations in Ashton’s memory be made to Pathways Hospice Care
Residents in Georgia ordered to evacuate or shelter in place after fire at chemical plant
Israeli airstrikes kill dozens across Lebanon as Hezbollah confirms a 7th top commander was killed
Residents told to evacuate or take shelter after Georgia chemical plant fire