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Why you shouldn’t wait for home equity loan rates to drop any further

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Waiting for home equity loan interest rates to fall could be a mistake.

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The long-awaited cut to the federal funds rate was issued in September. After years of rate hikes and higher borrowing costs, the Federal Reserve finally cut its benchmark rate to a range between 4.75% and 5%. That was largely due to a cooling in the inflation rate which, if it continues, could lead to additional rate cuts in November and December, too. While this is a benefit for borrowers, expectations for substantial relief should be measured, particularly for those looking to borrow from their home equity.

In recent years, many have chosen home equity loans and home equity lines of credit (HELOCs) as their cost-effective borrowing preference. But waiting for interest rates to fall further before acting could prove to be an expensive mistake. Below, we’ll detail three reasons why homeowners shouldn’t wait for home equity loan rates to drop further.

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

Why you shouldn’t wait for home equity loan rates to drop further

Are you ready to borrow from your home equity but aren’t sure if you should act or wait? Here are three major reasons why you shouldn’t wait for home equity loan rates to fall any further:

Rate declines will be gradual

The average home equity loan interest rate as of October 2 is 8.39%. That’s down from the 8.75% it was sitting at in the spring, but not in a major way. That 0.36% reduction, after all, is after a half a percentage rate cut was already issued, underlining the gradual (and, some would argue, slow) pace in which home equity loan rates are declining. While rates are expected to fall in the weeks and months ahead, they’re not expected to drop by a dramatic extent. Plus, if any new economic data released in October or November proves problematic, rate cuts could be paused as a response. So don’t wait for that to happen.

Get started with a home equity loan now.

Your financial needs can’t wait

If you’re seriously considering tapping into your home equity, which is likely one of your biggest financial investments, then chances are high that you need money now. If this is the case, your financial needs may not be able to be delayed long enough – nor should they – to secure an interest rate that’s just a few basis points lower than what you can already get right now. So if you’re looking for a home equity loan to consolidate credit card debt, for example, which is currently hovering near record rates, it makes sense to open a home equity loan now to do so. 

You’ll miss this year’s tax deduction

Interest paid on a home equity loan is tax deductible if the borrower uses the funds for qualifying home repairs or renovations. So if you’re planning on using your home equity loan for these reasons this fall it makes sense to act now. If you wait until 2025, you’ll then need to wait until 2026 to get this tax deduction. But if you open a home equity loan in the final months of 2024 – and use a portion of it – you’ll be eligible to write off that interest when you file your tax return in the spring.

The bottom line

The decision to wait for interest rates to fall is always a precarious one. This is especially true when tapping into your home equity. Because rate declines are expected to be gradual, and because your current financial needs are likely urgent, it makes sense to be proactive now. Plus, if you wait, you’ll delay what could be a substantial tax deduction. So weigh the costs of waiting versus the benefits of acting now. For many, it may be beneficial to get started with a home equity loan today.

Have more questions? Learn more about your best home equity loan options here.



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Tim Walz says he had his dates wrong, admits he didn’t travel to China until August 1989

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At his first campaign stop since the vice presidential debate, Tim Walz sought to clarify comments he has made about his travel to China and Hong Kong in 1989 as bloody pro-democracy protests took place. 

Walz admitted during the debate that he had previously misspoken in 2014 when he said he was in mainland China between April and June 1989, during the Tiananmen Square protests, which took place between April 15 and June 4 of that year.  After that concession, however, Walz repeated the mistatement, saying, “So, I was in Hong Kong and China during the democracy protests, went in, and from that I learned a lot of what needed to be in governance.”

Butan Alliance Times-Herald news report from May 1989 shows then-Staff Sgt. Walz was in the U.S. and toured a Nebraska Army National Guard armory. A news radio station also reported in another Nebraska newspaper in August 1989 that Walz said he would “leave Sunday en route to China,” which was after the protests. 

Responding to a question about his remarks from CBS News in Middleville, Pennsylvania, Walz corrected himself and admitted he had his dates wrong, adding that he needs to be clearer when he speaks. 

“So, my clarity, to take away from the message, is something I want to be very clear — August of ’89 into Hong Kong, into China,” said the Minnesota governor, who often talks fast and in shorthand.

Walz also clarified a verbal misstatement from the debate, when he said he was friends with school shooters. The moment was quickly seized upon by Republicans and former President Donald Trump, who posted on Truth Social about it. 

Walz, a former teacher and football coach, said that although he misspoke, it is “pretty damn clear” that he has stood with school shooting victims and passed legislation in an effort to curb such violence. 

In the same conversation at the debate on Tuesday night, Walz mentioned that his teenage son, Gus, was a witness to a shooting. On the campaign trail, Walz often says that even though he supports the Second Amendment, he doesn’t think that should allow children to be shot dead in the hallways. 

Walz’s rally Wednesday in York, Pennsylvania, was filled with supporters who defended him. 

“Who can remember where they were 30 years ago?” Joan Nagy, of Lancaster, Pennsylvania asked. 

“Anybody can make a mistake,” Les Ford said, adding, “When’s the last time you heard Donald Trump or his running mate correct themselves?”

After rolling into the rally on the Harris-Walz campaign bus to address a crowd of around 2,000, Walz leaned in further on his debate performance.

“Anybody watch the debate last night? Not bad for a football coach, huh?,” he quipped. 

“Now, look, there is a reason Mike Pence was not on that stage with me,” he said. Walz added, “I served with Mike Pence in Congress. We disagreed on most issues, but in Congress and as a vice president, I never criticized Mike Pence’s ethics and commitment to this country, Walz said. “And he made the decision for the Constitution. Mike Pence did his duty. He honored his oath, and he chose the Constitution over Donald Trump,” Walz said. 

“Senator Vance made it clear he will always make a different choice than Mike Pence made,” Walz said, referring to Pence’s refusal to give in to pressure by Trump to not certify the 2020 presidential election. Vance has said that he wouldn’t have certified the election, as Pence had, which Walz said “should be absolutely disqualifying if you’re asking to be the vice president of the United States.”

During their debate, “CBS Evening News” anchor Norah O’Donnell noted that Vance has said he wouldn’t have certified the last presidential election and would have asked the states to submit alternative electors, and she asked, “Would you again seek to challenge this year’s election results, even if every governor certifies the results?”

Vance did not directly answer, saying only, “What President Trump has said is that there were problems in 2020 and my own belief is we should fight about those issues, debate those issues peacefully in the public square.”



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How presidential immunity ruling impacts Trump’s election interference case

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How presidential immunity ruling impacts Trump’s election interference case – CBS News


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Special counsel Jack Smith’s unsealed court filing revealed new evidence in the federal election interference case against former President Donald Trump. Over the summer, the Supreme Court ruled that Trump has immunity for official acts conducted as president. CBS News legal contributor Jessica Levinson breaks down the decision’s impact on Trump’s case.

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Israeli monument honors hostages as families celebrate Rosh Hashanah

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Israeli monument honors hostages as families celebrate Rosh Hashanah – CBS News


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Some families in Israel celebrated Rosh Hashanah Wednesday without their loved ones nearly a year after they were taken hostage by Hamas. CBS News senior foreign correspondent Elizabeth Palmer reports from the public plaza renamed Hostage Square in Tel Aviv. CBS News Digital international reporter Haley Ott reports on an Israeli family working to bring home their relative held hostage in Gaza.

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