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How much does a $200,000 home equity loan cost per month now that rates are cut?

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It’s important to calculate your potential monthly costs before borrowing from your home equity.

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As inflation and interest rates rose in recent years, so did the home equity for many homeowners. Right now, levels are at record highs, with the average homeowner possessing close to $330,000 worth of equity. That means owners can easily borrow a six-figure sum while still maintaining a healthy portion of the equity to potentially use at a later date. And there are multiple, cost-effective ways to do so right now, with home equity loans and home equity lines of credit (HELOCs) two of the more attractive alternatives.

Many would prefer a home equity loan now, thanks to its fixed, lower interest rate compared to the higher, variable rate that HELOCs come with. And home equity loans are becoming more affordable now that the Federal Reserve has started cutting interest rates. Before getting started, however, it’s critical to calculate the potential monthly costs of a home equity loan to determine how affordable it is for your unique circumstances. A $200,000 home equity loan could provide homeowners with that aforementioned balance between funding now and maintaining a six-figure sum of equity for the future. Below, we’ll calculate how much a $200,000 home equity loan costs per month now that rates have been cut.

See how low of a home equity loan rate you could secure here.

How much does a $200,000 home equity loan cost per month now that rates are cut?

The average home equity loan interest rate is 8.36% right now but it’s slightly higher when tied to two common repayment periods: 8.46% for 10-year home equity loans and 8.37% for 15-year loans. Here’s what a $200,000 loan would cost monthly, then, tied to those two terms:

  • 10-year home equity loan at 8.46%: $2,475.44 per month 
  • 15-year home equity loan at 8.37%: $1,954.27 per month

While you’d save hundreds of dollars per month by pursuing the longer-term home equity loan, it’ll cost you much more in interest over the life of the loan. The 10-year version, for example, has a total of $97,052.46 in interest to be paid while the 15-year one has $151,768.31 – a difference of approximately $54,700. But only you will know what you can afford each month. 

So, in some circumstances, the 15-year home equity loan may still be better, even if it means paying more in interest over time. And remember that home equity loan interest is tax deductible if used for eligible home repairs, so it may ultimately prove to be less of a concern than it seems on paper.

Get started with a home equity loan online today.

Don’t forget about your credit score

Remember that the above interest rates are what’s available right now for qualified borrowers – emphasis on “qualified.” That means that you’ll only be eligible for the above rates if you have a good to excellent credit score and a clean credit history. If you don’t, the rates offered may be higher and your monthly payments will be higher, too. So take steps now – before applying – to boost your credit score as high as possible. With interest rates on a downward trend, you may have some extra time to improve your credit before pursuing a home equity loan, specifically.

The bottom line

Right now, a $200,000 home equity loan comes with monthly payments between $1,475 and $1,955, approximately. But as rates decline further, home equity loan rates are likely to fall as well. Still, if you don’t have a good credit score, you won’t be eligible for those lower rates. So, first, boost your credit as much as you can. Then, start shopping for lenders to find the best one for your unique borrowing circumstances.

Start shopping for home equity loans here now.



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Why the “sandwich generation” struggles to save for retirement

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Why the “sandwich generation” struggles to save for retirement – CBS News


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Many people in their 50s are part of the so-called “sandwich generation” of workers who support both young relatives and aging parents. Roughly 5 million U.S. households fall into this category, and as a result, the sandwich generation faces challenges saving for retirement. Jill Schlesinger explains.

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Catholic Archdiocese of LA agrees to $880 million settlement over hundreds of sex abuse claims

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The Catholic Archdiocese of Los Angeles has agreed to pay $880 million to settle sex abuse claims made by more than 1,3000 alleged victims dating back to the 1940s. 

“I am sorry for everyone one of these incidents, from the bottom of my heart,” said Archbishop José H. Gomez in a statement. “My hope is that this settlement will provide some measure of healing for what these men and women have suffered.”

The settlement brings the overall amount the Archdiocese of Los Anegeles has paid out to settle sex abuse lawsuits to nearly $1.5 billion, following a $660 million settlement with about 500 alleged victims in 2007.

Officials say the agreement in principle was reached to settle the remaining claims filed under Assembly Bill 218, which temporarily waived the statute of limitations for alleged victims to seek damages in sex abuse claims, according to Archbishop Gomez’s statement. 

“This is the largest single child sex abuse settlement with a Catholic archdiocese,” said a release from the law firm representing the victims. 

Archbishop Gomez approved the settlement and confirmed the administrative office of the Archdiocese will bear the financial responsibility. 

“We have determined that funding for this settlement will be drawn from reserves, investments, and loans, along with other Archdiocesan assets and payments that will be made by religious orders and others named in the litigation,” Gomez’s statement said. “No designated donations to parishes or schools or to archdiocesan-wide collections and campaigns … will be used for the financing of this settlement.”

In his letter, Gomez also promised that the church will remain vigilant to make sure that no one serving in the ministry will harm a minor again. 

Of the more than 3,000 remaining lawsuits alleging sexual abuse of children that have been filed in California under AB-218, 1,600 were filed in Northern California, 500 in San Diego County and 200 in Orange County, attorneys said. Several California dioceses have filed for bankruptcy protection in the wake of the lawsuits. 

“The massive amount of this settlement reflects the amount of grievous harm done to vulnerable children and the decades of neglect, complicity and cover-up by the Archdiocese which allowed known serial predators to inflict this harm. I encourage other religious institutions within the Catholic Church to meet their responsibilities and take accountability,” said the victims’ attorney Morgan A. Stewart.



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Georgia judge invalidates controversial new state election rules, calling them “illegal, unconstitutional and void”

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A Georgia judge has declared that seven new election rules recently passed by the State Election Board are “illegal, unconstitutional and void.”

Fulton County Superior Court Judge Thomas Cox issued the order Wednesday after holding a hearing on challenges to the rules. The rules that Cox invalidated include three that had gotten a lot of attention — one that requires that the number of ballots be hand-counted after the close of polls and two that had to do with the certification of election results.

The State Election Board, which is controlled by three Republicans endorsed by former President Donald Trump, has passed several rules in recent months mostly dealing with the processes that happen after ballots are cast. Trump narrowly lost Georgia to President Biden in the 2020 presidential election but claimed without proof that widespread fraud cost him victory in the state.

Democratic Party organizations, local election officials and a group headed by a former Republican state lawmaker have filed at least half a dozen lawsuits over the rules. Democrats, voting rights groups and some legal experts have raised concerns that some rules could be used by Trump allies to delay or avoid certification or to cast doubt on results if he loses next month’s presidential election to Democratic Vice President Kamala Harris.

One new rule that a judge blocked requires that three separate poll workers count the number of Election Day ballots by hand to make sure the number of paper ballots matches the electronic tallies on scanners, check-in computers and voting machines.

Georgia voters make selections on a touchscreen voting machine that prints out a piece of paper with a human-readable list of the voter’s choices as well as a QR code. That is the ballot that the voter puts into a scanner, which records the votes. The hand-count would be of the paper ballots — not the votes.

Critics, including many county election officials, argued that a hand-count could slow the reporting of election results and put an extra burden on poll workers at the end of an already long day. They also said there isn’t enough time to adequately train poll workers.

The rule’s supporters argued the count would take extra minutes, not hours. They also noted that scanner memory cards with the vote tallies could be sent to central tabulation centers in each county while the hand-count is completed so the reporting of results would not be slowed.

Fulton County Superior Court Judge Robert McBurney on Tuesday had temporarily blocked the hand-count for the November election while he considers the legal merits. He said the hand-count may ultimately prove to be good policy, but it’s too close to the general election to implement it now. The State Election Board could appeal.

Two other new rules that Cox invalidated were passed by the Georgia State Election Board in August and have to do with certification. One provides a definition of certification that includes requiring county officials to conduct a “reasonable inquiry” before certifying results, but it does not specify what that means. The other includes language allowing county election officials “to examine all election related documentation created during the conduct of elections.”

Supporters argued those rules are necessary to ensure the accuracy of the vote totals before county election officials sign off on them. Critics said they could be used to delay or deny certification.



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