Lending standards have tightened. But, if you still qualify to take out a HELOC, you may be able to snag a super deal. Since HELOC rates are tied to the federal funds rate, you’re likely to have a very low monthly payment. Here are a few HELOC deals out there right now, as discovered by TheStreet.com: In [...] [...more]
As HELOC rates have nosedived, average rates on home equity loans have gone up. Some HELOC customers have suffered through line freezes and reductions, but many others are taking advantage of the low rates made possible by federal funds slashes earlier this year. Here are the national overnight averages calculated by Bankrate.com: $30,00 HELOC - 4.82% HEL - 7.71% $50,000 HELOC [...] [...more]
Earlier today the Federal Reserve cut the federal funds rate a quarter of a point, from 2.25 to 2. The prime rate, used to determine the majority of HELOC interest rates, generally mimics the federal funds rate. So, HELOC customers may see a slight interest reduction in their future statements. Some analysts speculate that this latest [...] [...more]
Due to recent cuts, the prime rate is very low right now (5.25%). That means most HELOC borrowers are paying less in interest every month. Some financial advisers have suggested that the rate cuts make today a smart time to take out an adjustable rate home equity line. However, not everyone agrees. While HELOC rates are [...] [...more]
Most HELOC loans have an adjustable interest rate tied to the prime rate. Your total interest = the current prime rate + your margin (the markup the lender assigned you in the loan paperwork). Keeping track of the prime rate can help you decide when to withdraw money and estimate how much your monthly interest payment [...] [...more]
According to MarketWatch, the recent federal cuts have resulted in lower rates for HELOC customers. Financial columnist Chuck Jaffe notes that home equity lines are the one place that consumers are actually seeing a difference: “BankRate.com pegs the rate on a $30,000 home-equity line of credit at 5.52%, on average, down sharply from a week ago [...] [...more]
According to the Wall Street Journal, home equity rates have been falling steadily for the past 6 months and may fall further based on yesterday’s federal rate cuts: Rates on home-equity lines of credit have dropped to 6.27% from 8.25% since September of last year, according to Bankrate.com. Partly as a result, the amount that homeowners [...] [...more]
Earlier today, the Federal Reserve slashed the federal funds interest rates by 3/4 of a percentage point. This has been the 6th rate cut in the past 6 months. The New York Times Reports: “Though it was one of the biggest one-day rate cuts in decades, investors had been betting heavily that the Fed would cut its [...] [...more]
Some borrowers mistakenly believe that federal rate cuts have a direct affect on their HELOC interest payments. In reality, federal rate cuts are a move by the government meant to promote economic stimulus. These federal cuts may act as an incentive for banks to lower their own interest rates, but this is not always the [...] [...more]
Due to recent federal cuts, HELOC interest rates are dropping. Currently the average HELOC rate is 7.74% and the average fixed-rate home equity loan is 8.07%. According to the March edition of Kiplinger’s Personal Finance, these rate cuts come at a time when HELOC lending standards are tightening - making it more difficult for borrowers to [...] [...more]
