Latest news with #LindaBell
Newsweek
2 days ago
- Business
- Newsweek
Map Shows States With Most Expensive Hidden Housing Costs
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The hidden costs of homeownership—such as property taxes, property insurance, utilities, internet and cable bills—can add more than $20,000 to a homeowner's annual expenses, according to a new Bankrate study. Home prices in the U.S. have surged by almost 40 percent over the past five years, so for Americans scrambling to buy a home, this additional financial burden means the dream of homeownership can easily turn into a nightmare even for those who manage to realize it. Not all U.S. homeowners are facing the same costs, however. For those living in the South and the Midwest, the hidden costs of homeownership are just a little bit lower than for those on the East and West Coasts—with California and New Jersey among the most expensive in the country for hidden homeownership costs. Yet Another Blow for Homeowners Home prices have shot through the roof since the pandemic, when historically low mortgage rates sparked a homebuying frenzy across the country. At the time, inventory was chronically low since developers significantly underbuilt following the 2008 crash. The median sale price of a typical U.S. home was $441,526 in April, up from $298,409 five years later. Sky-high home prices and elevated mortgage rates, which have been hovering between the 6 and 7 percent for the past couple of years, have pushed many prospective homebuyers in the U.S. to the sidelines of the market, where most of them remain today despite rising inventory at the national level. Other rising housing costs, such as those mentioned by Bankrate, are also to blame. Homeowners insurance has been rising across the country over the past few years as climate change makes natural disasters more frequent and more severe, and carriers struggle to correctly price the risk for policyholders. Property taxes have also surged in step with home values, hitting older homeowners the hardest. What Are the Hidden Costs of Homeownership? When budgeting for a home, many first-time buyers and some homeowners focus almost exclusively on mortgage payments, Bankrate home-lending expert Linda Bell told Newsweek. But the real cost of homeownership, she said, "extends far beyond that monthly check to the bank." According to Bankrate's study, the average annual costs associated with owning a single-family home in the U.S. amount to $21,400. Of these, $8,800 are for home maintenance, $4,494 for utilities and energy, $4,316 for property taxes, $2,267 for home insurance, and $1,515 for internet and cable. While these additional expenses have always existed, the hidden cost of homeownership has risen steadily for the past few years. This increase, Bell said, reflects inflation and higher prices for almost everything, including supplies and labor. "Some homeownership costs directly relate to home prices," Bell said. "As home prices rise, so do repair costs. Homeowners' insurance premiums are up for a similar reason: The more valuable a property, the more it costs to cover it." Where Are Homeowners Paying More or Less? Homes on the East or West Coast normally carry larger price tags compared to those in the South or Midwest, and they also mean higher ongoing costs. "Simply put, where home prices are high, the overall cost of living and owning a house tends to be higher, too, which means larger property tax bills, more expensive insurance policies and higher maintenance budgets," Bell said. "Unsurprisingly, the top 10 states for hidden costs, like California and New Jersey, are among the most expensive states for home maintenance costs and property taxes," she continued. Hawaii tops the list of states with the highest hidden housing costs, at $34,573. California ($32,262), New Jersey ($29,751), Massachusetts ($29,277) and Washington ($27,444) round out the top five. "The Aloha State always seems to top 'high cost of living' lists," Bell said. "Because it's an island, so many things have to be imported from the U.S. mainland. Space is highly limited, and Hawaii severely restricts urban development, too. As a result, there's a housing shortage, and homes are extremely expensive." Although Hawaii's property tax rate ranked only as the 15th most expensive, its high property values result in a sizable tax bill. Hawaii also has the nation's highest energy and utility costs and is the most expensive state for home maintenance, according to the Bankrate study. New York was not included in the study because of data limitations. According to the study, the least expensive states in the country are West Virginia ($12,579), Mississippi ($14,810), Indiana ($14,903), Missouri ($15,349) and Arkansas ($15,362). Homeowners in the Midwest and South usually face lower hidden homeownership costs because they generally have access to more affordable home prices and a lower cost of living. "When the home itself costs less, everything tied to it—like property taxes, home insurance and upkeep costs—is usually more manageable," Bell said. She added, "We found that the 10 states with the lowest hidden homeownership costs—like West Virginia, Mississippi and Indiana—have home maintenance budgets and property tax rates that fall well below the national average." What Effects Do These Hidden Costs Have on Homeowners? Hidden costs can take "a big bite" out of a household budget, Bell said, and even cause families to spiral into debt. "These expenses are easy to overlook, especially for first-time buyers who may be more focused on the down payment and monthly mortgage payment," she said. The good news, however, is that many of these hidden costs are regularly occurring expenses and can be estimated in advance, Bell said. For those costs that are less predictable, homeowners should make sure to have money saved in an emergency fund that they regularly contribute to. "That way," Bell said, "you avoid the syndrome of being 'house rich, cash poor.'"
Business Insider
5 days ago
- Business
- Business Insider
The 5 states with the highest 'hidden' costs of homeownership — and the 5 with the lowest
Homeowners face an average of $21,400 yearly in hidden costs like maintenance and utilities, Bankrate says. Rising home values and inflation drive up property taxes and insurance premiums. A Bankrate survey shows 42% of homeowners regret unexpected maintenance expenses. When you buy a home, your principal and interest payments aren't the only financial burdens you'll have to worry about. Thousands in so-called "hidden costs" also come due every year. According to a report from Bankrate this week, the average homeowner in the US spends around $21,400 a year on things like maintenance costs ($8,808), utilities and energy ($4,494), property taxes ($4,316), home insurance ($2,267), and internet and cable ($1,515). "Hidden costs" have risen in recent years, the report said, as home values and inflation have surged. "Higher home values mean bigger property taxes and homeowners insurance policies (and premiums). And in the last five years, inflation has also been rearing its ugly head in the rising cost of everything, including construction/home improvement materials, goods and services — and labor," wrote Linda Bell, a senior writer on Bankrate's Home Lending team, in the report. Bell continued: "In Bankrate's 2025 Homeowner Regrets Survey, nearly half of homeowners (42 percent) who had at least one misgiving about buying their home cited maintenance and other hidden costs as being more expensive than expected." These costs vary from state to state. In the report, Bankrate compiled the five most expensive states and the five least expensive states in the US. All 10 of those cities are listed below in order of their national ranking. Their total annual "hidden costs" are included, as well as commentary from Bell about particular costs for each state. Here are the five states with the highest and lowest "hidden" costs, according to Bankrate. 2. California 3. New Jersey 4. Massachusetts 5. Washington 46. Arkansas 48. Indiana 49. Mississippi 50. West Virginia
Yahoo
24-04-2025
- Business
- Yahoo
What is a HELOC?
A home equity line of credit (HELOC) is a variable-rate form of financing that allows you to cash in on the equity you have in your home. HELOCs are a revolving line of credit, similar to a credit card — you can borrow what you need, repay it, then borrow again, during a set draw period. HELOCs are often used to pay for home improvements, but the funds can go toward any expense. A HELOC (home equity line of credit) is a revolving form of credit with a variable interest rate, similar to a credit card. The line of credit is tied to the equity in your home. It allows you to borrow and repay funds on an as-needed basis during a specified period of time. After that, you'll pay back the amount you borrowed in installments. Typically, the total length of a HELOC is 30 years. Your home is the collateral for the line of credit, which means falling behind on payments puts your home at risk of foreclosure. When you're approved for a HELOC, you'll be given a credit limit based on your available equity in your home. Borrowers can usually tap up to 80 percent of their home's value (sometimes as much as 85 or 90 percent, depending on lender policy and if they're very well-qualified), minus outstanding mortgage balances. During an initial draw period, you can spend the funds using dedicated checks, a draw debit card or online transfer. You'll need to make monthly interest payments on the amount you borrow, but as you pay back your HELOC, the funds will be replenished. This draw period typically lasts 10 years. After that, you'll enter a repayment period, during which you'll no longer be able to access funds and instead need to repay the principal and any outstanding interest. Most HELOC plans allow you to repay the remaining balance over a period of 10 years to 20 years. Some lenders also provide the option to refinance your HELOC once the repayment term ends. While you'll often only be on the hook for interest payments during the draw period, you can pay both principal and interest during this phase if you choose. This can help keep your payments manageable when you enter the repayment period. 'Maximize your HELOC by reviewing your balance during the draw period to make sure you aren't overspending,' says Linda Bell, senior writer on Bankrate's Home Lending team. 'To manage payments effectively, you can explore options such as interest-only payments or fixed-rate conversions. By incorporating HELOC payments into your long-term financial plan, you can protect your financial well-being and keep your home safe from potential risks.' The interest rate on a HELOC is variable — that is, it changes periodically, moving up or down in accordance with general interest rate trends. These fluctuating rates are based on benchmarks like the U.S. prime rate, an average derived from the amount individual banks charge their most creditworthy customers. The prime is turn based on the federal funds rate (the rate that banks charge other banks for short-term loans). For HELOCs, lenders typically take the prime interest rate and add several percentage points to it to come up with the interest rate for your credit line. Add in any fees and charges, and you'll come up with the annual percentage rate (APR), which is actual cost. Some HELOC lenders offer an introductory APR — a fixed, temporarily reduced interest rate — which could last for several months or up to a predetermined date. After that, a higher variable rate will go into effect. The variable interest rate means the minimum required payment on your HELOC can change from month to month. Some lenders, however, allow borrowers to convert a portion of the outstanding variable-rate balance on a HELOC to a fixed interest rate. As a result, you can lock in a rate so that your payments will no longer vary and instead you'll have stable, predictable amounts to repay. This can typically be done any time during the HELOC's draw period. It's also possible to obtain a fixed-rate HELOC, meaning the interest rate you pay on money borrowed remains the same for the life of the draw period and during the repayment period as well. There's no one-size-fits all set of requirements to qualify for a HELOC. That said, the criteria commonly include: Significant home equity stake: Lenders typically require homeowners to have at least 15 percent to 20 percent equity in the home. Good credit score: Homeowners generally need a credit score in the mid-600s — at least — to qualify for a HELOC. You could conceivably be approved with a lower score, but you'll likely have a higher interest rate. Low DTI ratio: Many lenders want to see a debt-to-income (DTI) ratio of 43 percent or less. This means your monthly obligations eat up less than half of your monthly income. However, certain lenders might approve you with a DTI ratio of up to 50 percent. Home equity and HELOC statistics Thanks to rising residential real estate values, homeowners have plenty of equity to tap into. Currently, U.S. mortgage-holders' ownership stakes were worth a collective $11.2 trillion. That translates to the average homeowner now having $313,000 of equity in their home, of which $203,000 is tappable (can be borrowed against while still maintaining a 20% equity cushion. U.S. mortgage holders withdrew $46B of home equity in Q4 2024 – 20% more than in Q4 2023 and the highest amount since 2021. The average rate for a $30,000 HELOC is 8.02%, according to Bankrate's national survey of lenders. Of course, various factors influence the actual rate you as an individual receive, including your creditworthiness, lender and loan terms. The average HELOC balance was $45,157 in 2024. The average HELOC credit limit was $149, 114 as of Q1 2025. Review and strengthen your credit. A strong credit score, ideally in the 700s, will get you the most favorable rate and terms. To improve your credit, make all payments on time — catching up on any past-due ones — and try to settle or at least pay down any outstanding balances. Review your credit report to correct any errors. Do all this several months before you actually apply. Find a HELOC lender. Even a small difference in interest rate can save you thousands in the long run, so it pays to shop around and compare offers before choosing a lender. 'Comparison-shop with at least three lenders and before choosing one, make sure you consider all of the loan costs, not just one aspect, like the closing costs or interest rate,' says Bell. 'Knowing all of the costs upfront can help you plan your budget and avoid any nasty surprises down the road.' Don't commit to a lender until you're crystal clear on what they charge (such as annual maintenance charges and early closure fees). Apply for the HELOC. Depending on your lender, you can do this in several ways: in person, over the phone or online. Just like applying for a mortgage, you'll need to fill out a lot of forms and submit various documents to get a HELOC. Be prepared to provide proof of income (like pay stubs, W-2s or tax returns), bank statements and retirement account or brokerage statements. You'll typically need to provide information about your mortgage and other property-related financial commitments, including recent mortgage statements and proof that you've paid your property taxes and homeowners insurance. Hurry up and wait. The lender will order an appraisal of your home to determine its current value. The appraiser's assessment of overall home worth determines how much equity you have available, which in turn helps set the size of your line of credit. Your lender might get back to you with a preapproval or an initial decision within days; others require you to wait until the whole underwriting process is done. The amount you can borrow with a HELOC depends on several factors, including your creditworthiness, the value of your home and of your equity stake, and your loan-to-value ratio (LTV) — the sum total of all your home-based debt vis-à-vis your home's value. Typically, lenders will allow you to borrow up to 80 to 90 percent of your home equity. For example, if your home is valued at $300,000 and your mortgage balance is $200,000, you have $100,000 in equity. If the lender demands you keep 20 percent of that stake untapped, you could have a line of credit of $80,000. You don't have to use the full amount of your HELOC all at once. You can choose to spend part of your allowable credit, and the remaining amount will still be available for you to use in the future. For instance, if you have $100,000 in available credit and only use $65,000, you'll still have $35,000 left in your credit line. You're only required to pay back the portion of credit you use. Learn more: How to Calculate Your Home Equity Approximately 1.3 million new HELOCs were established in 2024, slightly higher than the 1.08 million established in 2023. These numbers are comparable to pre-pandemic originations. But what's really interesting is that, after more than a decade of decline, HELOC balances continue to climb, growing by $11 billion in the fourth quarter of 2024. That's the 11th consecutive quarterly increase since the first quarter of appeal largely lies in their flexibility: Akin to a giant credit card, the funds can be tapped gradually, on an as-needed basis. Borrowers can take out only what they require and pay interest only on what they use. Also adding to their appeal of late: They've gotten less expensive. Rates began retreating consistently last autumn and, as of April 2025, are hovering around 8 percent — their lowest levels in two years – spurred on by the Federal Reserve cutting its benchmark interest rate several times in late 2024. Some experts anticipate HELOC rates falling even further in 2025. Greg McBride, CFA, chief financial analyst for Bankrate, forecasts average HELOC rates to reach 7.25 percent by the end of the year — a low that hasn't been seen since 2022. Whatever their rate, HELOCs also tend to be less expensive than other forms of consumer debt, like credit cards and personal loans. And, unlike a cash-out refinance — the old go-to way to tap a homeownership stake — HELOCs allow a homeowner to hang onto a mortgage with a low interest it's important to ensure you don't get in over your head with a HELOC. Otherwise, you could end up in a precarious financial situation down the line. 'Maximize your HELOC by reviewing your balance during the draw period to make sure you aren't overspending,' says Linda Bell, senior writer on Bankrate's Home Lending team. 'To manage payments effectively, you can explore options such as interest-only payments or fixed-rate conversions. By incorporating HELOC payments into your long-term financial plan, you can protect your financial well-being and keep your home safe from potential risks.' HELOCS have various advantages and disadvantages. Flexibility: While you'll be approved for a maximum HELOC amount, you don't need to use all of it, or use it all at once. This makes HELOCs an attractive option for paying long-term recurring bills — like college tuition— as well as a 'nice to have' for unforeseen emergencies. Interest-only payments: During the draw period (the first 10 years), you're only required to pay interest on what you use from the line of credit. This keeps your payments low, freeing up cash for other expenses or investments. Lower rates: HELOCs are backed by the equity in your home, which acts as collateral for the debt (in contrast to unsecured loans, like credit cards or some personal loans, which aren't backed by anything). Collateral makes a loan less risky to a lender. Because of this lower risk, HELOCs and home equity loans tend to have lower rates than personal loans and credit cards. Potential : If you use the funds from a HELOC to make home improvements or repairs, you might be able to deduct the interest on your tax return. Variable rates: HELOCs have a fluctuating interest rate, which means the rate can go up or down depending on the economy and prevailing market rates. If your rate goes up significantly, you might no longer be able to manage the payments. Secured by your home: A HELOC is backed by your home, so if you default on your payments, it could be foreclosed on by your lender. Sudden repayment shock: You might be able to afford your HELOC payments during the interest-only period, but once the repayment term kicks in, the new monthly amount you owe, a combination of principal and interest payments, could squeeze your budget. Sensitive to the real estate market: A significant decline in home values could cause your lender to reduce or freeze your credit line (during the draw period). Is it better to get a HELOC or a home equity loan? It depends on your goals. A HELOC could be better than a home equity loan if you want a source of funds you can access on an as-needed basis. The line-of-credit arrangement also means you'll only pay interest on the amount you borrow, at least initially. With a home equity loan, you'll be responsible for interest on the entire loan balance, even if you don't use all the funds. If you're planning to cover a significant but indeterminate expense in the near future and want to have a pool of cash readily available, a HELOC might also be the better choice. That's only if you don't mind a variable interest rate, however (unless the lender offers otherwise), and a fluctuating monthly payment. How does a HELOC affect your credit score? Your lender will conduct a hard credit check when you apply for a HELOC, which can cause a slight, temporary decrease in your credit score. This type of credit check typically stays on your credit reports for two years, though it might only impact your credit score for up to a year. Apart from that, the way you use and repay your HELOC could impact your score. Borrowing against a HELOC can increase your credit utilization ratio, which factors into your credit score. A higher credit utilization ratio could result in a lower credit score. That said, paying down your HELOC over time could help you build credit. What fees do HELOCs have? The cost of a HELOC can vary depending on a number of factors, including the lender, the terms of the loan, interest rates and the amount borrowed. And then there are any extra expenses, aka closing costs: origination fees, application fees, appraisal fees. Some HELOCs also carry annual fees, a charge for locking in your interest rate, and an early termination penalty, if you close the credit line within a year or two of opening it, or before the repayment period ends. You can get a sense of these fees' cumulative costs by comparing a HELOC's current interest rate with its current annual percentage rate, or APR, when you start looking around. The APR factors in both interest and other charges. Sometimes the difference can be a full percentage point or even more.
Yahoo
02-04-2025
- Business
- Yahoo
Does a HELOC affect your credit score?
HELOC applications require a hard credit pull, which temporarily lowers your credit score. Closing a HELOC and carrying a big debt balance could lower your credit score, depending on how your lender reports your line of credit to credit bureaus. Using HELOC funds to pay off other, higher-interest debt can improve your credit score. Timely HELOC payments help build a strong credit history. When you need a large sum of cash — to make home improvements, pay off debt or for other big expenses — a key source can be the equity you've built up in your home, accessed through a home equity line of credit (HELOC). But before applying for one, you might wonder: Does a HELOC affect your credit score? After all, most loans and debts do. A HELOC's impact on your credit score usually comes down to two things: how your lender reports it to the credit bureau and how you manage the account. 'It all depends on how you use it. If you keep your balance low and make your payments on time, it can help your credit score,' Linda Bell, senior writer on Bankrate's Home Lending team, explains. 'If you keep your balance low and make your payments on time, it can help your credit score. But if you max out the amount you can draw out or miss payments, it can have a negative effect.' When you apply for a HELOC, the lender will check your credit score. This 'hard pull' or 'hard check' has the potential to temporarily lower that three-digit number. 'The inquiry will remain on your credit report for two years, but generally only impacts your credit score for about six months,' says Jackie Boies, senior director, Housing Services at Money Management International, a Texas-based nonprofit debt counseling organization. If you haven't applied for another loan or a credit card recently, the difference in your score should be small. 'Overall, a single inquiry for credit will have minimal impact, typically five to 10 points,' says Suzanne Mink, retired vice president of consumer lending at Connex Credit Union. Multiple inquiries from auto, mortgage or student-loan lenders within a short time period (usually, up to 45 days) don't have multiple impacts on a credit score. Credit bureaus group them together, considering them as a single or the same loan application (after all, you're probably not buying more than one house or going to two colleges at the same time). However, if you decide to compare these lenders' interest rates and fees over a longer period of time, or apply simultaneously for a lot of credit cards or store accounts, it does count as separate hard inquiries. A number of these could harm your credit score. Does a HELOC affect your credit score after you open it? Yes, it can, both positively and negatively. The HELOC can be reported to credit bureaus in one of two ways: as an installment loan (i.e., a second mortgage) or as a 'revolving account like your other credit card accounts,' says Mink (reflecting the fact that you can borrow money against your credit limit and either repay the funds in full or make only minimum payments, the same as you can on the plastic). If it's reported as the latter, the amount you withdraw could affect your credit utilization ratio (see below). However it's reported, your HELOC balance will show up under overall 'amounts owed' on your credit report, which lenders and creditors use to determine your total amount of debt. A large amount of debt can ding your credit score. While amount of money owed makes up the biggest piece of your FICO credit score (30 percent), the calculation looks at other factors, too. So, how does a HELOC affect your credit score in those other areas? Let's look at two of note: Length of credit history (15 percent): Financial institutions want to know that you have a proven track record of managing your money well. If you've had credit available to you for a long period of time and you've done a good job with it, that helps your credit score. Time is on your side here. Opening a new line of credit reduces the average age of your accounts, which can hurt your credit score. Credit mix (10 percent): A strong borrower manages a mix of credit types well. Having a variety helps your score. You might want to find out how the lender plans to report your HELOC so you can plan accordingly. Since you already have an installment loan in the form of a mortgage, it's generally better if they report it as a revolving credit account. That said, if you've got a lot of credit cards, it might help your mix more to have the HELOC reported as an installment loan. One factor in determining your credit score is how much of your total available credit — across all your cards and credit lines — you've used, known as credit utilization ratio. The lower the ratio, expressed as a percentage, the better your score. However, HELOCs are an exception. Because they are secured debt (using your home as collateral), FICO doesn't consider your HELOC utilization when it's calculating your score, though other measures, like Vantage Scores, might. So you don't get points for not tapping the HELOC balance, and you're not penalized for maxing it out. In contrast, with a credit card, it's recommended to not use more than one-third of your limit. The minimum credit score for HELOC applicants that many lenders traditionally require — though of late some have allowed scores as low as 620. If you make your HELOC repayments reliably, you can build your credit by establishing a history of on-time payments. If you don't have a lot of credit accounts, a HELOC will also help establish your credit history and give other lenders more confidence in your ability to repay what you borrow. Plus, debt related to homeownership tends to be seen as 'good debt' by credit agencies. Because your HELOC is tied to an asset that could increase your net worth, borrowing against your home is often better than taking out a credit card or personal loan as far as your credit score is concerned. Using a HELOC to pay off credit card balances can also improve your score, by lowering your credit utilization ratio. Ideally, you want to keep this ratio below 30 percent. Your HELOC can help here because FICO specifically excludes HELOCs when calculating credit utilization ratios, remember — whereas credit cards definitely do count towards them. Let's say you had a credit card with a $10,000 limit and you currently have a balance of $7,000 on it. If you pay off that balance with your HELOC, you'll move that debt out of your credit utilization ratio. And since this ratio accounts for one-third of your credit score, this can help you give your score a notable bump. While the size of your HELOC balance may not affect your credit score all that much, the presence of the balance itself does. So, closing a HELOC can impact your credit score. It can hurt your credit mix if it was one of your only installment loans or revolving credit accounts (depending on how your lender was reporting it). The impact to a credit score will be greater if the person has a short or new credit history or has few credit cards. 'Credit history makes up about 15 percent of your score,' says Mink. 'A longer credit history will help to improve your score.' Each month you keep the HELOC open extends that history. Establishing your HELOC could initially lower your credit score, as the addition of any new debt to your record would. And missing HELOC payments will definitely ding your score. However, here are some ways to mitigate any potential damage to your credit when you open a HELOC: Resolve other debts. Several open credit accounts with high balances can negatively impact your credit utilization ratio, which will ultimately bring down your credit score. Try to pay down other debt before taking out a HELOC. Shop rates and get quotes from different lenders within a window. FICO considers similar inquiries that have occurred within within a month or so of each other as a single inquiry. This time period might vary depending on the credit scoring model used, but it's typically between 14 and 45 days. Make timely HELOC payments. A missed payment on your HELOC is likely to cause your credit score to drop. So would a payment for less than the minimum. Depending on your lender, there might be a grace period before it's reported to the credit bureaus. The reverse is also true. You can boost your credit score by making timely payments toward your HELOC. 'When using a HELOC, planning is key,' Bell advises. 'Start by figuring out exactly what you need and set a budget to avoid overspending. Only borrow what you can comfortably repay, keeping in mind that interest rates can change. By managing your HELOC wisely, you can prevent any negative impact on your credit score.' Your HELOC has a lot in common with a credit card. It can have a small impact on your credit score when you apply for one, but a larger one if payments are late or missed. It also impacts your credit mix and length of credit history, which in turn can impact your score. It's best to use a HELOC for specific needs, such as paying off high-interest credit cards or repairing your home, says Boies. Using equity to increase the value of your home is smart, especially since the interest you pay on your HELOC might be tax-deductible if you use the funds to substantially improve your home. Since HELOC rates tend to be lower than those of credit cards or personal loans, they can be a good device to consolidate debt. 'As with all debt, it will be very important to maintain timely payments and develop an excellent payment history on your HELOC,' says Boies. Ultimately, your HELOC might help you show lenders that you have access to ample funds, but the discipline not to bump up against your limits — the very definition of a creditworthy client. Does having a HELOC affect my mortgage? Having the HELOC might make it tougher to refinance your mortgage. Lenders consider all your obligations when evaluating you. They also expect you to have, and be able to maintain, a certain amount of equity in the home. Other than that, the HELOC is totally separate from your primary mortgage, and shouldn't affect it. Actually, it's more the other way around: Having a large mortgage can affect how big a home equity line of credit you can establish. Is a HELOC considered good debt or bad debt? That depends on how you use it. If you leverage it to improve your home or start a business, for example, it's good debt that propels you forward, enhancing assets and your net worth. But if you use a HELOC to pay for discretionary items or everyday needs, because you can't afford them otherwise, it's bad debt. Is there a downside to having a HELOC? HELOCs can be dangerous if you don't manage them carefully. Because they usually come with variable interest rates, your monthly payments can fluctuate. And those payments will jump dramatically if you only repay interest during the initial draw period, leaving the entire debt to handle during the repayment period. Given that your house is on the line if you default, it's key to ensure you never borrow more than you can comfortably repay — even if interest rates climb — and— and to delay repaying the principal, even if the lender allows interest-only payments during the draw period. Sign in to access your portfolio
Yahoo
29-01-2025
- Health
- Yahoo
SC Dept. of Public Health report shows increase in flu hospitalizations and deaths
GREER, S.C. (WSPA) – New data from the South Carolina Department of Public Health shows that deaths and hospitalizations from the flu are on the rise. In the current flu season, the report stated that there have been more than 2,000 flu related hospitalizations, 606 of those reports are from just this week. Even more concerning, it is reported there have been a total of 30 flu related deaths, 19 of those were in the Upstate. Dr. Linda Bell, the State Epidemiologist said, that the deaths related to the flu are extremely concerning. 'Deaths related to flu are extremely concerning and are often times preventable. We do track deaths, and we did see an increase in the number of reports of deaths and we just find that unfortunate,' Bell said. However, she said it is preventable. 'There are hospitalizations and deaths that can be prevented with higher flu vaccination coverage,' she said. Doctors at the Geer Pediatric Center said they have been treating a high number of Type A Flu cases, many of which with higher fevers than usual. Chief Medical Officer, Joshua Hall said it makes them feel guarded. 'It is a worrying number, but if you practice staying isolated when you're sick and you have good hygiene skills, then I believe that you'll be on the safe side,' Hall said. He said now is not the time to panic, as they tend to see hospitalizations and deaths in those that have pre-existing immune issues or co-occurring diseases. 'The good news is, they're [kids] very resilient and as long as we take good care of them, we give them medicine and we support them while they're ill, most of our children are very capable of fighting off the flu,' Hall said. He said the Greer Pediatric Clinic offers walk-ins and can see your child if they are sick. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
