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CNBC
21-05-2025
- Business
- CNBC
Should I use home equity to pay for my kid's college?
College comes with a hefty price tag. If you own your home, you may be considering funding your child's education with a or a instead of taking out student loans. But should you? There are upsides to tapping into your home equity for higher education, but serious downsides, as well. Home equity loans and HELOCs are second mortgages that allow you to borrow against the equity you've built up while paying your mortgage. The money can be used for anything — home improvements, paying down debt and, yes, your children's tuition and room and board. A home equity loan is a one-time cash infusion paid back with a fixed interest rate, typically over 30 years. Rocket Mortgage, one of our top picks for home equity loans, will approve homeowners for up to 90% of their home's value, compared to 85% for most lenders. Apply online for personalized rates; fixed-rate and adjustable-rate mortgages are available. Conventional loans, FHA loans, VA loans, Jumbo loans, low-down-payment mortgages 10-, 15- and 30-year fixed-term conventional loans, 30-year VA and FHA loans, custom mortgages with fixed-rate terms from 8 to 29 years. 620 for conventional loans 0% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo Already have a mortgage through Rocket Mortgage or looking to start one? Check out the Rocket Visa Signature Card to learn how you can earn rewards. Read our review of Rocket Mortgage A HELOC, meanwhile, is a revolving line of credit that lets you withdraw what you need during a draw period (typically 10 years), and then repay over up to 20 years. PNC Bank approves borrowers for HELOCs with credit scores as low as 600, compared to the industry standard of 640. Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included Conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, HELOCs, Community Loan and Medical Professional Loan 10 – 30 years 620 0% if moving forward with a USDA loan Terms apply. Read our PNC Bank mortgage review College expenses will vary from year to year, based on tuition, financial aid offerings, housing, work study and other factors. So, a HELOC may be the stronger option if you're tapping into your home equity to pay for schooling: Its revolving structure allows you to borrow only what you need. So you've determined that you can leverage your home equity to pay for your child's college education. But is it a smart strategy? There are some pros: You'd get a lower interest rate than with private student loans and, if the The 2017 Tax Cuts and Jobs Act isn't renewed, you could deduct the interest on your HELOC or home equity loan from your taxes. However, these are secured debts that use your house as collateral, so if you fail to make timely payments, your lender could foreclose. Federal and private student loans are unsecured, so lenders can't seize your assets to recover losses. In addition, if you take out a HELOC or home equity loan, it would be considered additional income and could impact access to financial aid in the following year. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.15 to 30 years50025%10, 15 or 20 years68020% There are many other ways to pay for your child's education than a home equity loan or HELOC. In most cases, it's best to exhaust all these options before you touch your home equity. Check what financial aid you're eligible for by filling out the Free Application for Federal Student Aid (FAFSA). Your child may also be eligible for federal loans, grants and scholarships, which will offset how much you need to take out with a private lender. Interest rates on federal student loans, like Parent PLUS loans, are typically lower than both private students and home equity products. Private institutions also provide students with grants and scholarships based on academic merit, athletic performance, civic involvement and other categories. According to SoFi, more than $100 million in college scholarships and over $2 billion in grants are left unawarded each year. This list connects students with grants and scholarships they may qualify for. If you've exhausted federal loans, scholarships, grants and other aid, there are also private loans available from banks and other lenders. Sallie Mae is known for offering low rates and not charging origination fees or prepayment penalties. Undergraduate and graduate students, borrowers seeking career training $1,000 minimum; maximum up to cost of attendance Range from 10 to 15 years Variable and fixed Deferment and forbearance options available Only for international students No Terms apply. See if your child's school offers a tuition payment plan, which allows you to pay off their bill over the year instead of in one lump sum before the semester starts. (There are also third-party lenders that offer payment plans.) When you sign a payment plan, however, you essentially out a short-term loan, and the consequences of late or delinquent payments can be more severe. You'll get hit with steep late fees, and you may not be able to graduate. Parents can start saving for college while their kids are still in diapers with 529 savings plans. Funds invested in these state-sponsored plans grow tax-free, and withdrawals are also tax-free as long as they are used for qualified education expenses. Starting in 2024, unused funds from a 529 plan can be rolled over tax-free into a account, effectively turning it into a retirement account. New York's 529 College Savings Program, managed by Ascensus College Savings and available in all states, is one of our top picks for these savings plans. You can put as much as $520,000 into the account. None $520,000 Options include age-based options and individual options Investors can choose funds from Vanguard mutual funds Total asset-based expense ratio: 0.12% Terms apply. You should consider many other options before going down this route, including financial aid applications, scholarships, grants, private loans, tuition payment plans and 529 plans. If you do decide to use home equity to pay for college, you should be sure that you can make on-time payments, though, because if you don't, the lender could force you into foreclosure. Unlike other financing, home equity loans and HELOCs are secured debts that use your house as collateral. If you fail to make payments, your lender can force you into foreclosure. You'll also lose equity in your home and funds received from a home equity loan could impact access to financial aid. You can determine your home equity by looking at what your home is worth and subtracting any outstanding mortgage balance. For example, if your home is worth $500,000 and you have $200,000 outstanding on your mortgage, you would have 60% equity ($300,000) in your property. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Epoch Times
15-05-2025
- Business
- Epoch Times
Why Many Millionaires Choose to Rent, Not Buy
Home ownership is the classic American dream. Traditionally, owning a home has been a mark of success and financial security. That dream is changing for many millionaires, with many affluent individuals opting out of high-priced homes for their primary residences and instead choosing luxury rentals. Why would high-net-worth individuals rent? It's all about price, investing, and lifestyle. Living in Luxury, Waiting for Rates to Settle According to Freddie Mac, in May 2025, the average 30-year mortgage interest rate is 6.76 percent. That's down from May 2024's 7.22 percent, but still higher than pre-pandemic rates. A historical analysis of mortgage rates from Rocket Mortgage shows 2019 interest rates at 3.94 percent, dipping further in 2021 to 2.96 percent. With higher interest rates come higher monthly payments. And luxury homes aren't immune. The monthly payment for new homes increased by 11 percent year over year in May. By way of contrast, an analysis from apartment listing marketplace Related Stories 5/3/2025 4/16/2025 Although many affluent individuals can afford higher home prices, they are choosing not to buy. Instead, they're turning to luxury home rentals, which can provide premium lifestyle choices until interest rates stabilize. Thinking About Wealth Differently There's a shift in how millionaires are looking at their wealth and how they will spend it. Instead of tying up large sums of money in a primary residence, many millionaires are choosing to diversify their portfolios by investing in real estate. Buying property as an investment, rather than as a primary residence, has become a preferred method of capitalizing on the real estate market. Many high-net-worth individuals consider home ownership a slower way to build wealth. Instead of buying a home to live in, they're opting to diversify their portfolios by investing in commercial properties and purchasing multiple properties in different markets. Investing in real estate tends to provide a stable cash flow and benefits from the appreciation of assets. The stock market is another area in which former homeowners are investing their funds. It allows them to see a higher and faster return than they would if they owned a home and waited for its value to appreciate. For example, the S&P 500 has delivered a mean annual return of 9.4 percent over the past 25 years. But in 2023, it delivered a 26.29 percent return, and in 2024, a 25.02 percent return. A primary residence generally would not have generated that kind of return. Purchasing a home requires upfront costs. You must pay down payments and closing fees. You'll also have maintenance costs and taxes. Taking those funds and investing them instead is a better option for many people. Luxury Living, Low Maintenance Luxury rentals are attractive to many affluent people because they offer more than just a place to live. They provide a lifestyle that many wouldn't have otherwise: fitness centers, concierge services, and resort-style amenities. Renting provides the flexibility to relocate for career or leisure opportunities without having to sell a home. Add to that an extra 42 days to close, according to Those numbers make a rental look much more attractive if you think you may relocate. In addition, many affluent people travel or have more than one home. Another benefit of a rental such as a luxury condo is that the tenant doesn't have to worry about home maintenance while they're traveling. Developers Respond Developers have responded to the demand for luxury apartments with enthusiasm. With land at a premium in most cities, many developers are building luxury units where higher rent can be charged. This may backfire, however. Even though many affluent individuals are moving toward renting, there is a limited number of these high-net-worth tenants. According to the Although the United States faces a housing shortage overall, developers have tried to capitalize on the luxury apartment trend, flooding the market with well-appointed apartments for what is actually a small group of people. For example, according to a Mr. Blandings Rents His Dream House For many affluent individuals, owning a home is not a financial move they want to make. Instead, they're shifting dollars to investments. The thinking is that investing wisely can bring in higher returns than waiting for a purchased home to appreciate. There are other reasons as well: Some people want the luxury apartment experience that many of these units afford, while others are looking for the flexibility that only renting can provide. The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
New York Post
12-05-2025
- Entertainment
- New York Post
Jessie James Decker's unique military roots help her raise strong, ‘resilient' kids
Jessie James Decker credits her unique military roots to her approach to motherhood. In an exclusive interview with Fox News Digital, the 37-year-old mom-of-four – who recently partnered with Rocket Mortgage and USO for their 'Homefront Heroes' initiative – opened up about how her upbringing played a major role in raising 'resilient' kids and explained how her mom's view on life helped shift her own mindset. Advertisement 'I don't know that my mom would ever say that there were any challenges [being a military spouse],' Decker, whose father served in the Air Force, said. 'She's the most positive person, so she looked at the whole experience as the most incredible adventure, and she was just the most proud military spouse you could ever imagine. She was so happy to be part of it. She loved what her husband did for this country, and she never complained once.' Decker, who was joined by her mom, Karen Parker, for an Instagram Live session on Friday in celebration of Military Spouse Appreciation Day, said her mom's approach to parenting inspired her own way of doing things. Jessie James Decker credits her unique military roots to her approach to motherhood. Tammie/AFF-USA/Shutterstock 'I can honestly tell you when it was time to move, she was like, 'Time to go!' and we would just box everything and roll to the next place,' Decker told Fox News Digital. 'She always did it with a smile on her face.' Advertisement While the moves made her 'resilient and adaptable,' Decker admitted it was challenging at times – but her mom was always there to carry the burden and make things fun. 'I think just her positive attitude and her ability to, she always had this way about her and made everything feel at ease,' she continued. 'So something that maybe would've been stressful for the family, she was able to kind of spin on it, you know what I mean?' 'When we moved, she would do things like, 'OK, we're in a new place and let's find the top five fun things about this city and let's go do them, or let's learn about them, or let's go to the library. Let's get books on the new place that we're going to be moving to and let's all just spread out on the carpet… let's look it all up.' She was always very positive. And so I feel like I've definitely instilled that in my children, where I make everything fun and exciting, and I'm able to put a twist on anything that may be tough.' Advertisement Decker and her husband, Eric Decker, share four kids: Vivianne, 11, Eric Jr., 9, Forrest, 7, and Denver, 1. Decker and her husband, Eric Decker, share four kids: Vivianne, 11, Eric Jr., 9, Forrest, 7, and Denver, 1. Jessie James Decker/Instagram The singer, who recently celebrated her son's first birthday, said she could not be more 'proud' of herself and the challenges she's overcome when it comes to motherhood. Advertisement 'I've had four C-sections and I have breastfed and cried over breastfeeding struggles and celebrated breastfeeding victories, and I've lost my hair,' she said. 'I'm proud of the mother that I am. I started having children 11 years ago and I've had four children since then. And every single baby that I've brought into this world has been an incredible journey to motherhood, and I just cannot believe what my body has done. It's just unbelievable.' 'I am proud of my body because when you have four children, you do want to feel healthy, and you do want to feel strong, because I want to have the energy to be the best mother that I can be, and I want to be healthy, and I want to set that example to my children,' she added. 'So it is a true statement. I am proud of my body more than I ever have, but it is more than just the surface.'
Yahoo
11-05-2025
- Entertainment
- Yahoo
Jessie James Decker's unique military roots help her raise strong, 'resilient' kids
Jessie James Decker credits her unique military roots to her approach to motherhood. In an exclusive interview with Fox News Digital, the 37-year-old mom-of-four – who recently partnered with Rocket Mortgage and USO for their "Homefront Heroes" initiative – opened up about how her upbringing played a major role in raising "resilient" kids and explained how her mom's view on life helped shift her own mindset. "I don't know that my mom would ever say that there were any challenges [being a military spouse]," Decker, whose father served in the Air Force, said. "She's the most positive person, so she looked at the whole experience as the most incredible adventure, and she was just the most proud military spouse you could ever imagine. She was so happy to be part of it. She loved what her husband did for this country, and she never complained once." Jessie James Decker Didn't Want To Share Swimsuit Pics After Welcoming Baby 3 Months Ago: 'Easy To Compare' Decker, who was joined by her mom, Karen Parker, for an Instagram Live session on Friday in celebration of Military Spouse Appreciation Day, said her mom's approach to parenting inspired her own way of doing things. "I can honestly tell you when it was time to move, she was like, 'Time to go!' and we would just box everything and roll to the next place," Decker told Fox News Digital. "She always did it with a smile on her face." Read On The Fox News App Click Here To Sign Up For The Entertainment Newsletter While the moves made her "resilient and adaptable," Decker admitted it was challenging at times – but her mom was always there to carry the burden and make things fun. "I think just her positive attitude and her ability to, she always had this way about her and made everything feel at ease," she continued. "So something that maybe would've been stressful for the family, she was able to kind of spin on it, you know what I mean?" "When we moved, she would do things like, 'OK, we're in a new place and let's find the top five fun things about this city and let's go do them, or let's learn about them, or let's go to the library. Let's get books on the new place that we're going to be moving to and let's all just spread out on the carpet… let's look it all up.' She was always very positive. And so I feel like I've definitely instilled that in my children, where I make everything fun and exciting, and I'm able to put a twist on anything that may be tough." Like What You're Reading? Click Here For More Entertainment News Decker and her husband, Eric Decker, share four kids: Vivianne, 11, Eric Jr., 9, Forrest, 7, and Denver, 1. The singer, who recently celebrated her son's first birthday, said she could not be more "proud" of herself and the challenges she's overcome when it comes to motherhood. "I've had four C-sections and I have breastfed and cried over breastfeeding struggles and celebrated breastfeeding victories, and I've lost my hair," she said. "I'm proud of the mother that I am. I started having children 11 years ago and I've had four children since then. And every single baby that I've brought into this world has been an incredible journey to motherhood, and I just cannot believe what my body has done. It's just unbelievable." "I am proud of my body because when you have four children, you do want to feel healthy, and you do want to feel strong, because I want to have the energy to be the best mother that I can be, and I want to be healthy, and I want to set that example to my children," she added. "So it is a true statement. I am proud of my body more than I ever have, but it is more than just the surface."Original article source: Jessie James Decker's unique military roots help her raise strong, 'resilient' kids
Fox News
11-05-2025
- Entertainment
- Fox News
Jessie James Decker's unique military roots help her raise strong, 'resilient' kids
Jessie James Decker credits her unique military roots to her approach to motherhood. In an exclusive interview with Fox News Digital, the 37-year-old mom-of-four – who recently partnered with Rocket Mortgage and USO for their "Homefront Heroes" initiative – opened up about how her upbringing played a major role in raising "resilient" kids and explained how her mom's view on life helped shift her own mindset. "I don't know that my mom would ever say that there were any challenges [being a military spouse]," Decker, whose father served in the Air Force, said. "She's the most positive person, so she looked at the whole experience as the most incredible adventure, and she was just the most proud military spouse you could ever imagine. She was so happy to be part of it. She loved what her husband did for this country, and she never complained once." Decker, who was joined by her mom, Karen Parker, for an Instagram Live session on Friday in celebration of Military Spouse Appreciation Day, said her mom's approach to parenting inspired her own way of doing things. "I can honestly tell you when it was time to move, she was like, 'Time to go!' and we would just box everything and roll to the next place," Decker told Fox News Digital. "She always did it with a smile on her face." While the moves made her "resilient and adaptable," Decker admitted it was challenging at times – but her mom was always there to carry the burden and make things fun. "I think just her positive attitude and her ability to, she always had this way about her and made everything feel at ease," she continued. "So something that maybe would've been stressful for the family, she was able to kind of spin on it, you know what I mean?" "When we moved, she would do things like, 'OK, we're in a new place and let's find the top five fun things about this city and let's go do them, or let's learn about them, or let's go to the library. Let's get books on the new place that we're going to be moving to and let's all just spread out on the carpet… let's look it all up.' She was always very positive. And so I feel like I've definitely instilled that in my children, where I make everything fun and exciting, and I'm able to put a twist on anything that may be tough." Decker and her husband, Eric Decker, share four kids: Vivianne, 11, Eric Jr., 9, Forrest, 7, and Denver, 1. The singer, who recently celebrated her son's first birthday, said she could not be more "proud" of herself and the challenges she's overcome when it comes to motherhood. "I've had four C-sections and I have breastfed and cried over breastfeeding struggles and celebrated breastfeeding victories, and I've lost my hair," she said. "I'm proud of the mother that I am. I started having children 11 years ago and I've had four children since then. And every single baby that I've brought into this world has been an incredible journey to motherhood, and I just cannot believe what my body has done. It's just unbelievable." "I am proud of my body because when you have four children, you do want to feel healthy, and you do want to feel strong, because I want to have the energy to be the best mother that I can be, and I want to be healthy, and I want to set that example to my children," she added. "So it is a true statement. I am proud of my body more than I ever have, but it is more than just the surface."
