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Yahoo
24-06-2025
- Business
- Yahoo
HELOC rates today, June 24, 2025: Home equity line of credit rates edge a little lower
HELOC interest rates moved just a little lower today. Maybe bankers are enjoying summer vacations because there are no big pricing changes happening right now. With interest rates remaining high, many home equity line of credit borrowers are using their funds to pay off expensive credit card bills. That's the thing: HELOC cash can be used for just about anything. Home improvements often top the list of priorities; however, credit card debt can stifle the most sensible budget. A HELOC draw can be a good way to reduce that burden. Just remember to pay down the line of credit as soon as possible so you don't turn that plastic payoff into a long-term debt against your house. Now, let's check today's HELOC rates. Dig deeper: HELOC vs. home equity loan: Tapping your equity without refinancing This embedded content is not available in your region. According to Zillow, rates on 10-year HELOCs have backtracked by one basis point to 6.67% today. The same rate is also available on 15- and 20-year HELOCS. VA-backed HELOCs were lower by nine basis points to 6.24%. Homeowners have a staggering amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That's the third-largest amount of home equity on record. With mortgage rates lingering in the high 6% range, homeowners are not likely to let go of their primary mortgage anytime soon, so selling the house may not be an option. Why let go of your 5%, 4% — or even 3% mortgage? Accessing some of the value locked into your house with a use-it-as-you-need-it HELOC can be an excellent alternative. HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is 7.50%. If a lender added 1% as a margin, the HELOC would have a rate of 8.50%. However, you will find reported HELOC rates are much lower than that. That's because lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home. And average national HELOC rates can include "introductory" rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate. You don't have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit. The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat. Meanwhile, you're paying down your low-interest-rate primary mortgage like the wealth-building machine you are. This embedded content is not available in your region. Today, FourLeaf Credit Union is offering a HELOC rate of 6.49% for 12 months on lines up to $500,000. That's an introductory rate that will convert to a variable rate later. When shopping lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity. The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don't pay interest on what you don't borrow. Rates vary so much from one lender to the next that it's hard to pin down a magic number. You may see rates from nearly 7% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are. For homeowners with low primary mortgage rates and a chunk of equity in their house, it's probably one of the best times to get a HELOC. You don't give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt. If you take out the full $50,000 from a line of credit on a $400,000 home, your payment may be around $395 per month with a variable interest rate beginning at 8.75%. That's for a HELOC with a 10-year draw period and a 20-year repayment period. That sounds good, but remember, it winds up being a 30-year loan. HELOCs are best if you borrow and pay back the balance in a much shorter period of time.
Yahoo
18-06-2025
- Business
- Yahoo
Worried about tariffs & high interest rates? Here are 3 tips.
Many Americans are still feeling the pinch as tariff concerns and high interest rates linger. Bankrate senior economic analyst Mark Hamrick joins Wealth to share practical tips for easing the pressure, including building emergency savings, cutting back on non-essentials, and avoiding costly credit card debt. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Now with all these challenges here, what are some practical steps consumers can take to try and ease some of that financial burden? I think one of the most important things that we counsel here at Bankrate is to talk about prioritizing emergency savings. We've said for years now our our surveys that we do at least on an annual basis have found that most Americans do live paycheck to paycheck. And in the current still somewhat high interest rate environment, it's not that difficult. In fact, it's fairly easy to find a high yield savings account that pays an annual return of 4% plus. Number one, focus on essentials. Live beneath your means. Don't live sort of on the cutting edge or the edge of the envelope. I'm just trying to keep up with the Joneses, so to speak. Pay down high cost debt. New offers on credit cards going out there right now for the best qualified users at 20%. That means a lot of people are paying 25, 30% if they're maintaining those balances. Mark, appreciate those tips. Thanks so much. Thank you. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
How to transfer your credit card balance
If you have outstanding credit card debt, high interest charges can make it difficult to regain control of your finances — especially given today's average rates of over 21%. A balance transfer credit card with an introductory 0% APR is a helpful tool to get back on track. Learn how to transfer your credit card balances to save money and pay off debt faster. A balance transfer is as simple as transferring your balance from one credit card to another. Generally, the purpose of a balance transfer is to help you save with a lower interest rate, since balance transfer credit cards offer special introductory APR periods. APR is the annual percentage rate, or your card's interest rate annualized. Throughout the intro period, you'll get a 0% APR promotional rate on your transferred balance. For example, the Chase Freedom Unlimited® may be best known for its cash-back rewards, but it also offers 0% APR for 15 months after account opening on both balance transfers and new purchases. After that, the card's ongoing variable APR kicks in — but the introductory offer gives you time to pay down your balance without taking on interest charges. At the end of the promotional period, the card's regular variable APR will apply to any outstanding balance, which is why it's important to use the intro period to pay off as much of your debt as you you've decided to pay down debt using a balance transfer, take these steps to get started: There are many balance transfer credit cards available. To find the right one for you, consider the following factors: 0% intro APR period: Promotional APR offers can last anywhere from six to 21 months. The longer that introductory rate lasts, the more time you have to pay down your debt without interest. Approval: Many balance transfer cards require good credit to qualify. Check your credit score and see if you prequalify for your choice card before you apply. Balance transfer fee: A balance transfer fee may apply to the amount you transfer to the new card. It's usually 3% to 5% of the transfer you've narrowed down your options, review each card's terms and conditions. There may be restrictions on how much time you have to make the transfer or on fee charges. For example, some cards require you to make your transfer within the first 60 days of account opening to qualify for the 0% APR. Others may charge a lower balance transfer fee for transfers made within the first four months, then increase the fee for any transfers after that. Read your card's terms before applying to avoid any unexpected fees or surprises later. Once you've found the right card for you, you can complete the credit card application. Prepare to provide personal information like your birth date, mailing address, income, and Social Security number. You may also be asked for a copy of your driver's license or other government-issued ID. When you apply for a new credit card, the issuer will make a hard inquiry on your credit report, which can have a temporary negative effect on your credit score. Though the impact is minimal, it's important to apply for a card you're confident you'll qualify for so you don't take on multiple hard inquiries over a short time period. In most cases, you'll receive a decision right away. If you're denied, the credit card company will send you a letter explaining why through the mail. After opening a new account, transfer your existing balance to the new card. In some cases, you may be able to request your balance transfer during the application process. Other issuers will have an online process for making the transfer after approval or require you to call and request a balance transfer by phone. You'll need information about your existing credit card account number and balance information to make your request. Continue to make at least the minimum payment on your old card until you receive confirmation that the credit card balance has been paid in full. Otherwise, you risk missing a payment and incurring late fees and damage to your credit score. The timeline on your 0% APR introductory period typically starts after approval. As you start to pay down your debt after transferring your balance, make note of the end of the promotional period and when the regular APR starts. To maximize the effectiveness of your balance transfer, aim to pay off the entire balance in full by the end of the intro period; otherwise, you'll once again start to accrue high interest charges on the remaining those with high-interest credit card debt, balance transfers can be appealing for three reasons: Many of today's top balance transfer credit cards have intro periods ranging from 12 to 21 months — giving you more than a year to pay down your debt with 0% APR. You'll save money and pay off your balance more quickly since your entire payment goes toward the principal. If you have multiple cards with balances, it can get confusing to keep up with multiple due dates and balances. You can use a balance transfer card to move the balances of multiple cards to the new one and consolidate your debt to a single card with one monthly due date. Some rewards credit cards offer 0% APR balance transfers. These cards may have a slightly shorter intro period (usually around 12 to 15 months) than other options with no rewards. But they can be useful long-term to save money on your spending even after the intro period ends. The Chase Freedom Unlimited, Blue Cash Everyday® from American Express, and Capital One Quicksilver Cash Rewards Credit Card are all examples of great cash-back cards with solid 0% intro periods for balance transfers. However, make sure you have a budget and can avoid overspending before you choose one of these cards. If rewards and benefits could lead you to spending more than you can afford and taking on debt balances again later on, this may not be the best option. Although transferring credit card balances to another, lower-interest card can be an effective way to save money, there are some drawbacks to consider: It's not free to transfer your balance to another card; credit card issuers usually charge balance transfer fees ranging from 3% to 5% of the transfer amount. For instance, while the Wells Fargo Reflect® Card offers an exceptionally long 21 months of 0% APR on balance transfers, it also charges 5% on the transfer amount. If you transferred a $1,000 balance to that new card, that means your fee would be $50. Compare that to a card like the Citi Double Cash® Card which has a balance transfer fee of 3% as long as you make your transfer within four months of account opening — your total cost would only increase by $30. The higher your debt balance is, the more this fee can make a difference. However, don't let fees deter you from balance transfers. These 3% or even 5% fees are much less than any high-interest credit card APR, and you can still save much more money if you can pay down your balance over the intro period. Moving your balance to a new card can help jumpstart your debt payoff, but it doesn't solve the root cause of your debt. Unless you address the issues that caused you to accumulate debt in the first place, you may just worsen the problem since you'll have a new credit card and credit limit to use. Before you apply for any balance transfer card, make sure you have a plan to pay as much as possible toward the balance each month and a budget to avoid overspending again in the future. To qualify for a balance transfer credit card that offers 0% APR for a specific period, you'll generally need good to excellent credit. If your credit score isn't in that range, you may not be eligible for a balance transfer card. You'll also need enough available credit to transfer your balance once you open the card. Balance transfers do count toward your overall credit limit, so the credit line you get approved for can make a big difference. Otherwise, you won't be able to move all of your debt. A personal loan is another debt consolidation option that can potentially help you lower your interest rate and monthly payments on your debt. Compare our top personal loan picks here. Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
CBS News
03-06-2025
- Business
- CBS News
How to determine HELOC affordability in today's changing rate climate
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Before taking out a HELOC, it's important to determine whether you can actually afford this type of borrowing, both now and in the long term. lOvE/Getty Images The Federal Reserve is dealing with a delicate balancing act, trying to do what's necessary to lower inflation without wreaking havoc on the economy. In pursuit of those economic goals, the Fed has maintained the federal funds rate at its current level throughout 2025 to counteract the inflation that has plagued Americans over the past several years. While the hope is that this strategy will smooth things out in the long term, borrowers are bearing the brunt of this choice in the short term. The Fed rate impacts the interest rates on various types of loans, and today's higher-than-average Fed rate has increased the cost of borrowing. With credit card interest rates averaging around 22% and personal loans at 12%, home equity lines of credit (HELOCs) have become a lower-cost alternative. Average HELOC interest rates come in much lower at 8.14% currently after falling below 8% in early April. While that rate is more borrower-friendly, HELOCs have variable interest rates, which can make the payments unpredictable. So, before opening a HELOC, borrowers need to consider how much they can truly afford. We spoke with home lending experts on how to determine HELOC affordability in today's uncertain and changing rate climate. Compare your top home equity borrowing options online now. How to determine HELOC affordability in today's changing rate climate Any time you borrow, you need to make sure you can fulfill your repayment obligations. For HELOC borrowers who use their home as collateral, that's even more important to stave off a potential foreclosure. In that way, the HELOC risks are important to consider as the stakes are high. "Step one will be what the bank is willing to lend you. But while that's a great barometer to say, 'Okay, I'm qualified,' it doesn't necessarily mean that the individual could afford it, and that it makes sense for them. So they have to do their own calculations," says Shmuel Shayowitz, president and chief lending officer at Approved Funding, a licensed mortgage bank. If you're a current or prospective HELOC borrower, here are some ways to find out what you can comfortably afford. Be conservative about tapping in A HELOC allows homeowners to tap their home equity to borrow funds. Considering the average home equity amount is $313,000, homeowners may have access to higher loan limits than some alternatives at better interest rates. However, because HELOC rates are variable, it's important to be conservative so you have room in your budget for any changes. "I think they should think worst-case scenario. I think it never hurts somebody to be thinking conservatively when you're talking about rates that move, let alone rates that can move every month," says Karen Mayfield, national head of originations at Multiply Mortgage, a mortgage-as-a-benefit provider. To help you determine your HELOC affordability, do several exercises and calculate how your payments might change if rates change. "Whatever the interest rate is you're being offered by the lender that you've chosen to go with, I think you should increase that rate by 1% and see how much your payment changes and whether you feel comfortable with that. And then, if you want to be really conservative, increase it by 2%," adds Mayfield. Find out how affordable a HELOC could be today. Know how much you need The great thing about a HELOC is the flexibility. Like a credit card, you can access some of the funds up to your set limit, repay and use the funds again while you're in the draw period. While that's convenient, it can be a slippery slope if you're unclear on how you intend to use the HELOC or are unsure how much you need. Whether you're starting a kitchen renovation you've been putting off or consolidating high-interest debt, know how much you need and try to stick to that amount. So even if you go after a higher line of credit, you're sticking to a plan and only borrowing the home equity amount you need. "What I will always remind people of is just because you asked for, let's say, a $200,000 line of credit doesn't mean you need to spend $200,000. You don't even have to spend $2,000," says Mayfield. Decide if you can pay more than the minimum HELOCs are a unique borrowing tool in that borrowers are typically only required to pay the interest — not the principal — during the draw period. That could potentially be up to 10 years. After the draw period ends, borrowers transition to the repayment period, resulting in a significant jump in the payments, as both the principal and interest must be repaid. If you don't carefully plan for this, it could put a major strain on your budget. That's why it's key to look at your ability to pay more than the minimum when determining HELOC affordability. Paying more than the minimum can help you chip away at your balance and reduce borrowing costs. "When possible, a person can and should pay back principal," Shayowitz says. That can make HELOC repayment more manageable and save you money over the life of the loan. Plus, doing this with a HELOC can still provide a safety net. "Even if you do prepay the principal, you could always draw upon it if you need it later on in the future," adds Shayowitz. The bottom line In today's high-rate climate, a HELOC can be a welcome alternative for homeowners who need access to funds, but it's important to determine HELOC affordability as it has a variable rate that changes. We're in an uncertain rate environment, so you want to be prepared and a well-informed borrower. If a fixed-rate product would be better for you and your budget, another option to look into is a home equity loan. This type of borrowing is not as flexible as a HELOC, as it provides a one-time lump sum of money, but the fixed home equity loan interest rates provide more predictable payments. Before opening a HELOC or taking out a home equity loan, review APRs, terms and fees with various home equity lenders. Understand home equity risks when taking on this type of financing and have a plan to tackle repayment for the best results.
Travel Daily News
21-05-2025
- Business
- Travel Daily News
More than half of Americans plan to spend less on travel
NEW YORK – As rising costs continue to weigh on Americans' wallets, a new Bankrate survey found that the majority of U.S. adults (54%) say they are planning to spend […] NEW YORK – As rising costs continue to weigh on Americans' wallets, a new Bankrate survey found that the majority of U.S. adults (54%) say they are planning to spend less on travel, dining or live entertainment this year, compared with last year. In 2024, 49% planned to spend less than they did in 2023. Among all U.S. adults, 39% say they plan to spend less on dining out, 39% plan to cut back on live entertainment spending (i.e., concerts, sporting events and theater performances) and 38% intend to decrease their travel spending this year. This includes 26% who plan to spend much less on live entertainment, 24% who plan to spend much less on travel and 20% who plan to spend much less on dining out. Only 33% are planning to spend more in at least one discretionary spending category this year, with 22% planning to spend more on travel, 19% on dining and 15% on live entertainment.* 'The cumulative effects of inflation and high interest rates have been straining households, contributing to record levels of credit card debt and causing consumer sentiment to plummet,' explained Bankrate senior industry analyst Ted Rossman. 'Despite those challenges, consumer spending has been more robust than anticipated. Many people have been complaining about economic conditions but continuing to spend anyway, including extras such as travel, dining and live entertainment.' Older generations are more likely to say they plan to cut back on discretionary expenses, compared to younger generations. Generations Spending less on travel Spending less on live entertainment Spending less on dining out Gen Zers (ages 18-28) 29% 27% 31% Millennials (ages 29-44) 36% 35% 39% Gen Xers (ages 45-60) 39% 42% 43% Baby boomers (ages 61-79) 43% 47% 42% Lower-income households are also more likely to plan cutbacks on discretionary expenses than higher-income households. Annual Household Income Spending less on travel Spending less on live entertainment Spending less on dining out Under $50,000 43% 45% 44% Between $50,000 and $79,999 39% 41% 40% Between $80,000 and $99,999 34% 34% 38% $100,000 or more 27% 28% 30% About one-third of U.S. adults (31%) say they are willing to go into debt for at least one of these three discretionary purchases this year, down from 38% in 2024. This includes 22% willing to take on debt for travel, 11% for dining out and 9% for live entertainment. Younger generations are more likely to take on debt for at least one of these discretionary expenses, with 39% of Gen Zers and 37% of millennials willing to do so, compared to 31% of Gen Xers and 21% of baby boomers. Methodology: This survey has been conducted using an online interview administered to members of the YouGov Plc panel of individuals who have agreed to take part in surveys. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,484 U.S. adults. Fieldwork was undertaken between April 2nd-4th, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population. *Respondents could say much less, somewhat less, about the same, somewhat more or much more
