Latest news with #homeloan
Yahoo
3 hours ago
- Business
- Yahoo
Real Estate Expert Connie Taylor of The Connie Taylor Group Shares Advice on Mortgage Options for First-Time Homebuyers in HelloNation
AMARILLO, Texas, July 30, 2025 (GLOBE NEWSWIRE) -- What are the best mortgage options for first-time homebuyers? According to Amarillo-based real estate expert Connie Taylor of The Connie Taylor Group, first-time buyers have access to specialized loan programs designed specifically to simplify entry into homeownership. Taylor explores these options in detail in a recent article published in HelloNation, highlighting FHA, USDA, VA, and conventional mortgages, each uniquely suited to different financial situations and buyer profiles. Shop Top Mortgage Rates Your Path to Homeownership A quicker path to financial freedom Personalized rates in minutes FHA loans, for instance, are particularly advantageous for buyers who have limited down-payment funds or lower credit scores, as these loans require down payments as low as 3.5 percent. Taylor also notes the value of USDA loans, which offer zero-down financing options for buyers considering homes in rural or suburban areas that qualify under program guidelines. In addition, Taylor emphasizes that VA loans are especially beneficial for veterans and active-duty military personnel due to their no- or low-down-payment requirement and exemption from mortgage insurance, making them an affordable option that could lead to significant savings over time. Buyers who possess stronger credit scores and larger savings, however, might prefer conventional loans, which provide greater flexibility and financial benefits, particularly when a 20 percent down payment can be made. Taylor advises that selecting the right mortgage is critical for establishing financial stability and affordability in homeownership. Her expert analysis underscores the importance of thoroughly researching mortgage types and interest rates to make informed, beneficial decisions. For further details, read Connie Taylor's full article, Understanding Mortgage Options for First-Time Homebuyers, in HelloNation. About HelloNationHelloNation is a premier media platform that connects readers with trusted professionals and businesses across various industries. Through its innovative 'edvertising' approach that blends educational content and storytelling, HelloNation delivers expert-driven articles that inform, inspire, and empower. Covering topics from home improvement and health to business strategy and lifestyle, HelloNation highlights leaders making a meaningful impact in their communities. Patrick McCabe info@ A photo accompanying this announcement is available at 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
CBS News
2 days ago
- Business
- CBS News
Is a HELOC or home equity loan the better choice this August? Here's what experts say
Many homeowners are reassessing their borrowing options as market conditions continue to shift in the second half of 2025. While home values have climbed nationwide to a record high median of $396,000, elevated interest rates, rising inflation and uncertainty surrounding the Federal Reserve's rate moves continue to complicate financing decisions. And, if you're a homeowner who's looking to tap into your home equity, you may wonder: Is it better to get a home equity line of credit (HELOC) or a home equity loan right now? Given how much the rate environment has changed, it's worth understanding how each option fits your circumstances. Below, mortgage professionals share what you should consider when deciding between these products in August. Find out how affordable your home equity borrowing options could be today. "In August 2025, we're recommending home equity loans more often than HELOCs for clients seeking predictability," says Ryan Leahy, senior loan officer and regional production manager at Leahy Lending. "With interest rates still elevated and the Fed keeping markets on edge about future hikes, locking in a fixed rate with a home equity loan gives peace of mind." Steven Glick, director of mortgage sales at real estate investment fintech company HomeAbroad, is leaning toward recommending HELOCs. "If the Fed follows through with one or two more cuts this year, HELOC rates could drop further, saving [you] money without needing to refinance," Glick says. Ultimately, though, both experts emphasize that the choice depends on your financial situation and how you plan to use the money. Compare your home equity borrowing options and lock in a great rate now. "A HELOC makes sense when [you] need flexibility or anticipate multiple expenses over time," Glick says. This approach shines for multi-phase renovations, medical bills or situations where you're unsure how much you'll need to borrow. But before opening a HELOC this month, you should weigh the benefits and drawbacks: Pros Cons A home equity loan makes sense when you need all the money at once for a specific purpose. A good example would be "consolidating credit card debt or funding a major home repair," says Glick. If you're considering a home equity loan, experts encourage weighing the trade-offs: Pros Cons Three factors should guide your decision between a HELOC and a home equity loan, experts say: "[Start by looking at] the annual percentage rate (APR)," Gennarelli says. This includes all fees, giving you a complete picture of what you'll pay. Beyond comparing APR, Glick recommends preparing your finances and shopping strategically: With mixed signals on Fed policy and inflation continuing into August, Calixto advises against trying to predict rate movements. Instead, choose the loan that fits your financial needs and what you can afford each month. For personalized guidance, speak with at least two to three reputable home lenders. They'll help you compare terms and fees, and match the right product to your situation and long-term goals.
Yahoo
2 days ago
- Business
- Yahoo
The HELOC rate today, July 28 2025: The home equity line of credit rate is locked-in to start Fed week
The HELOC interest rate is locked-in under 8.75%. With the Federal Reserve meeting this week, hopes for an interest rate cut are dim. Chairman Jerome Powell remains firmly in the not-now camp, with plans to loweer short-term interest rates in the fall, at the earliest. Meanwhile, home equity line of credit interest rates are steady. There is little market pressure to move them up or down until the Fed makes a move. Now, let's check the latest HELOC rate. Dig deeper: HELOC vs. cash-out refinance — Which is better? This embedded content is not available in your region. HELOC rates Monday, July 28, 2025 According to Bank of America, the largest HELOC lender in the country, today's average APR on a 10-year draw HELOC is 8.72%. That is a variable rate that kicks in after a six-month introductory APR, which is 6.49% in most parts of the country. Homeowners have a huge 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. How lenders determine HELOC interest rates 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%. Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. 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. How a HELOC works 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. Look for introductory rates, but be aware of a rate adjustment later 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. HELOC rates today: FAQs What is a good interest rate on a HELOC right now? 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. Is it a good idea to get a HELOC right now? 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. What is the monthly payment on a $50,000 home equity line of credit? 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
7 days ago
- Business
- Yahoo
Major Aussie bank's huge $20,000 HECS change for borrowers
NAB has joined Commonwealth Bank in relaxing its borrowing rules for people who have a HECS-HELP debt. The federal government asked banks and financial regulators to ease rules earlier this year to make it easier for those with student loans to get a mortgage. From July 31, NAB has announced that having a student debt of $20,000 or less will no longer affect how much you can borrow for a home loan. That change means Aussies with a HECS-HELP debt could see a boost to their borrowing power. NAB executive for home ownership Matt Dawson said the change would mean more people would be able to own a home faster. RELATED Major update on $5,520 HECS cash boost for millions to lift them out of 'lifetime of debt' The top 10 highest salaries in Australia paying up to $700,000 Centrelink's 'balancing' move could provide cash boost or expose debt 'For too long, HELP debt has been a roadblock for many Australians looking to buy a home,' he said. 'From 31 July, some HELP repayments won't be part of NAB's home lending assessment, so customers can hit the real estate market sooner.' Commonwealth Bank became the first of the Big Four banks to relax rules around student debts in April. The major bank no longer considers HECS debts as part of its serviceability assessments if the debt will be repaid within 12 months. For borrowers with HECS debts due to be repaid within the next five years, the bank is piloting dropping the serviceability buffer to 1 per cent from the current 3 per cent. The serviceability buffer is set by the Australian Prudential Regulation Authority (APRA), with the regulator confirming this week it would remain at the current 3 per cent. That means a lender will normally assess if you can repay a loan at an interest rate 3 per cent higher than current levels. If you were looking at a mortgage with a 6 per cent interest rate, you would need to be able to repay it at 9 per cent. The buffer was previously increased from 2.5 to 3 per cent in October 2021 to protect borrowers when the cash rate was at a rock bottom of 0.1 per cent. How does HECS debt impact home loans? HECS-HELP debt is usually taken into consideration by lenders when assessing your borrowing power. NAB gave an example of how HECS-HELP debt could impact loan calculations, which was submitted to the Senate inquiry in September last year. For a borrower earning $125,000 with average expenses, a credit card with a $5,000 limit and average HECS-HELP debt of $26,500, NAB said the borrowing amount under settings at the time would be $497,000. If the HECS-HELP debt was removed, the maximum borrowing amount would rise to $587,000, a difference of $90,000. HECS debt relief coming for Aussies Labor introduced a bill to slash all HECS HELP debts by 20 per cent this week, following through on a major election promise. The change will impact about three million Australians and means someone with the average HECS debt of $27,600 would see a $5,520 reduction to their debt. This will be backdated to June 1, before this year's indexation was applied. The reform will also raise the threshold at which people need to start repaying their debt from $54,435 to $67,000 and reduce minimum in to access your portfolio
CBS News
7 days ago
- Business
- CBS News
$100,000 home equity loan vs. $100,000 personal loan: Which is cheaper this July?
When you need to borrow a substantial sum of money, like $100,000, the financing options available to you can dramatically impact your wallet over both the short- and long-term. After all, the interest rate you secure on a loan today will determine what you pay for interest charges on your future payments. In this inflationary environment, though, borrowing costs are elevated across the board, so it can be tough to find an affordable option. For example, the average credit card rate is sitting at nearly 22%, so if you're borrowing without paying off the balance in full each month, you may find yourself saddled with more debt than you can afford. If you're a homeowner who needs to borrow money, however, there may be an attractive path to low-cost borrowing via a home equity loan. These types of loans allow you to borrow against the equity you've built in your home, and they have become an increasingly popular option in today's borrowing landscape, as borrowers can use them to access large amounts of money at an affordable rate. The funds can also be used for nearly any purpose. That makes them a good alternative to personal loans, which also come with lower-than-average rates in today's landscape. But if you're borrowing $100,000, is a personal loan or a home equity loan the more affordable option? Below, we'll break down the numbers to see which option truly comes out ahead this July. Find out how affordable your home equity borrowing options could be here. In general, rates on both home equity loans and personal loans are fixed. That means the rate you lock in when you take out the loan is the rate of interest you'll pay over the life of the loan unless you choose to refinance in the future. That can be a big benefit in an uncertain rate environment, like the one we're facing today, as your borrowing costs won't be impacted if rates climb in the future. And, right now, home equity loans come with fixed average rates ranging from 8.28% to 8.43%, depending on the loan term length. On the other hand, the average personal loan rate is currently 12.65%. Here's how the costs of a $100,000 loan would compare between the two if you were to borrow at today's average rates: The monthly savings alone tell a compelling story. Even with the shortest-term home equity loan, you'd save about $216 every month compared to a personal loan, which tallies up to nearly $2,600 per year. Over the full five-year term, you'd save almost $13,000 in total interest by choosing the home equity route. Were you to opt for a 10-year home equity loan route, you would save about $236 each month compared to a personal loan with the same loan term. That equates to annual savings of about $2,832 each year. Over the full loan term, your savings would be over $28,000. But the real eye-opener comes when you consider longer repayment terms. Opting for a 15-year home equity loan over a 15-year personal loan would allow you to save about $265 each month. That equates to annual savings of about $3,180 each year — and a total savings of about $47,700 over the 15-year loan term. Compare your home equity borrowing options and lock in a rate today. For homeowners with adequate home equity, the choice between a $100,000 home equity loan and a $100,000 personal loan is financially straightforward: The home equity option delivers substantial savings both monthly and over the life of the loan. However, the decision between these two loan options involves more than just numbers. You should also consider whether you're comfortable with the risks that come with using your home as collateral as well as your need for flexible repayment terms and whether you meet the borrowing requirements for each option. If you're confident in your ability to repay and want to minimize borrowing costs, though, the home equity loan represents a clear winner in today's rate environment.
