HELOC rates hit 18-month low: Why homeowners should consider opening one now

Economy

1 year ago

News sources:

Credited from: CBSNEWS

HELOC rates are now at 8.27%, marking an 18-month low, according to Bankrate's data from January 8, 2025.
Homeowners are encouraged to act quickly as rates may continue to decline, potentially reaching the 7% range later this year.
The variable nature of HELOC rates means they will adjust monthly, providing opportunities for cost savings over traditional loans.
Opening a HELOC can save borrowers from out-of-pocket expenses associated with refinancing home equity loans, which often incur significant closing costs.
Additionally, interest on HELOCs may be tax-deductible when used for home repairs, making them more attractive in the current rate climate.

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