Reported 2 days ago
The Federal Reserve's recent interest rate cuts influence the cost of variable-rate home equity lines of credit (HELOCs) and new home equity loans. The Fed lowered rates for the first time this year amidst rising inflation and a soft job market. Changes in the federal funds rate impact the prime rate, which many lenders use to set HELOC rates. While current HELOC borrowers may see adjustments soon after rate changes, home equity loans maintain fixed rates. Despite recent declines in borrowing rates, many homeowners are advised to be cautious when using home equity for discretionary expenses.
Source: YAHOO