Tag #Home Equity

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Home Equity Loans in 2025: Weighing Risks and Rewards

In 2025's rising inflation environment, homeowners with an average \$320,000 in home equity are considering loans (8.40% interest) versus higher-interest personal loans (nearly 13%) and credit cards (almost 23%), but must responsibly manage repayment to avoid losing their homes.

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48% Bias Score

Reduced Inequality
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Strategic Home Equity Use in 2025: Maximizing Benefits, Minimizing Risks

Homeowners can use home equity loans or HELOCs (around 8% interest) for home improvements (tax-deductible) or debt consolidation, but should avoid using them for depreciating assets or non-essential expenses. The average homeowner has $320,000 in equity.

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48% Bias Score

Reduced Inequality
cbsnews.com
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U.S. Home Equity Growth Slows in 2025 Despite Record Highs

U.S. homeowners enjoyed a $425 billion home equity surge (2.5% YoY) from Q3 2023 to Q3 2024, driven by high home prices and low inventory; however, experts predict slower growth in 2025 due to increased inventory and regional variations.

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48% Bias Score

Reduced Inequality
cbsnews.com
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Leveraging Home Equity for Retirement Planning

Homeowners can utilize home equity via reverse mortgages, home equity loans, or HELOCs to create retirement income, invest, build a safety net, reduce housing costs, or consolidate debt; however, it reduces future sales profits and impacts inheritance.

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56% Bias Score

Reduced Inequality
forbes.com
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Fed Rate Cut Amidst Persistent High Mortgage Rates: Fintech Innovations Offer New Housing Solutions

The Fed's third rate cut of 2024, coupled with persistent high mortgage rates, creates ongoing challenges to home affordability; however, fintech innovations are emerging to offer alternative lending models, AI-driven solutions, and fractional homeownership options, impacting home equity access and ...

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48% Bias Score

Reduced Inequality
cbsnews.com
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HELOC Rates Expected to Fall Further After December Fed Meeting

HELOC interest rates have dropped from 10.16% on January 3, 2024, to 8.53% on December 12, 2024, and are expected to fall further after the December Federal Reserve meeting, which is anticipated to cut the federal funds rate by 25 basis points; however, the actual change may be muted due to lenders ...

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48% Bias Score

Reduced Inequality
cbsnews.com
🌐 75% Global Worthiness
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Home Equity Loans in 2025: A Balanced Risk-Reward Assessment

In 2025's rising inflation environment, homeowners with an average $320,000 home equity consider home equity loans (8.40% interest) or HELOCs, but must weigh this against high personal loan (13%) and credit card (23%) rates, and carefully assess their repayment ability to avoid foreclosure.

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40% Bias Score

Reduced Inequality
cbsnews.com
🌐 75% Global Worthiness
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US Home Equity Growth to Slow in 2025 Despite Record Highs

U.S. homeowners with mortgages gained $425 billion in home equity (2.5% year-over-year) from Q3 2023 to Q3 2024, primarily due to rising home prices; however, experts predict slower growth in 2025 due to increased housing inventory and regional market variations.

Progress

40% Bias Score

Reduced Inequality
cbsnews.com
🌐 65% Global Worthiness
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Leveraging Home Equity for Retirement Planning: Strategies, Risks, and Mitigation

Homeowners can use home equity loans, HELOCs, cash-out refinancing, or reverse mortgages to create retirement income, invest, build a safety net, reduce housing costs, or consolidate debt; however, using home equity reduces future sales profits and carries foreclosure risks.

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48% Bias Score

No Poverty
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2024 Mortgage Rate Fluctuations and 2025 Refinancing Outlook

The average 30-year mortgage rate fluctuated between 6.07% and 7.22% in 2024, closing at 6.60%, with anticipated future decreases; however, refinancing's viability depends on individual circumstances, including credit score, home equity, and planned residency duration.

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44% Bias Score

Reduced Inequality
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Falling HELOC Interest Rates Offer Homeowners Cheaper Borrowing Options

In 2024, HELOC interest rates have fallen almost two percentage points, offering homeowners a cheaper borrowing alternative to credit cards and personal loans; however, using home equity requires careful consideration of variable interest rates and the current economic climate.

Progress

48% Bias Score

Reduced Inequality
cbsnews.com
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Will HELOCs Remain a Smart Borrowing Option in 2025?

With average home equity nearing $320,000 and interest rates on HELOCs potentially declining in 2025 while remaining lower than alternatives, HELOCs may remain an attractive borrowing option for homeowners, but risks of default exist if payments are missed.

Progress

44% Bias Score

Reduced Inequality