With inflation resurfacing and interest rates on the rise, home equity loans and HELOCs have become more attractive financing options. However, seniors need to proceed cautiously. This article examines the pros and cons of each option, emphasizing why a home equity loan might be a safer choice for seniors in the current economic climate.
The economic climate of early 2025 is markedly different than it was at the start of 2024. Inflation is significantly lower than it was one year ago and, as a result, interest rate cuts were issued multiple times in the final months of the year. But those cuts were halted in January amid a steady resurgence in inflation, delaying financial relief for borrowers coping with high rates on a variety of products.
What may be an affordable monthly payment could quickly become a prohibitive one, especially considering that HELOC rates change each month. Against this backdrop, then, the security of a fixed, home equity loan rate becomes clearer. Just be sure to shop around and compare rates and lenders to find the lowest-rate loan option around.Start shopping for home equity loans online now.
HOMEEQUITYLOAN HELOC SENIORS INTERESTRATES BUDGETING
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