Latest news with #Bankrate
Yahoo
10 hours ago
- Business
- Yahoo
HELOC and home equity loan rates tick lower
A novelty: movement in HELOCs and home equity loans in the latest week. The average rate on a $30,000 home equity line of credit (HELOC) not only changed but fell for the first time in more than a month, dropping one basis point to 8.26 percent, according to Bankrate's national survey of lenders. Meanwhile, the average rate on the $30,000 home equity loan tumbled three basis points to 8.25 percent. Shop Top Mortgage Rates Your Path to Homeownership A quicker path to financial freedom Personalized rates in minutes While home equity rates have traded in a tight range this month, they are still lower than personal loan rates, which currently average 12.64 percent, and especially credit card rates, which average 20.13 percent. That's why now may be the right time to tap into your home's value, says Tom Hutchens, president of Angel Oak Mortgage Solutions, a non-QM wholesale lender based in Atlanta. 'Everybody has all of this equity, yet at the same time, record levels of credit card debt,' he says. 'That's pretty bad financial management to pay high [credit card] interest rates when you have all of this accessible equity.' Current 4 weeks ago One year ago 52-week average 52-week low HELOC 8.26% 8.27% 9.17% 8.50% 7.90% 5-year home equity loan 8.25% 8.26% 8.59% 8.39% 8.23% 10-year home equity loan 8.40% 8.42% 8.73% 8.52% 8.38% 15-year home equity loan 8.34% 8.35% 8.71% 8.46% 8.32% What's driving home equity rates today? Rates on HELOCs and home equity loans are being driven primarily by two factors: lender competition for new customers and the Federal Reserve's actions. The Fed especially impacts the cost of variable-rate products like HELOCs. Both HELOCs and home equity loans have declined substantially from their highs reached at the beginning of 2024, although they have moved off the lows they achieved this year. Bankrate Chief Financial Analyst Greg McBride still forecasts that rates will decline in 2025, with HELOCs averaging 7.25 percent and home equity loans coming in at 7.90 percent. 'Both are still well within the realm of possibility if the Fed resumes cutting interest rates in the second half of the year,' he says. Learn more: How the Federal Reserve affects HELOCs and home equity loans Unlock your home's value Achieve your financial goals with predictable payments on a lump-sum home equity loan. Explore offers Current home equity rates vs. rates on other types of credit Because HELOCs and home equity loans use your home as collateral, their rates tend to be much less expensive — more akin to current mortgage rates — than the interest charged on credit cards or personal loans, which aren't secured. Credit type Average rate HELOC 8.26% Home equity loan 8.25% Credit card 20.13% Personal loan 12.64% Of course, the individualized offer you receive on a particular HELOC or new home equity loan reflects additional factors like your creditworthiness and financials. Then there's the value of your home and your ownership stake. Lenders generally limit all your home-based loans (including your mortgage) to a maximum 80 to 85 percent of your home's worth. Even if you are able to secure a favorable rate from a lender, home equity products are relatively high-cost debt, notes McBride. 'Many homeowners are sitting on a mountain of home equity, but borrowing against it is still costly, with the average rate still over 8 percent and many lenders charging double-digit interest rates,' he says. 'This is not the low-cost form of borrowing that homeowners had become accustomed to for many years. 'Today's rates are nothing to get excited about,' he adds. So if you must borrow, have a game plan for paying it back.' Home equity trends Real estate is Americans' second-most popular long-term investment, according to Bankrate's 2025 Long-Term Investment Survey. In the first quarter of 2025, more than 46% of mortgaged residential properties were considered equity-rich — meaning, the outstanding loan balance totaled no more than half of their estimated market value, according to ATTOM Data Solutions. HELOC withdrawals surged 22 percent in the first quarter, reaching nearly $25 billion, the highest first-quarter volume in 17 years, according to ICE Mortgage Technology. As of March 2025, outstanding total HELOC balances were $381.3 billion, a 9.7% gain from the same time last year, according to Equifax. Methodology The national survey of large lenders is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison. Sign in to access your portfolio
CNBC
17 hours ago
- Business
- CNBC
The 10 best U.S. states to retire—it's about more than 'just the number of sunny days and taxes'
White sandy beaches and mild, sunny climates have long been features of the archetypal American retirement. But perhaps not anymore. New Hampshire, a state known more for its skiing than its sunshine, was named the best U.S. state to retire in Bankrate's 2025 rankings. The financial services website ranked all 50 states based on 15 metrics, including affordability, health care and weather. The study used data from a variety of sources, including the Council for Community and Economic Research, the National Oceanic and Atmospheric Administration and the U.S. Department of Health and Human Services. The metrics were weighed according to survey responses gathered by Bankrate in May 2025 on what Americans say are their top priorities for choosing a retirement destination. As a result, affordability, weather and neighborhood safety influenced overall scores the most. Retirees won't be flocking to New Hampshire for its climate, it seems, as it ranked 40th in the country for weather. But it earned the No. 1 spot for neighborhood safety and landed in the top 10 for health care, tax-friendliness and number of residents aged 65 or older. Here are the 10 best states to retire in 2025, according to Bankrate: Notably, three other New England states joined New Hampshire in the top 10 — Maine, Vermont and Rhode Island — despite the region's relatively poor weather ratings and the high cost of living in certain states. Also notable: No Sun Belt states, such as Florida, North Carolina or Arizona, made the cut. States in this region often attract retirees and place high in similar rankings due to their mild climates and tax-friendliness, as is the case in Florida. "Our survey results may be shocking to any retirees who only considered warm weather and income taxes in their relocation plans," Stephen Kates, a certified financial planner and Bankrate financial analyst, said in the report. "We incorporated 15 different data points into our analysis for a comprehensive perspective on the true costs of retirement across different states." While weather was the second-heaviest weighted category, neighborhood safety and health care were nearly as important in Bankrate's rankings, pushing up overall scores for Northeastern states with less-favorable weather. Preferable climates also tend to come at a high cost. California ranked No. 1 for weather, but No. 46 for affordability and No. 48 for local taxes, per Bankrate's analysis, putting it at No. 43 overall. Although New Mexico earned the No. 2 spot for weather, it came in last for safety, putting its overall ranking at No. 42. "There is more to being a resident than just the number of sunny days and taxes," Kates said. "Categories like public safety, walkability, access to health care, air quality, recreational opportunities and more add up to the daily quality of life retirees want."
Wall Street Journal
17 hours ago
- Business
- Wall Street Journal
Mortgage Rates Today, July 23, 2025: 30-Year Rates Drop to 6.78%
Mortgage rates are down and still under 7%. Today's national average on a 30-year fixed-rate mortgage is 6.78%, according to Bankrate. If you choose a 15-year fixed-rate mortgage, the average rate is 6.05%. Mortgage rates have been elevated recently as investors wait to see the economic effects of the Trump administration's tariff policies. In June, inflation rose 2.7% year over year, an acceleration from the previous month. It's still unclear if tariffs will push prices up further in the coming months. If they do, mortgage rates could climb higher this year. The Fed is expected to keep the federal funds rate steady at its meeting next week, which means mortgage rates are unlikely to fall soon. Top mortgage rates today Current mortgage rates are down, but higher than they were seven days ago. Rates are lower than they were in early 2025, when the average 30-year fixed-rate mortgage reached above 7%. Even though Federal Reserve policy doesn't directly impact today's mortgage rates, they have been easing since the Fed began cutting rates in late 2024. Mortgage rates change regularly, so compare offers and consider the personal and market factors that influence your quoted mortgage rate.
CNET
a day ago
- Business
- CNET
Refinance Rates Tick Higher: Current Refinance Rates on July 23, 2025
So far this year, average mortgage rates have stayed stubbornly high, bouncing between 6.5% and 7%, as financial markets weigh the risks of both higher inflation and an economic slowdown. Most homeowners, unable to save money by refinancing, are holding out for bigger rate drops. "If rates fall below 6%, we could see a big jump in refinance activity," said Jeb Smith, licensed real estate agent and member of CNET Money's expert review board. Yet economists and housing market experts don't predict a dramatic drop-off in rates in the immediate future. Mortgage refinance rates fluctuate daily based on a range of economic and political factors. For more insights on where rates might be headed, check out our weekly mortgage rate forecast. When mortgage rates start to fall, be ready to take advantage. Experts recommend shopping around and comparing multiple offers to get the lowest rate. Enter your information here to get a custom quote from one of CNET's partner lenders. About these rates: Bankrate's tool features rates from partner lenders that you can use when comparing multiple mortgage rates. Today's refinance rate trends Early-year projections for mortgage refinance rates were cautiously optimistic. Experts outlined a gradual improvement in housing affordability driven by easing inflation and a series of Federal Reserve rate cuts. However, after three interest rate reductions in 2024, the Fed has left borrowing rates unchanged this year to assess the economic fallout from President Trump's policies on trade, immigration and government spending. The central bank is expected to resume cutting rates as early as September, but this will not immediately result in lower mortgage rates. While the Fed's policy decisions guide borrowing costs across the economy, they don't have a 1:1 relationship with mortgage rates, which are set in the bond market. As of now, the Fed is expected to make two 0.25% rate reductions this year. If inflation increases due to tariffs, policymakers may hold off on easing borrowing costs until later, which would keep upward pressure on mortgage refinance rates. Where will refinance rates end up in 2025? Most housing forecasts still call for a modest decline in mortgage rates, with average 30-year fixed rates expected to end the year around below 6.5%. For refinancing to become significantly more affordable, though, we need to see multiple interest rate cuts and weaker economic data. Overall, it's unlikely we'll see another refinancing boom like the one in 2020-21 when mortgage rates were exceptionally low around 3%. Nevertheless, refinancing might be beneficial for other reasons, like changing the type of home loan, term length or taking someone off the mortgage. What does it mean to refinance? When you refinance your mortgage, you take out another home loan that pays off your initial mortgage. With a traditional refinance, your new home loan will have a different term and/or interest rate. With a cash-out refinance, you'll tap into your equity with a new loan that's bigger than your existing mortgage balance, allowing you to pocket the difference in cash. Refinancing can be a great financial move if you score a low rate or can pay off your home loan in less time, but consider whether it's the right choice for you. Reducing your interest rate by 1% or more is an incentive to refinance, allowing you to cut your monthly payment significantly. But refinancing your mortgage isn't free. Since you're taking out a whole new home loan, you'll need to pay another set of closing costs. If you fall into that pool of homeowners who purchased property when rates were high, consider reaching out to your lender and running the numbers to see whether a mortgage refinance makes sense for your budget, said Logan Mohtashami, lead analyst at HousingWire. How to find the best refinance rates The rates advertised online often require specific conditions for eligibility. Your personal interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application. Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates. 30-year fixed-rate refinance The current average interest rate for a 30-year refinance is 6.87%, an increase of 6 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance, but it will take you longer to pay off and typically cost you more in interest over the long term. 15-year fixed-rate refinance The average 15-year fixed refinance rate right now is 6.24%, an increase of 10 basis points over last week. Though a 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan, you'll save more money over time because you're paying off your loan quicker. Also, 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save more in the long run. 10-year fixed-rate refinance The current average interest rate for a 10-year refinance is 6.37%, an increase of 26 basis points compared to one week ago. A 10-year refinance typically has the lowest interest rate but the highest monthly payment of all refinance terms. A 10-year refinance can help you pay off your house much quicker and save on interest, but make sure you can afford the steeper monthly payment. To get the best refinance rates, make your application as strong as possible by getting your finances in order, using credit responsibly and monitoring your credit regularly. And don't forget to speak with multiple lenders and shop around. Does refinancing make sense? Homeowners usually refinance to save money, but there are other reasons to do so. Here are the most common reasons homeowners refinance: To get a lower interest rate: If you can secure a rate that's at least 1% lower than the one on your current mortgage, it could make sense to refinance. If you can secure a rate that's at least 1% lower than the one on your current mortgage, it could make sense to refinance. To switch the type of mortgage: If you have an adjustable-rate mortgage and want greater security, you could refinance to a fixed-rate mortgage. If you have an adjustable-rate mortgage and want greater security, you could refinance to a fixed-rate mortgage. To eliminate mortgage insurance: If you have an FHA loan that requires mortgage insurance, you can refinance to a conventional loan once you have 20% equity. If you have an FHA loan that requires mortgage insurance, you can refinance to a conventional loan once you have 20% equity. To change the length of a loan term: Refinancing to a longer loan term could lower your monthly payment. Refinancing to a shorter term will save you interest in the long run. Refinancing to a longer loan term could lower your monthly payment. Refinancing to a shorter term will save you interest in the long run. To tap into your equity through a cash-out refinance: If you replace your mortgage with a larger loan, you can receive the difference in cash to cover a large expense. If you replace your mortgage with a larger loan, you can receive the difference in cash to cover a large expense. To take someone off the mortgage: In case of divorce, you can apply for a new home loan in just your name and use the funds to pay off your existing mortgage.
Yahoo
a day ago
- Automotive
- Yahoo
How AI is revolutionizing auto dealership financing in 2025
Key takeaways AI is streamlining auto loan approvals and helping dealers close more deals in less time. Platforms like Upstart Showroom and Capital One's Chat Concierge are enhancing both back-end operations and the customer experience. Thanks to AI-powered automation, among other tools, dealerships can finalize sales more quickly. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service Artificial intelligence is changing how we shop for everything, and that now includes auto loans. In 2023, Bankrate covered how AI helps car buyers compare prices and prequalify for financing online. But in 2025, the biggest AI breakthroughs are happening at the dealership level. Lenders and dealers are using AI to speed up approvals, prevent fraud and close deals faster — all while improving the buyer experience. From smarter loan matching tools to AI-powered chatbots, the car financing process is becoming faster, easier and more personalized. Here's how AI is reshaping dealership financing in 2025 and what it means for borrowers. Learn more: Compare today's auto loan rates before visiting the dealership to find the best deals. AI is helping dealers close more deals AI is transforming the behind-the-scenes process of auto financing. In 2025, tools like Upstart's Showroom platform are modernizing how dealers structure loans, which is often referred to as 'desking' deals. These innovations cut the time it takes to secure financing from hours to minutes — reducing customer drop-off and increasing deal volumes for dealers. As a buyer, this means you'll be spending less time in the financing office. If you start shopping with preapproval from a lender, you may be able to quickly compare your options and drive off with a loan that fits your needs and budget without waiting for a lengthy underwriting process. The AI vs. traditional auto loan process Application step Traditional process AI-driven process Loan application Manual, paper-based Digital, pre-filled automatically Identity verification Manual ID checks Real-time AI verification Fraud checks Human review Automated pattern recognition Loan matching Based on FICO score alone Holistic profile matching Approval time Hours to days Minutes AI reduces friction between lenders and dealers AI isn't just making life easier for dealerships. It's also helping lenders improve underwriting efficiency and reduce risk. When a borrower's data is verified and preprocessed by an AI system, lenders receive cleaner applications with fewer errors or missing fields. This can result in faster underwriting decisions, higher loan approval rates and more accurate pricing based on nuanced risk profiles. As a result, both dealers and lenders benefit from fewer delays, better-qualified customers and faster funding. What this means for car buyers AI is reshaping how dealerships and lenders work behind the scenes — but it also affects you as a buyer. With faster approvals, smarter matching and fewer manual steps, you can expect a more efficient and transparent financing process as the technology continues to develop. Here's how AI-driven financing might benefit you. Quicker loan decisions: Some systems offer near-instant approvals. This level of speed isn't uncommon — many lenders already automate their underwriting process — but it can make loan comparison that much more seamless. Better loan matches: AI tools analyze more variables to connect you with the best lender for your finances and budget. Improved accuracy: Income, identity and employment checks are done automatically, which may increase accuracy and reduce clerical errors. Smarter comparisons: Some platforms allow you to view customized offers from multiple lenders without filling out applications. Seamless process: Start online, finish at the dealership — or vice versa. The gap between the online and in-person experience is closing, allowing you to finance your vehicle in the way that best fits your needs. Bridging the online and in-person experience AI is also closing the loop between online car browsing and in-person visits. Consumers can start their journey at home — browsing inventory, chatting with an AI agent or even getting prequalified — and then transition to the dealership already prepared. This hybrid approach benefits both sides. For buyers, you may benefit from shorter dealership visits, fewer surprises when it comes to loan terms and the ability to compare offers without pressure. For dealerships, AI tools allow them to find more prequalified leads and improve customer satisfaction. AI-powered chatbots are changing the customer experience On the customer-facing side, AI tools are making dealership websites more interactive and informative. With average car loan interest rates remaining high and lenders continuing to have low risk tolerance, these tools may help you feel more informed and empowered before you walk into a dealership. Capital One's Chat Concierge, launched in early 2025, is one example of how generative AI is being embedded directly into the buying experience. This intelligent assistant can answer questions about specific vehicles in inventory, including recommending models based on buyer preferences and comparing trims, features and financing offers. An all-in-one experience offered by some AI tools makes the complex task of buying a car that much simpler. Status of AI implementation for 2025 A growing number of dealerships plan to invest in AI to boost efficiency, streamline operations and increase revenue. According to the Fullpath AI Sentiment Report, which surveyed 200 senior decision makers at dealerships in 2024: 95 percent of dealers believe AI technology will be crucial to success moving forward. 80 percent of dealers respond that they are either already using AI, currently deploying AI or planning to deploy AI in 2025. Over eight in 10 dealerships (81%) expect an increase in their AI budgets in 2025 compared to 2024. Dealerships that have already implemented AI initiatives are beginning to see clear benefits. 100 percent of the dealerships using AI experienced an increase in revenue, while no dealership using AI reported a decrease in revenue. Which dealerships are using AI? According to one Portland-based car sales agent, AI at his location is currently limited to answering customer inquiries, not powering financing or operations. Although the technology exists, widespread implementation may take some time. Bottom line AI is no longer just a digital shopping assistant — it's the engine behind a more modern, efficient and customer-first financing experience at dealerships. As platforms like Upstart Showroom and Chat Concierge continue to evolve, expect more speed, personalization and ease when it comes to securing your next auto loan. Sign in to access your portfolio
