Latest news with #borrowing
CBS News
6 hours ago
- Business
- CBS News
What are today's HELOC and home equity loan interest rates?
In the elevated interest rate climate of recent years, there have been few affordable borrowing options to choose from. Personal loan interest rates, for example, have been frozen at around 12% for months while credit card interest rates have declined recently, but only from a recent record high of 23%. Double-digit rates for both make borrowing with either especially cost-prohibitive right now, even with the potential for interest rate cuts to be issued later in 2025. One smart and effective way to borrow, however, is readily available for homeowners right now via their home equity. With the average equity level comfortably sitting over $300,000 currently, borrowing with a home equity loan or home equity line of credit (HELOC) makes sense. And with rates here significantly lower than most alternatives, and with those rates poised to drop alongside a declining federal funds rate in the months ahead, either could be the ideal way to borrow a large sum of money at an affordable cost. Before getting started, homeowners should first familiarize themselves with today's average HELOC and home equity loan rates, both of which change often based on market conditions. Start the process by seeing how much home equity you could borrow here now. As of July 30, 2025, here's what the average home equity loan interest rates are, according to Bankrate: The average HELOC rate is now 8.26%, according to Bankrate. However, all of these rates are nationwide averages, and the offers you may receive will be impacted by location, lender, credit profile, and more. Take the time, then, to shop around to find the lowest rates and best terms. Start shopping for HELOCs and home equity loans online today. HELOCs and home equity loans both use your equity as the funding source, but the way they operate differs. Home equity loans come with fixed interest rates and provide the homeowner with a lump sum of money of which repayments will be expected to be made immediately. HELOCs, on the other hand, come with variable interest rates and provide the homeowner with a revolving line of credit using the home as the funding source. Payments will only need to be made on the amount of credit used, not the full line of credit you've been approved for. And, for an initial draw period, interest-only payments will be required before the repayment period kicks in (typically after 10 or 15 years). In addition to lower interest rates when compared to alternative borrowing products, both HELOCs and home equity loans have some attractive tax benefits. If the owner uses either product for IRS-eligible home repairs and renovations, they may be able to deduct the interest they paid from their taxes for the year or years in which the product was used. Still, with the home functioning as collateral and the possibility of it being foreclosed on if payments aren't made as agreed to, it's critical for homeowners to choose the right product for their needs and budget. HELOC and home equity loan rates are lower than many alternative borrowing products right now, and they're poised to decline further if the Federal Reserve cuts rates again later this year. Still, not every lender will offer the same rates and terms, and with your home as collateral, it's critical to shop around to find the right product for your budget and financial goals.
Reuters
16 hours ago
- Business
- Reuters
German cabinet approves 2026 budget, tripling borrowing
BERLIN, July 30 (Reuters) - The German cabinet on Wednesday approved a 2026 draft budget featuring record investment of 126.7 billion euros ($146.41 billion) alongside borrowing of 174.3 billion as it aims to bolster infrastructure and defence. Europe's largest economy, which has gone from powerhouse to euro zone laggard, is throwing off decades of fiscal conservatism in an effort to revive growth, modernise crumbling infrastructure and scale up military spending. Borrowing in 2026 will be more than triple 2024's 50.5 billion euros under the former government. Interest expenses will rise more sharply than previously forecast, with an increase to 66.5 billion euros in 2029, which compares with the 61.9 billion previously expected. The 2026 draft budget, part of a medium-term financial framework extending to 2029, allocates total spending of 520.5 billion euros. The planned investments mark a 10% increase over 2025 and follow a 55% increase compared to 2024. Despite the planned total new debt of 851 billion euros in the period from 2025 to 2029, there is still a deficit of around 172 billion euros for the years 2027 to 2029. In the draft budget law, all ministries are called to exercise strict spending discipline. "This means not only having to refrain from spending requests, but also questioning what already exists," the law says. The investment surge is supported by a 500 billion euro infrastructure fund and an exemption from debt rules for defence spending approved in March. The special fund for infrastructure, which is excluded from Germany's "debt brake" that limits borrowing to 0.35% of GDP, will add borrowing of 58.9 billion euros in 2026. Germany plans 117.2 billion euros in defence spending in 2026, an amount that will go up to 161.8 billion euros in 2029, the mid-term fiscal plan shows. Berlin would be able to borrow a total 380 billion euros for defence between 2025 and 2029 thanks to debt brake reform from March. Following cabinet approval, budget discussions will commence in parliament at the end of September, with final approval anticipated by year's end. ($1 = 0.8654 euros)
Forbes
2 days ago
- Business
- Forbes
Private Student Loan Rates: July 29, 2025 - Loan Rates Edge Up
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Rates on 10-year fixed-rate private student loans moved up last week. If you're interested in picking up a private student loan, you can still get a relatively low rate. From July 21 to July 26, the average fixed interest rate on a 10-year private student loan was 6.75% for borrowers with a credit score of 720 or higher who prequalified on student loan marketplace. On a five-year variable-rate loan, the average interest rate was 9.21% among the same population, according to These rates are accurate as of the week of July 21, 2025. Related: Best Private Student Loans Last week, the average fixed rate on a 10-year loan jumped by 0.08 percentage point to 6.75%. The average stood at 6.67% the week prior. Borrowers currently in the market for a private student loan will receive a lower rate than they would have at this time last year. At this time last year, the average fixed rate on a 10-year loan was 7.62%, 0.87 percentage point higher than today's rate. A borrower who finances $20,000 in private student loans at today's average fixed rate would pay around $230 per month and approximately $7,558 in total interest over 10 years, according to Forbes Advisor's student loan calculator. Last week, rates on variable five-year student loans moved up, reaching 9.21% from 7.54% the week prior. In contrast to fixed rates, variable interest rates fluctuate over the course of a loan term. Variable rates may start lower than fixed rates, especially during periods when rates are low overall, but they can rise over time. Private lenders often offer borrowers the option to choose between fixed and variable interest rates. Fixed rates may be the safer bet for the average student, but if your income is stable and you plan to pay off your loan quickly, it could be beneficial to choose a variable loan. If you were to finance a $20,000 five-year loan at a variable interest rate of 9.21%, you'd pay approximately $417 on average per month. In total interest over the life of the loan, you'd pay around $5,033. Of course, since the interest rate is variable, it could fluctuate up or down from month to month. Private student loans may be a good option if you reach the annual borrowing limits for federal student loans or if you're otherwise ineligible for them. You should consider a federal student loan as your first option, as interest rates are generally lower and you'll enjoy more liberal repayment and forgiveness options than with a private loan. When shopping for a private student loan, you'll generally need to apply directly through a non-federal lender. This includes banks, credit unions, nonprofit organizations, state agencies, colleges and online entities. Keep in mind that undergraduates with limited credit history often need a co-signer who can meet the lender's borrowing requirements. Here's what to consider when applying for a private student loan: Make sure you qualify. Private student loans are credit-based, and lenders typically require a credit score in the high 600s. This is why having a co-signer can be particularly beneficial. Private student loans are credit-based, and lenders typically require a credit score in the high 600s. This is why having a co-signer can be particularly beneficial. Apply directly through lenders. You can apply directly on the lender's website, via mail or over the phone. You can apply directly on the lender's website, via mail or over the phone. Compare your options. Look at what each lender offers and compare the interest rate, term, future monthly payment, origination fee and late fee. Also, check to see if the lender offers a co-signer release so that the co-borrower can eventually come off of the loan. When looking for the best private student loan option, take a close look at the overall cost of the loan, including the interest rate and fees. It's also important to consider the type of help the lender offers if you can't afford your payments. Keep in mind that the best rates are only available to those with good or excellent credit. How much should you borrow? Experts generally recommend borrowing no more than you'll earn in your first year out of college. How much can you borrow? Some lenders cap the amount you can borrow each year, while others don't. When you're shopping around for a loan, talk to lenders about how the loan is disbursed and what costs it will cover. If you need to borrow for school, federal student loans are generally the best option. This is because federal loans offer various borrower protections, such as access to income-driven repayment plans and student loan forgiveness programs. Additionally, most federal loans don't require a credit check or co-signer. The rate you receive depends on whether you're getting a fixed or variable loan. Rates, in part, are based on your credit profile. Those with higher credit scores often get the lowest rates. But your rate is based on other factors as well. Income and even the degree you're working on and your career can play a part. It's generally a good idea to max out your eligibility for federal financial aid before borrowing private student loans, but private loans have some benefits. For one thing, they don't have the same annual borrowing limits as federal loans. Many lenders let you borrow up to your cost of attendance minus any other financial aid you've already received. Plus, you can usually apply throughout the year with a fast, easy online application. For instance, you can apply for a private loan if you need funds halfway through the semester. Some lenders can fund your loan in a week or two, though others take longer. Private lenders can also offer competitive interest rates, especially to borrowers with excellent credit. Some private loans don't have any fees, so you don't have to worry about origination fees, administrative fees or even late fees in some cases. You also may not have to make payments on your private student loan while you're in school or for six to nine months after you graduate, depending on the lender. Some lenders offer additional perks to borrowers, such as forbearance and deferment, the option to skip a payment or career counseling services. Some private lenders offer loans to international students. International students are not eligible for federal student loans from the U.S. Department of Education, so a private student loan can provide the funds they need for college or graduate school in the U.S.
Reuters
2 days ago
- Business
- Reuters
UK lenders approve more mortgages, consumers borrow more
LONDON, July 29 (Reuters) - British lenders approved more mortgages than expected last month, adding to signs that the housing market has recovered from a dip after the expiry of a tax break for homebuyers, and consumers also upped their borrowing, data showed on Tuesday. The Bank of England said 64,167 mortgages were approved in June, up from 63,288 in May. A Reuters poll of economists had pointed to 63,000 approvals during the month. The expiry in April of a discount on the stamp duty paid by some homebuyers led to a drop in approvals to just over 60,000 that month before a recovery in May and June. Richard Donnell, executive director at real estate website Zoopla, linked the rise in demand for mortgages to stable borrowing costs. "Zoopla data shows unusually high levels of housing market activity for the early summer with sales agreed up 8% on last year and 11% more buyers in the market," Donnell said. "We expect increased housing activity to support demand for mortgages in the rest of the year." The BoE also said unsecured consumer borrowing increased by 1.417 billion pounds ($1.89 billion) in June, stronger than the median forecast for a 1.2 billion-pound rise in the Reuters poll of economists and up from May's rise of 920 million pounds. ($1 = 0.7498 pounds)
Globe and Mail
2 days ago
- Business
- Globe and Mail
U.S. Treasury says it will borrow $1-trillion in third quarter to rebuild cash balance
The U.S. Treasury said on Monday it expects to borrow US$1.007-trillion in the third quarter partly to replenish its cash balance that dwindled during the latest debt ceiling episode. The figure was US$453-billion higher than its April estimate primarily due to the lower beginning-of-quarter cash balance and projected lower net cash flows. The third-quarter financing projection assumes cash of US$850-billion at the end of September for the Treasury, the department said in a statement. Much higher borrowing in the third quarter were needed to rebuild the Treasury's cash balance following President Donald Trump's tax and spending bill being signed into law on July 4. The debt ceiling increased by US$5-trillion to US$41.1-trillion following the spending legislations enactment. The Treasury's cash had dropped to US$313-billion on July 3, data from money market research firm Wrightson ICAP showed. Trump's 'big, beautiful' bill set to further tarnish U.S. Treasuries' lustre overseas 'These [financing estimates] are in line with our projections and should not be a surprise to the markets since the increased financing need is almost all due to the shortfall in cash balances on September 30, which was a function of the debt limit,' said Kim Rupert, managing director, global fixed income analysis at Action Economics, The Treasury also said it expects to borrow US$590-billion in the fourth quarter, as it projects a cash balance of US$850-billion at the end of December. In the second quarter, the Treasury said it borrowed US$65-billion in privately-held marketable debt, ending the period with a cash balance of US$457-billion. In April, Treasury had estimated borrowings of US$514-billion and assumed an end-of-June cash balance of US$850-billion. The Treasury will unveil details of it borrowing estimates for the quarter on Wednesday when it announces its financing plans. It is widely expected that the Treasury will maintain current auction sizes for notes and bonds and will likely keep them steady for some time. Investors will be looking for guidance as to how long the Treasury can hold off not raising the size of the debt auctions used to fund the ballooning U.S. budget deficit.
