Are more people taking out HELOCs?

Yes, more people are taking out Home Equity Lines of Credit (HELOCs). This marks a significant reversal of a decadelong decline, with originations and balances growing consistently since 2022.


Are more people getting HELOCs?

Why are more people borrowing against their homes? The origination of home equity loans, home equity lines of credit (HELOCs) and cash-out-refinances rose 11 percent in the fourth quarter of 2024, according to TransUnion.

What does Dave Ramsey say about HELOC?

Dave Ramsey strongly advises against using HELOCs (Home Equity Lines of Credit) because they are a form of debt that puts your home at risk, often have variable interest rates that can increase, and can lead to taking on more debt, keeping you from financial freedom. He calls them the "credit cards of the mortgage world," warning they can be called in by lenders, forcing immediate repayment and risking foreclosure, and that they mask the real issue of needing discipline to manage debt. 


Why are banks no longer offering HELOCs?

Several banks exited the HELOC business in 2020, due to economic uncertainty from the pandemic. Wells Fargo stopped offering the product at the time, and hasn't picked it up again.

Is a HELOC a trap?

You can fall deeply into debt

“Tapping into equity increases your overall debt and what you will owe your lender — both in principal and interest — over time. So it's important to weigh short-term benefits versus long-term costs,” notes Sharga. HELOCs in particular can be a trap.


The Government’s Quiet Move on Your Equity



Is a HELOC a rip-off?

A HELOC can be a worthwhile investment when you use it to improve your home's value. But it can become a bad debt when you use it to pay for things that you can't afford with your current income and savings. For instance, you shouldn't pay for vacations, cars, or college.

What is the monthly payment on a $50,000 HELOC?

A $50,000 HELOC payment varies greatly, but expect interest-only payments during the draw period (e.g., $250-$450/month at 6-10% rates) and higher principal + interest payments during the repayment period (e.g., $400-$600+/month) depending on rates, term (10-20+ yrs), and if you draw the full amount, with rates changing as the Prime Rate shifts. 

Is there anything better than a HELOC?

8 alternatives to HELOCS: At a glance

A cash-out refinance is a better option if, after doing a blended rate calculation, you determine that you can get a lower rate by refinancing your first mortgage and then taking out an additional home equity loan. A personal loan doesn't rely on any collateral.


How many Americans have $10,000 in savings?

Here's the data: - A 2023 YouGov survey (updated in 2024 analyses) found that about 57% of Americans have less than $10,000 in savings: 27% have under $1,000, 18% have $1,000–$9,999, 12% have $0, and 17% didn't disclose (often a proxy for low/no savings).

What is the 3 7 3 rule in mortgage?

What is the 3-7-3 Rule? Within 3 business days of your completed loan application, your lender must provide initial disclosures. This includes the Loan Estimate (LE), which outlines your estimated loan terms, interest rate, closing costs, and monthly payment breakdown.

How much is the monthly payment on a $70,000 student loan?

A $70,000 student loan's monthly payment varies widely, from roughly $750 to over $6,000, depending on interest rates (APR) and repayment term, with a 10-year loan at 5% being around $742/month, while a 1-year term at 14% jumps to $6,285/month; federal loans offer income-driven plans (IDR) for lower payments, but private loans depend heavily on credit score and term length.
 


What is the smartest thing to do with a HELOC?

10 Smart Ways to Utilize a HELOC
  • Home Improvements and Renovations. Upgrade your kitchen, add a bathroom, or invest in energy-efficient appliances. ...
  • Debt Consolidation. ...
  • Emergency Expenses. ...
  • Education Costs. ...
  • Starting or Expanding a Business. ...
  • Major Life Events. ...
  • Vacation Planning. ...
  • Real Estate Investment.


What does Suze Orman say about paying off your mortgage early?

Personal finance guru Suze Orman says it depends. While the possibility of job loss can trigger financial panic, Orman advises against rushing to drain your savings to pay off your mortgage early. Even if you have enough money saved to wipe out your mortgage, don't pull the emergency cord until absolutely necessary.

Will mortgage rates ever be 3% again?

It's highly unlikely mortgage rates will return to 3% anytime soon, with most experts expecting rates to stay in the 5-7% range for the near future, potentially dropping slightly but not drastically, unless another major economic crisis (like a deep recession or global pandemic) occurs, which could force rates down significantly, notes Experian and Realtor.com. The ultra-low 3% rates were a temporary response to the pandemic, and current forecasts predict rates to ease gradually, not plummet, says Yahoo Finance. 


What salary do you need for a $400000 mortgage?

To comfortably afford a 400k mortgage, you'll likely need an annual income between $100,000 to $125,000, depending on your specific financial situation and the terms of your mortgage.

How many Americans have $20,000 in credit card debt?

A majority of Americans (53%) carry some, with an average balance of $7,719. However, a third of those carrying debt (32%) owe $10,000 or more, while almost 1 in 10 (9%) have credit card debt over $20,000.

What is the $27.40 rule?

The $27.40 Rule is a personal finance strategy to save $10,000 in one year by consistently setting aside $27.40 every single day ($27.40 x 365 days = $10,001). It's a simple way to reach a large financial goal by breaking it down into small, manageable daily habits, making saving feel less intimidating and more achievable by cutting small, unnecessary expenses like daily coffees or lunches.
 


Are Americans struggling financially in 2025?

Yes, many Americans struggled financially in 2025 due to rising costs, with surveys indicating nearly half felt their finances worsened, many living paycheck-to-paycheck (around 24-67% depending on definition), and significant portions delaying care or cutting groceries, despite some overall economic growth. Issues like unexpected expenses, difficulty affording necessities (housing, food), and high credit card debt were common, impacting middle-class families and diverse communities significantly, although billionaires saw wealth increase. 

What's considered middle class income?

Middle-class income varies significantly by location and household size, but generally, it's defined as two-thirds to double the area's median household income, with broad ranges like $56,600 to $169,800 nationally (2022 data) or specific state figures like California's $63,674 to $191,042 (2025 data), considering local cost of living.
 

Why does Dave Ramsey not like HELOC loans?

Dave Ramsey on the risks of HELOCs and home equity loans

If you default, the lender could take your home. Ramsey says it's never worth the risk: “As long as you owe money on your house, you're at risk of losing the roof over your head.” You pay extra due to interest: Interest is the price you pay to borrow money.


What is the monthly payment on a $100,000 HELOC?

A $100,000 HELOC payment varies, but during the interest-only draw period, expect roughly $580-$830 monthly (7-10% rates); after, during the repayment period, it jumps to $1,100-$1,300+, including principal and interest, depending on your variable rate and term (often 10-20 years). A 10-year interest-only payment at 8% is about $667, while a 10-year principal & interest repayment at 8% is around $1,213. 

How much of a house can I afford if I make $70,000 a year?

With a $70,000 salary, you can generally afford a house between $210,000 and $350,000, but your actual budget depends heavily on your credit score, existing debts, down payment, and current mortgage rates, with lenders often following the 28/36 rule (housing costs under 28% of gross income, total debt under 36%). A good starting point is keeping your total monthly housing payment (PITI) under $1,633, but a lower Debt-to-Income (DTI) ratio and larger down payment increase your buying power. 

Is a HELOC tax deductible?

In other words, your HELOC interest may be deductible if you use the funds to remodel your kitchen or build an addition to your house. However, HELOC interest would not be tax deductible if you used the funds to consolidate debt, pay for emergency expenses or cover other personal living costs.


What is the HELOC rate for 2025?

HELOC rates in late 2025 and early 2026 are generally in the mid-7% range, with national averages around 7.63% and lenders offering rates as low as the high 6% range for well-qualified borrowers, but these are variable and depend on your credit score, home equity, and the lender's specific prime rate index, with forecasts suggesting they may trend slightly lower into 2026 as the Fed cuts rates. 

Can I get $50,000 with a 700 credit score?

What is considered a good CIBIL score to apply for a ₹50,000 personal loan? A CIBIL score of 710 and above is generally considered to be good when applying for a ₹50,000 personal loan. However, a higher score typically increases the likelihood of a loan approval and favourable interest rate.