Is a $10,000 home equity loan or HELOC cheaper right now?

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You can borrow $10,000 of home equity with either a home equity loan or HELOC, but only one has clear benefits now.

It's always smart to pursue the most cost-effective borrowing option. But in today's economy, in which millions are still recovering from an elevated inflation cycle, and in which the federal funds rate has left interest rates raised across the board, it's critical to secure the cheapest option. While popular items like credit cards and personal loans come with double-digit rates right now, homeowners have an inexpensive alternative that they can easily access: their home equity.

53 in interest for a total of $17,894.53HELOCs9.17% over 10 years: $127.60 with $5,311.72 in interest for a total of $15,311.729.17% over 15 years: $102.44 with $8,439.28 in interest for a total of $18,439.28As can be seen, if you're looking for the lowest-cost way to borrow $10,000 from your home, a home equity loan is the better way in today's rate climate. Not only will you save money each month, but you'll save thousands of dollars in interest over the life of the loan.

 

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