Are you in need of a large sum of money? You could access the money you need in a variety of ways. However, when you borrow money, it's important to consider the cost of the financial product you use to do so. Some, like credit cards and personal loans, can come with high interest rates and other fees while others, like home equity loans, can offer more competitive interest rates, reducing your cost of borrowing. But, there's a tradeoff to consider.
Cs come with variable interest rates and payments that may change based on the overall interest rate environment. And, that could be good news considering the high interest rates of today. If you open a C, and interest rates fall, you could experience savings when compared to traditional home equity loans. The average
C interest rate is currently 9.16%. If you took out a C, and your interest rate remained the same for the life of the credit line , you would pay $307.14 per month. Your total interest expense would be $25,285.56, and your total payoff cost would be $55,285.56. But, it's unlikely that your interest rate would stay the same for the life of the credit line. And, while interest rates may fall ahead, they could also increase. So, only choose this option if you can afford a potentially higher payment in the future.