Cheap Money Isn’t Always Free Money: How To Invest Smart When Rates Drop

According to recent calculations from CBS News, the rate cuts from the Fed brought the interest rate for a $40,000 10-year HELOC down from 8.12% in March to 7.82% in November. This means that payments dropped from $487.85 per month to $481.51, which isn’t a significant reduction, but it’s clear that there’s a trend in response to rate cuts. As the Fed continues with rate cuts, it’s evident that lower borrowing costs can tempt both businesses and individuals into overleveraging and endangering their finan ...