I'm 58 With $1.8 Million Saved. Here's How I Stress-Tested My Tax Plan Before Retiring Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Quick Summary A 58-year-old with $1.8 million saved looked financially secure, but small tax and timing mistakes could still derail retirement. Before retiring, you can work with a financial advisor through SmartAsset to pressure-test withdrawal strategies, Roth conversions, and long-term tax exposure. At age 58, ...

Core Insights - Interest rates for home equity lines of credit (HELOCs) and home equity loans are currently near one-year lows, with potential for lower rates through lender comparison [1][2] - The average HELOC rate is 7.23%, while the average home equity loan rate is 7.44%, with both rates influenced by credit scores and loan-to-value ratios [2][11] - Homeowners with low primary mortgage rates may find HELOCs or home equity loans beneficial for accessing home equity without losing their favorable mortgage rates [3][12] Interest Rate Details - The 52-week low for HELOCs is 7.19%, and the low for home equity loans was 7.38% in early December 2025 [2] - The prime rate, which influences second mortgage rates, has recently fallen to 6.75%, affecting the pricing of HELOCs and home equity loans [5] - Lenders have flexibility in pricing second mortgage products, making it advantageous for borrowers to shop around for the best rates [6] Loan Characteristics - HELOCs typically have variable interest rates and may include introductory rates that last for a limited time, while home equity loans usually offer fixed rates [6][7] - The best HELOC lenders provide low fees, fixed-rate options, and generous credit lines, allowing homeowners to utilize their equity flexibly [8] - Home equity loans provide a lump sum with a fixed interest rate, simplifying repayment terms for borrowers [10] Market Context - The Federal Reserve estimates that homeowners have approximately $34 trillion in equity available, indicating a significant opportunity for accessing home equity through HELOCs and home equity loans [4] - Current market conditions suggest that it may be an opportune time for homeowners with substantial equity and low primary mortgage rates to consider these financial products for home improvements or other expenses [12]

National average rates for second mortgage products, such as home equity loans and lines of credit, are just fractions off of one-year lows. Well-qualified borrowers are likely to make up that difference if they shop for the best interest rate offers from two or three lenders. HELOC and home equity loan rates: Friday, February 6, 2026 According to real estate analytics firm Curinos, the average HELOC rate is 7.23%, down just two basis points from one month ago. The 52-week HELOC low was 7.19%. The nation ...

If you have a HELOC and believe your home's value has grown substantially since your line of credit was established, how hard is it to get your lender to raise your borrowing limit? Here's what you'll want to know. How to increase your HELOC limit Your home equity line of credit will not automatically increase if your home’s value increases. To access that added value, you'll likely have three options, depending on your lender: Ask your current lender to increase your credit line. Called a loan modifica ...

Core Insights - The average rates for home equity lines of credit (HELOC) and home equity loans are currently below 8%, with some introductory offers significantly lower [1][10] - The average HELOC rate is reported at 7.25% and the average home equity loan rate at 7.56%, based on specific credit criteria [2][10] - Homeowners are sitting on approximately $34 trillion in home equity, which presents opportunities for second mortgages like HELOCs or home equity loans [4] Interest Rates and Terms - HELOC rates are typically based on an index rate plus a margin, with the current prime rate at 6.75%, leading to potential HELOC rates around 7.50% [5] - Home equity loans generally have fixed rates, making them less likely to feature introductory rates compared to HELOCs [7] - Lenders offer varying rates and terms, emphasizing the importance of shopping around for the best deal [6][9] Benefits and Usage - HELOCs provide flexibility, allowing homeowners to draw funds as needed, while home equity loans offer a lump sum [3] - Homeowners with low primary mortgage rates can benefit from accessing their home equity without refinancing their primary mortgage [11] - The cash drawn from home equity can be utilized for various purposes, including home improvements and repairs [11] Lender Offers - Some lenders, like FourLeaf Credit Union, are offering competitive HELOC rates, such as 5.99% for the first 12 months on lines up to $500,000 [8] - The best home equity loan lenders are easier to identify due to the fixed rate structure, which simplifies the repayment process [9]

Owning a home can be a great way to build wealth, especially once you’ve accumulated a significant amount of equity. One popular way to access your home equity is by taking out a home equity loan, which is a type of second mortgage. It’s helpful to understand how long it takes to apply for home equity loans and receive funds so you can decide if they’re a good fit for your situation. How home equity loans work With home equity loans, you borrow from the equity in your house, or the stake in the propert ...

Core Insights - Home equity lines of credit (HELOC) and home equity loan rates are currently averaging around 7.5%, with HELOC rates at 7.25% and home equity loans at 7.56% [1][2][11] - The Federal Reserve estimates that homeowners have approximately $34 trillion in equity locked in their homes, presenting an opportunity for homeowners to access this value through second mortgages like HELOCs or home equity loans [3] Interest Rates and Trends - The average HELOC rate has decreased by 19 basis points from the previous month, while home equity loan rates have dropped by three basis points [2] - Second mortgage rates are influenced by an index rate plus a margin, with the current prime rate at 6.75%, leading to an average HELOC rate of 7.50% when a margin of 0.75% is applied [4] Borrowing Opportunities - Homeowners with low primary mortgage rates and significant equity may find it advantageous to obtain a HELOC or home equity loan for purposes such as home improvements [12] - Lenders offer flexibility in pricing for second mortgage products, making it essential for borrowers to shop around for the best rates based on their creditworthiness and debt levels [5] Loan Structures and Features - HELOCs typically have variable rates that may start lower due to introductory offers, while home equity loans usually have fixed rates for the duration of the repayment period [6][9] - An example of a competitive HELOC offer includes a 5.99% APR for the first 12 months from FourLeaf Credit Union, after which the rate becomes variable [8] Payment Considerations - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the draw period would be approximately $313, but this rate is variable and may increase during the repayment period [13]

Core Insights - Homeownership is a significant recurring expense for many individuals, impacting both working years and retirement [1] - Paying off a mortgage before retirement can simplify financial management in later life by eliminating monthly payments [1][4] Group 1: Benefits of Homeownership in Retirement - Stability is a major advantage of owning a home in retirement, as it protects against lease non-renewal by landlords [3] - A paid-off home can provide valuable equity, which, while not ideal to rely on, can serve as a financial backup in emergencies [3] - Eliminating mortgage payments reduces financial stress during retirement [4] Group 2: Drawbacks of Homeownership in Retirement - Homeownership can introduce unpredictable costs, such as maintenance and repairs, which can significantly impact retirement savings [5] - For example, a $12,000 home repair could consume one-fifth of an annual retirement income of $60,000, highlighting the financial risks involved [6] - Renting may offer more predictable housing costs and avoid unexpected repair expenses, providing a more stable financial situation [7][8] Group 3: Personal Considerations - Emotional factors, such as attachment to a family home or neighborhood, can influence the decision to own a home in retirement beyond financial considerations [9]

Core Insights - Current national average rates for home equity lines of credit (HELOC) and home equity loans (HEL) are decreasing, making second mortgage options more affordable, but significant drops in rates are not expected soon [1] - The average HELOC rate is currently 7.25%, down 19 basis points from the previous month, while the average HEL rate is 7.56%, a decrease of three basis points [2] - Homeowners with low primary mortgage rates and significant home equity may find it advantageous to secure a HELOC or HEL now, as it allows access to cash without losing their favorable mortgage rate [11] HELOC and HEL Overview - A HELOC provides a line of credit that can be drawn upon as needed, while a home equity loan offers a lump sum payment [3] - The Federal Reserve estimates that homeowners have approximately $36 trillion in equity available, which can be accessed through second mortgages [4] - HELOC rates are influenced by the prime rate, which is currently at 6.75%, and lenders may add a margin to determine the final rate [5] Lender Considerations - Lenders have flexibility in pricing second mortgage products, and it is advisable for borrowers to shop around for the best rates based on their credit score and debt levels [6] - The best HELOC lenders typically offer low fees, fixed-rate options, and generous credit lines, with some introductory rates available [8] - Home equity loan lenders may be easier to find due to the fixed rate structure, which simplifies the borrowing process [9] Rate Comparisons and Payment Structures - Current HELOC rates range from nearly 6% to 18%, with the national average at 7.25% and HEL at 7.56%, serving as benchmarks for borrowers [10] - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the 10-year draw period would be approximately $313, but rates are typically variable and can increase over time [12]

Core Insights - Interest rates on home equity lines of credit (HELOCs) and home equity loans have significantly decreased over the past year, with the average HELOC rate dropping by 81 basis points from over 8% to 7.25% and home equity loan rates down by 40 basis points to 7.56% [1][2] Group 1: Current Market Conditions - The Federal Reserve estimates that homeowners have $36 trillion in equity locked within their homes, indicating a substantial opportunity for homeowners to access this equity through second mortgages like HELOCs or home equity loans [4] - The average HELOC rate is currently 7.25%, down 19 basis points from the previous month, while the national average for home equity loans is 7.56%, a decrease of three basis points [2] Group 2: Loan Characteristics - HELOCs typically have variable interest rates that can fluctuate, while home equity loans usually offer fixed rates that remain constant throughout the loan term [5][7] - Lenders have flexibility in pricing second mortgage products, and rates can vary based on credit scores, debt levels, and loan-to-value ratios [6] Group 3: Borrowing Considerations - Homeowners with low primary mortgage rates and significant equity may find it advantageous to obtain a HELOC or home equity loan, allowing them to leverage their home equity without sacrificing their favorable mortgage rates [3][13] - The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines, making it easier for homeowners to access their equity as needed [8] Group 4: Payment Structures - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the 10-year draw period would be approximately $313, but this amount may increase during the repayment period due to the variable nature of the interest rate [14]