Breaking Down Homeownership Costs: An In-depth Look
Interest Rates Round-up
Hidden expenses of homeownership and forecasts for the residential real estate market in 2025 revealed
Interest rates are constantly shifting. As of our latest survey of lenders, HELOCs have dropped to 8.22%, while home equity loan rates remain steady at 8.25%, peaking near their lowest point of 2025. Meanwhile, the national average for 30-year fixed-rate mortgages inched up slightly, approaching the 7% benchmark.
The Unseen Cost of Homeownership: $21,400 Annually
The American Dream comes with a hefty price tag. A study uncovers the hidden expenses that many homeowners overlook, with the biggest chunk going towards home maintenance, totaling a mighty $21,400 annually. Check out how your state ranks here.
Note: The study found that costs vary significantly by state, with states like Hawaii ($34,573) and California ($32,262) being the most expensive and West Virginia ($12,579) being the least expensive.
Second Half of the Year: Housing Market Predictions
The halfway mark of 2025 is behind us. Will the housing market boom, cool, or plummet in the months to come? Our experts weigh in on the possibilities.
Borrowing Equity in Challenging Times
With high equity values and decreasing HELOC rates, it's tempting to tap into your home's worth today. However, if we're heading towards a recession, this decision could prove risky. We break down the factors that make it a tricky move—or conversely, a strategic choice.
Setting Off on Your Homebuying Journey: Start with Your Credit Score
Your credit score plays a crucial role in your homebuying adventure. Aim for a high score to land a lower mortgage rate. Unlock tips and tricks to boost your score for better options in the mortgage market.
Navigating Lender Landscape: First-time Homebuyer Guide
Finding the right lender is like dating; you want to connect with someone who supports your aspirations and won't surprise you with unfavorable terms later. Learn how to judge a book by more than just its cover—focusing on factors beyond APR for a successful financial future.
Home Equity: A Solution for Debt Relief?
A home equity loan can be an effective way to settle outstanding debt and bills, as it usually offers lower interest rates and longer terms. But remember, it's not free cash—and failure to repay can have severe consequences.
In Case You Missed It
Although these stories were previously released, they're still worth mentioning.
Consequences of Missing Home Equity Payments
Falling behind on a HELOC or home equity loan might not seem consequential at first, but the stakes are substantial. Unlike credit cards or personal loans, these products are collateralized by your property. So, if you can't make payments, your home could be at risk.
Maternity Leave and Mortgage Approvals
Add a pregnancy to your mortgage shopping list? While securing a mortgage during maternity leave is possible, it does require additional documentation and increased scrutiny from your lender. Be prepared and ensure a smooth mortgage process for your growing family.
Tapping Your Home's Value
Anchor your financial goals with predictable payments by unlocking the value in your home through a lump-sum home equity loan.
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- Even though home equity loan rates have reached their lowest point in 2025 at 8.25%, the national average for 30-year fixed-rate mortgages has inched up slightly, potentially impacting the finance aspect of homeownership.
- When considering investing in the housing market, it's crucial to bear in mind that unseen costs like home maintenance can amount to a significant annual expense of $21,400, as revealed in a recent study.
- With the increasing interest in borrowing equity due to high home values and decreasing HELOC rates, it's important to carefully consider the risks associated with making this move during challenging economic times. Unpaid equity loans may lead to severe consequences, as they can put your home at risk due to their collateralized nature.
