Home equity loans offer potential benefits and risks for emergencies in 2025

cbsnews.com February 4, 2025, 11:00 PM UTC

Home equity loan rates have decreased to an average of 8.44% in February 2025, making them cheaper than personal loans and credit cards. This could make them a more attractive option for homeowners facing emergencies. Home equity loans offer fixed interest rates, providing stability in monthly payments. However, the approval process can take weeks or months, which may not suit urgent financial needs. Homeowners should consider their local real estate market before borrowing, as falling home values could increase risks. Additionally, interest deductions may not apply if the loan is not used for eligible home repairs.


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