In the Kiplinger and Yahoo Finance article “As Rates Rise, Tapping Home Equity Gets Trickier,” journalist Kim Clark, explores how rising borrowing costs affect home equity lines of credit (HELOCs), home equity loans, and cash-out refinancing. Home equity can help fund a renovation or other major expense, but choosing how to borrow deserves careful consideration.
Steven Rogé, Chief Investment Officer and CEO of R.W. Rogé & Company, Inc., contributed a practical perspective: consider what you could afford if your borrowing rate increased, rather than focusing only on the initial payment.
Steven encouraged homeowners considering a variable-rate HELOC to assess whether an increase of one or two percentage points would strain their budget. If that change would make payments difficult to manage, a fixed-rate loan could offer greater predictability.
His insights underscore the importance of looking beyond access to cash and considering how the repayment obligation fits into your broader financial life—so you can make a borrowing decision with a clearer understanding of the tradeoffs.
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R.W. Rogé & Company, Inc. is an independent, fee-only financial planning and investment management firm serving clients locally and virtually across the country, with Long Island, New York, and Beverly, Massachusetts office locations. R.W. Rogé & Company, Inc. was founded on a “client first” culture and proudly commits to acting in your best interest as a fiduciary. We have helped clients Plan, Achieve, and Live® the life they want since 1986. To learn more about how we do this, as well as our process, explore our detailed overview of services and approach.
