federal reserve

8 things you should know before the Fed hikes interest rates

Watch for rising HELOC rates
Watch for rising HELOC rates | P. Eoche/Getty Images

Watch for rising HELOC rates

Home equity lines of credit have variable rates that are linked to the prime rate. That means HELOC rates rise when the Fed increases the federal funds rate.

In contrast, rates on fixed-rate home equity loans don't respond directly to the Fed. They are set by the market forces of supply and demand.

Compare rates on home equity lines of credit in your area.

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