U.S. interest rates have been at historic lows for years, but they won't remain there indefinitely. As the domestic economy improves, rate hikes are likely and the Federal Reserve has already signaled that they are considering increases.

If you're considering a home equity loan for remodeling, debt consolidation, or other reasons, you may want to act sooner rather than later. Home equity loan rates change daily, and even small interest rate movements a half point (.05%), for example can impact monthly payments especially when the borrowed amount is significant and the repayment period is long.

Here's a dollars and cents example of what this half-point rate differential can mean for consumers with a $50,000, 10-year home equity loan.



Source: www.Bankrate.com rounded to the nearest dollar
Rates vary among institutions, so take time to comparison shop before you apply. And why limit your shopping only to banks? Check out Aggieland Credit Union at www.aggielandcu.org for the possibility of more favorable rates.

I am a practicing CPA. Every year, for the elderly, artificially low interest rates make their lives more difficult. It is tough to be 70, what you earned in your life drawing 1%, and knowing those rates will never increase materially in your lifetime.

The highways are full of new cars due in part to artificially low rates. We recently bought an Accord, they financed it at 2.3% (fine with me).

I borrowed $ for my last semester--16%. I recall in the early 80s people "earning" 18% on jumbo CDs.

I will long since be 6 down before rates change materially.