{"id":162542,"date":"2023-11-20T15:06:40","date_gmt":"2023-11-20T22:06:40","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=162542"},"modified":"2024-01-08T07:19:37","modified_gmt":"2024-01-08T14:19:37","slug":"how-high-interest-rates-have-impacted-helocs","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/how-high-interest-rates-have-impacted-helocs","title":{"rendered":"High Interest Rates Have Impacted HELOCs\u2014But Can You Still Get One?"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">No doubt you have heard about the massive increase in interest rates. Since early 2022, interest rates have risen across all aspects of our lives. CDs, savings accounts, car loans, and credit cards have all seen large increases in interest rates over the past 20 months.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">From people buying a home to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/commercial-real-estate-fundamentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">commercial properties<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;struggling, interest rates have had a major impact on real estate investors. With the rising rates, we have heard about the coming real estate crash that will crush the real estate market. I am not here to talk about this potential crash since I don\u2019t think it will happen.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Interest rates have also increased on HELOCs. According to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bankrate.com\/home-equity\/current-interest-rates\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Bankrate<\/span><\/a><span data-preserver-spaces=\"true\">, they\u2019ve gone from an average of 4.24% in January 2022 to just over 10% in November 2023. That is a drastic increase in such a short time. The Federal Reserve has raised interest rates 11 times since early 2022, making a HELOC less attractive than it was before.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1319\" height=\"437\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/11\/heloc-vs-rates.jpeg\" alt=\"HELOC and home equity rates\" class=\"wp-image-162545\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/11\/heloc-vs-rates.jpeg 1319w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/11\/heloc-vs-rates-300x99.jpeg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/11\/heloc-vs-rates-1024x339.jpeg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/11\/heloc-vs-rates-768x254.jpeg 768w\" sizes=\"auto, (max-width: 1319px) 100vw, 1319px\" \/><figcaption class=\"wp-element-caption\"><em>HELOC and Home Equity Loan Rates &#8211; <a href=\"https:\/\/www.bankrate.com\/home-equity\/current-interest-rates\/?zipCode=27615\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.bankrate.com\/home-equity\/current-interest-rates\/?zipCode=27615\" rel=\"noreferrer noopener\">Bankrate<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here, I\u2019ll provide an overview of how high interest rates have impacted HELOCs. There are several things for real estate investors to consider in addition to higher interest rates.<\/span><\/p>\n\n\n\n\n\n\n  <div class=\"lg:block\" x-data=\"{ ad_block_block_655bd7a48fbf5: popAds(1) }\">\n      <template x-for=\"ad in ad_block_block_655bd7a48fbf5\">\n        <a\n          :href=\"ad.linkURL\"\n          class=\"no-underline text-black\"\n          x-on:click=\"adClicked('https:\/\/www.biggerpockets.com\/blog\/how-high-interest-rates-have-impacted-helocs', ad.sponsor, ad.title, ad.id, 'blockAdClicked', 'blockAd', '')\"\n          target=\"_blank\">\n          <div\n            class=\"py-4 border-b flex flex-col flex-nowrap text-sm border-t px-0 rounded-none\"\n            x-init=\"\n              analytics.track('blockAdLoaded', {\n                referrer: 'https:\/\/www.biggerpockets.com\/blog\/how-high-interest-rates-have-impacted-helocs',\n                sponsor: ad.sponsor,\n                ad_title: ad.title,\n                ad_page_location: ''\n              })\n            \"\n            x-intersect:enter.once=\"adViewed('https:\/\/www.biggerpockets.com\/blog\/how-high-interest-rates-have-impacted-helocs', ad.sponsor, ad.title, ad.id, 'blockAdViewed', 'blockAd', '')\">\n            <div><span class=\"text-xs text-slate-light block bg-slate-50 p-1 inline-block rounded-md\">Sponsored<\/span><\/div>\n            <div class=\"flex items-center text-sm space-x-4\">\n                <img :src=\"ad.imageURL\" :alt=\"ad.imageAlt\" class=\"h-10 w-10 object-cover rounded-full\">\n\n                <div clas=\"text-sm\">\n                    <span class=\"font-bold block\" x-text=\"ad.sponsor\"><\/span>\n                    <span class=\"text-slate\/80\" x-text=\"ad.description\"><\/span>\n                <\/div>\n            <\/div>\n\n            <div>\n                <span class=\"font-bold\" x-text=\"ad.title\"><\/span>\n                <p class=\"mt-2 text-slate\/80\" x-text=\"ad.body\"><\/p>\n                <span class=\"mt-2 text-themeBlue block mt-2 underline\" x-text=\"ad.linkTitle\"><\/span>\n            <\/div>\n          <\/div>\n        <\/a>\n      <\/template>\n  <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What Is a HELOC?&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">A&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-a-heloc\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">HELOC<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;stands for a home equity line of credit. It\u2019s a revolving credit line that property owners can get from most lenders if you have equity in your home. A HELOC is similar to a credit card, where you can use it over and over again. Each time you make a payment, you have more credit you can use.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Most HELOCs have variable interest rates. If you have had a HELOC for more than two years, you have seen the rate go from 3% to 5% to somewhere in the 8% to 10% range.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Some lenders offer a fixed interest rate, which allows you to lock in the interest rate for a specific period. A fixed interest rate may not be the best option since interest rates are high right now, but it\u2019s definitely something to consider if you think interest rates will continue to rise.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Available Home Equity<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">According to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cnbc.com\/2023\/09\/07\/americans-have-almost-30-trillion-in-home-equity-how-to-tap-it.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">CNBC<\/span><\/a><span data-preserver-spaces=\"true\">, Americans have $30 trillion in home equity as of September 2023, which comes out to around $200,000 in tappable equity per homeowner. Most lenders offer an 80% loan-to-value (<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/loan-to-value-ratio\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">LTV<\/span><\/a><span data-preserver-spaces=\"true\">) ratio HELOC. While you may not be able to tap into the entire amount of equity in your home, you can still likely access close to six figures.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">That is a lot of money for people to leverage. In fact, if you are a real estate investor or you want to start buying real estate, using a HELOC can be a great way to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/mindsets-to-help-you-grow-your-real-estate-business\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">scale your real estate portfolio<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;while using the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-home-equity\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">equity<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in your home and leaving cash in your pocket.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Due to the large amount of equity in homes and high interest rates, it may be easy to make large purchases and not be able to make the payments, so it\u2019s important to use a HELOC cautiously. I am not an advocate of getting a HELOC to use it like a credit card. However, if you use a HELOC, my recommendation is to buy something that generates income that will pay down the HELOC over time: more real estate.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Effects of High Interest Rates on HELOCs<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Tightening terms<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">It was not unheard of for lenders, usually local lenders, to offer a HELOC LTV of 90% or more. In fact, just two years ago, I saw some lenders at 95% to 100% LTVs. This higher LTV gave you more borrowing power.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Some lenders even offered interest-only options for HELOCs. Many lenders also offer introductory interest rates. Some of these were as low as 0.99% for six months to entice you to use them as a lender.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, due to rising interest rates, lenders have tightened their terms. Most lenders are not offering an interest-only option anymore, and they have reduced the LTV to 80%. Some lenders have even removed the introductory interest rate period altogether. And there are other lenders that do not offer HELOC options at all.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">HELOCs vary widely among lenders, and these are generalizations. If you are looking to get a HELOC, reach out to three to seven different lenders and weigh all the options.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Increased borrowing costs and monthly payments<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">We will look at an example in the next section, but I want to mention that the higher interest rates on HELOCs mean it will be more expensive to use a HELOC (or any credit, for that matter).&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">When you are looking to get a HELOC, keep in mind that this is not a set monthly payment like a typical&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-a-mortgage\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">mortgage<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;or car loan. It is like a credit card, where it will vary each month based on the outstanding balance.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">In addition to the fact that the outstanding balance could change each month, a fluctuating interest rate could impact the payment amount and increase the cost of borrowing money. Your monthly payment may increase or decrease, but the cost of interest is something to keep in mind when looking for your next property.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Affordability factor<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">HELOCs are becoming less affordable than they were not even two years ago, but that doesn\u2019t mean they are no longer an option. It just means to account for the changes in interest. Higher interest rates mean you are paying more in interest, obviously.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here\u2019s an example of how rising interest rates have impacted HELOCs. Let\u2019s say you have a HELOC for $100,000. If you are using a HELOC as a down payment for a single-family home and need to borrow $50,000 for the down payment and closing costs, in early 2022, your interest rate was 4.25%.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Therefore, in early 2022, these were the numbers:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Balance:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;$50,000<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Interest rate:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;4.25%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual interest payment:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;$2,125<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Then, in late 2023, these were the numbers:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Balance:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;$50,000<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Interest rate:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;10%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual Interest payment:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;$5,000<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">The interest payment would have gone up by almost $3,000 a year, or roughly $240 a month.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">That does not make this example a deal-breaker by any means. It just means that this investment would have less cash flow than it would have two years ago.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Of course, if you are using more than $50,000, the increase in interest rates may mean that you will not be able to afford the investment property. When I underwrite&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">multifamily<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rookie-340\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">self-storage<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;deals, I lean toward being conservative. I will typically inflate the interest rates slightly to take into account the changes in the interest rates. In general, it\u2019s a good practice to underwrite conservatively.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Impact on home equity<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">We are seeing some markets and asset classes take a hit in equity due to high interest rates. For example, the median home prices in Austin, Texas; Salt Lake City; Seattle; and Boise, Idaho, have dropped by 3% to 5% in value. This is due to lower demand. Properties are sitting on the market longer, and sellers are offering concessions we haven\u2019t seen in many years.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">When homes go down in value, the equity also drops. While this is not a huge concern, it is something to be aware of when looking for a HELOC. With the above percentages in mind, this would mean that a home that was valued at $600,000 would be around $25,000 less, lowering the amount you could get on a HELOC.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Variable rates and fixed rates<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you are just looking into getting a HELOC, the interest rates are around 10%. A variable rate is most common among HELOC lenders. The good news with a HELOC is when interest rates do come down, the interest rate on the HELOC will drop as well.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, just because it is a variable interest rate does not always mean that it will increase as soon as the Fed makes a change. Some lenders will change interest rates monthly, quarterly, or annually. It is important to ask lenders how often the rate could change.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For fixed-rate HELOCs, you will be locked into the interest rate offered to you when you apply for a HELOC. However, when interest rates come back down, you may have an interest rate that is higher than what the market is offering at the time.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Check with a lender to see how long that interest rate will be locked in. It may not be the entire draw period. In addition, you may be able to refinance a HELOC when interest rates come down, so you will not always be locked into the higher interest rate.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">You may be wondering why you would ever use a HELOC when the interest rates are so high. While interest rates have impacted HELOCs, consider the alternative:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Do you have the capital to invest in real estate?&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Do you want to use a credit card and pay the 20%-plus interest rate or close to 30% cash advance fees?<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Are you using a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/real-estate-companies\/hard-money-lenders\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">hard money lender<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;that offers 10% interest and a couple of points each time?&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Do you want to wait until interest rates come back down?<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">How can a HELOC still help me scale my portfolio?<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">For me, the higher interest rates are not a big concern since I buy cash-flowing properties that pay down the HELOC balance and allow me to start building equity in the properties. It has helped me purchase several properties that I would not have been able to buy if I just saved for them.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">HELOCs, when used properly, are a very powerful strategy to grow your real estate portfolio. They have allowed us to scale our portfolio regardless of the interest rate changes.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If I can get into a property now using higher interest rates, that just means that when interest rates come down, the properties will have better cash flow. I see&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-im-using-helocs-to-build-wealth\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">HELOCs as a great tool<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;to help me get to my end goal.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Consider all of your options, and make the best decision for you, your family, and your business.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_09412024cc451ce20e4a7788fe44b0c5\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_4221b89424c422b854d5ba069587a876\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=button-custom-event-block_04fea160e4e938b805c5de7619bb765f class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Lender Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/how-high-interest-rates-have-impacted-helocs&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/how-high-interest-rates-have-impacted-helocs&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Stop being concerned with ROI and IRR. Stop putting yourself in speculative positions. The path to wealth is boring, and this is what you should be paying attention to.<\/p>\n","protected":false},"author":613709,"featured_media":162546,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,7402],"tags":[],"class_list":["post-162542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends","category-traditional-loans"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/162542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613709"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=162542"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/162542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/162546"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=162542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=162542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=162542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}