With the interest rate decline, is this a good or a bad time to get a home equity loan?

I want to pay off my car loans but I don't know if the interest rate decline helped or hurt me in my attempt. I can handle the payments but I wanted to save more and put more into investments. With the equity loan I can do that, but I don't want to do it if it is a bad time. Please tell me your thoughts.

The fed's interest rate cut only decreases the rate at which bank's pay for money they need. The hope and expectation is that if banks are paying lower interest, they will in turn lower the interest rates they charge to their customers. If and when your bank lowers its interest rate, then it is a relatively good time for borrowers. The cost to borrow money will go down and people will spend more money. This is what the fed hopes will happen when they cut the rate.

So, if you can get a lower rate on a loan than you could previously, then it would be a good time to get the loan (assuming you need it.)

Check your bank. I know some banks in my area right now are offering reduced rates on home equity loans just to get customers. Youre best bet is to meet with someone at the bank, you dont want to be lead into making a wrong decision and drowning in debt. Good luck!

If you don't make the payments on your car loans, you lose the car.

If you get a home equity loan, then don't make the payments, you lose the house.

Is it really worth the risk?

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Now for the math:

$10,000 car loan @ 10% = $251.53 * 48 months = $12,073

$10,000 refi @ 5% = $78.75 * 15 years = $14,175

$10,000 refi @ 5.5% = $56.52 * 30 years = $20,347

Which one's the better deal?