At the close of its meeting this week, the Federal Reserve left its benchmark rate unchanged at a range of 3.5% to 3.75% for the fourth meeting in a row — the first decision under new chairman Kevin Warsh. But the projections released alongside it told a more pointed story: With inflation back above 4% and energy prices climbing, there's a significant possibility that the central bank's next move will be a rate hike rather than a cut, possibly before the year is out. 

That means the era of cheap money that borrowers are waiting for may be further off than it looked at the start of the year, which is a discouraging backdrop if you need to borrow money right now. Credit card APRs are still parked near record highs, after all, and rates on mortgages and many other loan products have barely flinched, meaning there are big affordability challenges for those who need to borrow money in today's landscape. 

Still, not every financing option is equally expensive. While some forms of debt continue to carry steep interest charges, others remain comparatively affordable. But how exactly can you borrow money affordably right now? That's what we'll examine below.

Find out how affordable your home equity borrowing options are now.

3 affordable ways you can still borrow money

Borrowers have a few financing options that carry lower rates in today's landscape, including the following:

Home equity lines of credit (HELOCs)

A home equity line of credit remains one of the most affordable borrowing tools available right now. A HELOC taps into your available home equity and functions much like a credit card that's secured by your home. Rather than receiving a lump-sum loan upfront, borrowers can access a credit line as needed during the draw period (up to the credit limit). 

One reason HELOCs are attractive right now is their relatively low interest rates compared to other forms of borrowing. HELOC rates are currently right over 7% on average, which is far lower than the 21%-plus rates many credit card users are carrying today. 

The flexibility is another major benefit. With this type of home equity product, borrowers only pay interest on the amount they actually use rather than the full credit limit. That, in turn, makes HELOCs particularly useful for ongoing projects, emergency expenses or situations where borrowing needs may change over time.

The primary drawback is that most HELOCs carry variable rates, meaning borrowing costs can grow if interest rates move higher in the future. Still, with average HELOC rates sitting well below many other borrowing options, they are one of the most affordable ways for borrowers to access funds right now.

See how much home equity you have to borrow here.

Home equity loans

For homeowners who prefer rate and payment predictability, a traditional home equity loan may be the better choice. Unlike a HELOC, a home equity loan provides a lump-sum payment upfront with fixed monthly payments over a set repayment term. And, because the interest rate is fixed, borrowers know exactly what their monthly obligation will be from the first payment through the last.

This structure can be particularly appealing in today's rate environment. While the Fed just paused rates again at its June meeting, inflation remains elevated and is rising, and future rate movements remain uncertain. So, locking in a fixed rate on a home equity loan can help protect from future rate increases.

Because the loan is secured by the property, home equity loan interest rates are significantly lower than what's being offered on credit cards or personal loans. Case in point? Rates on these borrowing products are currently sitting at 6.98% on average. 

The tradeoff, though, is reduced flexibility. Once the home equity loan is funded, you'll receive the entire amount and the repayment process starts almost immediately, whether you need all of the money right away or not.

Personal loans

Not everyone owns a home, and even homeowners may be hesitant to use their property as collateral. In those situations, a personal loan can provide another way to borrow money without turning to a credit card — and it's also one of the more affordable options to consider right now.

Personal loan rates are generally higher than home equity loan and HELOC rates because they're unsecured, meaning lenders aren't backed by collateral if a borrower defaults. Right now, the average personal loan rate is just under 12.3%, but it's worth noting that this rate is still significantly lower than you'd get with a credit card, making it a more cost-effective option.

Another advantage is predictability. Most personal loans come with fixed interest rates and fixed monthly payments, allowing borrowers to know exactly how much they'll owe each month and have a clear understanding of when the debt will be paid off. That can make budgeting easier, particularly during periods of economic uncertainty.

The downside is that qualification standards can be stricter than some borrowers expect. The best rates are generally reserved for applicants with strong credit scores and stable incomes. Borrowers with weaker credit may still qualify, but they could face rates that reduce the affordability advantage compared to other options.

The bottom line

The Fed's decision to hold rates steady again means borrowers shouldn't expect an immediate drop in borrowing costs. That doesn't mean affordable options have disappeared, however. For homeowners, HELOCs and home equity loans continue to offer some of the lowest borrowing rates available today. And for those who don't own a home — or who prefer not to borrow against it — personal loans can provide a more affordable alternative to revolving credit card debt, particularly for borrowers with strong credit.