BEND HELOC RATES TODAY
Current HELOC rates in
Bend, OR.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Current HELOC rates in
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Key Points
• Home equity line of credit rates in Bend are influenced by the prime rate and by individual borrower profiles.
• Homeowners can usually borrow up to 90% of their home equity with a HELOC.
• Variable interest rates can sometimes lead to unpredictable monthly payments.
• If you’re looking for a more predictable payment, a fixed-rate home equity loan could be a better choice.
• A HELOC can be a smart way to fund home improvements, debt consolidation, or other large expenses.
Introduction to HELOC Rates
This article is your comprehensive guide to HELOC rates in Bend, Oregon. You’ll gain insight into the factors that sway these rates, the pros and cons of HELOCs, and how to effectively compare offers from various lenders to secure the best option for your needs. Whether you’re considering a home improvement project or require funds for other purposes, a grasp of HELOC rates will empower you to make a well-informed decision. First step? Make sure you understand what a home equity line of credit is.
What Exactly Is a HELOC?
A HELOC is a revolving credit line that uses your home’s equity (the value of your home less the amount you still owe on your home loan) as collateral. To qualify, you typically need to have at least 15% equity in your home. With a HELOC, you can typically borrow up to 90% of your equity. Because you’re securing the HELOC with your home, you want to make sure you have a plan to make your payments — otherwise, the lender could foreclose on your home. HELOCs have variable interest rates, so the amount you owe might go up or down according to larger market forces. It’s also important to understand that a HELOC has two phases, and payments will be different in each.
The Draw Period
During the HELOC’s initial draw period (usually 10 years) you can access funds in increments, as needed. You’ll have to pay interest on what you borrow, but most lenders won’t require you to pay down the principal — although you can do so if you wish to draw on the credit line again. A HELOC interest-only calculator is useful during the draw period.
The Repayment Period
After the draw period ends, the repayment period of 10 to 20 years begins. Monthly payments will increase as you begin to repay the principal plus interest. HELOC interest rates are usually variable, which means the amount you pay each month may go up or down as rates change. A HELOC monthly payment calculator can help you compute what you might owe.
The Origin of HELOC Interest Rates
Lenders peg HELOC rates to the prime rate, which is influenced by the Federal Reserve’s monetary policies. Each lender then adds a margin to the prime rate, resulting in the range of HELOC rates you see across different financial institutions. However, lenders also take into account individual borrower factors such as credit score, debt-to-income (DTI) ratio, and the amount of equity in the home before setting a specific interest rate. This means it’s a good idea to shop around and obtain rate quotes from multiple lenders before zeroing in on your lending partner.
How Interest Rates Impact HELOC Affordability
It’s worth spending time to seek out the best rate in Bend because even a seemingly small difference in your HELOC rate can make a noticeable impact on your overall costs. For example, if you used $50,000 from a HELOC during your 10-year draw period, the difference in the monthly interest payment based on an 8.50% versus a 9.50% rate is $42 per month (monthly payments would be $354 and $396, respectively). That might not seem like a big deal, but over time, interest costs can add up. And if you were in a 20-year repayment period, paying both the principal and interest, getting the lower interest rate would save you more than $3,000.
Recommended: Different Types of Home Equity Lending
HELOC Interest Rate Trends
Although the prime interest rate doesn’t provide a crystal ball for HELOC rates, it does offer a helpful glimpse into the future. Since 2018, the prime rate has seen a range of 3.25% in 2020 to a peak of 8.50% in 2023. By understanding this historical ebb and flow, you can better prepare for potential rate changes and manage your finances accordingly.
| Date | U.S. Rate |
|---|---|
| 9/19/2024 | 8.00% |
| 7/27/2023 | 8.50% |
| 5/4/2023 | 8.25% |
| 3/23/2023 | 8.00% |
| 2/2/2023 | 7.75% |
| 12/15/2022 | 7.50% |
| 11/3/2022 | 7.00% |
| 9/22/2022 | 6.25% |
| 7/28/2022 | 5.50% |
| 6/16/2022 | 4.75% |
| 5/5/2022 | 4.00% |
| 3/17/2022 | 3.50% |
| 3/16/2020 | 3.25% |
| 3/4/2020 | 4.25% |
| 10/31/2019 | 4.75% |
| 9/19/2019 | 5.00% |
| 8/1/2019 | 5.25% |
| 12/20/2018 | 5.5% |
| 9/27/2018 | 5.25% |
Source: U.S. Federal Reserve
Variable vs. Fixed Interest Rates
HELOCs often come with variable (also called adjustable) interest rates, meaning they can change over the life of the loan. These rates may start lower than fixed rates, but they can go up or down as the market shifts. It’s not wholly unpredictable, however. Your HELOC agreement will spell out how often your rate can adjust, and by how much. If you can get comfortable with the idea of paying rates that fall within the guardrails spelled out in your agreement, a HELOC might suit you. If you prefer consistent monthly payments, there are alternative borrowing options covered below.
Helpful Tools and Calculators
One way to check your comfort level with variable interest rates is to use a HELOC calculator to compute what your monthly payments would be, during either the interest-only (draw) phase or the repayment phase. Give different borrowed amounts and interest rates a test-drive with an online calculator before committing to a HELOC.
Run the numbers on your HELOC.
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Home Equity Loan
CalculatorEnter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
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HELOC Payment
CalculatorPunch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
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HELOC Interest Only
CalculatorUse SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
How to Qualify for a Competitive HELOC Rate
To qualify for a HELOC you will likely need 15% equity in your home, a credit score of at least 640, and a DTI ratio below 50%. But to qualify for the best interest rate available in Bend, you’ll need to aim higher. Follow this advice:
Improve Your Credit Score
Keeping your credit score at 700 or above is a smart move if you’re aiming for the best HELOC rates. Making payments on time and reducing credit card balances can give your credit score a lift, as can correcting any errors that you find in your credit report. Avoid closing old credit accounts or opening new ones in the months before you file a HELOC application.
Calculate Your Debt-to-Income (DTI) Ratio
To take advantage of the best HELOC rates, you’ll want a DTI ratio under 36%. To determine your DTI, add up all your monthly debt payments and divide by your gross monthly income. To improve your ratio, try to pay off some debt, increase your income, or do both.
Application Process for a HELOC in Bend
The application process for a HELOC in Bend is straightforward. You can start by prequalifying online, which can give you a clear picture of the rates and terms you might expect. If you decide to proceed with the full application, these are the steps:
Step 1. Run the Numbers
First things first, check your equity level (as we’ve seen, you need 15% equity, at minimum). Also look at your credit score (it should be at least 640) and DTI ratio (it should be 50% or lower). If you pass with flying colors on all three, move on.
Step 2. Compare Lenders
As you explore lenders’ offers, don’t just look at interest rates. Compare qualification requirements, credit line maximums, fees, and the length of the draw and repayment periods a lender offers, among other factors. Look for lenders with competitive HELOC rates in Bend and terms that suit your needs.
Step 3: Submit Your Application
Gather your papers, including your ID, proof of income, and details about the property you’re using as collateral. For income, you’ll usually need to show your most recent pay stubs, W-2s, and tax returns. If you’re self-employed, you might need to provide a profit-and-loss statement and your tax returns from the last two years. For your property, you’ll need a homeowners insurance declaration page. Once you’ve got everything together, you can start your application online, over the phone, or in person.
Step 4: Get an Appraisal
It’s likely that the lender you apply to will require this step, in which a pro visits your home, gives it a good look, and then crunches the numbers to see what it’s worth in today’s market. The cost? Usually between $300 and $600. If your home’s value comes in higher than what you owe, to the point that you meet the minimum equity needed for a HELOC, your lender could give you the green light. This step is key in nailing down how much equity you can tap into and the terms you’ll score.
Step 5: Prepare for Closing
Once you’re approved for a HELOC and decide to move forward, you’ll need to sign the HELOC documents and take care of any associated fees. Most lenders will let you access funds within three business days of the HELOC closing. Before you sign on the dotted line, be sure you understand all the terms and conditions. This is an important step to avoid any surprises and to make sure you’re prepared to use your HELOC.
Recommended: HELOC vs. Home Equity Loan
Closing Costs and Fees
HELOC closing costs are generally more affordable than those associated with purchasing a home or a cash-out refinance. The priciest item is often the appraisal fee. A title search, if needed, might set you back $100 to $450. You could also encounter application, origination, and administrative fees, as well as annual maintenance fees that could reach up to $250. Certain lenders might charge transaction, inactivity, or early termination fees.
Tax Benefits and Considerations
HELOC interest costs can be tax-deductible, but only if the funds were used to significantly improve your primary residence. These tax guidelines are good through 2025. To make sure you’re getting the most out of your HELOC, it’s a good idea to consult with a qualified tax advisor to confirm your eligibility for any deductions and to help you stay on track with HELOCs and taxes in 2026 and beyond.
Alternatives to HELOCs
A HELOC isn’t the only way to get equity out of your home, and it’s worth exploring all alternatives if you aren’t sure a variable-rate credit line is right for you.
Home Equity Loan
A home equity loan provides you with a lump sum at a fixed interest rate, and you’ll begin making principal-plus-interest payments at once. You can typically borrow up to 85% of your equity. Lenders look for a credit score of 680 or more, with many favoring 700 and above. This option is great if you have a specific need for a defined amount of money and prefer the predictability of fixed payments.
Recommended: Home Equity Loan Calculator
Cash-Out Refinance
A cash-out mortgage refinance is another method you can use to borrow based on your equity. In this case, you would refinance your mortgage for more than you currently owe and pocket the difference. Typically, you’ll need a credit score of 620 or higher and a DTI ratio below 43%. If you are thinking about a cash-out refinance vs. a home equity line of credit, one difference is that with a refi, you can choose a fixed or variable interest rate.
Personal Loan
A personal loan is an unsecured loan that you repay in regular, fixed installments over a period of two to seven years. The key benefit here is that your home is not at risk of foreclosure should you encounter financial challenges and be unable to make your loan payments. Most lenders look for a credit score of 610 or higher for this type of borrowing. While these loans are relatively quick to secure, the interest rates may be higher compared to HELOCs or home equity loans.
The Takeaway
Before you commit to a HELOC, it’s wise to consider the full picture. Yes, the lower interest rates are appealing, and there’s the potential for interest to be tax deductible. But on the flip side, there’s the sobering thought of losing your home if payments aren’t met. So, before you leap, take a moment to run some sample borrowed amounts and interest rates through an online calculator to see if you feel you can handle the payments. Then shop around for the best HELOC rates in Bend by seeking out rate quotes from multiple lenders.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
What can a HELOC be used for?
A HELOC is very versatile. You can use it for home improvements, education costs, consolidating your higher interest debt, or any other purpose. It works much like a credit card, allowing you to draw funds as you need them and repay over time. The interest on a HELOC may be tax-deductible if the loan funds are used to improve your home, but you should check with a tax advisor about your specific situation to be sure.
What would the monthly payments be on a $100,000 HELOC?
Your monthly HELOC payments will vary based on the interest rate and the repayment period. During the draw period, which typically lasts 10 years, you’ll usually make interest-only payments. Once the repayment period starts, you’ll pay both the principal and interest. If you borrowed the full $100,000 during the draw period and had an 8.00% rate, you might pay around $667 per month. Once the repayment phase kicks in, you would start paying down the principal, which would adjust your monthly payment upward to $1,213. Remember, HELOCs have variable interest rates so your exact numbers may differ.
Do you need an appraisal for a HELOC?
An appraisal is generally required during the HELOC application process to ascertain the value of your property and the equity you have. This step is crucial for lenders to evaluate the risk and establish the credit limit for your HELOC.
Will a HELOC impact my credit score?
Just applying for a HELOC might cause a minor, short-lived drop in your credit score due to the credit inquiry a lender will do as part of the application process. But making on-time HELOC payments and keeping your credit utilization low can actually boost your score. Just avoid missing payments, as doing so can have a negative effect.
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More HELOC resources.
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What is a Home Equity Line of Credit
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Different Types of Home Equity Loans
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HELOC vs Home Equity Loan: How They Compare