GREENVILLE HELOC RATES TODAY
Current HELOC rates in
Greenville, SC.
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 are influenced by the prime rate and borrower creditworthiness.
• Homeowners can usually borrow up to 90% of their home equity with a HELOC.
• HELOCs have two main phases: the draw period and the repayment period.
• With variable rates, monthly payments can fluctuate, so it’s important to be prepared.
• HELOCs come with the risk of foreclosure if you don’t manage them properly.
Introduction to HELOC Rates
In this guide, we’ll take a deep dive into home equity line of credit rates in Greenville, South Carolina, so you can confidently get equity out of your home. We’ll cover the factors that impact HELOC rates, the pros and cons of these financial tools, and how to shop around for the best deal. Whether you’re dreaming of a home makeover, looking to streamline your debt, or have a big expense on the horizon, we’ll empower you to make savvy financial choices.
What Exactly Is a HELOC?
A HELOC is a revolving credit line secured by your home equity (the value of your home less the amount you owe on your home loan). Most lenders will require you to have at least 15% equity in your home to qualify for a HELOC. You can typically borrow up to 90% of that equity. HELOCs have two main phases: the draw period and the repayment period. It’s important to understand how payments differ in each phase, given that missing payments can result in a lender foreclosing on your home.
The Draw Period
Borrowers first have a draw period, often 10 years, during which they can borrow in increments up to a specified credit ceiling. During this time, you would only have to make interest payments on what you have borrowed. A HELOC interest-only calculator can show you what these payments might look like.
The Repayment Period
After the draw period comes the repayment period, which can last up to 20 years. At this time, you won’t be able to borrow any more, and you’ll begin to pay back the principal plus interest, so monthly payments may increase. A HELOC monthly payment calculator can help you see how much your payments might be at this stage.
Recommended: Different Types of Home Equity Lending
The Origin of HELOC Interest Rates
HELOC interest rates are linked to the prime rate, which is shaped by the Federal Reserve’s actions. Each lender then adds a margin to the prime rate, which is why you’ll find varying HELOC rates (and why it’s so important to seek rate quotes from multiple lenders before committing to a HELOC). Lenders also take into account factors such as your credit score, debt-to-income (DTI) ratio, income, and the amount of equity in your home.
How Interest Rates Impact HELOC Affordability
It’s no secret that interest rates play a big role in how affordable a HELOC is for you. Even a small difference in rates can add up to significant extra interest payments over time. For example, let’s say you have a $50,000 HELOC and borrow the full amount at 8.50%, repaying it over 15 years. In this case, you would have monthly payments of $492 during the repayment period and total interest of $38,627. But at a 9.50% rate, the monthly payments would be $522 and the total interest would be $43,980. HELOC rates are variable so your actual results will differ. But a lower starting rate is better.
HELOC Interest Rate Trends
While no one can predict the future, keeping an eye on the prime rate can offer some valuable insights. Over the years, we’ve seen it fluctuate from an unusually low 3.25% in 2020 to a high of 8.50% in 2023. Understanding this historical data can give you a sense of the potential ups and downs of HELOC rates and can also help put whatever rate you’re seeing in the current market into perspective.
| 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, which means your rate can change based on the market. This means your rate can be a bit unpredictable, but it’s not entirely so. Your HELOC agreement will spell out how often your rate can change and how much. You can put the potential high and low rates into a HELOC calculator to see what your payments might look like at various borrowing levels. That should help you decide if you can manage payments within the parameters. If you can’t, there are alternatives to a HELOC — we’ll get into those details below.
Helpful Tools & Calculators
Before you take the leap and apply for a HELOC, you can use online tools to get a sense of what your monthly payments and interest costs might look like. Here are three useful calculators you’ll want to keep handy.
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 secure an attractive HELOC rate, you must meet specific criteria. Lenders typically look for a minimum credit score of 640, a DTI ratio below 50%, and at least 15% equity in your home. But a stronger credit score and lower DTI ratio could lead to more favorable HELOC rates. Learn how to get there:
Improve Your Credit Score
A credit score of 700 or higher can help you get the best HELOC rates. Making timely payments and chipping away at credit card balances can give your score a lift. Also check your credit report for errors and dispute any you find. Keep old credit accounts open and avoid opening new credit accounts in the months leading up to a HELOC application.
Calculate Your Debt-to-Income Ratio (DTI)
Your DTI ratio is a simple calculation: Divide your total monthly debt payments by your gross monthly income. When it comes to HELOC applications, lenders typically favor a DTI below 36% when they hand out the lowest interest rates. To boost your chance of making the grade, reduce your debt or increase your income — or better yet, do both.
Application Process for a HELOC in Greenville
The application process for a HELOC in Greenville is a breeze when you prequalify online. This initial step gives you a clear picture of the current HELOC rates and the amount you could qualify for. Once prequalified, simply gather the necessary documentation and submit a formal application to the lender. They’ll take a good look at your credit history, income, and property value to determine your eligibility and the specific terms of the loan.
Step 1: Run the Numbers
Before you apply for a HELOC, it’s wise to take a good look at your financial landscape. Start by checking your credit scores from all three major credit bureaus and calculating your debt-to-income (DTI) ratio. Also assess your home equity: Subtract your outstanding mortgage balance from your home’s estimated value. Then divide the answer by your home value to arrive at a percentage. As noted above, you’ll need at least 15% equity to move forward.
Step 2: Compare Lenders
To find the best HELOC lender in Greenville, you’ll want to compare rates and terms from multiple possible lending partners. Look at the interest rates, qualification requirements, minimum and maximum amounts you can borrow, fees, and the length of the draw and repayment periods. Because the terms vary from lender to lender, it’s important to shop around and read the fine print before you commit to a HELOC.
Step 3: Submit Your Application
Now it’s time for the paperwork (which might be completed online). You’ll need your government-issued ID, recent pay stubs, W-2 forms, and copies of your last tax return. If you’re self-employed, a lender may ask for a profit-and-loss statement in addition to two years’ worth of tax returns. Property documentation includes a homeowners insurance declaration page. Submit your HELOC application online, over the phone, or in person.
Step 4: Get an Appraisal
A home appraisal is usually necessary to determine your home’s value. The cost ranges from $300 to $600. This step is important in determining the amount of equity you can potentially access and the specific terms of your HELOC agreement. A prospective lender will tell you what kind of appraisal is required, so wait for instructions.
Step 5: Prepare for Closing
Once you’ve been approved, you’ll need to sign the HELOC agreement and pay any closing costs before you can access your HELOC funds. You may have to pay for an appraisal, title search, origination fee, and other fees. Some lenders charge an annual fee. Be sure you know all the costs involved with the HELOC.
Recommended: HELOC vs. Home Equity Loan
Closing Costs and Fees
When it comes to HELOCs, the good news is that closing costs are generally more affordable than what you’d encounter with a home purchase or a cash-out refinance. The appraisal fee is often the most significant expense. You might also see a title search fee (anywhere from $100 to $450), an application fee, origination fee, and some administrative fees. Keep an eye out for potential annual maintenance fees, which could be up to $250, and transaction fees for withdrawals.
Tax Benefits and Considerations
Here’s a nice counterpoint to the closing costs you’ll pay: If you use your HELOC to cover the cost of significantly improving your home, the interest could be deductible on your 2025 federal taxes. Chat with a tax advisor to make sure you’re on the right track and to confirm your eligibility, and keep records of how you spend your HELOC funds. HELOC tax benefits may change in future tax years but your tax advisor can help you keep tabs on that.
Alternatives to HELOCs
There are other ways to tap into your home equity, beyond a HELOC, and if you’re not sure about this borrowing strategy (or if you just want to cover all bases), take some time to study your options:
Home Equity Loan
With a home equity loan, you get a fixed-rate loan secured by your home equity. You’ll get the money all at once and begin repaying it immediately. You can usually borrow up to 85% of your equity. Lenders look for a credit score of 680 or higher, though as with a HELOC, 700 is preferred. If you like the predictability of a fixed interest rate, this might be a good fit. A home equity loan calculator can help you assess your borrowing power.
Cash-Out Refinance
A cash-out mortgage refinance lets you borrow against your equity by trading your existing mortgage for a new, larger one. You’ll pocket the difference to use as you wish. To qualify, you’re generally going to need a credit score of 620 or higher, and a DTI ratio under 43%. You can choose fixed or variable rates. A cash-out refinance vs. home equity line of credit point of difference? The former leaves you with one monthly payment.
Personal Loan
A personal loan is typically unsecured, so you don’t risk foreclosure if you find yourself unable to make payments. It’s typically repaid in regular, fixed installments over two to seven years. Many lenders look for a credit score of 610 or higher for these loans, so this is an option if you think you can’t qualify for a HELOC. While they’re relatively speedy to secure, personal loans’ interest rates may be higher than those of HELOCs.
The Takeaway
As you mull over the possibility of a HELOC, consider the benefits and the potential pitfalls: A line of credit offers flexibility in your borrowing and HELOC interest rates are usually better than those for personal loans. But fluctuating interest rates and the risk of foreclosure are not to be taken lightly. Always take the time to weigh your financial situation and compare lenders’ rates before committing.
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’s the monthly payment on a $100,000 HELOC?
The monthly payment on a $100,000 HELOC can fluctuate depending on how much of the credit line you have used and the current interest rate. If you borrow the full $100,000 during the draw period and have an 8.00% rate, you might only pay around $667 per month, covering the interest. Once the repayment phase kicks in, you would start paying down the principal, which will adjust your monthly payment upward to $1,213. Remember that HELOC rates are variable so your exact results will differ.
What could prevent you from getting a home equity loan?
There are a few things that might prevent you from securing a home equity loan, such as a less-than-ideal credit score, a high debt-to-income ratio, or not enough equity built up in your home. Most lenders look for a credit score of 680 or better, a debt-to-income ratio under 50%, and at least 15% equity in your home. Other factors, like a history of late payments, significant existing debt, or a recent foreclosure, could also be red flags.
How tough is it to get a HELOC?
Obtaining a HELOC is quite manageable if you meet the lender’s basic criteria: a credit score of 640 or better, a DTI ratio under 50%, and at least 15% equity in your home. The application process involves a review of your credit history, a professional appraisal of your home, and a closing where you’ll sign documents and pay fees.
Will HELOC impact your credit score?
A lender’s initial inquiry into your credit score which is part of the application process to open a HELOC could cause a slight dip in your credit score, but that’s just a temporary blip. What really matters is how you manage your HELOC over time. Make your payments on time, and you could see your score rise. Miss payments, and it could drop. And remember, as with credit cards, keeping your credit utilization low and not maxing out your use of the credit line can help you maintain a healthy score.
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SOHL-Q225-425
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