IDAHO FALLS HELOC RATES TODAY
Current HELOC rates in
Idaho Falls, ID.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Current HELOC rates in
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Compare HELOC rates in Idaho Falls.
Key Points
• Home equity line of credit interest rates are tied to the prime rate but affected by each borrower’s individual financial profile.
• Homeowners can borrow up to 90% of their home equity.
• To get the best HELOC interest rate, you’ll want a credit score of 700 or more.
• HELOCs come with a draw period and a repayment period, with a different payment structure in each phase.
• There can be tax benefits if you use HELOC funds for substantial home improvements.
Introduction to HELOC Rates
Our guide to home equity line of credit (HELOC) rates in Idaho Falls, ID, will show you how interest rates are determined and share advice on how to qualify for the best rates and terms. We’ll also cover the benefits and risks of HELOCs, how to compare lenders, and the tools you can use to estimate your monthly payments and total interest costs. Armed with this information, you’ll be well equipped to get equity out of your home in Idaho Falls.
What Is a HELOC?
A HELOC is a flexible line of credit secured by your home’s equity (the value of your home less the amount you owe on your home loan). Most homeowners can borrow up to 90% of their equity. To qualify for a HELOC, you’ll need at least 15% equity in your home. And because you are borrowing with your equity as collateral, it’s important to note that you could be at risk of foreclosure if you fail to make your HELOC payments. You can use a HELOC to make purchases as needed during the first of two phases:
The Draw Period
In the HELOC’s initial draw phase, typically 10 years, you can borrow money as you need it, up to whatever credit line your lender has established. Most lenders only require you to pay interest on what you have borrowed during this time. HELOCs have variable interest rates, and a HELOC interest-only calculator is a useful tool at this time.
The Repayment Period
Once you hit the repayment period, you’ll stop borrowing and start making monthly payments of both principal and interest. Again, the interest rate is variable so payments aren’t always predictable. A HELOC monthly payment calculator can help you estimate what you might owe depending on the amount you’ve borrowed and your current rate.
Recommended: Different Types of Home Equity Lending
The Origin of HELOC Interest Rates
HELOC interest rates are tied to the prime rate, which is influenced by the Federal Reserve’s policies. Each lender adds a margin to the prime rate, which is why HELOC rates can vary among lenders. It’s important to shop around and get multiple rate quotes before committing to a HELOC, because lenders also consider individual factors such as your credit score, debt-to-income (DTI) ratio, and the amount of equity you have in your home.
How Interest Rates Impact HELOC Affordability
It’s worth spending time shopping around, because interest rates are so important when you have a HELOC. Even an increase of a single percentage point can mean a big difference in the amount of interest you’ll pay. Let’s say you borrowed $100,000 with a HELOC that had a 20-year repayment term. If your interest rate was 7.00%, you’d pay $775 per month and a total of $86,072. But if it was 8.00%, your monthly payment would be $836 and your total interest would be $100,746. Of course, HELOCs’ variable rates mean your real-world results would vary, but the fact that lower rates are better remains a constant.HELOC Interest Rate Trends
By keeping an eye on the prime interest rate, you can gain a sense of where HELOC rates are heading in the near-term. And having a sense of the history of the prime rate can help put current rates into perspective. The prime rate hit a low of 3.25% in 2020 and a high of 8.50% in 2023. You may not be able to wait until rates are quite as low as 2020. But there are things you can do before applying for a HELOC that will help improve your chance of getting a lower rate. We’ll get into those details below.
| 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 are known for their variable (also called adjustable) interest rates, which are subject to change based on market conditions. The interval at which the rate can change, the amount that it can shift, and the cap on total rates are specified in a HELOC agreement, so borrowers will have a sense of where their rates might go. If you’re uncomfortable with any uncertainty, you’ll want to think through whether you can handle shifting rates.
Helpful Tools and Calculators
Before you apply for a HELOC, you can use online tools to get an idea of what your monthly payments and overall interest costs might be. Here are a few calculators you’ll find especially useful.
Run the numbers on your HELOC.
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Home Equity Loan Calculator
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
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HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
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HELOC Interest Only Calculator
Use 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 obtain the most competitive HELOC rate possible, there are a few steps you can take in the months prior to submitting an application. First, you’ll want to make sure you’ve hit the 15% minimum home equity objective: Subtract whatever you still owe on your mortgage from your home’s estimated value. Divide the product by your home value to get a percentage of equity. Now move on to the next two steps.
Improve Your Credit Score
To ensure you’re in the position to secure a good HELOC rate, you’ll want a credit score of 700 or higher. Fortunately, you have the power to change your score. Making timely payments and reducing credit card balances are two effective strategies. Also, be sure to check your credit report for any errors and dispute any you find. Keeping old credit accounts open and using them responsibly can also work in your favor — but avoid opening new accounts. You can get a HELOC with a score as low as 640, but for the sweetest rates, 700 is the goal.
Calculate Your Debt-to-Income Ratio (DTI)
Your DTI ratio is a simple equation: your monthly debt payments divided by your gross monthly income. HELOC lenders generally prefer a DTI under 50%, but for the best interest rates, you’ll want to get your DTI to 36% or less. Reduce what you owe on your debts, increase your income, or — even better — do both.
Application Process for a HELOC in Idaho Falls
Some lenders offer the convenience of prequalifying for a HELOC online, making the process smoother and faster. This preliminary step is a great way to get a sense of the rates and credit limits that might be available to you in Idaho Falls before you commit to a full application. Ready to go to that stage? Follow these steps:
Step 1: Run the Numbers
Start by checking your credit scores and calculating your DTI ratio as described above. Also take a look at your home equity if you haven’t already. The more equity you have, the better position you’re in.
Step 2: Compare Lenders
See what interest rate offers you might qualify for, but then do a deeper dive into the lenders that seem most promising. Look at qualification requirements, minimums and maximums, fees, and the length of both the draw and repayment periods they’re offering. Comparing multiple lenders can help you find the best HELOC rates in Idaho Falls and the terms that best fit your specific financial needs.
Step 3: Submit Your Application
Once you have identified the HELOC rate and terms that look best, you’ll do a full application. Gather your ID, proof of income, and details about the property you’re using as collateral. For income verification, you might need to show pay stubs, W-2s, and tax returns. If you’re self-employed, a profit-and-loss statement and a couple years’ worth of tax returns could be on the list. Also have your homeowners insurance declaration page handy. You can submit an application online, over the phone, or in person. Just doublecheck everything you type in is accurate to keep things moving along smoothly.
Step 4: Get an Appraisal
After you submit an application and solidify your choice of lender, you’ll likely need an appraisal. Work with the lender to ensure you get the appraisal and documentation the lender requires.The typical cost of having a pro weigh in on the value of your home is usually between $300 and $600. If your home is appraised for more than what you owe, you’ll have cleared a bar necessary for a HELOC.
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 make the funds available 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.
Closing Costs and Fees
Closing costs for HELOCs are generally more affordable than what you’d encounter with a traditional home purchase or a refinance. The appraisal fee is often the most significant cost. You might also come across an application fee, an origination fee, and administrative fees. Some lenders may even tack on an annual maintenance fee, which could be up to $250, as well as transaction fees for withdrawals.
Tax Benefits and Considerations
Homeowners can deduct HELOC interest on their 2025 taxes if the funds are used to significantly improve their primary residence. If you’re not sure how this applies to you or what will happen in 2026 and beyond — or if you need help itemizing your return to claim the deduction — talk to a tax advisor.
Recommended: HELOC vs. Home Equity Loan
Alternatives to HELOCs
There are other ways to tap your home’s equity, including home equity loans and cash-out refinancing, and it’s worth exploring these (or considering a personal loan) if you’re not 100% on a HELOC. Here are the details:
Home Equity Loan
Unlike HELOCs, home equity loans provide a lump-sum amount and are paid back at a fixed interest rate. You can usually access up to 85% of the equity you’ve built in your home. Lenders like to see a credit score of 680 or higher, and many prefer 700+ for the best rates. The monthly payments on these loans are predictable. A home equity loan calculator can help you see how much you might be able to borrow with this loan type.
Cash-Out Refinance
A cash-out mortgage refinance is another way for homeowners to tap into their 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. 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 typically unsecured and repaid 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. Most lenders look for a credit score of 610 or higher when considering a personal loan application. While the process is relatively swift, do note that the interest rates are often higher than those of HELOCs or home equity loans.
The Takeaway
When considering a HELOC, it’s important to weigh the benefits and risks. HELOCs offer a flexible, borrow-as-needed approach and potentially lower interest rates than personal loans. However, they come with the risk of losing your home if you default. HELOC rates in Idaho Falls are influenced by the prime rate and borrower finances, so shopping around and comparing rates and terms from multiple lenders is well worth the investment of time.
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FAQ
What would the monthly payments be on a $50,000 HELOC?
The monthly payment on a $50,000 HELOC hinges on the interest rate and the terms for repayment, as well as how much of the credit line you have used and which HELOC phase you are in. During the draw period, you’d usually be making interest-only payments. But once that phase is over, get ready to tackle both the principal and interest, which could mean a jump in your monthly payment.
What are the benefits of a HELOC?
HELOCs are a great option for many reasons. They give you the flexibility to draw funds when you need them to use for any purpose. It’s also helpful for some borrowers that a HELOC’s draw phase means you can pay interest only for up to a decade before beginning to repay the principal. HELOCs also often have lower interest rates than unsecured loans, such as personal loans.
How tough is it to get a HELOC?
The process of securing a HELOC is pretty manageable if you meet the lender’s criteria. Generally, a credit score of 640 or higher, a debt-to-income ratio (DTI) under 50%, and home equity of at least 15% are the minimum requirements, although better numbers will get you better rates. You’ll need to present income verification, credit history, and have your home appraised. While HELOCs are more accessible than cash-out refinancing, they still necessitate a comprehensive evaluation of your financial standing.
Will a HELOC impact your credit score?
A HELOC can quickly have an impact on your credit score. When you first open one, you might see a small decrease due to the lender’s hard credit inquiry. But how you manage your account in the long run is what really matters. Making timely payments can actually boost your score, while missed payments or maxing out your credit limit can do the opposite.
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SOHL-Q225-435
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