NEVADA HELOC RATES TODAY
Current HELOC rates in
Nevada.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Current HELOC rates in
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare HELOC rates in Nevada.
Key Points
• To secure the best home equity line of credit rates in Nevada, it’s crucial to compare offers from multiple lenders.
• Factors such as credit score, debt-to-income ratio, and home equity play a significant role in determining HELOC rates in Nevada.
• HELOCs can be used for various purposes, including home improvements, debt consolidation, and education expenses.
• A HELOC is like a credit card based on your home equity, with a draw period typically lasting 10 years and a repayment period of 10-20 years.
• HELOC interest rates are tied to the prime rate and can be influenced by broad economic and housing market factors, making it important to monitor current HELOC rates in Nevada.
Introduction to HELOC Rates
If you’re thinking about how to get equity out of your home in Nevada and searching for the best home equity line of credit interest rates, we have you covered. Below you’ll find key points to consider when exploring HELOCs, plus information on how to cultivate the credit score HELOC lenders are looking for.
But first: let us explain what is a home equity line of credit so you can make sure this is the right financing option for you.
What Is a HELOC?
A HELOC is like a credit card with a credit limit that’s based on the home equity that you have built up paying off your home loan each month. You can borrow up to 90% of your home’s value minus your mortgage. Because it’s a credit line, not a lump sum loan, you can borrow as you need money and you only pay interest on the amount of the credit line you actively use. And because borrowers use their home as collateral, a HELOC often has a lower interest rate than many other types of borrowing.
A HELOC has a variable interest rate (meaning it can change during the course of the term), and it also has two phases: draw and repayment. Understand the difference.
The Draw Period
During the draw period of a HELOC, which typically lasts a decade, you can access funds up to your credit limit, make payments to lower your balance, and borrow the money again. Borrowers are usually required to make interest payments during this period, but payments toward the principal may be optional. Using a HELOC interest only calculator can help you determine the potential minimum monthly payment during the draw period.
The Repayment Period
During a HELOC’s 10- to 20-year repayment period, borrowing ends and the principal is repaid with interest. Interest is paid only on the borrowed amount, not the entire credit limit. The variable interest rate can continue to increase (or decrease) during this time.
Where Do HELOC Interest Rates Come From?
HELOC interest rates are tied to the prime rate and can be influenced by broad economic and housing market factors. The prime rate is the benchmark interest rate that banks charge their most creditworthy customers. Federal Reserve policy decisions regarding interest rates can influence the prime rate. Not every borrower gets the prime rate, of course, and lenders adjust the rates they offer HELOC applicants in Nevada based on other factors that we will get to below.
How Interest Rates Impact HELOC Affordability
Interest rates can significantly affect the affordability of a HELOC. When it’s time to repay a $60,000 HELOC, having an interest rate of 6.00% over a 20-year term would equal a monthly payment of $430. A rate of 7.00% would be a payment of $465. Over the entire term, the customer with the 7.00% rate would pay almost $8,500 more in interest. The more you borrow and the higher the interest rate, the larger these numbers get.
HELOC Interest Rate Trends
Fluctuations in the prime interest rate may give you a sense of which direction HELOC rates are headed. It’s helpful to have a sense of the average prime rate’s recent trends if you’re looking at current rates. Since 2018, the prime rate has ranged from a low of 3.25% in 2020 to a high of 8.50% in 2023. The chart and graphic below will give you a sense of how much the prime rate typically swings.
Historical Prime Interest Rate
| 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
Historical U.S. Prime Rates
Factors Influencing HELOC Rates
A number of factors can influence HELOC rates, including home equity, credit score, and income. You’ll want to understand the details before you submit an application.
Home Equity
Having substantial equity in your home is important with HELOCs and all different types of home equity loans. For a HELOC, homeowners typically need at least 15% to 20% equity in their property to qualify, and the more equity you have, the better interest rate you may be offered.
Credit Score
Maintaining a favorable credit score (680 or higher) is of utmost importance when seeking a HELOC at a good interest rate. Some lenders prefer a score exceeding 700. A higher credit score serves as a reliable indicator of reduced risk, thereby enhancing your prospects of qualifying for highly competitive rates on your home equity line of credit.
Stable Income
A lender will look at your overall income, but how consistent that income is will matter as well. A stable income serves as a strong indicator of a lower risk of default. If your income varies, you may be asked to provide more income documentation during the application process.
Loan-to-Value Ratio
Lenders usually require a combined loan-to-value (LTV) ratio of 90% or less for a HELOC. Your combined LTV ratio is the amount you owe on your mortgage plus the amount you wish to borrow with a HELOC, divided by the estimated value of your home. (For this purpose it’s fine to use a home value estimate from a real estate web site; eventually a lender will ask for an appraisal.)
Variable vs Fixed Interest Rates
As noted above, HELOC rates are usually variable, meaning they are subject to fluctuation over the course of the repayment period. They can adjust up or down depending on prime rates, and usually there will be some minimum and maximum adjustment level spelled out in your HELOC agreement. Fixed interest rates are one of the ways a home equity loan is distinguished from a HELOC.
Tools & Calculators
One way to assess your comfort level with variable interest rates is to plug possible rate numbers into an online calculator. You’ll be able to see what your monthly payment might be and how much your borrowing may cost in interest over the long term. Here are three useful calculators:
Run the numbers on your HELOC.
-
Home Equity Loan Calculator
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
-
HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
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 qualify for the most competitive HELOC rates available in Nevada, it is crucial to focus on improving your credit score and maintaining a low debt-to-income ratio, among other things. Here’s your to-do list:
Take Good Care of Your Credit Score
By making payments on time and keeping your credit card balances below the max, you can significantly enhance your credit score, which will help you qualify for the most favorable HELOC rate in Nevada.
Assess Your Home Equity
Regular mortgage payments help in building home equity over time. Home equity can be enhanced through renovations that boost the property’s value. Increased home equity can lead to better terms and higher amounts when applying for a home equity line of credit. To ensure you have at least 15% equity in your home, subtract the amount you owe on your mortgage from your home’s estimated value, then divide by the estimated value.
Calculate Your Debt-to-Income Ratio (DTI)
Your debt-to-income (DTI) ratio, calculated by dividing your monthly debt payments by your gross monthly income, serves as a good indicator of your ability to make payments on a HELOC. Typically, home equity lenders prefer a DTI below 50%, though some like a ratio that’s lower still: 36% or less.
Application Process for a HELOC in Nevada
The application process for a home equity line of credit (HELOC) in the state of Nevada involves a series of specific steps. Take them one by one and doublecheck everything for accuracy as you go, and you can help ensure a smooth application process.
Step 1. Run the Numbers
Check that your credit score is at least 680 and that your DTI ratio is under 36%. Assess your home equity to understand — it should be a minimum of 15%. Some lenders offer online prequalification tools that are useful at this stage.
Step 2. Compare Lenders
When seeking the best HELOC rates in Nevada, compare interest rates, qualification requirements, fees, and loan limits. Look at how long the draw and repayment periods are at each lender.
Step 3: Gather Your Documents
Organize all your documents in advance. This typically includes proof of income (such as W2 forms and at least one tax return), and property documents such as proof of insurance. If you’re self-employed, lenders may ask for a profit-and-loss statement and two years’ tax returns.
Step 4: Submit Your Application
You’ll submit your HELOC application online or in person, or even by phone, depending on the lender. Be sure to attach all requested documents at this stage.
Step 5: Get an Appraisal
A home appraisal plays a major role in determining eligibility for a HELOC. If the appraised value of your home exceeds the outstanding balance of your mortgage, you may qualify for a HELOC. The lender will guide you through the appraisal process.
Step 6: Prepare for Closing
Before accessing your home equity line of credit funds, complete the process by signing documents and paying any required fees. Some lenders make funds available as quickly as three business days following the signing.
Tax Benefits and Considerations
Homeowners can deduct HELOC interest if the borrowed funds are used for buying, building, or significantly improving their primary residence. Interest deductions are limited to interest on the first $375,000 of the mortgage principal for individual taxpayers ($750,000 for married couples filing jointly). A tax advisor can help you make sure you qualify for this deduction.
Closing Costs and Fees
HELOC closing costs are lower than those for home buying or refinancing. Key costs include appraisal, application, origination, and administrative fees. Some lenders charge annual maintenance, transaction, inactivity, or early termination fees. Understanding these fees is crucial when considering a home equity line of credit.
Alternatives to HELOCs
HELOC alternatives include home equity loans, cash-out refinancing, and personal loans. If you’re not yet 100% on a HELOC (or even if you are), it’s worth spending some time to compare options to find the best fit for your needs.
Home Equity Loan
Home equity loans offer a fixed lump sum (vs. a line of credit like a HELOC) and are repaid at a fixed interest rate (as opposed to a HELOC’s variable rate). In the HELOC vs. home equity loan comparison, it’s worth noting that homeowners can typically access up to 85% of their equity with a home equity loan. With a HELOC, lenders generally allow up to 90%.
Cash-Out Refinance
Homeowners can use this special type of mortgage refinance to access home equity by refinancing for more than they owe, paying off their first mortgage, and taking the difference in cash.
As you consider a cash-out refinance vs. a home equity line of credit, one major difference is that a refinance gets you a whole new loan, with a new interest rate. If your interest rate on your original mortgage is lower than current rates, you’ll want to look carefully at whether it makes sense to refinance. Another difference? With a refi you, have one monthly payment, while with a HELOC or home equity loan, you’ll have two.
Personal Loan
A personal loan is repaid in regular monthly payments over a set term that can range from two to seven years. It usually comes with a higher interest rate than a HELOC because it is not secured, but some borrowers prefer this because they aren’t comfortable with the idea of using their home as collateral.
Credit Cards
Credit cards come with higher interest rates than HELOCs, which make it costly to carry a large balance from month to month. While credit cards offer flexibility for smaller purchases, a HELOC is often more suitable for larger expenses such as home improvements or debt consolidation.
The Takeaway
Securing the best HELOC rates in Nevada involves comparing offers from multiple lenders and understanding the factors that influence interest rates. By maintaining a good credit score, keeping your debt-to-income ratio low, and ensuring they have substantial home equity, borrowers can access competitive current HELOC rates in Nevada.
SoFi now offers flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively low rates. And the application process is quick and convenient.
FAQ
What is the monthly payment on a $50,000 HELOC?
The monthly payment for a $50,000 HELOC can fluctuate based on the interest rate and repayment terms. Assuming a 10-year term, here’s the payment amount at several interest rates: $555 (6.00%); $568 (6.50%); $581 (7.00%); $594 (7.50%); $607 (8.00%).
Is a HELOC a smart move for you?
Whether a home equity line of credit (HELOC) is a smart financial decision depends on your specific financial circumstances. You can use a HELOC repayment calculator and plug in low and high interest rates. A HELOC has a variable interest rate. So if you feel you can handle the payments at the low end as well as if they rise, and if you want a flexible borrowing method (vs. a lump sum loan), then a HELOC may be the right move.
What is the monthly payment on a $100,000 HELOC?
Assuming you draw the full amount, secure an 8.50% interest rate, and choose a 20-year repayment term, your monthly payment should be about $868. If your draw amount, term, or interest rate change, the payment amount will change as well.
What are the benefits of a HELOC?
HELOCs offer several benefits, including flexibility in borrowing and repayment. A home equity line of credit allows you to access funds as needed, making it ideal for ongoing projects or unexpected expenses. Additionally, HELOCs often come with lower interest rates compared to other types of loans, making them a cost-effective borrowing option.
Do you need an appraisal for a HELOC?
An appraisal is typically required for HELOCs to determine the current value of your home. This helps lenders assess the amount of equity available and set the borrowing limit for your home equity line of credit. The appraisal process ensures that the loan amount is based on accurate and up-to-date information about your property’s value.
What disqualifies you from getting a home equity loan?
Several factors can disqualify you from getting a home equity loan, including poor credit history, high debt-to-income ratio, and insufficient home equity.
How difficult is it to get a HELOC?
Whether you hit roadblocks in obtaining a home equity line of credit is contingent upon your financial circumstances. Lenders look at various factors, including credit scores, available home equity, and stability of income. By preparing documents carefully and acquiring a good understanding of the application process, individuals can significantly enhance their chances of qualifying for a HELOC.
Does HELOC affect credit score?
HELOCs can impact your credit score in several ways. Applying for a HELOC may result in a hard inquiry, which can temporarily lower your score. Additionally, using a significant portion of your available credit can increase your credit utilization ratio, potentially affecting your score. However, making timely payments on your home equity line of credit can help build a positive credit history over time.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOHL-Q424-038
More HELOC resources.
-
What is a Home Equity Line of Credit
-
Different Types of Home Equity Loans
-
HELOC vs Home Equity Loan: How They Compare