OREGON HELOC RATES TODAY
Current HELOC rates in
Oregon.
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 Oregon.
Key Points
• Comparing home equity line of credit rates in Oregon is essential for finding suitable lenders and competitive rates.
• Factors such as home equity, credit score, and income stability play a pivotal role in determining the HELOC rate offered in Oregon.
• HELOCs offer lower interest rates because borrowers use their home as collateral.
• HELOC interest rates are tied to the prime rate and can be influenced by broad economic factors.
• Maintaining a credit score of 680 or higher will help in securing a HELOC in Oregon.
Introduction to HELOC Rates
If you’re thinking about how to get equity out of your home in Oregon, this comprehensive article will ensure you have a solid grounding in the best home equity line of credit interest rates in Oregon and how to obtain them. You’ll gain valuable insights into the various factors that influence rates, plus advice on how to apply for a HELOC as well as different types of home equity loans and other ways to borrow.
First it’s important to make sure we cover the basics, starting with what is a home equity line of credit.
What Is a HELOC?
A HELOC is a revolving line of credit similar to a credit card. The amount you can borrow is based on your home equity, which is the difference between your home’s current value and your home loan balance. You don’t have to borrow the entire amount of the credit line at one time; you can borrow as you need to, and you’ll only pay interest on the amount of the credit line that you actually use. Lenders may allow you to borrow up to 90% of your home’s value, minus your mortgage.
HELOC interest rates are often variable, and so the cost of a HELOC can go up or down each month based on the amount of the credit line that you are using and your variable rate. But initial rates on a HELOC are typically lower than rates for personal loans or credit cards because your home is serving as collateral.
HELOCs have two main phases: the draw period and the repayment period.
The Draw Period
During the HELOC’s draw period (usually 10 years), you can access funds up to your credit limit, make payments to pay down your balance, and borrow the money again. The borrower is usually required to make interest payments during the draw period, but payments toward the principal may be optional. Borrowers can use a HELOC monthly payment calculator to estimate payments.
The Repayment Period
During the repayment period (10 to 20 years), borrowing ends and the principal is paid back with interest. A HELOC repayment calculator can help borrowers plan their payments.
Where Do HELOC Interest Rates Come From?
HELOC interest rates are tied to the prime rate and can be influenced by broad economic factors. The prime rate is the benchmark interest rate that banks charge their most creditworthy customers. Federal Reserve policy decisions regarding interest rates can also influence lenders as they set their rates. The best Oregon HELOC rates can vary, so it’s important to compare offers from different lenders during the application process.
How Interest Rates Impact HELOC Affordability
The interest rate you obtain for your HELOC can make a big difference in the affordability of a loan over the course of a 10-year draw and a 20-year repayment term. Even a 1% difference in interest rate can result in thousands — or even tens of thousands — of additional interest over the life of the loan. Here’s an example of a $50,000 HELOC repaid over 20 years at three different interest rates:
• At 6.00%: monthly payment $358, total interest paid $35,972
• At 7.00%: monthly payment $388, total interest paid $43,036
• At 8.00%: monthly payment $418, total interest paid $50,373
HELOC Interest Rate Trends
As you begin the process of searching for the best HELOC rates in Oregon, it’s helpful to understand how the average prime rate has fluctuated in recent years, as well as over the decades. It will help keep your rate expectations realistic.
Since 2018, the prime rate has undergone noteworthy fluctuations, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023, as you can see from the chart below. The graphic below shows a longer time period. As you can see, rates that are below 4.00% or above 10.00% are somewhat uncommon.
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
The prime rate isn’t the only factor influencing the HELOC rate you’ll be offered. Your level of home equity, your credit score, and other information specific to you will guide the lender’s decision, and different lenders weigh factors differently — that’s why it’s important to do your homework when searching for the best HELOC rates in Oregon. Let’s look at these data points:
Home Equity
Having a significant amount of equity in your home makes you appear less risky to lenders, which can often lead to more favorable interest rates. Typically, homeowners need at least 15% to 20% equity in their property to qualify, and the more equity the better.
Credit Score
Maintaining a credit score of 680 or higher is crucial, and some lenders prefer a credit score of 700+. A higher credit score indicates lower risk, potentially leading to more favorable HELOC terms.
Stable Income
Lenders assess your overall income to determine your ability to repay the HELOC. But they are also looking at how consistent your income stream has been. If your income is erratic, a lender may ask you to provide extra documentation, such as additional tax returns, during your application process.
Loan-to-Value Ratio
Most lenders require your combined loan-to-value ratio (combined mortgage and credit line balance / appraised home value) to be 90% or less for a HELOC. The ratio is a key metric in determining your credit limit. If your mortgage balance is $300,000 and your desired HELOC is $100,000, and your home value is $500,000, then your LTV ratio is 80%.
Variable vs Fixed Interest Rates
HELOCs’ variable interest rates are subject to change during the life of the loan. Initially, variable interest rates are lower than typical fixed rates, but after a predetermined introductory period, which will be defined in the HELOC agreement, they fluctuate in accordance with market conditions. Home equity loans are another way to borrow money against your home equity. These loans are usually fixed rate.
Tools & Calculators
As you’re thinking about the costs of a HELOC, it’s helpful to use online calculators to assess how much you might be able to borrow and what monthly payments and total interest paid look like with different HELOC interest rates. Here are three useful tools:
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
Since lenders factor in your personal financial metrics when they decide what interest rate to offer you, it’s helpful to take a few steps before applying for a HELOC to ensure you present the best possible picture. Here’s a to-do list:
Take Care of Your Credit Score
As noted above, you’ll want to have a score of at least 680. Check your credit score and examine your credit report for any inaccuracies. Mistakes do happen, and fixing errors can help your score. You’ll also want to avoid using the full credit line available to you on any credit cards you have. And of course pay your bills on time.
Assess Your Home Equity
Regular mortgage payments have helped you build home equity over time. But how much equity? Look up your home on a real estate web site to find a rough estimate of its value. Subtract what you owe on your mortgage from your home’s estimated value, then divide the answer by your home’s estimated value to arrive at a percentage of equity. Ideally, it’s greater than 15% or, even better, 20%.
Calculate Your Debt-to-Income Ratio (DTI)
Your DTI ratio is how much you owe in monthly debt payments divided by your gross monthly income. Home equity lenders generally look for a DTI that’s below 36%, though some prefer an even lower number. But the lower your DTI, the better.
Application Process for a HELOC in Oregon
Applying for a HELOC in Oregon will involve sharing lots of financial details, so you’ll want to have your documents in order before approaching the application process. Follow this guide.
Step 1. Run the Numbers
Before applying for a HELOC, make sure your financial factors will work in your favor. Is your credit score at 680 or above? Are your monthly debts no more than a third of your gross monthly income? Finally, estimate your home equity to see that it’s at least 15%. Some lenders allow you to prequalify online.
Step 2. Compare Lenders
When searching for the best HELOC rates in Oregon, compare offers from multiple lenders. Consider their interest rates. But also look at qualification requirements, loan limits, fees, and the length of draw and repayment periods. Try to spot the lenders that have the best scenario for your needs.
Step 3: Gather Your Documents
Make sure that you have all the documents you need for your HELOC application close at hand. These typically include proof of income, including recent pay stubs and your most recent W-2. Keep your employment history handy, along with home insurance documents, bank statements, and your most recent tax filing.
Step 4: Submit Your Application
Double-check all the information and be sure you’ve filled in every blank, because errors and omissions slow the application process. Then submit your application. This can generally be accomplished online, although some lenders work over the phone or in person.
Step 5: Get an Appraisal
A home appraisal is usually needed in the HELOC application process. The lender will let you know what is necessary. Schedule the visit promptly (if one is required) because delays will cause the application process to grind to a halt. The appraisal serves the purpose of determining the maximum amount you can borrow, which is based on your home’s value and the equity you have in it.
Step 6: Prepare for Closing
Wait for the HELOC approval. Then, before you can access the funds, you will need to sign documents and pay any required fees. Some lenders make funds available in as little as three days following the finalizing of the HELOC agreement.
Tax Benefits and Considerations
Homeowners can deduct HELOC interest if the borrowed funds are used for buying, building, or significantly improving their primary residence. The deduction is limited to interest on the first $375,000 of the principal for individual taxpayers ($750,000 for married couples who file jointly). A tax advisor can help you navigate the specific tax implications and confirm eligibility for this deduction.
Closing Costs and Fees
HELOC closing costs are lower than typical home-buying or refinancing costs. An appraisal fee of $300 to $500 is usually the highest expense. Other costs include application, origination, and administrative fees. Some lenders charge annual maintenance, transaction, inactivity, or early termination fees. Understanding these costs can help you weigh the pros and cons of different HELOC offers.
Alternatives to HELOCs
There are other ways besides HELOCs to borrow money, of course. You might want to consider one or more of these options, so it pays to be familiar with them before you borrow.
Home Equity Loan
This borrowing option is often confused with a HELOC, so it’s important to understand what is a home equity loan and how it’s different from a HELOC. Unlike HELOCs, home equity loans provide a lump sum amount and are paid back at a fixed interest rate. Borrowers can usually access up to 85% of the equity built in their home through a home equity loan (as opposed to 90% with a HELOC).
Here’s a quick look at HELOCs vs. home equity loans:
| HELOC | Home Equity Loan | |
|---|---|---|
| Type | Revolving line of credit | Installment loan |
| Interest Rate | Usually variable-rate | Usually fixed-rate |
| Repayment | Repay only what you borrow; you may have the option to make interest-only payments during the draw period. | Starts immediately at a set monthly payment |
| Disbursement | Charge only the amount you need. | Lump sum |
Cash-Out Refinance
Homeowners can get cash by undertaking a mortgage refinance for more than they owe. This option offers a large lump sum. But if you have a low mortgage rate with your current home loan, it may not make sense — you’ll need to run the numbers to see how both your monthly payments and your total interest paid would change with a new loan. Another factor to consider in the cash-out refinance vs. home equity line of credit: A HELOC will leave you with a second payment each month. A cash-out refi means you’ll have one payment.
Personal Loan
A personal loan is a flexible, typically unsecured loan that you pay back in regular, fixed payments over a set term of 2 to 7 years. Personal loans can be used for various purposes, including home improvements, debt consolidation, and other expenses. It’s important to understand that a personal loan, because it is not secured by your home, may have a higher interest rate than a HELOC or home equity loan. Some borrowers are willing to pay that because they prefer not to use their home as collateral.
Credit Cards
Credit cards typically come with higher interest rates than HELOCs, which can make them much more expensive if you carry a large balance from month to month. While credit cards offer flexibility for smaller purchases, types of HELOCs or home equity loans may be better suited for larger expenses such as home improvements or debt consolidation.
The Takeaway
HELOCs available in the state of Oregon come with competitive interest rates and flexible repayment terms, making them an attractive option for homeowners seeking to leverage their home equity. By comparing Oregon HELOC rates offered by various lenders, you can secure the most advantageous deal that aligns with your specific financial requirements and objectives.
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’s the monthly payment on a $50,000 HELOC?
With an 8.00% interest rate and a 10-year term, your monthly payment will be about $607. But how much you’ll pay will be based on your specific interest rate and loan term. If you had the same 8.00% interest rate but repaid what you borrowed with interest over a 20-year term, it would cost $418 per month, although you would pay more total interest with the 20-year term.
Is a HELOC a good idea right now?
Whether a HELOC is a smart move depends on your finances and goals. HELOCs can be useful for home improvements, debt consolidation, and other large expenses. However, it’s important to think through the interest rates, fees, and potential impact on your home equity before making a decision. (Owing money on a HELOC will eat into your equity until you have repaid what you borrow.)
What is the monthly payment on a $100,000 HELOC?
The monthly payment on a $100,000 HELOC depends on the interest rate and how long a term you’ve chosen. At a 6.00% interest rate over 20 years, the payment would be $716 per month. Repaying it at a 7.50% interest over 20 years would cost $806 a month. An interest rate of 8.00% and the same 20-year term means a payment of $836.
What are the benefits of a HELOC?
A HELOC is a flexible way to borrow. Rather than withdraw a lump-sum loan, you can borrow in increments as you need funds, and at a rate that is typically lower than you would get with a credit card. Best of all, you only pay interest on what you have actually borrowed.
Do you need an appraisal for a HELOC?
Yes, an appraisal is a crucial step in the process of obtaining a HELOC, as it helps to establish the value of your home, which in turn determines the amount you can borrow. Lenders want to make sure your loan is secured by adequate equity in your home. Your lender will provide details about the appraisal process.
What disqualifies you from getting a home equity loan?
There are a few factors that can disqualify you from getting a home equity loan, including bad credit, not enough equity in your home, and a high level of debt relative to your income.
How difficult is it to get a HELOC?
Assuming you can meet lenders’ requirements of a healthy credit score and debt levels, and you have a minimum of 15% home equity, it shouldn’t be too challenging to get a HELOC. The hardest part for many would-be borrowers is compiling the financial documents needed for the application. But taking the time to do that with care will help move the application process along more quickly.
Does HELOC affect credit score?
When you apply for a HELOC, the lender will perform a hard inquiry on your credit report, which could cause a temporary dip in your credit score. Carrying a large balance on your HELOC could negatively impact your credit utilization ratio and lower your credit score. But making regular payments toward your HELOC will show you can use credit responsibly and that should reflect favorably on your score.
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-Q424-047
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