TULSA HELOC RATES TODAY
Current HELOC rates in
Tulsa, OK.
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 Tulsa are influenced by the prime rate and Federal Reserve policies.
• HELOCs provide a revolving line of credit with competitive interest rates.
• The draw period is usually 10 years, with a subsequent 10- to 20-year repayment phase.
• To qualify for a HELOC, you typically need a credit score of 640 or higher and a debt-to-income ratio under 50%.
• Alternatives to a HELOC include a home equity loan and a personal loan.
Introduction to HELOC Rates
Welcome to your comprehensive guide to home equity line of credit (HELOC) rates in Tulsa, Oklahoma. Whether you’re considering a home equity line of credit to spruce up your living space, cover education expenses, or for another financial need, this guide is designed to help you navigate the current market conditions. You’ll discover how to qualify for the most favorable rates, the factors that influence what rate you might be offered, and how to weigh the benefits and potential pitfalls of a HELOC.
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 owe on your home loan) as collateral. With at least 15% equity in your home, you may be able to borrow up to 90% of your equity. Of course, the fact that your home is collateral means that if you do not make your payments on the HELOC, the lender you borrow from could foreclose. But if you are good at managing your finances, a HELOC can be a useful way to obtain cash for large expenses, and HELOC interest rates tend to be lower than those for personal loans. HELOCs typically have two periods: a draw period and a repayment period.
The Draw Period
During the HELOC draw period (which is usually 10 years), you can use funds from your credit line as needed. Throughout this time, you’ll need 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 full credit line again. A HELOC interest-only calculator can help you see how much you might have to pay in interest.
The Repayment Period
After the draw period ends, you won’t be able to borrow any more against the credit line. That’s when 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 is useful at this stage in your borrowing experience.
Recommended: HELOC vs. Home Equity Loan
Where Do HELOC Interest Rates Originate?
HELOC interest rates are tied to the prime rate, which is influenced by the Federal Reserve’s monetary policies. Lenders tack on a margin to the prime rate, which is why you’ll see different HELOC rates from different lenders — and why it’s so important to seek out rates from multiple lenders as you explore your HELOC options. Your credit score, debt-to-income (DTI) ratio, and the amount of equity in your home also play a role in the rate you’ll be offered.
How Interest Rates Impact HELOC Affordability
The interest rate on your HELOC can make a big difference in how much you pay over the life of the loan. Even a small difference in your HELOC rate can result in large extra interest payments. On a $50,000 HELOC with a 20-year term, a one-percentage-point rate increase from 7.00% to 8.00% during the repayment phase can raise your monthly payment by $30 and increase the total interest paid by almost $7,000. Of course, the HELOC rate is variable, so your numbers may differ. But the bottom line is that the more you borrow with a HELOC, the greater the effect of a change in interest rate.
HELOC Interest Rate Trends
As you explore how to get equity out of your home, you’ll probably begin to keep an eye on the prime rate. The rate has seen its share of ups and downs since 2018, falling to a low of 3.25% in 2020 and peaking at 8.50% in 2023. By understanding this historical fluctuation, you can better assess where current HELOC rates fall on the spectrum.
| 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 typically have adjustable interest rates, also called variable rates, which means the amount of interest you pay can change based on the market. It’s not entirely the Wild West: The frequency with which your rate can change and the amount that it can change is governed by the HELOC agreement a borrower signs with a lender. Before you sign on to a HELOC, try putting the low and high range of interest rates you might encounter into a HELOC calculator to see how much interest you might need to pay. If you feel that you can handle the amounts and keep up with payments, then you can probably handle a HELOC.
Helpful Tools and Calculators
As noted above, before you apply for a HELOC you can use online tools to compute estimates of your payments, either with interest only or with the principal added. Here are a few calculators you’ll probably find 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 get the best available HELOC rate, you’ll want to first make sure you have 15% equity in your home, and ideally more. To check your equity level, subtract whatever you still owe on your mortgage from your home’s estimated value; divide the answer by your home value and you’ll have a percentage of equity. If you clear the 15% bar, take on the next two to-dos.
Improve Your Credit Score
A credit score of 700 or higher is the sweet spot for securing the best HELOC rates, though you can get a HELOC with a score of 640 or more. Making payments on time and reducing credit card balances are two of the most effective ways to improve your score. You should also check your credit report for errors and dispute any inaccuracies you find. Avoid closing old credit accounts or opening new ones before applying for a HELOC.
Calculate Your Debt-to-Income Ratio (DTI)
Your DTI ratio is a simple calculation: Tally up your monthly debt payments (think mortgage, car loans, credit cards) and divide that by your gross monthly income. The magic number for many HELOC lenders is a DTI below 50%, but for the best interest rates, you’ll want to be below 36%. A lower DTI could be your golden ticket to a HELOC with terms that’ll make you smile.
Recommended: Different Types of Home Equity Lending
Application Process for a HELOC in Tulsa
Many lenders offer the convenience of online prequalification for a HELOC, which can be a real time-saver. By providing some basic financial information, you could get a sense of the rates and the amount you might be eligible for, often in just minutes. If you decide to proceed with the full application, these are the steps:
Step 1: Run the Numbers
Before you dive into a HELOC, it’s wise to take a good look at your financial landscape. Check your credit score to make sure it’s at least 640. Then, consider your home equity: Is it 15% or better? Finally look at your DTI ratio. If it’s below 50% you’re good.
Step 2: Compare Lenders
Consider the available HELOC interest rates in Tulsa. Carefully compare qualification requirements, credit minimums and maximums, any associated fees, and the length of both the draw and repayment periods. Keep an eye out for lenders that offer competitive rates and flexible terms. Reading customer reviews and thoroughly checking lender reputations can also help you make a more informed decision.
Step 3: Submit Your Application
You’ll need a valid ID, recent pay stubs and W-2 forms, plus your latest tax return. If you are self-employed, you might need additional years of tax returns. You’ll also need to have your homeowners insurance information close at hand. You can apply for your HELOC online, by phone, or in person.
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 an expert assess the value of your home is usually between $300 and $600.
Step 5: Prepare for Closing
Before you can tap into your HELOC funds, you’ll need to sign the HELOC agreement and pay any associated fees. Most lenders will make the funds available within about three days of the HELOC closing.
Closing Costs and Fees
HELOC closing costs are generally more affordable than those for home purchases or cash-out refinancing. The appraisal is often the most significant expense, though a title search, if required, can cost $100 to $450. Other fees may include application, origination, and administrative fees. Maintenance fees (up to $250/year) may apply. Some lenders charge transaction, inactivity, or early termination fees. Many lenders, however, are willing to reduce or even waive closing costs, although they may charge slightly higher interest rates.
Tax Benefits and Considerations
Here’s a tip: You can deduct HELOC interest charges if you use the HELOC to significantly improve your primary residence. These tax guidelines are in place through 2025. For the nitty-gritty on your specific situation, it’s always a good idea to chat with a tax advisor. They can help you confirm your eligibility for HELOC-related deductions and ensure you’re making the most of your tax benefits.
Alternatives to HELOCs
There are other ways to tap into your home equity, such as a home equity loan, cash-out refinancing, or personal loans. Each has its own set of advantages and considerations.
Home Equity Loan
A home equity loan delivers a one-time lump-sum payment. You’ll start repaying the loan immediately, with a fixed interest rate for the duration of the loan (anywhere from 10 to 30 years). Typically, you can borrow up to 85% of your home equity. Lenders often look for a credit score of 680 or above, though here again 700 or more will get you better rates. If you need to borrow a specific amount of money and like the idea of consistent monthly payments, this might be the right choice for you. A home equity loan calculator can help you see how much you might be able to borrow.
Cash-Out Refinance
A cash-out mortgage refinance lets you refinance your mortgage for more than you owe and pocket the difference. It’s a solid solution when you need a lump sum, provided the current interest rates are as good or better than the rate you have with your current loan. (Compare costs, including closing costs, directly.) You’ll need at least a 620 credit score and a DTI ratio under 43%. When considering a cash-out refinance vs. a home equity line of credit, remember that with a refi you can choose between a fixed or variable interest rate. A refinance also leaves you with one monthly payment.
Personal Loan
A personal loan is a versatile, usually unsecured loan that you repay in regular, fixed installments over a term of two to seven years. The key advantage here is that, should financial challenges arise, your home is not in jeopardy of foreclosure. Most lenders will look for a credit score of 610 or higher when considering a personal loan application. While these loans can often be secured quickly, it’s important to note that they often carry higher interest rates than HELOCs or home equity loans.
The Takeaway
When you’re mulling over a HELOC, it’s a smart move to consider the pros and cons. A line of credit offers you a flexible way to access funds and often comes with competitive interest rates. But the risk of losing your home is there if you can’t keep up with the payments. Use a HELOC calculator to run the numbers to ensure you can afford to borrow money. And seek out rates from multiple lenders to make sure you borrow at the lowest possible cost.
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
Is a HELOC a good call?
A HELOC can be a relatively cost-efficient way to borrow money for large projects, because you only pay interest on the amount of the credit line that you actually use. A HELOC is especially good for borrowers who don’t know how much they need to borrow or exactly when they will need the funds. As long as you have a solid repayment plan in place to avoid financial strain even when interest rates rise, a HELOC could be a good move.
Do you need an appraisal for a HELOC?
You usually do need an appraisal when you apply for a HELOC. The appraisal helps a lender determine the current market value of your home, which is used to calculate the amount of equity you can access. The lender will use this information to set your credit limit. Getting an accurate appraisal is important to get the best terms and rate on your HELOC.
How hard is it to get a HELOC?
The process of securing a HELOC is quite manageable if you meet the lender’s criteria. Generally, you’ll need a credit score of at least 640, a debt-to-income (DTI) ratio below 50%, and a home equity of 15%. The application journey involves sharing some financial data, comparing lenders, and undergoing a home appraisal.
Will a HELOC impact your credit score?
Opening a HELOC can have a slight negative effect on your credit score due to the lender’s hard inquiry. But managing a HELOC successfully can have a significantly positive effect on your score.
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SOHL-Q225-412
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