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Compare HELOC rates in Utah.
Key Points
• Home equity lines of credit (HELOCs) can help you fund home improvements, debt consolidation, education expenses, and other big-ticket investments.
• When comparing HELOC lenders in Utah, consider interest rates and terms, fees, credit line minimums and limits, and the reputation of the lender you’re considering working with.
• HELOC rates in Utah are influenced by the prime interest rate and other economic variables.
• Factors like your home equity position, credit score, income, and combined loan-to-value (CLTV) ratio, may significantly impact the HELOC rates that lenders in Utah offer you.
• You’ll qualify for the most favorable HELOC rates if you prioritize building your credit score, maintain a steady source of income, and ensure that you have a low debt-to-income ratio.
Introduction to HELOC Rates
A HELOC is a revolving line of credit. It works like a credit card, but it’s secured by your home’s equity. HELOC rates are influenced by factors including the prime rate and a borrower’s financial profile. Understanding these influences can help you navigate the market and get the best deal possible on your home equity line of credit.
What Is a HELOC?
What is a home equity line of credit? A HELOC is a revolving line of credit similar to a credit card, except it’s secured by your home’s equity. A HELOC isn’t like a traditional loan. It lets you borrow funds and repay them repeatedly during the draw period.
The Draw Period
A HELOC draw period is typically a decade. During those 10 years, a homeowner can access funds up to a preapproved credit limit, and interest payments are generally required only on the money withdrawn. Principal payments may be optional. HELOCs’ flexibility make them particularly appealing for addressing larger financial obligations.
Recommended: HELOC Interest-Only Calculator
The Repayment Period
The repayment period on a HELOC is generally 10 to 20 years, during which the borrower pays back the loan principal and interest. Using a HELOC repayment calculator can help a homeowner plan and prepare, since variable interest rates may fluctuate, impacting the cost of the loan.
Where Do HELOC Interest Rates Come From?
When you want to get equity out of your home, it’s important to understand interest rates. HELOC rates are tied to the prime rate, which derive, somewhat distantly, from Federal Reserve rates and other broader economic factors.
How Interest Rates Impact HELOC Affordability
Interest rates have a significant impact on any home loan‘s affordability. A 1% fluctuation in the interest rate may result in a borrower paying thousands of dollars more in interest over the life of the loan. Here is a look at three examples — a $25,000, a $50,000 and a $100,000 HELOC, all repaid over 10 or 20 years, and at two different interest rates:
| Loan Amount | Loan Term | Interest Rate | Monthly Payment | Total Interest Paid |
|---|---|---|---|---|
| $100,000 | 20 years | 8.00% | $836 | $100,746 |
| 7.00% | $775 | $86,072 | ||
| 10 years | 8.00% | $1,213 | $45,593 | |
| 7.00% | $1,161 | $39,330 | ||
| $50,000 | 20 years | 8.00% | $418 | $50,373 |
| 7.00% | $388 | $43,036 | ||
| 10 years | 8.00% | $607 | $22,797 | |
| 7.00% | $581 | $19,665 | ||
| $25,000 | 20 years | 8.00% | $209 | $25,186 |
| 7.00% | $194 | $21,518 | ||
| 10 years | 8.00% | $303 | $11,398 | |
| 7.00% | $290 | $9,833 |
HELOC Interest Rate Trends
HELOC interest rates tend to closely follow the prime interest rate. Understanding and anticipating the possibility of rate fluctuations will help homeowners make informed decisions as they consider the best time to apply for a HELOC.
Historical Prime Interest Rate
The prime rate’s fluctuations over the years, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023, have had a direct influence on HELOC rates in Utah.
| Date | U.S. Rate | |
|---|---|---|
| 12/11/2025 | 6.75% | |
| 9/17/2025 | 7.25% | |
| 12/20/2024 | 7.50% | |
| 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% | |
Historical U.S. Prime Rates
Factors Influencing HELOC Rates
Beyond the prime rate, HELOC rates in Utah are influenced by the borrower’s home equity, credit score, income, and loan-to-value (LTV) ratio. If these factors are optimal, they will increase a homeowner’s chance of securing a favorable HELOC rate.
Home Equity
If you have significant home equity, you can usually score a favorable interest rate when you apply for a home equity line of credit. Homeowners with a minimum of 15% equity will generally qualify for a HELOC. The higher your equity, the less risk a lender assumes.
Credit Score
To qualify for a HELOC, maintain a credit score of 680 or higher. If your score is 700 or above, even better. The higher your score, the lower the risk you present to lenders.
Stable Income
Lenders look at your income when determining your ability to pay back a HELOC. A borrower with steady income is less likely to default, and will therefore get a better interest rate. You’ll need to provide income documentation when you submit your application.
Loan-to-Value Ratio
Many lenders require a combined loan-to-value ratio (mortgage balance + desired HELOC amount / appraised home value) of 85% or less. If your home is worth $500,000, your mortgage balance is $300,000, and your HELOC balance is $100,000, your combined LTV ratio is going to be 80%.
Variable vs Fixed Interest Rates
HELOCs are characterized by variable interest rates, as noted above. These rates are subject to change over the loan’s duration. Variable interest rates tend to start out lower than fixed rates, but will increase or decrease depending on prevailing market conditions. The fluctuations will have an impact on your HELOC rates in the state of Utah.
Tools & Calculators
Online calculators are super useful if you’re preparing to borrow against your home’s equity. A HELOC Monthly Payment Calculator, for one, can help you get an idea of how much your monthly payments might be, and to determine how much you might feel comfortable borrowing. Plug in a range of interest rates, and you can see how having a variable-rate loan might affect your monthly bills. Here are a few of our favorite calculators:
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 be eligible for the most desirable HELOC rates in Utah, it’s important to maintain your credit score, a steady source of income, and a low debt-to-income ratio. These factors play a key role in determining your eligibility for favorable HELOC offers, since they provide lenders a comprehensive assessment of your financial situation and creditworthiness.
Take Good Care of Your Credit Score
By making timely payments and reducing or paying off credit card balances, you can continually improve your credit score. This is important if you want to secure more favorable HELOC rates in the state of Utah. The higher your score, the better your chances of qualifying for the best HELOC options, which will give you greater financial flexibility.
Assess Your Home Equity
The first thing you need to do when you prepare a HELOC application is to assess your home equity. Making regular mortgage payments over time helps home equity build. Home equity can also be enhanced through renovations that increase the property’s value. Increasing home equity leads to better terms and credit amounts when you apply for a home equity line of credit.
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, is a good indicator of your attractiveness as a borrower to home equity lenders. Typically, they prefer a DTI below 36%. A lower DTI is even more favorable.
Application Process for a HELOC in Utah
Applying for a HELOC in Utah involves a series of steps to demonstrate your financial strength. Complete them correctly and you’ll have the best chance of obtaining an optimal HELOC rate. Applying for a HELOC, from submitting the application through closing, may take 30 to 60 days:
Step 1. Run the Numbers
Check your credit score, calculate your DTI ratio, and use an online estimate of your home’s value. Try to make sure you have at least 15% home equity before you apply for a HELOC.
Step 2. Compare Lenders
Visit lender sites or check in with your bank’s mortgage officer in order to compare loan qualification requirements, minimums and maximums, fees, length of the draw, and repayment periods. Some lenders offer more competitive rates and benefits, including discounts for automatic payments or remote closing options.
Step 3: Gather Your Documents
You’ll need to have a government-issued I.D. and proof of income (recent pay stubs, W-2 forms, and a recent tax return) on hand. Are you self-employed? Lenders may ask for a profit-and-loss statement and two years of tax returns. Lenders typically require a homeowners insurance declaration page as part of your property documentation. Make sure your policy is up to date.
Step 4: Submit Your Application
The next step is to give the lender your HELOC application. You can probably do this online or in person. Be sure you submit a complete and accurate application to increase your chances of approval and securing a competitive rate.
Step 5: Get an Appraisal
After submitting your application, you’ll need to meet a home appraisal requirement. This might be an in-person appraisal. Or the lender may use an automated valuation model (AVM), in which an algorithm uses existing data to compute a home’s estimated value. The appraisal can help you determine the amount of equity you have in your home, and will also likely affect the HELOC rate you’ll qualify for. Higher appraisal values tend to lead to larger credit lines.
Step 6: Prepare for Closing
Once you find a HELOC offer at a comfortable interest rate, and with favorable terms, you’re ready to close on the loan agreement. Before you can access your HELOC funds, you’ll have to sign loan documents and pay necessary fees. Lenders may make funds available in as little as three days after the HELOC’s closing. Ensure that all paperwork is in order and fees are paid promptly so you can efficiently access your funds.
Tax Benefits and Considerations
As a homeowner, you can deduct the interest you pay on a HELOC if the funds borrowed are used to buy, build, or markedly improve your primary residence. Deductions must be limited to interest on the first $375,000 of the mortgage principal for an individual taxpayer, and $750,000 for married couples who file jointly. You’ll need to itemize the deductions on your tax return. Consult a tax advisor for help.
Closing Costs and Fees
The good news is, HELOC closing costs are lower than those for home-buying or cash-out refinancing. The appraisal fee — the largest expense — may range from $150 to around $500. Other costs to know about include application, loan origination, and administrative fees. Lenders may also charge annual maintenance, transaction, inactivity, or early termination fees. Or they may waive closing costs, but in this case will often charge a higher interest rate.
Alternatives to HELOCs
Financing options other than HELOCs include different types of home equity loans, cash-out refinancing, and personal loans. Every option has advantages and considerations.
Home Equity Loan
What is a home equity loan> Unlike a HELOC, it puts a lump sum in your pocket. You pay back different types of home equity loans at a fixed interest rate. A home equity loan calculator can help you estimate your borrowing capacity.
Borrowers can usually access up to 85% of the equity they’ve built through a home equity loan. Here’s an at-a-glance comparison of a HELOC vs. home equity loan:
| 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 also tap into home equity via a mortgage refinance. This means applying for a refi of your mortgage loan for the purpose of pulling out cash. This option, however, often comes with higher interest rates.
Personal Loan
A personal loan is a flexible, typically unsecured loan. You pay it back in regular payments over a term of 2–7 years. Unlike certain home equity loans, personal loans do not require collateral. Look closely at terms to evaluate whether a personal loan or a home equity loan better suits your needs.
Credit Card
A HELOC comes with a lower interest rate than a credit card. This tends to make it a cheaper option for large balances, such as for home renovations, education expenses, or a debt consolidation.
The Takeaway
HELOCs make it easy to access the equity in your home. Competitive interest rates and flexible repayment options make a home equity line of credit a valuable financial tool. Make sure you understand all of the terms and conditions, though — especially concerning variable interest rates and the potential impact on your credit score.
SoFi now offers flexible HELOC options to turn your home equity into cash. Access up to 85% of your home equity, or $750,000, to finance home improvements or consolidate debt. Competitive interest rates and repayment terms up to 20 years could result in lower monthly payments versus other loans. And the online application process is quick and convenient.
FAQ
What is the monthly payment on a $50,000 HELOC?
A $50,000 HELOC’s monthly payment will fluctuate based on the interest rate and repayment terms. With an 8.00% interest rate and a 10-year term, your monthly payment will be about $607. The same 8.00% interest rate over a 20-year term will cost you $418 per month, although you’ll pay more in total interest during the 20-year term.
Is a HELOC a good idea right now?
It depends on your financial situation and your needs. HELOC interest rates are better than those on credit cards, which can make them useful for spendy projects. But it’s important to consider where variable interest rates can go down the road, and the potential impact on home equity.
What is the monthly payment on a $100,000 HELOC?
You can estimate your monthly payment on $100,000 using a HELOC monthly payment calculator. It will crunch your numbers based on the loan amount, interest rate, and repayment period. For example: If you had a 6.00% interest rate and a 20-year repayment term, you’d have a $716 monthly payment. At a 7.00% interest rate, your payment would jump to $775.
What are the benefits of a HELOC?
A HELOC offers multiple benefits, including low interest rates compared to credit cards and the flexibility to borrow and repay funds as you need to during the draw period. A home equity line of credit can be used for home improvements, debt consolidation, or education expenses. Additionally, the interest you pay on a HELOC may be tax-deductible.
Do you need an appraisal for a HELOC?
Yes, an appraisal is typically required for a HELOC. It allows lenders to determine the value of your home and the amount of equity available.
What can disqualify you from getting a home equity loan?
Several factors can stand in the way of your getting a home equity loan. These include a low credit score, high debt-to-income ratio, insufficient home equity, or a history of late payments.
How difficult is it to get a HELOC?
It will depend on your financial situation and the lender’s requirements. HELOCs typically require a good credit score, sufficient home equity, and a stable income. The application process involves providing thorough documentation and undergoing a home appraisal. Comparing lenders and understanding their qualification requirements can help you weigh the ease or difficulty of obtaining a home equity line of credit.
Does HELOC affect credit score?
It can, in several ways. Applying for a HELOC may result in a hard inquiry, and that can temporarily lower your score. High utilization of your credit line can also negatively impact your score. But if you make timely payments on your HELOC, your score can improve over time.
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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 .
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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