Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Key Points
• Home equity loan rates are influenced by Federal Reserve policies, local market conditions, and borrower profiles.
• Comparing rates from different lenders can help you find the most competitive terms.
• Even an interest rate that’s a fraction of a percentage point lower can translate to substantial savings in the long run.
• To secure the most favorable rates, aim for a credit score of 700 or above and a debt-to-income ratio of 36% or less.
• The interest on home equity loans may be tax-deductible if funds are used for home improvements.
Home equity loans are a smart way for homeowners to get equity out of their home. We will examine current home equity loan rates in Greenville, South Carolina, and explain how lenders decide what rate you will be offered, so that you can find the best deal for your situation.
Along the way we will explain what a home equity loan is and how it differs from other methods of borrowing. By the end of this guide, you will be well equipped to shop for a home equity loan and make the best financial decision for your needs.
Recommended: Different Types of Home Equity Loans
A home equity loan is a second mortgage that leverages the value of your home. You’ll receive a lump sum, which you’ll immediately begin to repay in fixed monthly installments over a period of five to 30 years. Because these loans are secured by property, they often come with lower interest rates than unsecured personal loans. They also offer a fixed interest rate, which is an attractive feature for many borrowers because payment amounts are predictable.
To qualify, most lenders will look for you to have at least 20% equity in your primary residence. A home equity loan calculator can help you determine what you might be able to borrow. It’s important to have a plan in place for repaying the loan, because if you miss payments your home could be at risk of foreclosure.
Note that a home equity loan is different from a home equity line of credit. We’ll explain a HELOC vs. a home equity loan below.Home equity loan rates are determined by several factors, including economic conditions and your own qualifications as a borrower. The Federal Reserve’s policies can have a big impact on the lending market, specifically the prime rate, and many home equity loan rates are tied to this rate. Lenders are guided by the prime rate, but each individual borrower’s credit score and debt-to-income (DTI) ratio will also play a role in the rate you’re offered. Generally speaking, higher loan amounts and longer repayment terms come with higher interest rates.
You probably recall that when you purchased your home, your home loan interest rate was critical. The same is true of a home equity loan. Even a small percentage difference can add up to a significant amount over time. For instance, take a $100,000 home equity loan with a 15-year repayment term. At 8.50% interest, your monthly payment would be approximately $984, with total interest of $77,253. But at 9.50%, your monthly payment jumps to around $1,044. A monthly difference of $60 may not seem so substantial, but over the life of the loan, it means paying an additional $10,000-plus in interest costs.
Take a look at another example, this time for a $75,000 loan repaid over 20 years:
| Interest Rate | Monthly Payment | Total Interest Paid |
|---|---|---|
| 8.00% | $627 | $75,559 |
| 7.50% | $604 | $70,007 |
| 7.00% | $581 | $64,554 |
Predicting interest rate movements is like trying to forecast the weather — there are many variables at play. But a look at the prime rate’s history can give you a sense of perspective on the numbers you’re seeing in the current market. The rate dropped to 3.25% in 2020 and then climbed to 8.50% by 2023. These changes can have a big impact on home equity loan rates.
Some borrowers try to time their application to take advantage of favorable conditions. If you can’t afford to wait, you can secure a more competitive rate by shopping around and getting quotes from multiple lenders before deciding on the rate and terms for your loan.
| Date | Prime 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 | 5.50% |
| 9/27/2018 | 5.25% |
The prime rate is out of your control but focusing on caring for your credit score, keeping your DTI ratio low, and ensuring you have ample home equity can help your case when you’re pursuing a home equity loan. Take these steps before submitting any applications:
You’ll want to ensure you have at least 20% equity in your home so that you are eligible for a home equity loan. Calculating your equity is a breeze — just subtract your mortgage balance from your home’s current value, then divide the product by the home value to arrive at a percentage. You can achieve a robust equity level by making additional payments toward your mortgage principal or doing renovations.
To lock in the most favorable home equity loan rates, set your sights on a credit score of 700 or higher. Lenders consider this a sign of your financial prudence and thus that you are at lower risk of default. To nurture your score, make a habit of timely payments, keep credit card balances in check, and steer clear of unnecessary credit inquiries. Periodically check your credit report for inaccuracies and request a correction to any you find.
Your DTI ratio is an important indicator of your financial health, and lenders typically look for a DTI below 50%, with the most favorable rates going to customers with a 36% or lower DTI. To improve your DTI, consider paying down your debts, finding ways to boost your income, or both. Calculate your DTI by adding up your monthly debt payments and dividing by your gross monthly income.
Property insurance is a must-have for most home equity loans. This coverage reassures the lender that the collateral on the loan (your home) is paid for in the event of a disaster. Make sure your insurance policy meets your lender’s requirements to avoid any hiccups in the loan process.
A home equity loan calculator can help you estimate the amount you can borrow. But it’s not the only useful thing in the toolbox. Here are a few you might need during your borrowing journey.
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
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.
Closing costs for home equity loans in Greenville run between 2% and 5% of your loan amount. Typical fees cover the appraisal, credit report, document preparation, origination, notary, title search, and title insurance.
Here’s a potential bonus: The interest you pay on a home equity loan may be tax-deductible if the funds are used for significant renovations. As of 2025, married couples filing jointly can deduct interest on up to $750,000 of qualified home equity loans, while single filers can deduct interest on up to $375,000. To claim this deduction, you must itemize your deductions on your tax return. The tax break can be a significant benefit, potentially offsetting some of the costs associated with borrowing. However, consult a tax advisor to understand how this applies to your specific financial situation.
While home equity loans are a popular choice, there are other options to consider, such as a home equity line of credit (HELOC) and a cash-out refinance. By comparing these alternatives, you can find the best fit for your situation.
A HELOC is similar to a credit card in that you have a certain limit you can borrow up to. You borrow funds as you need them and only pay interest during the HELOC’s draw period (a HELOC interest-only calculator can be helpful at this time). Then after some time, typically 10 years, you’ll pay back the principal and interest (this is when a HELOC monthly payment calculator is handy).
To qualify, you’ll generally need a credit score of 680 or higher (700 is preferred) and a debt-to-income ratio of less than 50% (36% is the ideal). HELOCs tend to be a smart pick for people who aren’t sure exactly how much they will need to borrow or for expenses that will be incurred over time.
A cash-out mortgage refinance replaces your existing mortgage with a larger one, providing you with a lump sum based on your home equity. As you consider a cash-out refinance vs. a home equity line of credit, these are some difference: Qualifying for a cash-out refinance is often more accessible than for home equity loans or HELOCs, typically requiring a credit score of 620 or higher and a debt-to-income ratio under 43%. Rates can be fixed or variable, and unlike with a home equity loan or HELOC, you’ll have just one payment to manage.
If you’re mulling over a home equity loan in Greenville, you’ll want to take a good look at your credit score and DTI ratio and make sure your property insurance is up to snuff. These are the keys to unlocking the best home equity loan rates. Use online calculators to wrap your head around the costs of borrowing. And remember that a HELOC or a cash-out refinance could also be an option. Seek out rates from multiple lenders along the way — it’s the best way to snag the most competitive terms and rates.
SoFi now offers home equity loans. Access up to 85%, or $350,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
Unlock your home’s value with a home equity loan from SoFi.
The money you borrow with a home equity loan can be used for home improvements, educational expenses, medical bills, or debt consolidation. These loans provide a lump sum with fixed-rate interest, which can make budgeting for repayment easier. In some cases, the interest on a home equity loan may be tax deductible if the funds are used for home improvements.
A home equity line of credit (HELOC) is a very flexible way to borrow, and monthly payments can change with variable interest rates. During the draw period, which can last 5, 10, or even 20 years, you may only need to pay interest on the amount you’ve borrowed, which isn’t necessarily going to be the full $100,000. If you did use the entire credit line of $100,000, your interest rate for repayment would likely be variable. At an average of 8.00% and a repayment term of 20 years, you would pay $836 per month.
The monthly payment on a $30,000 home equity loan is affected by the home equity loan interest rate and the repayment term. For a 15-year fixed-rate loan at 7.50%, the monthly payment would be about $278. If you choose a 30-year term at the same rate, the monthly payment would be roughly $210. These payments include both principal and interest. Longer terms offer lower monthly payments but increase the total interest paid over the life of the loan.
There are a few things that could prevent you from getting a home equity loan. For example, most lenders require a minimum credit score of 680, a debt-to-income ratio of 50% or less, and at least 20% equity in your home. Additionally, inadequate property insurance, particularly in flood zones, could be a disqualifying factor.
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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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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.
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.
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