Mississippi HOME EQUITY LOAN RATES TODAY
Current home equity loan rates in
Mississippi.
Current home equity loan rates in
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Compare home equity loan rates in Mississippi.
Key Points
• Home equity loans allow homeowners to borrow against the equity in their homes and are often used for large expenses like home renovations.
• Mississippi home equity loan rates are influenced by national trends and prime interest rates.
• Home equity loan rates are also influenced by borrower factors such as credit score and debt levels.
• Qualifying for the lowest rates involves building a strong credit score, managing a debt-to-income ratio, obtaining adequate property insurance, and maintaining sufficient home equity.
• Alternatives to home equity loans include a home equity line of credit, a home equity conversion mortgage, or a cash-out refinance, each with unique features and eligibility criteria.
Introduction to Home Equity Loan Rates
Your home equity is an important financial asset, and you can leverage it for all sorts of purposes if you take advantage of a home equity loan. This guide will help you understand Mississippi home equity loan rates — including what factors influence rates and how to get the best deal. We’ll also answer some common questions about home equity loan rates and alternatives to home equity loans in Mississippi.
How Do Home Equity Loans Work?
A home equity loan, also known as a second mortgage, uses your home as collateral to provide you with a lump sum of money. The amount you can borrow is based on your creditworthiness and the equity you have in your home. Because the loan is secured by your home, you can generally get a better interest rate than with an unsecured personal loan. It’s important not to confuse a home equity loan with a home equity line of credit (HELOC), which is also secured by your home. The chart below explains HELOCs vs home equity loans.
| HELOC | Home equity loan | |
|---|---|---|
| Type | ||
| Interest rate | ||
| Repayment | ||
| Disbursement |
Where Do Home Equity Loan Interest Rates Originate?
The interest rates on home equity loans, like the rates on home loans generally, are a product of the larger economic landscape. With different types of home equity loans, the prime rate plays a pivotal role. This rate is the foundation for what banks charge their clients and is influenced by the Federal Reserve’s federal funds rate. If you’re contemplating a home equity loan in Mississippi, it’s good to understand a little about these larger economic forces.
How Interest Rates Impact Home Equity Loan Affordability
Interest rates can make a notable difference in the affordability of a Mississippi home equity loan. Let’s say you borrow $50,000 with a home equity loan in the Magnolia State. Over the life of a 20-year loan, a mere one-percentage-point difference in interest rates (6.50%-7.50%) can mean a difference of $7,202 in total interest paid.
Home Equity Loan Rate Trends
Keeping an eye on the prime rate may help give you a sense of where home equity loan rates are heading. Since the start of 2018, the prime rate has varied, reaching a high of 8.50% in 2023 and a low of 3.25% in 2020. Take a look at the specifics below, as well as the trends over a longer time period of more than half a century. By staying informed and proactive, you can make savvy decisions about your home equity loan.
Historical Prime Interest Rates
| Date | Prime Rate |
|---|---|
| 9/17/2026 | 7.00% |
| 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 | 5.50% |
| 9/27/2018 | 5.25% |
Source: St. Louis Fed
Factors Influencing Home Equity Loan Rates in Mississippi
In Mississippi and across the U.S., the prime rate isn’t the only factor determining home equity loan interest rates. Fortunately, the other factors are things you can somewhat control: Your credit score and the value of your home are two things lenders will carefully consider if you apply for a home equity loan. Here’s the scoop:
Credit Score
Lenders typically look for a credit score of 680 or higher when considering home equity loans, and many prefer a score of 700 or more. If you have a strong credit history and a solid record of making payments on time, you’ll be in a better position to get a lower interest rate.
Home Value
When you go about trying to get equity out of your home, your home’s value is naturally an important factor. Lenders use independent appraisals to determine market value. The appraisal process then helps establish a homeowner’s equity position, which can affect the maximum loan amount a lender will approve.
Home Value Stability
When your home’s value is on the rise, lenders are more likely to approve larger loans, as the increased value of your property helps mitigate some of the risk. On the other hand, if home values are declining, lenders may tighten their criteria and approve smaller loans.
Loan-to-Value (LTV) Ratio
LTV ratio is a simple calculation: Your loan amount is divided by the appraised value of your property. Most conventional lenders will cap the LTV at 85% for home equity loans, and your lender will look at your LTV to help determine what interest rate you might be offered (and in fact whether you can get a loan at all).
Property Location
If your property is in a high-risk area, such as one prone to hurricanes or floods, you might end up with a higher interest rate. Lenders get skittish about the potential for property damage or loss of home value.
Lender Policies
Each lender has its own policies, and subtle differences may influence the interest rates offered on home equity loans. That’s why it’s essential to shop around and compare interest rates, fees, and closing costs across multiple lenders.
How to Qualify for the Lowest Rates
To qualify for the best home equity loan rates in Mississippi, you’ll want to focus on building a strong credit score, managing your level of debt, getting sufficient property insurance, and maintaining your home equity. Doing these things will put you in a better position to get the most favorable loan terms possible.
Build a Strong Credit Score
A carefully tended credit score is your golden ticket to the best home equity loans in Mississippi, potentially allowing you a more favorable interest rate. Make credit card and other payments on time, and periodically check your credit reports to ensure they are accurate.
Manage Debt-to-Income Ratio
When you’re ready to apply for a home equity loan, your debt-to-income (DTI) ratio will take center stage. This financial metric compares your monthly income to your monthly debt obligations and is a key factor in determining your loan eligibility. Lenders typically look for a DTI ratio of 36%-50% for home equity loans. This range signals to lenders that you can manage additional debt responsibly.
Obtain Adequate Property Insurance
It’s a pretty standard practice for home equity loans to require sufficient property insurance. By ensuring your property is well covered, you’re not only meeting the loan’s requirements but also potentially qualifying for more favorable terms. This, in turn, can bolster your financial standing as well as your financial security. The same goes for a HELOC — proper insurance can protect the lender’s interests and may lead to better terms for you.
Maintain Sufficient Home Equity
In Mississippi, you’re looking at a 20% equity threshold to qualify for a home equity loan. This equity is your golden ticket, serving as collateral to secure the loan. Once you meet this criterion, you’re free to leverage your home’s equity for a range of financial needs, from sprucing up your living space to consolidating debt or investing in education.
Fixed vs Variable Interest Rates
Home equity loans typically come with a fixed interest rate, which means you’ll enjoy the same consistent monthly payment for the life of the loan. While fixed rates offer financial security, loans with variable interest rates often have a lower initial interest rate. To see how different interest rates affect your monthly payments and overall interest costs, you can use a mortgage calculator.
Tools and Calculators
When you’re considering a home equity loan, you’ll find that there are a number of tools and calculators available to help. These tools can help you estimate your home equity loan payments, compare loan rates and terms, and understand the potential consequences of taking out different types of loans. Take some time to play with a home equity loan calculator, trying different possible Mississippi home equity loan rates to see how rates and amounts borrowed impact your payments. If a HELOC feels like a possible option for you, you may also want to run the numbers in a HELOC repayment calculator.
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 a 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.
Closing Costs and Fees
In Mississippi, closing costs for home equity loans typically range from 2%-5% of the loan amount. Common fees include appraisal, credit report, document preparation, and title insurance. It’s essential to compare multiple lenders, as fees can vary depending on the lender and loan terms.
Tax Deductibility of Home Equity Loan Interest
Good news: The interest on your home equity loan is tax-deductible if you use the money you borrow for significant home improvements. You can deduct the interest you paid on the first $750,000 of your mortgage ($375,000 if each member of a couple files separately). You’ll need to itemize your deductions to claim this benefit, and it’s always a smart move to consult a tax advisor. A HELOC can also offer tax advantages for home improvements.
Alternatives to Home Equity Loans
When considering financing options, homeowners in Mississippi have a few choices other than a traditional home equity loan. These include a home equity line of credit, HECM, and cash-out refinance (which is slightly different from a standard mortgage refinance — more on that below). Each of these options has its own unique features and requirements. Understanding them can help you make the best decision for your financial situation and long-term goals.
Home Equity Line of Credit (HELOC)
A HELOC is a bit like a credit card in that you have a set credit limit and only pay interest on the amount you borrow. The interest rate on a HELOC is variable, which means it can go up or down based on the market. If the rate goes up, your monthly payments could increase, too. It’s important to consider the current home equity rates in Mississippi when deciding if a HELOC is the right choice for you.
Home Equity Conversion Mortgage (HECM)
An HECM is a government-insured reverse mortgage that allows homeowners 62 and older to tap into their home’s equity. The funds can be received as a lump sum, regular payments, or a line of credit. The beauty of an HECM is that you don’t have to make any payments until you leave the home. Unlike home equity loans and HELOCs, which require monthly payments, HECMs give you more flexibility. However, they do come with higher closing costs and longer processing times.
Cash-Out Refinance
A cash-out refinance is a new mortgage that pays off the old one and lets you pocket the difference. The chief difference between a cash-out refinance vs. a home equity line of credit is that the cash-out refi will leave you with a new mortgage, a single monthly payment, and a lump sum to use as you wish, while a HELOC is a second mortgage (and a second monthly payment), but you draw down only the funds you need at any given time.
The Takeaway
To make the best financial decisions, it’s important to understand Mississippi home equity loan rates and the factors that influence them. By comparing lenders, running possible numbers through a loan calculator, and fully considering the alternatives to a home equity loan, such as a HELOC, you can make the most of the money you have invested in your home and use your equity to reach your financial goals, whether that’s making home improvements, consolidating debt, or paying for education expenses.
SoFi now offers home equity loans. Access up to 85%, or $750,000, 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.
FAQ
What would the monthly payment be on a $50,000 home equity loan?
The monthly payment on a $50,000 home equity loan would be approximately $594, assuming a 7.50% interest rate and a 10-year term. Changing either the rate or term will adjust your payment amount (as well as the amount you pay over the life of the loan). This is where a home equity loan calculator comes in handy.
What is the monthly payment on a $100,000 HELOC?
The monthly payment due on a home equity line of credit (HELOC) will depend on how much of the credit line you have used and whether you are paying only the interest due or both interest and principal. A HELOC interest calculator that shows both of these numbers is helpful. If you borrowed the full $100,000 and had a 7.50% interest rate and a 10-year term, an interest-only payment would be $625 per month. But if you were paying back the loan, your monthly payment would be $1,187.
What is the payment on a $50,000 home equity loan?
The amount you’ll pay each month for a home equity loan depends on the amount you owe, your interest rate, and your loan term. Borrow $50,000 with a 7.00% rate and a 10-year loan term and you’ll pay $581 per month. Borrow $75,000 with the same terms and you’ll need to come up with approximately $871 per month.
What would the payment be on a $30,000 home equity loan?
When you’re thinking about a $30,000 home equity loan, it’s important to understand how your interest rate and loan term will impact your monthly payment. Use a home equity loan calculator to get an idea of what your monthly payments might be, so you can make sure it fits within your budget and make smarter financial decisions.
What might prevent you from getting a home equity loan?
There are a few things that could make you ineligible for a home equity loan. These include not having enough equity in your home, having a poor credit score, having a high debt-to-income ratio, and not being adequately insured.
What are the benefits of a HELOC?
A home equity line of credit (HELOC) has many benefits, including the ability to borrow what you need when you need it and to pay interest only on the outstanding balance. Plus, the interest you pay may be tax-deductible. But keep in mind, if interest rates rise, so could your monthly payments.
SoFi Mortgages
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SoFi Loan Products
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*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 .
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‡Up to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
SOHL-Q324-084 SOHE-Q126-076
More home equity 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