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Compare home equity loan rates in Oklahoma.
Key Points
• Home equity loans allow homeowners to borrow against the equity in their homes.
• Home equity loan rates are influenced by the prime rate and economic conditions, including the local real estate market.
• To qualify for the lowest rates, it’s important to have a strong credit score, manage debt-to-income ratio, obtain adequate property insurance, and maintain sufficient home equity.
• Home equity loans offer fixed interest rates, providing stability and predictability in monthly payments, while HELOCs have variable rates that can fluctuate.
• Alternatives to home equity loans include HELOCs, HECMs, and cash-out refinances, each with its own features and eligibility criteria.
Introduction to Home Equity Loan Rates
Ready to learn how to get equity out of your home in Oklahoma? This guide is your introduction to home equity loan rates in the Sooner State — how they are determined, what factors influence them, and (especially key) how you can qualify for the best home equity loan rate possible. We’ll also show you the tools that are available to help you determine how much you can borrow and whether you qualify.
First, let’s make sure you understand the basics: What is a home equiy loan?
How Do Home Equity Loans Work?
A home equity loan is a loan that uses your home as collateral, which is why home equity loans typically offer lower interest rates than most unsecured personal loans. With a fixed rate, home equity loans offer a consistent, predictable repayment schedule. In order to take advantage of a home equity loan, you’ll need at least 20% equity in your primary residence to qualify — so it helps to pay off your home loan for a while before you apply. Many Oklahomans use these loans for renovations, education, medical bills, or debt consolidation.
You might be wondering, is a home equity loan the same thing as a home equity line of credit? The short answer is no. But we’ll get to what is a home equity line of credit in more detail below.
Where Do Home Equity Loan Interest Rates Originate?
The all-important home equity loan interest rate that drives the cost of your loan is not an arbitrary number; the interest rate a borrower is offered is influenced by a variety of economic factors. The cascade starts with the Federal Reserve. Fed policy on its rates helps drive the prime rate, which is the interest rate that banks charge their most creditworthy customers. Lenders have their prime rate, and then adjust it based on an individual borrower’s qualifications.
How Interest Rates Impact Home Equity Loan Affordability
The interest rate you secure can have a big impact on your ability to pay down your loan. For example, a 20-year home equity loan of $100,000 with an interest rate of 7.50% would mean a monthly payment of $806. The table below shows you how that monthly payment will change if you alter the loan amount, interest rate, or loan term.
| Interest Rate | Monthly Payment | Total Interest Paid |
|---|---|---|
| 8.50% | $620 | $24,391 |
| 8.00% | $607 | $22,797 |
| 7.50% | $594 | $21,221 |
Home Equity Loan Rate Trends
The prime interest rate is a key player when it comes to Oklahoma home equity loan rates. By keeping an eye on changes to the prime rate and understanding its historic ups and downs, you can make an informed decision about the right time to apply for an Oklahoma home equity loan.
The chart below shows the prime rate in recent years. It bottomed out at 3.25% in 2020 and peaked at 8.50% in 2023. The graphic below shows a much longer period of time: 50-plus years. As you can see, rates as low as 3.25% haven’t come around very often.
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 | 5.5% |
| 9/27/2018 | 5.25% |
Source: St. Louis Fed
Source: TradingView.com
Factors Influencing Home Equity Loan Rates
As noted above, several factors, such as credit score, loan-to-value ratio, home value, home value stability, property location, and lender policies, influence home equity loan rates. Many of these are within your control (unlike the prime rate), so it’s worth looking at them closely:
Credit Score
If you’re the kind of person who’s diligent about making timely payments, you’re in luck. Lenders are more inclined to offer you a better interest rate. They generally look for a credit score of 680 or higher, but many will be more impressed if you’re at 700 or above.
Home Value
To figure out how much you can borrow, lenders will request an appraisal to determine your home’s value. This will help them establish your equity and the maximum loan amount they’re willing to approve.
Loan-to-Value (LTV) Ratio
Once you know your home value, the LTV ratio can be calculated by taking the loan amount (the amount you owe on your first mortgage plus the amount you want to borrow with a home equity loan) and dividing it by your home’s appraised value. For a home equity loan, you generally want the answer to be less than 85%.
Home Value Stability
The stability of home values can significantly impact the amount of equity homeowners can access and utilize. When home values are on the rise in your part of Oklahoma, lenders may be more inclined to approve larger loan amounts, as the increased value of the property reduces the perceived risk. Conversely, if home values have been declining, lenders may be more conservative.
Property Location
Living in a place with a history of natural disasters or extreme weather can mean higher interest rates. Lenders may see these areas as risky, which can mean you’ll pay more over the life of your loan. If you live in an area with a high risk of flooding, tornadoes, or wildfires, you may have a more challenging time finding the lowest rates in Oklahoma.
Lender Policies
When you’re looking for a home equity loan, it’s important to consider how a lender’s policies will impact the interest rate you are offered. To make a smart decision, you should shop around and compare interest rates, fees, and closing costs from different lenders. By doing your homework and comparing your options, including home equity rates in Oklahoma, you can find the loan that’s right for you and may save money in the long run.
How to Qualify for the Lowest Rates
To qualify for the best Oklahoma home equity loans rates, there are a few things you should keep in mind. Tick off everything on this to-do list and you should be in good shape:
Build a Strong Credit Score
A higher credit score can lead to more favorable interest rates on home equity loans. Check your credit report and correct any inaccuracies before applying for a home equity loan. Avoid using the maximum on all your credit cards at once. And above all, pay your bills on time.
Manage Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is a key player in loan approval. It’s a simple calculation: Add up your monthly debts (car loan, student loan, etc.) and divide by your gross monthly income. You’re looking for a number under 50% — and under 36% is even better for a home equity loan.
Obtain Adequate Property Insurance
Lenders want to know their investment is protected, especially in high-risk areas, so make sure your homeowner’s insurance is up to date.
Maintain Sufficient Home Equity
You’ll need at least 20% equity in your residence to qualify for a home equity loan, as we’ve seen. When you’re computing your equity to make sure you hit this number, remember to use the current estimated value of your home.
Fixed vs. Variable Interest Rates
Home equity loans typically feature fixed interest rates, so monthly payments remain constant throughout the loan’s life. While fixed interest rates offer stability, they may result in higher initial rates compared to variable rates, which can start lower but fluctuate over time. A home equity line of credit (HELOC) usually offers variable interest rates. Depending on your comfort level with changing monthly payment amounts and the direction you think interest rates are headed, one or the other of these options will be more suitable for you.
Tools & Calculators
By using our online tools and calculators, you can get a better idea of your eligibility for a home equity loan or HELOC, the amount you may be able to borrow, and your monthly payments. Play around with these helpful tools before you submit a loan application.
Run the numbers on your home equity loan.
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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.
Closing Costs and Fees
Home equity loans typically come with closing costs that range from 2% to 5% of the loan amount. These may include fees for services such as appraisals, credit reports, document preparation, origination, notary, title search, and title insurance. Every lender’s fee schedule is different, so it’s important to consider not only what interest rate you are being offered but also the lender’s fee schedule when you are weighing one loan option against another.
Tax Deductibility of Home Equity Loan Interest
Here’s the scoop: The interest you pay on a home equity loan could be tax-deductible if you’re using the funds to buy, build, or improve your home. If you’re married and filing jointly, you can deduct interest on loans up to $750,000; for single filers, the number is $375,000. To benefit from this deduction, you’ll need to itemize your deductions on your tax return.
Alternatives to Home Equity Loans
Beyond the conventional home equity loan, there are different types of home equity loans at your disposal. Each comes with its own set of features and eligibility requirements.
Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) is like a credit card. The lender will approve you for a certain amount of credit, and you can borrow up to that limit. You are not required to take the full amount of the HELOC. You will only pay interest on the amount you have borrowed. A HELOC has a variable interest rate that changes with the prime rate. If the prime rate goes up, your interest rate goes up and your payment will increase. 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 |
Home Equity Conversion Mortgage (HECM)
An HECM is a government-backed reverse mortgage option for those 62 and older. With an HECM, you can receive payments from the lender based on your home’s value. The beauty of it is that you don’t have to repay the loan until you leave your home. This sets it apart from Oklahoma home equity loans and HELOCs, which require regular payments. While HECMs may have higher closing costs and longer processing times, the benefits are worth considering. (While SoFi does not offer HECMs at this time, we do offer home equity loans and HELOCs.)
Cash-Out Refinance
This special type of mortgage refinance gives you a new mortgage that pays off your old one and an additional lump sum that you can use however you wish. Lenders usually permit borrowing up to 80% of your home’s value. If you’re considering a cash-out refinance vs. a home equity line of credit, the rate you have on your current mortgage is an important
The Takeaway
If you’re a homeowner in Oklahoma, you can make the most of your home equity by learning about home equity loan rates in Oklahoma and the factors that influence them. By comparing lenders, using online tools, and considering all financing options, you can make an informed decision about your home equity loan.
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 will you be paying each month on a $50,000 home equity loan?
The interest rate and loan term will determine what the monthly payment is on a $50,000 home equity loan. An 8.00% interest rate and a 10-year term would mean a monthly payment of $607. If the interest rate was 7.00%, the monthly payment would change to $581.
What is the monthly payment on a $100,000 HELOC?
Your monthly payment on a $100,000 HELOC will fluctuate based on the current interest rate and how much of your credit line you’ve used. Consider using a HELOC Monthly Payment Calculator, which can take these variables into account and provide an accurate projection.
What is the payment on a $25,000 home equity loan?
If you’re thinking about a $25,000 home equity loan, it’s a smart move to shop around and compare interest rates and loan terms to find the right loan for your financial needs. If you paid back the loan over a decade, at an interest rate of 6.50%, you would pay $284 per month. But changing either the term or rate would change the payment amount, as well as how much interest you pay over the life of the loan.
What would the payment be on a $30,000 home equity loan?
A 10-year term and 8.00% interest rate would equal a monthly payment of $364. A 7.00% interest rate would cost you $348 per month over the same time period.
What might disqualify you from getting a home equity loan?
Generally speaking, lenders want to see that you have a history of making on-time payments and being financially responsible. Having a bad credit score, lacking adequate equity in your home, being burdened by a high level of debt, or not having insurance on your property could all be disqualifying factors.
What are the benefits of a HELOC?
A home equity line of credit (HELOC) has a lot of benefits, including a lower interest rate than a credit card and the ability to only pay interest on the money you borrow. If you know you need cash on hand for an upcoming project or expense but you aren’t sure exactly how much, a HELOC can be an especially flexible option.
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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.
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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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.
This content is provided for informational and educational purposes only and should not be construed as financial advice.
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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