Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Key Points
• Home equity loan rates are influenced by the Federal Reserve’s monetary policy, but the borrower’s creditworthiness is also an important factor.
• It’s a smart move to compare rates from multiple lenders — and the only way to find the best deal and terms.
• By boosting your credit score and reducing your debt-to-income (DTI) ratio, you could see the rates you’re offered drop.
• You’ll need at least 20% equity in your home to qualify for a home equity loan.
• Choose fixed rates for predictable monthly payments or adjustable rates for more flexibility (at the possible cost of higher payments down the road).
• Interest on home equity loans might be tax-deductible if you use the funds to pay home-related expenses.
What is a home equity loan? It’s a great way for homeowners to access the value they’ve built in their homes. It’s also an option that many people who’ve successfully built equity use when they’re in need of cash.
In this article, we will cover everything you need to know about home equity loans. We’ll discuss factors affecting loan rates and give you tips for securing the best rates out there. We’ll also explain and define different types of home equity loans, including home equity lines of credit (HELOCs) and cash-out refinances. This will allow you to be aware of available alternatives, along with the pros and cons of each one.
Whether you are planning to embark on a home renovation, working to consolidate high-interest debt, or preparing to make a major purchase, understanding home equity loan rates in Tulsa can help you to make smart financial decisions and position you for a successful economic future.
Assuming you are still paying off your original mortgage, a home equity loan is a type of second mortgage. It lets you tap into your home’s equity and withdraw a lump sum of cash. You immediately begin repaying that loan, usually in fixed monthly installments, over a 5- to 30-year term. The loan is secured by your home, so you’ll have access to lower interest rates than you could get with an unsecured personal loan.
One important thing to know: To draw on the equity in your home, you have to actually have equity in your home. You can be still working on paying off your mortgage, of course, but the money you owe shouldn’t be more than the house is worth. Lenders will typically want you to have a minimum of 20% equity in your home in order to qualify.
Looking at a HELOC vs. a home equity loan is where many homeowners begin their comparisons. Here’s how these two types of financing measure up side by side if you use them to pull equity from your home. Finding the right loan is often a matter of priorities, including whether you are looking for flexibility or long-term stability. A home equity loan’s interest rate is most often fixed, which can give you the peace of mind of predictable payments.
| 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 plus interest; 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 |
If you have been making a serious effort to pay down your mortgage and you’re wondering how to get equity out of your home, a home equity loan may be the right option for you.
Multiple factors determine what home equity loan rates in and near Tulsa look like. These include not only big-picture economic conditions, but details of your individual financial profile.
Federal Reserve policies have an impact on lenders’ base rates and thus the rates they charge borrowers for loans. Increases in the federal funds rate and the prime rate, for instance, lead to rises in home equity loan rates. Understanding these important influences will enable you as a borrower to anticipate rate fluctuations and make informed decisions about different home loans, including home equity loans.
Your credit score and debt-to-income ratio also can strongly influence the rate you’re offered by lenders. Additionally, the amount of your loan and the length of your repayment term will impact the rate you get. The larger the loan and the longer the term, generally, the higher the rate — this is due to lenders taking on increased risk.
You may already see how it pays to look for the best available interest rates, whether you’re shopping for a home equity loan or a HELOC. There’s no question about it — your interest rate will be a major factor when it comes to affordability. As of July 2025, the average home equity loan interest rate was 8.26%.
The chart below details the numbers for a $75,000 home equity loan with a 20-year repayment term, with the payments and total interest calculated at various interest rates. If you have an 8.00% interest rate, your monthly payment would be $627, and the interest you’d pay over the loan’s term would be $75,559. With a rate of 7.00% — just one percentage point lower — your monthly payment would be $581 and total interest would be $64,554. Get the lower rate and you could save $11,005 over the life of the loan.
| Interest Rate | Monthly Payment | Total Interest Paid |
|---|---|---|
| 8.00% | $627 | $75,559 |
| 7.50% | $604 | $70,007 |
| 7.00% | $581 | $64,554 |
When it comes to a HELOC vs a home equity loan, it’s the home equity loan that tends to have a fixed interest rate. That means that monthly payments don’t change — they’ll stay the same for the entire term of the loan. A fixed rate may start off higher than an adjustable one, but despite initial appearances, it’s usually the better choice. The fixed-rate loan’s stability means your payments won’t suddenly spike, as they can with a variable rate.
Adjustable rates can be attractive at first glance, but after a defined period, the rates “adjust” and begin to follow a market index —and they can often jump higher than the initial rate. Since rates can fluctuate a lot over the life of an adjustable-rate loan, your payments can feel unpredictable as you consider the future.
If you’re trying to decide between the two kinds of rates, think carefully about your financial goals, the flexibility of your budget, and how much risk you feel comfortable with.
You can ponder how to get equity out of your home and try timing your loan application to grab the lowest rate, but predicting the prime rate is unfortunately like trying to forecast the weather. Sometimes it’s impossible to guess the direction things will go.
The prime rate has seen its fair share of ups and downs, as you can see from the graphic and the chart. As a borrower, do you have time to wait for a dip?
Since 2018, the prime rate has seen its share of ups and downs, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023. Take a look at the history of the prime rate to get a sense of how high or low it may go this year.
Source: TradingView.comSince 2018, the prime rate has seen its share of ups and downs, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023. Take a look at the history of the prime rate to get a sense of how high or low it may go this year.
| 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% |
If you need a loan, start your search for a great rate by comparing offers from different lenders. Also, position yourself to get the best possible rate by controlling what you can, by following these steps.
If you’re shopping for a home equity loan in Tulsa, some extra effort can help you get a great rate. Take the following steps before you begin the application process, and you’ll be positioned to land an interest rate and term that are not just manageable, but truly favorable.
You’ll need at least 20% equity in your home to be a candidate for a home equity loan. You can figure out your equity by subtracting your outstanding mortgage balance from the estimated value of your home. Take the answer you get and divide it by the estimated home value to arrive at a percentage of equity. The higher that percentage is, the better your situation.
To land the best home equity loan rate available, you’ll need a robust credit score, too. Lenders require a score of 680 or higher, with many looking for a score over 700. A higher credit score is a sign of financial stability and can open doors to more favorable loan terms. Focus on processing timely payments, lowering your credit card balances, and staying away from new debt, and you can boost your chances of qualifying for a lower home equity loan interest rate.
Your DTI ratio is an important factor when it comes to qualifying for a home equity loan and getting a desirable rate. Lenders typically want to see a DTI ratio of 50% or less. If you’re at 36% or lower, it will help you qualify for the best interest rates. Manage your DTI by paying down existing debt, increasing your income, or both.
Homeowners’ insurance is a must-have if you want to get a home equity loan. The insurance is a safety net for you and for the lender, too, should damage occur. Make sure your coverage is comprehensive and up-to-date.
Online tools and calculators can be a big help when you’re looking for the best home equity loan rates. You can choose among multiple tools, including a home equity loan calculator that lets you figure out how much loan you are likely to qualify for.
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.
If you’re curious about the closing costs on home equity loans, you’re looking at paying 2% to 5% of the loan amount. This table shows how typical loan closing costs can break down.
| Service | Typical Fees |
|---|---|
| Appraisal | $300-$500 |
| Credit report | $30-$50 or more |
| Document prep | $100-$500 (may also be billed on an hourly basis if an attorney is involved or be built into the loan origination fee) |
| Loan origination | 0.5%-1.0% of the loan amount |
| Notary | $20-$100 |
| Title insurance | 0.5%-1.0% of the loan amount |
| Title search | $75-$250 or more |
Some lenders may offer no-closing-cost loans, but these are known to frequently come with higher interest rates.
The interest you pay on your home equity loan may be tax-deductible if you use the funds to make improvements on your home. Single filers may take deductions on the interest they pay on the first $375,000 of loan debt. Married couples who file jointly can deduct the interest on up to $750,000 of debt. Keep in mind, you’ll need to itemize if you want to take advantage of these deductions. A tax advisor can help you figure out what will make sense for you.
If you’re not sold on a home equity loan, you may want to consider a cash-out refinance or a home equity line of credit (HELOC). With a cash-out refinance, you take out a new mortgage for a larger sum than what you owe on your existing home loan, and receive the difference as a lump sum. You can use it however you wish. A HELOC works differently: You apply for a credit limit, secured by your home, that you can borrow against as you need the money. You’ll only pay interest on the cash you’ve drawn out.
You may want to learn even more about cash-out refinance vs. home equity line of credit similarities and differences, so you can understand your options and make the best choice.
This option is actually a strategic mortgage refinance, where you swap your original mortgage for a larger one. Then, you receive the difference in a lump sum. Rates on cash-out refis may be fixed or adjustable. It tends to be easier to qualify for a cash-out refi than it is for a home equity loan or a HELOC. Lenders’ standards vary, but often, cash-out refis require a 620 minimum credit score and a DTI ratio of 43% or less.
What is a home equity line of credit? A HELOC is a lot like a credit card. It can offer a homeowner the freedom to borrow up to a set limit and then pay interest on the money only when they use it. You can usually pull out funds during an initial “draw” period, followed by a repayment period when you have to repay both the principal and the interest.
Rates on HELOCs are adjustable, generally. Unlike home equity loans, HELOCs are about flexibility. But keep in mind that adjustable interest rates mean your rate and payments may change, potentially impacting your costs down the line. Qualifying for a HELOC likely requires a credit score of 680 or higher (700-plus is better) and a DTI ratio below 50% (below 36% is ideal). With a HELOC, you can often borrow up to 90% of the equity you have in your home.
Want to know how much your monthly payment would be on a hypothetical HELOC? Run some figures through a HELOC monthly payment calculator. When you play around with different interest rates and terms, you’ll find out how they might affect your payments, and ultimately how much of a loan you can afford. If you just want to calculate how much interest you’d have to pay during the “draw” period of a HELOC, try a HELOC interest-only calculator.
Recommended: HELOC Repayment Calculator
If you want to apply for a home equity loan in Tulsa, understanding how interest rates work will help you negotiate the very best terms. Your credit score, DTI ratio, and equity level all play a role in the rate you’ll get. Shopping around can go a long way. And if a home equity loan isn’t a fit, a HELOC or a cash-out refinance each have unique benefits that make them appealing.
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.
A home equity loan is a versatile tool. Some popular reasons people use them to borrow are to finance major expenses such as home improvements, or to consolidate high-interest debt. You’ll want to use the funds wisely and make sure the loan fits into your financial long game.
A monthly payment on a $50,000 home equity loan will heavily depend on both the interest rate and the loan term. So if you got your loan at a 7.00% interest with a 15-year term, your monthly payment would be around $449. At a 9.00% rate over 15 years, the payment would be about $507. A loan calculator will help you figure out monthly payments with other variables, so you can compare.
A few factors could get in your way when you’re trying to secure a home equity loan. First, lenders typically require a minimum credit score of 680, and if you have a lower one, it could disqualify you. A high debt-to-income (DTI) ratio – usually over 50% – might nix your loan, too. If you’ve got less than 20% equity in your home, that could be a red flag for lenders. They will probably also look at how stable your home’s value is and how comprehensive a property insurance plan you carry. Requirements vary by lender, but these are common disqualifiers.
Home equity loans often come with fixed interest rates, meaning they have predictable monthly payments that make budgeting easier. Since they usually have lower rates than unsecured personal loans, they are cost effective for significant one-time expenses like home improvements or consolidations of high-interest debt. Be sure that you look at these benefits alongside the potential risks, like the threat of foreclosure if you can’t keep up with your payments.
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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.
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.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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