WYOMING HOME EQUITY LOAN RATES TODAY
Current home equity loan rates in
Wyoming.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Current home equity loan rates in
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Key Points
• Home equity loans allow homeowners to borrow against their home’s equity for various purposes such as home renovations or debt consolidation.
• Home equity loan rates are influenced by factors like the prime rate, economic conditions, and local real estate market dynamics.
• To qualify for the best home equity loan 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 typically have fixed interest rates, providing stability in monthly payments.
• Alternatives to home equity loans include a home equity line of credit, a home equity conversion mortgage, or a cash-out refinance.
Introduction to Home Equity Loan Rates
If you’ve been considering how to get equity out of your home to fund home improvements or another big project, you may be mulling over a home equity loan. In this guide, you’ll find the most comprehensive information on home equity loan rates in Wyoming. We’ll cover how rates are decided and what you can do to qualify for the best available rate. We’ve also got the lowdown on alternative borrowing options as there are different types of home equity loans.
Let’s dig into the basics, for starters. What is a home equity loan, anyway?
How Home Equity Loans Work
Here’s the scoop: Home equity loans are a smart way to leverage your home’s value for a loan that has a more favorable interest rate than you would get with an unsecured personal loan. Home equity loans are typically repaid in equal monthly installments over a period of 5 to 30 years.
To qualify, homeowners need at least 20% equity in their primary residence. (Home equity is the difference between the outstanding mortgage balance and the market value of the property.) Home equity loans are used by Wyoming homeowners for all sorts of expenses, including renovations, education, medical bills, and debt consolidation.
Where Do Home Equity Loan Interest Rates Originate?
Home equity loan interest rates are a product of various economic factors. Federal Reserve policy decisions on interest rates can have a ripple effect on home equity loan rates because they help determine the prime rate that banks charge their most creditworthy clients. But the prime rate is just the beginning, and lenders adjust the rates they offer based on the borrower’s individual financial profile (more on that later).
How Interest Rates Impact Home Equity Loan Affordability
The interest rate you secure can have a noticeable impact on your ability to afford your home equity loan. For example, a 20-year home equity loan of $50,000 with an interest rate of 5.50% would have a monthly payment of $344. Over 20 years, you would pay $32,546 in interest. But if the interest rate was 1% higher, your monthly payment would be $373, and you’d pay $39,469 in interest over the life of the loan. That means you’d pay an extra $29 a month and an additional $6,923 in interest over the life of the loan.
Home Equity Loan Rate Trends
The prime interest rate is a key indicator of where home equity loan rates are headed. By keeping tabs on the ups and downs of the prime rate, you can get a good idea of whether the time is right for you to apply for a home equity loan. Since 2018, the prime rate has hit a low of 3.25% in 2020 and a high of 8.50% in 2023, as you’ll see in the chart below. The graphic shows rate fluctuations over a longer time — more than 50 years.
Historical Prime Interest Rates
| 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% |
Source: St. Louis Fed
Source: TradingView.com
Factors Influencing Home Equity Loan Rates
In Wyoming, a variety of factors besides the prime rate influence the interest rate you are offered if you apply for a loan. Happily, some of them are within your control. Let’s take a look one at a time:
Credit Score
Just like when you applied for your home loan and purchased your home, the better your credit score, the better your chances of scoring a great interest rate. Lenders in Wyoming typically look for a minimum credit score of 680, but many prefer 700 or higher. A solid credit score shows that you’re a responsible borrower and can be trusted — which earns you favorable loan terms.
Home Value
Lenders generally use independent appraisals to determine how much a property is worth in the current market. This process helps establish how much equity you have and the maximum amount a lender might let you borrow. The appraisal report is an important part of the loan approval process and helps ensure both the borrower and the lender are making a sound investment.
Loan-to-Value (LTV) Ratio
The loan-to-value (LTV) ratio is another key factor in determining how much you can borrow. To calculate your LTV, divide your loan amount (the total of your existing mortgage principal plus whatever amount you hope to borrow) by the appraised value of the property. Multiply the result by 100. Most lenders offer an LTV up to 85% for a home equity loan. This ratio helps lenders determine the risk of lending to you and the interest rate and loan term they are willing to offer.
Home Value Stability
The stability of home values can make a big difference in the amount of equity you can access. When home values are on the rise, lenders may be more willing to approve larger loan amounts, as the increasing value of the property mitigates some of the risk. When home values are declining, the lender’s risk exposure increases, which can lead to stricter lending criteria and smaller loan approvals.
Property Location
The part of Wyoming where your property is located can also affect your rate. If your home is in an area that’s at high risk of weather-related disasters or wildfires, you might be offered a higher interest rate.
Lender Policies
Wyoming home equity loans can be affected by the policies of the lender. To get the best deal, you should shop around and compare interest rates, fees, and closing costs among several lenders. This can help you make an informed decision and potentially save a significant amount of money in interest payments over the life of the loan.
How to Qualify for the Lowest Rates
There’s some homework involved if you want to get the best home equity loan rate in Wyoming. If you can tick off all the to-dos on the list below, you’ll be in a nice position to get the best rates in your state.
Build a Strong Credit Score
It’s no secret that a solid credit score can be your golden ticket to snagging the most attractive interest rates. So check your credit report, and correct any inaccuracies you find. Don’t max out every credit card you have. And of course, pay your bills promptly.
Manage Debt-to-Income Ratio
When you’re ready to apply for a Wyoming home equity loan, remember that your debt-to-income (DTI) ratio will be a key player in the process. This ratio weighs your monthly income against your monthly debt responsibilities. To figure out your DTI ratio, add up your monthly debts (think: student loan payment, car payment, etc.) and divide by your gross monthly income. Lenders in Wyoming, as elsewhere, typically look for a DTI ratio below 36% for home equity loans, although some may go as high as 50%.
Obtain Adequate Property Insurance
Having the right amount of property insurance is a must-have for securing a home equity loan, especially if you’re in an area prone to natural disasters.
Maintain Sufficient Home Equity
The rule of thumb is to keep at least 20% equity in your property when considering a home equity loan. This isn’t just a number pulled out of thin air; it’s a smart way to make sure you’re not overleveraging yourself financially.
Fixed vs. Variable Interest Rates
Fixed interest rates are the hallmark of home equity loans. They give you peace of mind because you’ll know your monthly payments won’t change over the life of the loan, whether it’s 5, 10, 20, or 30 years. While fixed rates provide stability, they can also mean that the initial rate is higher than what you might get with a variable-rate loan. Variable rates — which are commonly used for a home equity line of credit — can start off lower than fixed rates, but they have the potential to increase over time.
Tools & Calculators
Take advantage of the many tools and calculators available to help you determine your eligibility and potential borrowing power for home equity options. These resources can help you make more informed decisions about your financial options, and help make your loan application process smoother and more successful.
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
Closing costs for home equity loans typically range from 2% to 5% of the loan amount. There may be charges for an appraisal, credit report, document preparation, origination, notary, title search, and title insurance fees. But every lender is different so compare costs while you are comparing interest rates. While no-closing-cost loans are an option, they often come with higher interest rates.
Tax Deductibility of Home Equity Loan Interest
Here’s the lowdown: The interest on a home equity loan is tax-deductible if it’s used for significant home improvements. Borrowers may deduct interest paid on the first $750,000 of their loan for joint filers or $375,000 for single filers. You might want to sit down with a tax advisor, and you’ll definitely want to keep receipts that show how home-improvement money was spent. A home equity line of credit (HELOC) has similar tax implications.
Alternatives to Home Equity Loans
There are other ways to tap into your home’s equity, such as a HELOC, a home equity conversion mortgage (HECM), and a cash-out refinance. Each of these options has its own features and requirements. You should carefully consider and compare these options to see which one may best serve your financial needs.
Home Equity Line of Credit (HELOC)
A HELOC is a bit like having a credit card (but with a lower interest rate). Like a home equity loan, a HELOC is secured by your house. Once you are approved for the credit line, you can borrow up to your limit and only pay interest on the amount you’ve borrowed. When you compare a HELOC vs. a home equity loan, a key difference is that the interest rate on a HELOC is usually variable, so the rate can go up or down over time.
Home Equity Conversion Mortgage (HECM)
A home equity conversion mortgage (HECM) is a government-backed reverse mortgage option for those 62 and older. It’s a way to receive payments based on your home’s value, whether you prefer a lump sum, regular payments, or a line of credit. The best part? No repayment is due until you leave your home. Just be aware, HECMs come with higher closing costs and longer processing times. (While SoFi does not offer HECMs at this time, we do offer home equity loans and HELOCs.)
Cash-Out Refinance
A cash-out refinance is a special type of mortgage refinance that pays off your old mortgage but also lets you pocket some cash to use as you wish. As you consider a cash-out refinance vs. a home equity line of credit or a home equity loan, the biggest difference is that the cash-out refi gets you a new loan at a new interest rate.
If today’s rates in Wyoming are higher than the rate you currently have on your existing mortgage, it may not make sense to do a refinance. It’s important to compare the total cost of the refi versus a home equity loan or HELOC, including all closing costs and fees, to determine which makes the most financial sense.
The Takeaway
To make the most of your home equity in Wyoming, it’s important to understand current home equity rates in Wyoming and the factors that influence them. By comparing rates (using online tools) and presenting your best possible credit score, debt-to-income ratio and other stats, you can help ensure you get the best deal on a home equity loan or HELOC.
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?
A home equity loan of $50,000 would require a monthly payment of $587. That’s assuming an interest rate of 7.25% and a 10-year term. Changing either the rate or term would alter the payment amount, as well.
What is the monthly payment on a $100,000 HELOC?
If you used your full $100,000 home equity line of credit (HELOC), and your interest rate was 8.00%, you’d pay $836 per month to repay the funds over 20 years. Longer repayment terms might have smaller monthly payments, but you will pay more in interest over the life of the loan.
What is the payment on a $25,000 home equity loan?
The monthly payment on a $25,000 loan is determined by the interest rate and the loan term. To understand what your monthly payment might be at different terms and rates, your best bet is to use an online home equity loan calculator.
What would the payment be on a $30,000 home equity loan?
A $30,000 home equity loan with a 20-year term and a rate of 7.50% would run you $242 each month. It’s important to realize that a different loan term or interest rate would change the monthly payment amount as well as the total amount of interest paid over the life of the loan.
What could stop you from getting a home equity loan?
A few things can make you ineligible for a home equity loan: poor credit history, not enough equity in your home, a high debt-to-income ratio, and inadequate property insurance are the most significant red flags for lenders. To increase your chances of getting a home equity loan, it’s important to address these factors and show that you’re a good credit risk and financially stable.
What are the benefits of a HELOC?
A HELOC, or home equity line of credit, offers a variety of benefits to homeowners. It is a flexible borrowing option because you only borrow (and pay interest on) the amount you need at any given time. Moreover, HELOCs typically have a lower interest rate than credit cards.
SoFi Mortgages
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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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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