Kansas Home Equity Loan Calculator

Q: Are there closing costs or fees with home equity loans?

Yes, home equity loans often come with closing costs, which can include fees for the appraisal, a credit report, document preparation, and loan origination. Closing costs are typically 2-5% of the loan amount. Some lenders may offer loans with no closing costs, but these may come with a higher interest rate.

Q: Does a home equity loan replace my first mortgage?

No, a home equity loan does not replace your first mortgage. It is a second mortgage, meaning it is an additional, separate loan with its own monthly payment that you pay in addition to your primary mortgage. You will be responsible for making payments on both loans simultaneously until each one is fully paid off.

By SoFi Editors | Updated December 15, 2025

A home equity loan allows Kansas homeowners to borrow against the value they have built in their property. By converting a portion of this equity into cash, individuals can fund major expenses, from home renovations to debt consolidation. A Kansas home equity loan calculator estimates borrowing capacity and potential monthly payments before engaging with a lender. Keep reading to learn more on what a home equity loan is, the function of the Kansas home equity loan calculator, a detailed analysis of the required inputs, and alternative options to consider.

Key Points
• A home equity loan is a second mortgage that uses the equity in your home as collateral for a lump-sum cash payment.
• A home equity loan calculator determines how much you might be able to borrow and estimates potential monthly payments.
• The loan is repaid in fixed monthly installments over a set period, typically ranging from five to 30 years.
• Home equity loans usually have fixed interest rates, which means your monthly payment remains consistent throughout the loan term.
• Because the loan is secured by your home, interest rates are often lower than those for unsecured debt like personal loans or credit cards.

Calculator Definitions

• Home Value: The home value is the current estimated market value of your property. It should reflect what your home could sell for today, not the original purchase price.

• Desired Loan Amount: The desired loan amount is the specific sum of money you wish to borrow from the lender.

• Current Mortgage Balance: This is the total outstanding amount you owe on your primary home loan and any other existing loans secured by your home.

• Home Equity Loan Repayment Term: The home equity loan repayment term is the length of time over which the loan will be repaid. Terms for these loans are generally available from five to 30 years.

• Interest Rate: The interest rate is the percentage charged by the lender for borrowing the money. For home equity loans, this is typically a fixed rate that does not change over the life of the loan.

• Maximum Loan Amount: The maximum loan amount is the highest sum a lender might be willing to offer. This figure is based on your home’s equity, credit history, and other financial factors.

• Estimated Monthly Payment: The estimated monthly payment is the projected, consistent amount you will pay each month to the lender. This payment covers both the principal loan amount and the interest charged.

• Available Equity Amount: The available equity amount is the portion of your home’s value that you own outright and can potentially borrow against. It is calculated by subtracting your total mortgage balance from your home’s current market value.

How to Use the Kansas Home Equity Loan Calculator

Using a Kansas home equity loan calculator is an important first step in exploring your borrowing options. This tool empowers you to understand your potential borrowing capacity and projected monthly payments before you formally apply with lenders. Follow these simple steps to use the home equity loan calculator effectively:

Step 1: Enter Your Home Value

First, input the current estimated market value of your home. Use a realistic, up-to-date valuation, not the original purchase price, as this is the basis for determining your equity.

Step 2: Input Your Desired Loan Amount

Next, enter the specific amount of money you wish to borrow. This input allows the calculator to assess whether your desired loan is feasible within the bounds of your available equity and helps in calculating the estimated monthly payment.

Step 3: Type in Your Current Mortgage Balance

Enter the total remaining balance on your existing mortgage and any other loans secured by your property. This number is subtracted directly from your home’s value to determine your current equity stake, which is the amount you can borrow against.

Step 4: Select a Home Equity Loan Repayment Term

Select a repayment term, which typically ranges from five to 30 years. The length of the term directly impacts your monthly payment; longer terms generally result in lower monthly payments, but you may pay more in total interest over the life of the loan.

Step 5: Estimate Your Interest Rate

Enter an estimated interest rate. This rate significantly affects both your monthly payment and the total cost of the loan. Home equity loans usually feature fixed interest rates, providing predictability in your payments.

Step 6: Review Your Results

After entering all the information, the calculator will provide outputs such as your estimated monthly payment and the maximum potential loan amount. You can use these numbers to determine if a home equity loan is affordable for your financial situation and the maximum amount you can borrow.

What Is a Home Equity Loan?

A home equity loan functions as a second mortgage, allowing homeowners to convert their property equity into a usable, lump sum of cash. It is a strategic way to access the value built up in a home without selling it.

To qualify for such a loan, lenders typically require a homeowner to have at least 20% equity in their property. This type of loan is separate from a primary mortgage and comes with its own repayment schedule and terms, secured by the value of the property itself, which serves as collateral.

Features of a home equity loan include:

• Lump-sum disbursement: A home equity loan provides funds in a single, upfront payment.

• Secured loan: The loan is secured by your home, which serves as collateral.

• Fixed interest rate: Home equity loans come with fixed interest rates, which means your interest rate — and therefore your monthly payment — will remain consistent and predictable for the entire duration of the loan.

• Defined repayment term: The loan is repaid over a specific period, generally between five and 30 years.

• Competitive interest rates: Because your home secures the loan, lenders typically offer lower interest rates than those for unsecured debt.

Home Equity Trends in Kansas

As home values have risen over the last five years, so have homeowner equity levels. In fact, equity levels have doubled since 2020, a collective increase of $5.7 trillion (see chart below). About half of homeowners with a mortgage are considered “equity rich,” which means their mortgage balance is less than 50% of the home’s value.

In Kansas, equity levels increased an astounding 234% over the same period. The average home equity growth per homeowner is just over $68,385. No wonder there is so much interest around how to get equity out of your home.

Current home equity loan rates by state.

Compare current home interest rates by state and find a home equity loan rate that suits your financial goals.

Select a state to view current rates:

How to Use the Home Equity Loan Calculator Data to Your Advantage

The output from a home equity loan calculator offers actionable data that can be used for informed financial decision-making. By strategically interpreting these results, you can create a clear and realistic plan for managing new debt and achieving your financial goals.

First, understanding the estimated monthly payment allows for effective budgeting. Before committing to a loan, you can assess whether this additional payment fits comfortably within your budget. This prevents over-extending yourself and ensures the loan remains manageable throughout its term.

Next, knowing the maximum loan amount helps set realistic expectations. Whether you are planning a major home renovation, consolidating debt, or funding education, this figure clarifies exactly how much you can borrow. It provides a practical ceiling for your projects and prevents you from planning for an amount that may be unattainable.

Finally, the calculator allows you to compare different scenarios. By adjusting variables like the loan term or the loan amount, you can instantly see the impact on your monthly payments.

Home Equity Loan Scenarios

To demonstrate how a home equity loan can be applied to meet different financial goals, take a look at the following scenarios:

Scenario 1: Home Renovation

A Kansas family plans a major kitchen remodel and uses a home equity loan calculator to estimate their borrowing power and monthly payments. After entering their home value, mortgage balance, and project cost, they see the loan is affordable and within limits, helping them move forward with confidence.

Scenario 2: Debt Consolidation

A homeowner has accumulated high-interest debt across several credit cards, and the multiple monthly payments are becoming difficult to manage. They use the calculator to see if a home equity loan could be a solution. By entering the total amount of their debt as the desired loan amount, they discover they can consolidate everything into a single, more manageable monthly payment with a fixed interest rate.

Scenario 3: Funding Higher Education

A family facing college tuition costs uses a home equity loan calculator to compare loan terms and monthly payments. By testing shorter and longer repayment periods, they can see how each option impacts their budget and decide whether a home equity loan is a smart, affordable way to fund their child’s education.

Tips on Home Equity Loans

Navigating the home equity loan process can be straightforward with the right preparation. The following tips will help you prepare your finances, understand the associated costs, and make sound decisions as you explore your options.

• Build a strong credit history: A strong credit history demonstrates your reliability as a borrower. Lenders typically prefer credit scores of 680 or higher, with the most competitive rates reserved for those with scores of 700 or more. To strengthen your credit profile, focus on making all payments on time and keeping your credit card balances low.

• Manage your debt-to-income situation: Lenders will compare your total monthly debt payments to your gross monthly income to ensure you can comfortably handle an additional loan payment. A lower ratio of debt-to-income (DTI) ratio signals financial stability.

• Understand the costs: Home equity loans often come with closing costs, which typically range from 2% to 5% of the loan amount. These fees can include charges for a home appraisal, a credit report, document preparation, and loan origination.

• Shop around: Interest rates and fees can vary between lenders. To ensure you get the best possible terms, it is wise to get prequalified with multiple lenders. Comparing several offers can lead to significant savings over the life of the loan and help you find a product that best fits your financial needs.

Alternatives to Home Equity Loans

A home equity loan is not the only option for leveraging your home’s value or securing financing. Exploring alternatives ensures you select the product that aligns best with your goals. Here are four to consider:

Home Equity Line of Credit (HELOC)

A home equity line of credit (HELOC) is a revolving line of credit secured by your home, functioning much like a credit card. It features an initial “draw period,” during which you can borrow funds as needed up to a preapproved limit, followed by a “repayment period.” Unlike a home equity loan, a HELOC typically has a variable interest rate, and it offers the flexibility to borrow only what you need, when you need it.

A HELOC interest-only calculator can calculate what your payments might be during the initial period. To determine your principal plus interest amount during the subsequent repayment period, you can use a HELOC repayment calculator.

Recommended: What Is a Home Equity Line of Credit?

Home Improvement Loan

A home improvement loan is a type of unsecured personal loan, meaning it is not backed by your house as collateral. Because the loan is unsecured, the application process may be faster, and your home is not at risk of foreclosure if you are unable to make payments. The primary trade-offs are that home improvement loans often come with higher interest rates and shorter repayment terms compared to a home equity loan.

Personal Line of Credit

Similar to a HELOC, a personal line of credit is an unsecured, revolving line of credit. The key difference is that it is not secured by your home, which generally results in a higher interest rate and a lower credit limit compared to a HELOC.

Cash-Out Refinance

A cash-out mortgage refinance replaces your existing primary mortgage with a new, larger one. The difference between the new loan amount and your old mortgage balance is paid to you in cash.

When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance results in a single, new mortgage payment rather than the two separate payments required with a home equity loan or line of credit.

Recommended: HELOC vs. Home Equity Loan

The Takeaway

For Kansas homeowners looking to leverage their property’s value, a home equity loan calculator provides a preliminary look at potential borrowing power and estimated monthly payments, empowering you to make informed decisions from the outset.

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.

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FAQ

How is a home equity loan different from a home equity line of credit (HELOC)?

A home equity loan provides a one-time lump sum of cash repaid with fixed monthly payments at a fixed interest rate. A HELOC is a revolving line of credit, similar to a credit card, allowing you to borrow funds as needed up to a set limit. HELOCs typically have a variable interest rate, and you only make payments on the amount you have borrowed.

How much can I borrow with a home equity loan?

The amount you can borrow depends on your home’s value, your current mortgage balance, your credit history, and your income. Lenders typically allow you to borrow against a substantial portion of your home’s equity, but not the full amount. This ensures you maintain an ownership stake in your property.

What can I use home equity loan money for?

Common uses for home equity loans include major home improvements, consolidating higher-interest debt, paying for education expenses, or covering large, one-time purchases like a wedding or medical bills. There are generally no restrictions on how you can use the funds you receive from the loan.

Is the interest rate on a home equity loan fixed or variable?

Home equity loans typically come with a fixed interest rate. This means the rate does not change over the life of the loan, resulting in predictable and consistent monthly payments. This predictability can make budgeting easier compared to a variable-rate loan, where payments can fluctuate over time with market conditions.

What are the typical loan terms for a home equity loan?

The repayment terms for home equity loans are flexible, generally ranging from five to 30 years. A shorter term means higher monthly payments but less total interest paid. A longer term will have lower monthly payments, which can be more manageable, but you will pay more in total interest over the life of the loan.

What are the qualification requirements for a home equity loan?

To qualify, you generally need a sufficient amount of equity in your home (20%+), a solid credit score(620+), a low debt-to-income ratio (<50%), and a steady source of income.

Are there closing costs or fees with home equity loans?