Mississippi HELOC Calculator

By SoFi Editors | Updated January 23, 2026

A home equity line of credit, or HELOC, allows you to access your home’s equity, functioning as a revolving line of credit secured by your property. Much like a credit card, you can draw funds as you need them up to a predetermined limit, repay the balance, and draw again. A Mississippi HELOC calculator is designed to demystify the payment process by estimating your monthly obligations during the different phases of the credit line.

Keep reading for more on home equity lines of credit, how to use the Mississippi HELOC calculator, and alternatives to consider.


  • Key Points
  • •   A HELOC provides a revolving line of credit secured by your home’s equity.
  • •   HELOCs are structured with two distinct phases: a draw period and a repayment period.
  • •   Most HELOCs feature a variable interest rate that can change over time.
  • •   Your home serves as collateral, which underscores the importance of responsible management.
  • •   A HELOC payment calculator can help you determine if you can comfortably afford a credit line, especially when payments increase during the repayment period.



This calculator is for informational purposes only. The outputs are estimates based solely on information you input. Calculations are not an offer to make a loan or an approval. All SoFi loans are subject to eligibility restrictions and limitations not reflected in this calculator, including a loan applicant’s credit, income, property. SoFi products, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria.

Calculator Definitions

•   HELOC Balance: The HELOC balance is the total amount of principal you currently owe on your line of credit. This represents the portion of your credit line that you have used but have not yet repaid.

•   Current Interest Rate: The current interest rate is the rate at which interest accrues on your outstanding balance. For most HELOCs, this rate is variable and can fluctuate over time.

•   Draw Period: The draw period is the specific timeframe during which you can access funds from your HELOC. This period typically lasts up to 10 years.

•   Repayment Period: The repayment period is the phase that begins after the draw period ends, during which you can no longer withdraw funds. During this period, you make regular payments covering both principal and interest over a term that is typically 10 to 20 years.

•   Monthly Interest Payment: The monthly interest payment is the amount required during the draw period, which often covers only the interest that has accrued on your balance. This structure results in lower initial payments compared to the subsequent repayment period.

•   Monthly Principal and Interest Payment: This is the payment required during the repayment period. It’s typically higher because it includes a portion of the principal balance in addition to the interest.

How to Use the Mississippi HELOC Calculator

Using a HELOC calculator is an essential step for any Mississippi homeowner considering this financial tool. It allows you to forecast potential payment structures and understand the financial dynamics of a HELOC before you commit. Here’s exactly how to use it:

Step 1: Enter Your Planned or Actual HELOC Balance

Enter the total amount you plan to borrow or the current outstanding balance on your line of credit. This figure is the starting principal for all subsequent estimations of your potential payments.

Step 2: Estimate Your Interest Rate

Input the interest rate associated with your HELOC. This rate is used to calculate the interest portion of your monthly payments during both the draw and repayment periods. Because most HELOCs have variable rates, consider testing higher rates to see how potential market changes could affect your monthly payments.

Step 3: Choose the Length of Your Draw Period

Specify the duration of your draw period, which is typically between five and 10 years. This input determines how long you can access funds and potentially make lower, interest-only payments. A HELOC interest-only calculator can help you see your payments during this phase.

Step 4: Specify Your Repayment Period

Enter the length of your repayment period, which generally ranges from 10 to 20 years. This defines the timeframe over which you will repay the principal balance and any remaining interest after the draw period concludes. A HELOC repayment calculator allows you to see what those payments might be.

Step 5: Review Your Results

The calculator will provide estimated monthly payments for both the draw period and the repayment period. These figures are for planning purposes and can help you budget for the transition between the two phases.

What Is a Home Equity Line of Credit?

A home equity line of credit, or HELOC, is a form of revolving credit that is secured by the equity in your home. It functions much like a credit card: a lender approves you for a specific credit limit, and you can draw funds as needed, repay them, and borrow again throughout a designated timeframe. This flexibility makes it different from financing that provides a single lump sum.

The structure of a HELOC is divided into two distinct phases:

•   The Draw Period: This is the initial phase, often lasting 10 years, during which you can access funds from your credit line up to your approved limit. During this time, your required monthly payments may be interest-only, which keeps your initial payments relatively low. You only pay interest on the amount you have actually withdrawn.

•   The Repayment Period: Once the draw period ends, you can no longer withdraw funds. You then enter the repayment period, which typically lasts up to 20 years. Your monthly payments will increase significantly during this phase, as they will now include both principal and interest, calculated to pay off the remaining balance over the term.

This two-part structure distinguishes a HELOC from a home equity loan that provides all the funds at once in a single disbursement. The ability to borrow only what you need makes a HELOC a versatile tool for managing large or ongoing expenses. Because a HELOC is secured by your home’s equity, understanding what equity is and how it grows is the first step toward using this tool wisely.

Recommended: What Is a Home Equity Loan?

What Is a HELOC Calculator?

A HELOC calculator is an online tool that helps homeowners estimate the potential costs of a home equity line of credit. By entering details such as the credit limit, interest rate, draw period, and repayment term, it provides an estimate of monthly payments.

These estimates make it easier to understand how borrowing against your home equity could affect your budget. A HELOC calculator is especially useful for comparing scenarios, planning for rate changes, and deciding whether a HELOC fits your financial goals.

Recommended: How to Get Equity Out of Your Home

Home equity represents the portion of your home you truly own — calculated as your property’s current market value minus the remaining balance on your home loan and any other loans secured by the home. As home prices rise and loan balances decline, equity grows, giving homeowners more financial flexibility and potential borrowing power.

From 2020 to 2025, average home equity increased 142% nationwide, adding up to roughly $11.5 trillion in value. In Mississippi, home equity rose 69% during the same period, with the average homeowner holding about $38,540 in equity as of 2025. While equity levels trail national averages, many Mississippi homeowners may still be able to tap into this value for expenses like home improvements, debt consolidation, or other financial goals.

Here’s a look at how equity has risen nationwide between 2020 and 2025.

How to Use the HELOC Calculator Data to Your Advantage

The data generated by a HELOC calculator is more than just a set of numbers; it provides actionable insights for effective financial planning. By projecting your potential monthly payments, the calculator helps you prepare a realistic budget and make strategic decisions about your finances.

The estimated payment figures are invaluable for long-term budgeting. Understanding the difference between the lower, interest-only payments during the draw period and the higher principal-and-interest payments during the repayment period allows you to plan ahead.

While the calculator uses a fixed rate for its estimations, it helps you understand the fundamental payment structure of a HELOC. This is important for a product that typically has a variable interest rate. Seeing how payments are structured prepares you to better assess how rate fluctuations could impact your budget during both the draw and repayment periods.

The calculator data also assists in making decisions about how much to borrow. By visualizing the repayment obligations tied to different borrowing amounts, you can determine a balance that comfortably fits within your financial capacity, ensuring you do not overextend yourself.

Tips on HELOCs

Managing a home equity line of credit effectively requires careful financial discipline. Because your home secures the credit line, responsible use is paramount. Below are practical tips for handling a HELOC:

•  Shop around: Compare the rates, fees, and terms from multiple lenders, including banks and credit unions. Finding the most favorable terms and lowest fees can save you a significant amount of money over the life of the credit line.

•  Manage carefully: Your home is used as collateral, which means the lender can foreclose on your property if you fall behind on payments. Manage the line of credit with care to avoid this risk.

•  Plan for repayment: Be prepared for the payment increase when the draw period ends. The transition to principal-and-interest payments can be a substantial shock to a budget if not anticipated.

•  Borrow only what’s needed: A key advantage of a HELOC is its flexibility. To keep interest costs down, draw only the funds you need for your project or expense rather than taking the full amount available.

•  Understand the terms: Review the agreement carefully for details on fees. These can include annual fees, inactivity fees if the line is not used, closing costs, and early closure penalties if you close the account within a few years.

With these strategies in mind, it is also wise to consider other financial products that may be available.

Alternatives to HELOCs

Evaluating all available financial options is a cornerstone of sound financial planning. While a HELOC offers notable flexibility, other products might be better suited for different financial needs, goals, and risk tolerances. Understanding these alternatives allows you to make a more informed decision.

Home Equity Loan

A home equity loan is a type of second mortgage that provides a single, lump-sum disbursement of cash. This contrasts sharply with a HELOC’s revolving line of credit. It usually comes with a fixed interest rate and a predictable schedule of monthly payments that begin immediately on the full amount. A home equity loan calculator can help you compare the cost of this product to that of a HELOC.

Recommended: Different Types of Home Equity Loans

Home Improvement Loan

A home improvement loan is a type of personal financing designed for renovations. Unlike a HELOC, it is typically an unsecured product, meaning your home does not serve as collateral. Consequently, the interest rate may be higher than that of a secured option like a HELOC.

Personal Line of Credit

A personal line of credit is an unsecured revolving credit account that functions similarly to a HELOC. Because it is not secured by your home, the lender assumes more risk, which generally results in higher interest rates. The primary advantage is that it does not put your home at risk if you are unable to make payments.

Cash-Out Refinance

A cash-out mortgage refinance replaces your existing primary mortgage with a new, larger one, and you receive the difference in cash. When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance alters the terms of your main mortgage, whereas a HELOC does not. A cash-out refinance also results in a single monthly payment rather than two.

The Takeaway

The Mississippi HELOC calculator is a strategic planning tool for homeowners in Mississippi. It provides essential foresight into potential payment obligations, clarifying how monthly payments differ between the draw and repayment phases. This insight is fundamental to budgeting and responsible financial management.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.



Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.


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FAQ

What is the difference between a HELOC and a home equity loan?

A HELOC provides a revolving line of credit, allowing you to borrow and repay funds as needed up to a set limit, similar to a credit card. In contrast, a home equity loan provides a one-time lump sum of money that you begin repaying immediately in fixed installments. HELOCs typically have a variable interest rate, while home equity loans usually have a fixed rate.

How much can I borrow with a HELOC?

The amount you can borrow depends on your home’s equity — its market value minus your mortgage balance. Lenders typically allow you to access up to 90% of your home’s equity, and homeowners typically must have at least 15% equity to qualify. The final amount approved also depends on other factors, such as your credit score, income, and overall creditworthiness.

Is a HELOC interest rate fixed or variable?

Most HELOCs have a variable interest rate, which means the rate can change over time. This can cause your monthly payments to fluctuate. Some lenders may offer a fixed-rate option, but a variable rate is the most common structure for this type of credit line.

What happens when the draw period ends?

Once the draw period ends, you can no longer withdraw funds from the credit line. The HELOC transitions to the repayment period, and your monthly payments will likely increase. This is because payments will now include both principal and interest on the outstanding balance, rather than just interest.

What is the minimum credit score I need to qualify for a HELOC?

Lender requirements vary, but it may be possible to qualify for a HELOC with a credit score starting around 640. However, many lenders prefer a score of 680 or higher. A stronger credit score generally helps you secure more favorable terms and a lower interest rate.

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