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Aug
20
2025

Current HELOC Rates in Winston-Salem, NC Today

By | mortgage | Comments Off on Current HELOC Rates in Winston-Salem, NC Today

WINSTON-SALEM HELOC RATES TODAY

Current HELOC rates in

Winston-Salem, NC.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare HELOC rates in Winston-Salem.

Key Points

•   Interest rates for a home equity line of credit in Winston-Salem are based on the prime rate.

•   HELOCs offer a versatile line of credit secured by your home equity.

•   The precise rate you’re offered will depend on factors like your credit score, debt-to-income ratio, and amount of equity.

•   Use online calculators to get a sense of what your monthly payments might look like, and how much you could pay in interest over time.

•   Explore other options, such as a home equity loan and cash-out refinance.

Introduction to HELOC Rates

Welcome to your guide to home equity line of credit (HELOC) rates in Winston-Salem, North Carolina. We’re here to walk you through the ins and outs of these rates so you can make a smart decision about how to get equity out of your home. You’ll gain insights into the factors that sway HELOC rates, the perks and potential pitfalls of HELOCs, and tips on comparing lenders’ offers. Whether you’re dreaming of a home makeover, aiming to streamline debt, or have your sights set on a big-ticket purchase, this info will empower you to tap into your home equity with confidence.

What Exactly Is a HELOC?

A HELOC is a revolving credit line secured by your home equity (your home’s value minus the balance you still owe on your home loan). To qualify, you typically need 15% equity, and you can usually borrow up to 90% of that equity. Because your home serves as collateral for the HELOC, it’s important to have a plan in place to make payments when it’s time to repay the loan — otherwise you risk foreclosure. A HELOC has two phases:

The Draw Period

The draw period is the time when you can borrow money in increments, up to your credit limit, repay what you’ve borrowed (or carry a balance), and borrow again. During this window, you may only have to make interest payments, so consider using a HELOC interest-only calculator.

The Repayment Period

The repayment period is when borrowing ends and you must pay back the principal plus interest. HELOCs have variable interest rates so the monthly payment amount can vary over the 10 or 20 years of the repayment term. A HELOC monthly payment calculator is handy now.

Recommended: Different Types of Home Equity Loans

Where Do HELOC Interest Rates Come From?

Lenders peg HELOC rates to the prime rate, a figure that is in turn influenced by the Federal Reserve’s policies. Each lender then adds a margin to the prime rate, resulting in the diverse rates you see in the market. Your individual financial profile, from credit score to income, and the equity you’ve built in your home, also enter the equation. Because there are so many variables, it’s a good idea to get rate quotes and to examine the terms offered by a variety of lenders. Only then can you be confident that you’re getting the best available rate.

How Interest Rates Impact HELOC Affordability

The interest rate on your HELOC has a big impact on how much you’ll pay to borrow funds. Even a small difference in the rate can add up to a lot of extra interest over the life of the loan.

Consider this example: You borrow $50,000 with a HELOC and have a 10-year repayment term. If your interest rate was 8.00%, your monthly payment would be $607 and total interest paid would be $22,797. But if you instead had a 7.50% rate, your monthly payment would be $581 and total interest $19,665. HELOCs have variable interest rates so your exact results may differ but the need to seek out a low starting interest rate holds true.

HELOC Interest Rate Trends

Keeping an eye on the prime rate can give you a sense of where HELOC rates may be headed. And having a sense of the rate’s history can help put current HELOC interest rates in Winston-Salem in context. The prime rate hit a low of 3.25% in 2020 and a high of 8.50% in 2023. You may be tempted to wait to apply for a HELOC until rates are at their lowest, but if you have a need to borrow now, your best bet is to move ahead while making sure you can qualify for the lowest of the available rates.

Date U.S. 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 5.5%
9/27/2018 5.25%

Source: U.S. Federal Reserve


Variable vs. Fixed Interest Rates

HELOCs often come with variable (also called adjustable) interest rates, meaning they can change over the life of the loan. Because they’re tied to the market, they can go up or down. Variable HELOC rates aren’t as predictable as fixed rates, but they do have built-in controls that dictate how large a change you might see in your rate, how frequently it can adjust, and whether there is a rate cap. All of this would be in the HELOC agreement, so it’s important to look at the details as you are considering HELOC offers.

Helpful Tools and Calculators

Before you apply for a HELOC, you can use online tools to get an estimate of what your monthly payments and interest costs might be. Here are some calculators that will be useful during the borrowing process.

Run the numbers on your HELOC.

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.

How to Qualify for a Competitive HELOC Rate

To obtain the best available HELOC rate, you’ll want to focus on a few key factors. First, make sure you have the necessary home equity. Subtract your mortgage balance from your home’s estimated value. Divide the answer by the home value, and you’ll arrive at a percentage of equity. If it’s 15% or better, you could qualify. Also take the time to address your credit score and debt-to-income (DTI) ratio:

Improve Your Credit Score

Keeping your credit score at 700 or above is important for securing the best HELOC rates, though you can qualify for a HELOC with a score of 640 or better. You have the power to pump up your credit score. Pay your bills on time and whittle down credit card balances, and you’ll be on the right track. Try not to use the maximum credit line allotted on your credit cards. Avoid opening new accounts or closing old ones in the months preceding your HELOC application. And if you spot any errors on your credit report, dispute them promptly. Every point you add to your credit score is a step closer to a great HELOC rate.

Calculate Your Debt-to-Income (DTI) Ratio

Your DTI ratio is a simple calculation: Tally up your monthly debt payments and divide that by your gross monthly income. You can get a HELOC with a DTI under 50%, but for the best interest rates, you’ll want to be at 36% or less. Get there by paying off debts, increasing income, or both.

Application Process for a HELOC in Winston-Salem

Many lenders offer the convenience of an online HELOC prequalification process, which can streamline your application journey. This initial step can give you a glimpse of the HELOC rates in Winston-Salem that you might be eligible for. From there, you can move to the full application process:

Step 1: Run the Numbers

Check your equity level, credit score, and DTI ratio as detailed above to make sure you meet the minimum requirements: 15% equity, a credit score of at least 640, and a DTI ratio of 50% or less.

Step 2: Compare Lenders

Carefully examine the qualification requirements, HELOC minimums and maximums, fees, and the length of both the draw and repayment periods for the lenders whose interest rates seem appealing. Look for a lender with both a competitive HELOC rate and the most enticing terms.

Step 3: Submit Your Application

Gather your ID, proof of your income such as pay stubs, a recent W-2 form, and last year’s tax forms. If you have your own business you might need to provide a profit-and-loss statement and at least two years of tax returns. Have your homeowners insurance declaration page handy. Once you’ve assembled all the facts, you can submit your application online, over the phone, or in person. Just make sure everything’s accurate and complete to keep things moving smoothly.

Step 4: Get an Appraisal

Your prospective lender will let you know what type of appraisal is required. An appraisal is an unbiased assessment of your home’s value. Knowing the precise number will help your lender ensure you qualify for a HELOC and set the maximum amount they’ll let you borrow.

Step 5: Prepare for Closing

If the appraisal goes smoothly and you’re cleared to close on a HELOC, you’ll need to sign all the necessary documents and pay any fees. Lenders typically make funds available after three days following the closing. Be sure to prepare for the closing by reviewing all documents carefully. It’s important to understand the terms and conditions.

Closing Costs and Fees

HELOC closing costs are generally more affordable than those associated with a home purchase or mortgage refinance. Appraisal fees can range from $300 to $600 and are often the most substantial expense. A title search, if required, can cost $100 to $450. Other potential costs include application, origination, and administrative fees. Annual maintenance fees (up to $250) and transaction, inactivity, or early termination fees may also apply, depending on the lender.

Tax Benefits and Considerations

A HELOC often comes with some tax benefits. Homeowners can deduct HELOC interest for the 2025 tax year as long as the funds are used to significantly improve the residence. These tax guidelines could change in 2026 and beyond, so connect with a tax advisor to make sure you’re on the right track with tax planning and to see if you’re eligible for HELOC-related deductions. You will have to itemize deductions on your return to claim this benefit.

Alternatives to HELOCs

A HELOC isn’t your only option if you’re looking to finance a home project or pay down high-interest debt. Consider these alternatives to find the best fit for your financial goals.

Home Equity Loan

With a home equity loan, funds come all at once and you begin paying them back, with interest, immediately. The repayment term might be 10, 20, or 30 years. You can usually tap into 85% of your home equity. The best rates often go to those with a credit score of 700 or above, though you can qualify with a score of 680. A home equity loan calculator can show you what you might be able to borrow. As you consider a HELOC vs. a home equity loan, note that the latter has a fixed interest rate.

Cash-Out Refinance

A cash-out refinance replaces your existing mortgage with a new one for a larger loan amount; you take the difference as cash to use as you wish. To qualify for a cash-out refinance, you typically need a 620 credit score and a debt-to-income ratio of under 43%. When considering a cash-out refinance vs. a home equity line of credit, remember that with a refinance, you’ll need to score a new interest rate that is an improvement on your current one (also remember to factor in closing costs).

Personal Loan

A personal loan is a versatile, typically unsecured loan that you repay in regular, fixed installments over a term of two to seven years. The key advantage here is that your home is not on the line should you face financial challenges. Many lenders look for a credit score of 610 or more in order to qualify an applicant for a personal loan. While they are relatively quick to secure, note that these loans often come with higher interest rates than either a HELOC or a home equity loan.


The Takeaway

When considering a HELOC in Winston-Salem, it’s important to weigh the benefits and risks. HELOCs offer flexibility and potentially lower interest rates than personal loans, but they also come with the possibility of losing your home if payments are not made. If you’re thinking about a HELOC, seek out rates and study terms offered by multiple lenders in order to find the best fit for your situation.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

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

View your rate


FAQ

What can a HELOC be used for?

A HELOC can be used for home improvements, debt consolidation, or any number of expenses. It provides a flexible line of credit, allowing you to withdraw funds as needed during the draw period, typically 10 years, and make interest-only payments for a while before repaying the principal plus interest. It’s especially useful for managing ongoing expenses or large projects that have unpredictable costs.

What’s the monthly payment on a $50,000 HELOC?

Your monthly payment on a $50,000 HELOC will vary according to the variable interest rate and the term. During the draw period, you might only need to pay interest, which can be quite manageable. For instance, at a 7.00% interest rate, your monthly interest-only payment would be about $292. But keep in mind, once the repayment period kicks in, you’ll be paying both principal and interest, so your monthly expense will increase unless the variable interest rate trends downward.

Do you need an appraisal for a HELOC?

You will likely need a home appraisal to secure a HELOC. The appraisal establishes your home’s current market value, which is essential for calculating the amount of equity you can access. The appraisal fee is usually $300 to $600, and it’s a crucial step in the application process.

What are the advantages of a HELOC?

There are several benefits of a HELOC. First, you have the flexibility to borrow the amount you need when you need it (up to your credit line) and only pay interest on the amount you borrow. HELOCs often come with competitive rates when compared to personal loans and have potential tax benefits.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
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.


¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.


†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.


SOHL-Q225-377

Browse other North Carolina home guides.

Browse HELOC rates by state guides.

More HELOC resources.

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Read more
Aug
20
2025

Current HELOC Rates in Columbus, OH Today

By | mortgage | Comments Off on Current HELOC Rates in Columbus, OH Today

COLUMBUS HELOC RATES TODAY

Current HELOC rates in

Columbus, OH.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare HELOC rates in Columbus.

Key Points

•   Home equity line of credit rates in Columbus, Ohio, are determined based on the prime rate, your credit score, debt-to-income ratio, and the amount of equity in your home.

•   HELOCs offer a revolving line of credit, with interest charged only on the amount borrowed.

•   Online calculators can help borrowers estimate monthly payments and total interest costs before applying.

•   You may be able to deduct the interest you pay on a HELOC.

•   Before offering you a HELOC, your lender will require a home appraisal.

Introduction to HELOC Rates

This article will give you a comprehensive understanding of home equity line of credit (HELOC) rates in Columbus, Ohio. By the time you’re through, you’ll be well versed in the factors that sway HELOC rates, the advantages and potential pitfalls of these financial tools, and how to sift through various lenders to find the best fit for your needs. Armed with this knowledge, you’ll be ready to make a well-informed decision and approach the application process with confidence.

What Is a HELOC?

A HELOC is a smart way to leverage the equity you’ve built up in your home by paying down your home loan. (Your equity is the difference between your home’s value and the remaining mortgage balance.) With a HELOC, you can borrow up to 90% of your equity. You can use a home equity loan calculator to determine how much you might borrow. There are two phases to a HELOC.

A HELOC has two phases, each with different parameters:

The Draw Period

During the draw period, typically 10 years, you can access funds in increments as needed and only make interest payments. You can use a HELOC interest-only calculator to see what those payments might look like. Remember that because the HELOC is secured by your home, not making payments may result in foreclosure.

The Repayment Period

After the draw phase ends, a repayment period of 10 to 20 years begins. Now you’ll pay back the principal with interest. HELOCs have adjustable interest rates, which mean your monthly payment amount may change many times. You can estimate payments with a HELOC monthly payment calculator.

Where Do HELOC Interest Rates Originate?

HELOC interest rates are tied to the prime rate, which in turn is influenced by the Federal Reserve’s policies. Each lender adds a margin to the prime rate, creating the range of HELOC rates you see in the market. Lenders also take into account individual borrower factors, such as credit score, debt-to-income (DTI) ratio, income, and the amount of equity in the home. This is why it’s important to seek out rates from multiple lenders before you settle on a lender to partner with for your HELOC.

How Interest Rates Impact HELOC Affordability

The interest rate on your HELOC can make a big difference in how affordable it is. Even a small change in the interest rate can add up to a lot of extra interest over the life of the loan. For example, on a $50,000 HELOC with a 20-year term, a one-percentage-point rate increase from 7.00% to 8.00% can bump your monthly payment up by $30 and increase the total interest paid over the life of the HELOC by almost $7,000.

Recommended: HELOC vs. Home Equity Loan

HELOC Interest Rate Trends

When you’re thinking about how to get equity out of your home, you’ll probably start paying close attention to the prime rate. Doing so may shed some light on what to expect with HELOC rates in Columbus. Having a sense of the history of the prime rate can also help give you some perspective on the rates you are seeing. The prime rate hit a low of 3.25% in 2020 and a high of 8.50% in 2023.

Historical Prime Interest Rate

Date U.S. 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 5.5%
9/27/2018 5.25%

Source: U.S. Federal Reserve


Variable vs. Fixed Interest Rates

HELOCs usually come with variable (also called adjustable) interest rates, which track the prime rate’s ups and downs. As the prime rate shifts, so will your HELOC rates, at intervals and within limits that are spelled out by your HELOC agreement.

Helpful Tools & Calculators

Before you apply for a HELOC, you can use online tools to estimate monthly payment and total interest costs. Here are three of our favorite tools:

Run the numbers on your HELOC.

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.

How to Qualify for a Competitive HELOC Rate

To secure an attractive HELOC rate, it’s all about the numbers. Make sure you have at least 15% equity in your home (ideally more) and from there, focus on boosting your credit score and keeping your debt-to-income (DTI) ratio low. Here are the details:

Improve Your Credit Score

You’ll need a credit score of 700 or above to qualify for the most attractive HELOC rates in Columbus. The good news is, you have the power to boost your score. Make all your payments on time and reduce your credit card balances. Also check your credit report for any inaccuracies and dispute them if needed. Keep old credit accounts open and use them responsibly, but avoid opening new accounts in the run up to your HELOC application.

Calculate Your Debt-to-Income (DTI) Ratio

Your DTI ratio is the total of your monthly debt payments divided by your gross monthly income. To get a HELOC, you’ll need a DTI under 50%, but for the best interest rates in Columbus, aim for 36% or lower. To improve your DTI, reduce your debts, increase your income or both.

Application Process for a HELOC in Columbus

Some lenders offer the option to prequalify for a HELOC through their online portal, which can make the application process more streamlined. Prequalifying can give you an idea of the HELOC rates in Columbus that you might be able to get, as well as the amount of equity you could potentially access. Prequalifying involves providing some basic financial information and can be done fairly quickly, which can help you make more informed decisions before you formally apply by following these steps.

Step 1: Run the Numbers

Before you take the plunge with a HELOC, it’s wise to take a good look at your finances. Start by checking your credit scores from all three major credit bureaus and calculating your debt-to-income (DTI) ratio. Then, consider your home equity, which grows as you make regular mortgage payments and as your home’s value increases over time. Subtract your outstanding mortgage balance from your home’s estimated value. Then divide the answer by your home value to arrive at a percentage. As noted above, you’ll need at least 15% equity to move forward.

Step 2: Compare Lenders

To find the best HELOC lender in Columbus, compare rate quotes from multiple lenders. Also look at qualification requirements, minimum and maximum amounts you can borrow, fees, and the length of the draw and repayment periods. Because the terms can vary from lender to lender, it’s important to shop around.

Step 3: Submit Your Application

To fill in an application, you’ll need government-issued identification, recent pay stubs, W-2 forms, and copies of your last tax return. If you’re self-employed, a lender may ask for a profit-and-loss statement in addition to two years’ worth of tax returns. Property documentation includes a homeowners insurance declaration page. Submit your application online, over the phone, or in person.

Step 4: Get an Appraisal

A home appraisal is a professional’s objective analysis of your home’s value. Your lender will tell you what kind of appraisal is required. The cost typically ranges from $300 to $600. If your home appraises for more than your existing mortgage balance, the lender is much more likely to approve you for a HELOC. This step is important in determining the amount of equity you can potentially access and the specific terms of your HELOC agreement.

Step 5: Prepare for Closing

Once you’ve been approved, before you can access your HELOC funds, you’ll need to sign the HELOC agreement and pay any closing costs. Some lenders make the funds available to you right after the closing; others may take a few days. You may have to pay for an appraisal, title search, origination fee, and other fees. Some lenders charge an annual fee. Be sure you know all the costs involved.

Recommended: Different Types of Home Equity Loans

Closing Costs and Fees

The good news is that HELOC closing costs are generally more affordable than those associated with a home purchase or refinance. In addition to the appraisal fee, you might encounter application, origination, title search, and administrative costs, as well as annual maintenance fees that could be as much as $250.

Tax Benefits and Considerations

As a homeowner, you can take advantage of deducting HELOC interest when the funds are used to substantially improve your primary residence. The current tax laws are in effect through 2025. To understand the tax implications and confirm your eligibility for HELOC-related deductions this year or in the future, it’s best to consult with a tax advisor.

Alternatives to HELOCs

Other financing options to consider before committing to a HELOC are home equity loans, cash-out refinancing, and personal loans. Let’s take a closer look at each of these options.

Home Equity Loan

Home equity loans provide borrowers with a lump-sum loan at a fixed interest rate. You can typically borrow up to 85% of your home’s equity. Lenders usually look for a credit score of 680 or more, with many favoring 700 and above. This option is great if you have a specific need for a defined amount of money and prefer the predictability of fixed monthly payments.

Cash-Out Refinance

A cash-out mortgage refinance lets you borrow against your home’s equity by refinancing your mortgage for more than you currently owe and pocketing the difference. This option is particularly handy when you need a one-time lump-sum loan. To qualify, you’re generally looking at a credit score of 620 or higher, and a debt-to-income ratio under 43%. You can choose between fixed or variable rates. A cash-out refinance vs. home equity line of credit differentiator? The former leaves you with just one monthly payment.

Personal Loan

A personal loan is a versatile, typically unsecured loan that you repay in regular, fixed installments over a period of two to seven years. The key benefit here is the security of your home — there’s no risk of foreclosure if financial challenges arise. Most lenders look for a credit score of 610 or higher when considering a personal loan application. While the process is often swift, it’s essential to note that personal loans can carry higher interest rates than HELOCs or home equity loans.


The Takeaway

HELOCs are a flexible way to tap into your home’s equity for large expenses, debt consolidation, or home improvements. Keep in mind that if you miss payments, your home could be at risk of foreclosure. HELOC rates can vary, so shop around among different lenders. The interest you pay may be tax-deductible if you use the money for home improvements.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

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

View your rate


FAQ

What can a HELOC be used for?

A HELOC can be used for a variety of things, including home renovations, personal expenses, and debt consolidation. It offers flexibility, allowing you to draw funds as needed during the draw period and pay interest only on the amount used. This makes it a versatile tool for managing your financial needs, especially when HELOC rates in Columbus are favorable.

What’s the monthly payment on a $50,000 HELOC?

Your monthly payment on a $50,000 HELOC will depend on the interest rate and the repayment terms. During the draw period, if you used the full $50,000 but just made interest payments, your monthly bill at 8.00% would be $333. Once you enter the repayment term of 20 years, the monthly cost would rise to $607. Remember, these are only estimates because HELOCs have variable interest rates.

Is a HELOC a smart move?

Whether a HELOC is a good idea right now depends on your financial situation and the current HELOC rates in Columbus. If you need a flexible line of credit for significant expenses and can manage somewhat unpredictable monthly payments, a HELOC might be a smart choice.

What could stop you from getting a home equity loan?

There are a few things that could stand in the way of you obtaining a home equity loan or a home equity line of credit. You need to have at least 15% equity in your home, for one thing, and some lenders require 20% equity. You’ll also need to meet a lender’s credit-score requirements and have a healthy debt-to-income ratio.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
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.


¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.


†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.


SOHL-Q225-376

Browse other Ohio home guides.

Browse HELOC rates by state guides.

More HELOC resources.

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Read more
Aug
20
2025

Current HELOC Rates in San Diego, CA Today

By | mortgage | Comments Off on Current HELOC Rates in San Diego, CA Today

SAN DIEGO HELOC RATES TODAY

Current HELOC rates in

San Diego, CA.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare HELOC rates in San Diego.

Key Points

•   Home equity line of credit (HELOC) interest rates in San Diego are influenced by your credit score, home equity stake, and debt levels.

•   HELOC interest rates vary among lenders.

•   HELOCs typically have lower interest rates than unsecured loans.

•   It’s important to be aware of the risks of a HELOC, such as its variable interest rate and the potential for foreclosure.

•   Online calculators can help borrowers estimate monthly payments and total interest costs.

Introduction to HELOC Rates

Welcome to our comprehensive guide to home equity line of credit rates in San Diego, California. We’re here to help you navigate the current lending landscape and make the most of your home equity. We’ll cover the factors that influence HELOC rates, the benefits and risks of these financial products, and how to compare different lenders to find the best option for your financial needs. Whether you’re considering a home renovation or need funds for other large expenses, this guide will give you the knowledge you need to make informed decisions.

What Exactly Is a HELOC?

A HELOC is a way to tap into your home equity, which you have accumulated by making home loan payments. It’s a revolving credit line that’s secured by your equity. Typically, you’ll need to have at least 15% equity in your home to qualify. With a HELOC, you can often borrow up to 90% of your equity. A home equity loan calculator can help you figure out how much you might borrow. A HELOC has two phases:

The Draw Period

During the draw period, which is usually 10 years, you can access funds as needed and only pay interest on what you have borrowed. You can use a HELOC interest-only calculator to see what those payments might look like. Remember that because the HELOC is secured by your home, not making payments may result in foreclosure.

The Repayment Period

After the draw phase ends, there will be a repayment period of 10 to 20 years. At this point, you’ll pay back the principal with interest. HELOCs have adjustable interest rates, which means your monthly payment amount can change many times. You can estimate payments with a HELOC monthly payment calculator.

The Origin of HELOC Interest Rates

HELOC interest rates are tied to the prime rate, which is influenced by the Federal Reserve. Each lender adds a margin to the prime rate to determine the HELOC rate. That’s why it’s smart to shop around and explore rates from various lenders before committing to a HELOC. Lenders also consider individual factors when determining your HELOC rate, such as your credit score, debt-to-income (DTI) ratio, income, and the amount of equity in your home. Understanding these factors can help you put the best foot forward when applying.

How Interest Rates Impact HELOC Affordability

The interest rate on your HELOC can have a big impact on how much you end up paying. Even a small increase in the rate can add up to a significant increase in the amount of interest you pay over the life of the loan. HELOCs’ variable rates makes it hard to pinpoint the exact amount the HELOC will cost, but if you borrowed $50,000 with a HELOC that had a 20-year repayment term, you would have the following monthly payment amounts at 7.00%, 8.00%, and 9.00% interest: $388, $418, and $450, respectively, and total interest paid of $43,036, $50,373, and $57,967, respectively.

Recommended: Different Types of Home Equity Loans

HELOC Interest Rate Trends

As you contemplate how to get equity out of your home, you’ll probably begin to watch the prime rate. Doing so may shed some light on what to expect with HELOC rates in San Diego. Having a sense of the history of the prime rate can also help give you perspective on the rates you are seeing. The prime rate hit a low of 3.25% in 2020 and a high of 8.50% in 2023. Some homeowners might try to put off borrowing until rates drop, but if you need funds soon, you can focus on making sure your application qualifies for the best available rates. We’ll walk you through that below.

Historical Prime Interest Rate

Date U.S. 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 5.5%
9/27/2018 5.25%

Source: U.S. Federal Reserve


Variable vs Fixed Interest Rates

As we’ve noted, HELOCs’ variable (also called adjustable) interest rates can be a bit of a moving target, influenced by the market’s ebb and flow. If you are nervous about having a variable rate, talk to a lender about the intervals at which the rate can adjust and the rate caps. If this doesn’t provide assurance, consider a home equity loan or other option instead (more on those below).

Helpful Tools & Calculators

Before you take the leap and apply for a HELOC, you can use online tools to get a handle on what your monthly payments and interest costs might look like. Here are three tools you may find yourself using again and again:

Run the numbers on your HELOC.

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.

How to Qualify for a Competitive HELOC Rate

To qualify for a competitive HELOC rate, you first need to meet the minimum HELOC qualifications, including 15% equity in your home, a credit score of at least 640 and a debt-to-income ratio of 50% or less. But to get the best rates, you’ll want to do more. Follow these tips:

Improve Your Credit Score

You’ll need a credit score of 700 or above to qualify for the most attractive HELOC rates in San Diego. To get there, make all your payments on time and reduce your credit card balances. Also check your credit report for any inaccuracies and dispute them if needed. Keep old credit accounts open and use them responsibly, but avoid opening new accounts in the months before you apply for a HELOC.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is the total of your monthly debt payments divided by your gross monthly income. To get a HELOC, you’ll need a DTI under 50%, but for the best interest rates in San Diego, aim for 36% or lower. To improve your DTI, reduce your debts, increase your income or both.

Application Process for a HELOC in San Diego

The application process for a HELOC in San Diego will be a smooth one if you follow these steps. To see what rate and terms you might be able to obtain from different lenders, you can go through the online prequalification process, typing in a little information about your finances to get a quote. After that, the application process looks like this:

Step 1: Run the Numbers

Before you apply for a HELOC, it’s wise to examine your financial landscape. Check your credit scores from all three major credit bureaus and calculate your debt-to-income (DTI) ratio as described above. To assess your home equity, subtract your outstanding mortgage balance from your home’s estimated value. Then divide the answer by your home value to arrive at a percentage. As noted above, you’ll need at least 15% equity to move forward.

Step 2: Compare Lenders

To find the best HELOC rate in San Diego, you’ll want to compare them and see which ones offer the best rates and terms. Look at the interest rates, qualification requirements, minimum and maximum amounts you can borrow, fees and the length of the draw and repayment periods. Because terms can vary among lenders, it’s important to shop around and read the fine print before you commit to a HELOC.

Step 3: Submit Your Application

Gather your paperwork: You’ll need government-issued identification, recent pay stubs, W-2 forms, and copies of your last tax return. If you’re self-employed, a lender may ask for a profit-and-loss statement in addition to two years’ worth of tax returns. Have your homeowners insurance declaration page handy as well. Submit your HELOC application online, over the phone, or in person to get the ball rolling.

Step 4: Get an Appraisal

A home appraisal will be needed to determine your home’s value. The cost for a home appraisal typically ranges from $300 to $600. If your home appraises for more than your existing mortgage balance, the lender is more likely to approve you for a HELOC. This step is important in determining the size of your line of credit and its interest rate. A prospective lender will tell you what kind of appraisal is required.

Step 5: Prepare for Closing

Once you’ve been approved, before you can access funds, you’ll need to sign the HELOC agreement and pay closing costs. Some lenders make the funds available to you right after the closing; others may take a few days. You may have to pay for an appraisal, title search, origination fee, and other fees. There may also be an annual fee. Be sure you know all the costs involved.

Recommended: HELOC vs. Home Equity Loan

Closing Costs and Fees

HELOC closing costs are generally more affordable than those associated with a home purchase or refinance. The most significant expense is often the appraisal fee, though you may have fees for a title search ($100 to $450). You might also have application, origination, and administrative costs, along with annual maintenance fees that could go up to $250.

Tax Benefits and Considerations

Homeowners, you’re in luck: You can deduct HELOC interest payments on your federal taxes, provided the borrowed funds are used to make improvements to your primary residence. You’ll need to itemize your return (so save your receipts showing how you spent the funds on renovations). To confirm your eligibility for HELOC-related deductions, it’s always a good idea to chat with a tax pro as tax policies can change from year to year.

Alternatives to HELOCs

There are other ways to get equity out of your home besides a HELOC, and it is worth considering them before you sign on to a HELOC. Each has its own pros and cons.

Home Equity Loan

With a home equity loan, you get a one-time lump-sum loan at a fixed interest rate. You can usually borrow up to 85% of your home equity. Lenders often look for a credit score of 680 or higher, with many leaning toward 700. If you’re someone who likes the predictability of a fixed interest rate and a set payment schedule, this might be a good fit for you. A big difference between a HELOC and a home equity loan is that with a home equity loan, you get the money all at once and begin repaying it immediately.

Cash-Out Refinance

A cash-out mortgage refinance lets you borrow against your home’s equity by trading your existing mortgage for a new, larger one. You’ll pocket the difference to use as you wish. To qualify, you’re generally looking at a credit score of 620 or higher, and a debt-to-income ratio under 43%. You can choose fixed or variable rates. A cash-out refinance vs. home equity line of credit point of difference? The former leaves you with just one monthly payment.

Personal Loan

A personal loan is typically unsecured, so you don’t risk foreclosure if you find yourself unable to make payments. It’s typically repaid in regular, fixed installments over a period of two to seven years. Many lenders look for a credit score of 610 or higher for these loans. While they’re relatively speedy to secure, personal loans’ interest rates may be higher than those of HELOCs.


The Takeaway

When you’re considering a HELOC, it’s important to weigh the benefits and risks. HELOCs offer flexible borrowing and competitive interest rates, making them ideal for substantial expenses like home renovations or debt consolidation. However, it’s important to remember that your home is at risk if payments are not made. Always shop around for the best rates and terms, and consider a personal loan if you don’t want to put your home on the line.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

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

View your rate


FAQ

What’s the monthly tab on a $50,000 HELOC?

The monthly cost of a $50,000 HELOC will vary according to the rates and terms of your loan. During the draw period, you might only need to pay interest, which can be quite manageable. For instance, at a 7.00% interest rate, your monthly interest-only payment would be approximately $292. Keep in mind, though, that once the repayment period kicks in, you’ll be paying both principal and interest, so your monthly expense will increase.

What’s the appraisal process for a HELOC?

You’ll need a home appraisal to secure a HELOC. The appraisal determines your home’s current market value, which is needed for calculating the amount of equity you can access. The appraisal fee is usually $300 to $600, and it’s an important step in the application process.

What might disqualify you from getting a home equity loan?

There are a few factors that could disqualify you from securing a home equity loan. These include a low credit score, a high debt-to-income (DTI) ratio, and not enough equity in your home. Most lenders look for a credit score in the upper 600s, a DTI ratio of 50% or less, and a minimum of 20% equity in your home. If you don’t meet these criteria, you might need to work on improving your financial profile or explore other financing sources.

How tough is it to get a HELOC?

A HELOC is quite attainable if you meet the lender’s criteria. They typically look for a minimum credit score of 640, a debt-to-income ratio under 50%, and at least 15% equity in your home. The application process involves a few steps, such as checking your credit score, comparing lenders, submitting documents, getting a home appraisal, and preparing for the closing.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
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.


¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.


†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.


SOHL-Q225-375

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Aug
20
2025

Current HELOC Rates in Wilmington, NC Today

By | mortgage | Comments Off on Current HELOC Rates in Wilmington, NC Today

WILMINGTON HELOC RATES TODAY

Current HELOC rates in

Wilmington, NC.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare HELOC rates in Wilmington.

Key Points

•   A home equity line of credit is a flexible way to borrow money.

•   HELOC rates are variable, determined by the prime rate and a lender’s margin, among other factors.

•   To qualify for a HELOC, you’ll need at least 15% equity in your home and a solid credit history.

•   Online calculators can help borrowers estimate monthly payments and total interest costs.

•   There are risks involved, like the potential for foreclosure if you can’t keep up with payments.

Introduction to HELOC Rates

In this guide, we’ll cover all the details of home equity line of credit rates in Wilmington, North Carolina, so you can understand how to get equity out of your home and the conditions that might impact the interest rate you receive. We’ll also discuss the benefits and risks of using a HELOC, how to qualify for a competitive rate, and the tools you can use to estimate your costs. By the end, you’ll have a better idea of whether a HELOC is the right financial tool for you and how to apply for one.

What Exactly Is a HELOC?

A HELOC is a flexible line of credit, secured by the equity you’ve built up in your home as you have paid down your home loan. (Your equity is the difference between your home’s current market value and your remaining mortgage balance). Most lenders require a minimum of 15% equity to qualify, though the more equity the better when it comes to getting a nice interest rate. You can borrow up to 90% of your equity. HELOCs have variable interest rates, meaning the amount you pay each month could vary throughout the process. A HELOC has two phases:

The Draw Period

With a HELOC, borrowers have a draw period, typically up to 10 years, during which they can borrow in increments up to a pre-specified credit ceiling. During the draw period, they need only make interest payments on what they have borrowed. A HELOC interest-only calculator can show you what these payments might look like.

The Repayment Period

After the draw period, you’ll enter the repayment period, which can last up to 20 years. At this time, you won’t be able to borrow any more, and you’ll begin to pay back the principal plus interest in monthly payments. A HELOC monthly payment calculator can help you see how much your payments might be at this stage.

The Origin of HELOC Interest Rates, Explained

Lenders base HELOC rates on the prime rate, which is influenced by the Federal Reserve. Each lender adds a margin to the prime rate, which is why rates vary — and thus why it is so important to seek out rate quotes from a variety of lenders before signing on to a HELOC. Lenders also consider your credit score, debt-to-income (DTI) ratio, and the amount of equity in your home when determining the interest rate to offer you in Wilmington. Knowing what factors are important to lenders can help you sharpen your financial profile before applying.

How Interest Rates Impact HELOC Affordability

The interest rates on a HELOC can make a big difference in how much you pay each month. Even a small difference — a single percentage point — can have an impact on your monthly payments and the total amount you’ll pay in interest over the life of the loan. For example, on a $50,000 HELOC with a 20-year term, an increase from 7.00% to 8.00% during the repayment phase can raise your monthly payment by $30. Over 20 years, this would increase the total interest paid by almost $7,000. Of course, the HELOC rate is variable, so your exact numbers may differ. But the more you borrow with a HELOC, the greater the effect of a change in interest rate.

HELOC Interest Rate Trends

When you’re in the market for a HELOC you might begin to pay more attention to the prime rate. It’s true that keeping an eye on the prime rate might shed some light on what to expect with HELOC rates in Wilmington. But it’s also helpful to have a sense of the history of the prime rate, so that you can see where current rates are falling by comparison. The prime rate hit a low of 3.25% in 2020 and a high of 8.50% in 2023.

Date U.S. 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 5.5%
9/27/2018 5.25%

Source: U.S. Federal Reserve


Variable vs. Fixed Interest Rates

HELOCs usually come with variable (also called adjustable) interest rates. That means rates can change over time, making it a bit trickier to predict what you’ll owe each month. There are built-in controls written into each borrower’s HELOC agreement, specifying how much the rate can change and placing a cap on it overall. So when you’re thinking about a HELOC, think about whether you can handle fluctuation in your payments.

Recommended: Different Types of Home Equity Loans

Helpful Tools and Calculators

Before you apply for a HELOC, online tools can help you estimate your monthly payment and interest costs. Keep these handy as you’re making your decision.

Run the numbers on your HELOC.

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.

How to Qualify for a Competitive HELOC Rate

If you want a competitive HELOC rate, you’ll want to make the most of your financial profile before filing your application. Here’s what to do:

Improve Your Credit Score

A credit score of 700 or higher is your ticket to better HELOC rates. Yes, you can get a HELOC with a lower score — at minimum, 640. But if you can nudge your number up by paying every bill on time and keeping credit card balances in check, why not do it? Set up automatic bill-pay to dodge late payments, and watch your credit report. You might spot an error that could set you back.

Calculate Your Debt-to-Income (DTI) Ratio

Your DTI ratio is a simple calculation: Divide your total monthly debt payments by your gross monthly income. HELOC lenders generally prefer to see a DTI under 50%, but the lower, the better. And for the best HELOC rate in Wilmington, you’ll want to be at 36% or below. You can improve your DTI by lowering your debts, increasing your income, or both.

Application Process for a HELOC in Wilmington

The HELOC process begins with prequalification, which you can easily do online. This will give you a good idea of the rates and the amount you might qualify for with various lenders. Once you’ve prequalified, you’ll need to gather some documents before filing an application. Here is the full process:

Step 1: Run the Numbers

Check your credit score and calculate your DTI ratio as detailed above. Then, assess your home equity to make sure it is at least 15%: Subtract your outstanding mortgage balance from your home’s estimated value. Then divide the answer by your home value to arrive at a percentage. Making regular mortgage payments helps build equity. Home improvements that boost the property’s value can increase equity, too.

Step 2: Compare Lenders

Examine the rates in Wilmington. Carefully compare lenders’ qualification requirements, credit minimums and maximums, any associated fees, and the length of both the draw and repayment periods. Reading customer reviews and thoroughly checking lender reputations can also help you make a more informed decision about which lender or lenders you will apply to.

Step 3: Submit Your Application

It’s time to gather all the necessary paperwork. This includes proof of identification, income verification, and property information. For income verification, you’ll need to provide your most recent pay stubs, W-2 forms, and complete tax returns from the previous year. If you’re self-employed, you may also need to provide a profit-and-loss statement and your tax returns from the past two years. Additionally, you’ll need to have your homeowners insurance declaration page handy. Once you have everything you need, you can submit your application online, over the phone, or in person.

Step 4: Get an Appraisal

After you submit an application, you’ll likely need an appraisal. Work with the lender to ensure you get the appraisal and documentation the lender requires.The typical cost of having a pro weigh in on the value of your home is usually between $300 and $610. If your home is appraised for more than what you owe, you’ll have cleared a bar necessary for a HELOC.

Step 5: Prepare for Closing

Once you’re approved for a HELOC and decide to move forward, you’ll need to sign the HELOC documents and take care of any associated fees. Most lenders will make the funds available within three business days of the HELOC closing. Before you sign on the dotted line, be sure you understand all the terms and conditions. This is an important step to avoid any surprises and to make sure you’re prepared to use your HELOC.

Recommended: What Is a Home Equity Loan?

Closing Costs and Fees

The good news is, the closing costs for a HELOC are generally less than what you’d face with a traditional home purchase or a cash-out refinance. The appraisal fee is often the most significant expense. You might also encounter a title search fee (ranging from $100 to $450), an application fee, an origination fee, and various administrative costs. Some lenders may even offer to reduce or waive certain fees, but be sure to consider the trade-off, as this might come with a higher interest rate.

Tax Benefits and Considerations

Homeowners can take advantage of a tax deduction on the interest paid on a HELOC if the funds are used to buy, build, or renovate the primary residence. This tax benefit is set to last through 2025 and may continue in some form in future years. Before making any decisions, it’s important to consult with a tax advisor to confirm individual eligibility for deductions related to HELOCs.

Alternatives to HELOCs

There are other ways to tap into your home equity. You could take out a home equity loan, refinance your mortgage for more than you owe and take the difference in cash (a cash-out refinance), or get a personal loan. Each option has its own pros and cons so let’s consider them:

Home Equity Loan

When weighing a HELOC vs. a home equity loan note that the latter provides a lump-sum loan at a fixed interest rate. You can typically borrow up to 85% of your home’s equity. Lenders look for a credit score of 680 or more, with many favoring 700 and above. This option is great if you have a specific need for a defined amount of money and prefer the predictability of fixed payments. A home equity loan calculator can help you see what you might qualify for.

Cash-Out Refinance

A cash-out mortgage refinance lets you refinance for more than you currently owe and take the difference in cash. It’s a good option, so long as the interest costs of a new mortgage are better than what you’d have at your current rate. Things to think about with a cash-out refinance vs. a home equity line of credit: With a refi you’d need a credit score of 620 or higher and a debt-to-income ratio under 43%. You can choose between fixed or variable interest rates.

Personal Loan

A personal loan is a versatile, typically unsecured loan that you repay in regular, fixed installments over a period of two to seven years. The key benefit here is that your home is not at risk of foreclosure should you encounter financial challenges. Most lenders look for a credit score of 610 or higher. While these loans are relatively quick to secure, the interest rates may be higher compared to HELOCs or home equity loans.


The Takeaway

As you consider the potential of a HELOC, it’s important to understand both the advantages and the cautions. HELOCs present a flexible way to tap into funds, possibly at lower interest rates than other loan types. But you need to have a plan in place to make payments or else you risk your home. Investigate HELOC rates in Wilmington with multiple lenders to secure the most favorable terms. Always weigh offers from various lenders and think about alternatives like cash-out refinancing and personal loans before committing.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

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

View your rate


FAQ

What can you use a HELOC for?

A HELOC can be used for a variety of purposes, including paying for home improvements, education costs, and medical expenses. It functions like a credit card, allowing you to draw funds up to a maximum limit and pay interest only on the amount of the credit line that is used. This flexibility makes it ideal for ongoing expenses, but it’s important to have a solid repayment plan to avoid financial strain.

What’s the monthly payment on a $100,000 HELOC?

The monthly payment on a $100,000 HELOC can fluctuate depending on how much of the credit line you have used and the current interest rate. If you borrow the full $100,000 and have an 8.00% rate, you might only pay around $667 per month during the draw period, covering the interest. Once the repayment phase kicks in, you would start paying down the principal, which will adjust your monthly payment upward to $1,213.

Do I need an appraisal for a HELOC?

An appraisal is usually required as part of the HELOC qualification process. It will determine the value of your property and the amount of equity you have. The appraisal helps the lender calculate the maximum credit limit for your HELOC. This is an important step in the application process, as it ensures the loan amount is accurate and the lender’s risk is minimized.

How will a HELOC affect my credit score?

Applying for a HELOC might cause a slight, temporary dip in your credit score. But here’s the good news: Managing your payments well will have a more significant impact. Making payments on time will boost your score, while missed payments will have the opposite effect.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
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.


¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.


†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.


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Aug
20
2025

Is 460 a Good Credit Score?

By | Uncategorized | Comments Off on Is 460 a Good Credit Score?


Is 460 a Good Credit Score?

460 credit score

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      By Dan Miller

      Credit scores typically range from 300 to 850, and a score of 460 is considered “poor” by most lenders.

      If you have a 460 credit score, you’ll likely have a difficult time getting approved for anything that involves a credit check. This means that most credit cards, auto loans, and mortgages will probably be out of your reach. You may even find it difficult to be hired for some jobs or be accepted for some apartment rentals, as landlords and employers often run a credit check as part of the application process.

      If you have a 460 credit score, it’s a good idea to take steps to improve your credit as part of bolstering your overall financial picture.

      Key Points

      •   A 460 credit score is poor, severely limiting financial options.

      •   High interest rates and fees are common for people with this score.

      •   Secured credit cards can help improve credit scores over time.

      •   Adding a cosigner may assist in securing an auto loan.

      •   Getting a mortgage is highly unlikely with a 460 credit score.

      What Does a 463 Credit Score Mean?

      A credit score of 460 is considered poor and falls within the lowest tier of FICO® scores, which are used in the majority of lending decisions.

      FICO Scores range from 300 to 850; the higher the number, the better the score. Here’s how credit scores are categorized:

      •  300-579: Poor

      •  580-669: Fair

      •  670-739: Good

      •  740-799: Very good

      •  800 or more: Excellent

      Having a 460 credit score means that your score is on the low end of the spectrum. As such, your borrowing options will be limited, and you may have a tough time getting approved for credit products such as mortgages, personal loans, or credit cards.

      How to Build Your Credit Score

      Is 460 a bad credit score? As we discussed, lenders consider it poor. But the good news is, your credit score is hardly set in stone. You can take steps to build your credit before trying to apply for a loan. Consider these strategies:

      •  Pay your bills on time, every time.

      •  Try to use only a small portion of your available credit. This will lower your credit utilization, which can help your score.

      •  Keep established accounts open to help build a long credit history.

      •  Open new credit accounts only when truly necessary.

      •  Check your credit reports often, and correct any mistakes you find.

      What Can You Get with a 460 Credit Score?

      A 460 credit score will likely keep you from qualifying for most financial products that rely on credit, including mortgages, auto loans, personal loans and credit cards. But there are some alternatives worth considering. Let’s take a closer look at some different scenarios.

      Can I Get a Credit Card with a 460 Credit Score?

      Though there’s no minimum credit score required for a credit card, chances are you’ll have a hard time getting approved for one with a 460 score. If you are looking for a new credit card, consider exploring credit cards specifically designed for individuals with lower credit scores.

      One option is a secured credit card, which requires a refundable security deposit that serves as collateral if payments aren’t made. When used wisely and paid on time, secured cards can be a valuable tool for improving your credit.

      If you’re carrying high-interest credit card debt, a credit card consolidation loan might be a smart option to consider. It allows you to combine multiple balances into one loan (preferably with a lower interest rate). This may help lower your overall monthly payments and simplify your finances. It could help you to pay down your debt and, over time, build up your credit score.

      Can I Get an Auto Loan with a 460 Credit Score?

      Many lenders require a credit score of at least 600 to qualify for an auto loan, but you may be able to find some lenders that will work with someone who has a 460 credit score.

      You’ll likely have an easier time securing a car loan if you add a cosigner who has a strong credit history. You’ll both apply for the loan and share financial responsibility for paying back the borrowed money. However, the cosigner doesn’t share ownership of the car.

      Can I Get a Mortgage with a 460 Credit Score?

      You are very unlikely to be able to qualify for a mortgage with a 460 credit score. As an example, here are three common types of mortgages with their recommended minimum credit scores:

      •  FHA loans: These types of loans generally require a minimum credit score of 580 to qualify for the 3.5% down payment option. Borrowers with scores between 500 and 579 may still be eligible with a 10% down payment.

      •  VA loans: The Department of Veterans Affairs does not set a minimum credit score, but most lenders prefer to see a score of at least 620 for approval.

      •  USDA loan: While the USDA itself does not mandate a minimum credit score, lenders often require a credit score of 640 or higher for automated underwriting.

      Can I Get a Personal Loan with a 460 Credit Score?

      Most, but not all, personal loans are unsecured, meaning they don’t require collateral. To help mitigate the lender’s risk, an applicant’s credit score is an important metric in deciding whether to approve a personal loan application. Generally speaking, the lower your credit score, the lower your chances of being approved for the loan.

      If you’re applying for a personal loan with a 460 credit score, you may find that you have fewer options to choose from than a borrower with a better credit score. And if you are approved, it’s likely that the interest and fees you’re required to pay will be significantly higher than an applicant with a higher credit score.

      Consider using a personal loan calculator to explore what types of loans might be available for your specific financial situation.

      The Takeaway

      Is 460 a good credit score? According to FICO, it falls within the “poor” credit range, so the simplest answer is that 460 is not a good credit score. Having a credit score of 460 can make it difficult to qualify for most credit products, since many lenders rely heavily on your credit score when reviewing applications for mortgages, credit cards, auto loans, and personal loans. If you do qualify for a loan, it will likely come with high interest rates and less favorable terms.

      Improving your score before applying for a credit card or loan could help you secure better options. Taking steps to build your credit now could lead to more financial flexibility in the future.

      Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.


      SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

      View your rate

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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.


      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 .

      Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.



      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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