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Jan
06
2025

Is 622 a Good Credit Score?

By | personal_loan | Comments Off on Is 622 a Good Credit Score?


Is 622 a Good Credit Score?

622 credit score

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    On this page:

      By Jacqueline DeMarco

      A 622 credit score doesn’t qualify as good, but it’s not bad either. It is in the fair range, which is lower than good but higher than poor. You would need to work your way up to 670 to have a good credit score. In addition, this score is almost 100 points below the current U.S. average of 717.

      Here’s a closer look at what you can qualify for with a credit score of 622, why your credit score matters, and how you might build it.

      Key Points

      •   A 622 credit score is considered fair but not good.

      •   Individuals with this score can still qualify for certain mortgages, personal loans, and credit cards.

      •   Higher credit scores provide access to better loan terms and lower interest rates.

      •   Building credit can enhance financial opportunities and reduce costs.

      •   Credit scores affect more than just loans; they impact employment, rentals, and utility services.

      What Does a 622 Credit Score Mean?

      Credit scores are important because they reveal how you have handled debt in the past and therefore can indicate how likely you are to repay borrowed money in the future. For this reason, credit scores typically influence a lender’s decision to approve your application.

      That said, a 622 credit score is not considered to be a good one by either of the major credit scoring models. Both FICO® and VantageScore rank their good scores higher than 622. With FICO, you need a score of 670 to 739, and with VantageScore (the VantageScore 3.0 and 4.0 models), you need to achieve a score of 661 to 780.

      Here’s how the most popular credit score scale, the FICO Score, looks:

      •   Poor credit: 300-579

      •   Fair credit: 580-669

      •   Good credit: 670-739

      •   Very good credit: 740-799

      •   Excellent credit: 800-850

      Working toward understanding your credit report and building your credit score until it is good or even higher can make it much easier to qualify for more favorable loan rates and terms — including higher loan amounts and lower fees.

      What Else Can You Get With a 622 Credit Score?

      In addition to helping you access better lending products at more affordable rates, having a good credit score can make other areas of your life surprisingly easier. For example, while not all employers require this, some will review applicants’ credit scores. This is more commonly seen when hiring for finance-related roles. Landlords can also take credit scores into account when screening applicants. Having a high credit score and a history of making payments on time can help you stand out in a sea of applicants.

      You may find your credit score is even a topic of conversation when applying for utilities like a phone plan. Your credit score can affect whether the utility company plans to charge you a security deposit and what amount that would be.

      Here’s a closer look at how your credit score can impact your qualifying for financial products.

      Can I Get a Credit Card With a 622 Credit Score?

      If you’re considering applying for a new credit card, it’s important to know what your credit score is before you apply. That way, you can get a better idea of which credit cards you are likely to qualify for. The higher your credit score is, the more likely you are to qualify for the best credit cards on the market.

      That being said, you can find a credit card with any score ranging from 300 to 850, so don’t let a low score discourage you. While you will likely enjoy less favorable interest rates and terms than a person with a higher score, having a credit card can help you build your credit score when you make timely payments and manage your debt responsibly.

      When choosing a credit card, compare several options to find the one that best fits your needs.

      •   Pay attention to the annual percentage rate (APR), vs. interest rate, and any fees. Consider features like credit limits for balance transfers or the duration of a 0% introductory APR if you’re planning a big purchase.

      •   Evaluate rewards (though you may not qualify for many with a 622 score; they are typically reserved for those with a 670 or higher credit score) by looking at how you earn them and how they can be redeemed, such as for travel or statement credits. Also, check for additional benefits like travel insurance, roadside assistance, and purchase protection, and pick a card that matches your lifestyle.

      If you need to pay off debt to build your credit score, you can consider applying for a credit card consolidation loan, which some borrowers find makes it easier to pay off debt swiftly. These loans can combine multiple lines of credit into a single, convenient installment loan, usually at a notably lower interest rate.

      You can turn to a debt consolidation calculator to get an idea of how much money you can potentially save through the consolidation process.

      Can I Get an Auto Loan With a 622 Credit Score?

      Technically a 622 credit score car loan is possible, but if you can build your score to 670 or higher, you stand the best chance of qualifying for competitive auto loan terms, interest rates, and loan amounts.

      Otherwise, you may pay a significantly higher interest rate for the privilege of borrowing funds, which translates into paying more over the life of the loan.

      To lower the amount of interest you need to pay with an auto loan, you might make a large down payment amount. The less money you borrow, the less interest you need to pay. Many lenders reward a large down payment with a lower interest rate since they take on less risk. Consider that when applying for a car loan.

      Can I Get a Mortgage With a 622 Credit Score?

      Buying a home is a major financial undertaking, but having a good credit score can make homeownership much more affordable. As with auto loans, you may want to work toward a higher credit score before applying for a home loan to snag a more favorable interest rate. While some lenders will accept a score of 620 for a conventional loan, many require a higher score.

      A bit about mortgages: Home loans work by charging mortgage interest as a percentage of the loan balance. This interest is included in your monthly payment, along with the principal, taxes, and insurance. Early in the loan term, most of your payment goes toward interest, but as the loan balance shrinks (starting with a high down payment can help lower this balance), a greater portion is applied to the principal. This gradual shift is known as amortization.

      Finding a mortgage with a 622 credit score isn’t impossible. Here are some options if you don’t find a conventional home loan that suits you:

      •   FHA loan: To qualify for an FHA home loan with a 3.5% down payment, you’ll need at least a 580 credit score. What’s more, borrowers with a 500 to 579 score may also still qualify for this kind of loan. They’ll need a 10% down payment on the home.

      •   USDA loan: This kind of mortgage is used for homes in designated rural communities. A USDA loan doesn’t have a firm minimum credit score. According to USDA guidelines, most lenders prefer a 620 credit score, so you will likely qualify with a 622 score. You may need to provide additional documents, like housing payment history and references, in some cases, or if your score heads lower.

      •   VA loans: You may qualify for a VA loan, which is offered to veterans, active service members, and surviving spouses. The usual qualification is a minimum score of 620.

      Can I Get a Personal Loan With a 622 Credit Score?

      A personal loan is a type of loan offered by banks, credit unions, and online lenders that allows you to borrow a lump sum of money for almost any purpose and repay it over a set period with interest. It’s usually unsecured, meaning you don’t need collateral, and typically has a fixed interest rate.

      One reason why personal loans are so popular is that they can be used for things like debt consolidation (as mentioned above), home improvements, paying for a wedding or vacation, or to cover unexpected expenses. That being said, choosing a secured personal loan can make it easier to qualify for this type of lending product if your credit score is on the lower side.

      Like with other popular loan products, having a good credit score is helpful when applying for a personal loan. Ideally, you want a credit score in the 700s before applying for a personal loan (if your goal is to get a favorable interest rate), but it is possible to find a personal loan with a credit score of just 580.

      The higher your interest rate is, the higher your monthly payments end up being. If you need help figuring out how much you can afford to borrow with a personal loan, use a personal loan calculator to crunch the numbers. You can see, for instance, how a personal loan would compare to putting an expense on your credit card and determine the best path forward.

      The Takeaway

      A 622 credit score isn’t a good score, but it’s not a bad or poor one either. It sits in between the good and poor categories in the fair range. You should be able to access many financial products, like installment loans and lines of credit, but you will likely not enjoy the most favorable rates and terms. By building your credit score, you can probably access better offers for credit cards, mortgages, car loans, and personal loans.

      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

      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.


      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 .

      *Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

      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.


      Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

      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.


      SOPL-Q424-035

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      Jan
      06
      2025

      Is 627 a Good Credit Score?

      By | personal_loan | Comments Off on Is 627 a Good Credit Score?


      Is 627 a Good Credit Score?

      627 credit score

      On this page:

        On this page:

          By Jamie Cattanach

          A credit score of 627 is not a good score. Rather, it’s considered fair. Borrowers with a 627 credit score may qualify for some loans and credit cards, but with less favorable rates and terms than those with a higher number.

          Here, take a closer look at what your 627 credit score means, including what doors it can unlock for you — and how you might build your score to qualify for more credit products or those with more competitive terms.

          Key Points

          •   A 627 credit score is categorized as fair, not high enough to be considered good.

          •   Individuals with this score can access certain loans and credit cards, though often with higher interest rates.

          •   Higher credit scores typically result in more favorable loan terms and lower interest rates.

          •   Consistently making on-time payments and maintaining low debt balances can build a 627 credit score.

          •   A 627 score is lower than the current average U.S. credit score of 717.

          What Does a 627 Credit Score Mean?

          As mentioned above, a 627 credit score is in the fair category. The fair credit score range is higher than the lowest category (poor) but lower than the good, very good, and excellent categories.

          Here’s how the credit score ranges stack up:

          •   Poor: 300-579

          •   Fair: 580-669

          •   Good: 670-739

          •   Very Good: 740-799

          •   Excellent: 800-850

          Currently, the average American’s credit score is 717, so your current score is considerably lower than that of most people. Perhaps you are new to using credit or have missed some debt payments in the past, which lowered your credit score.

          As you see, the fair credit score range starts at 580 and runs to 669. If you build your credit score to 670, you’ll be in the good category of FICO® Scores (the most popular system of credit scoring). This can make it easier to qualify for loans — and to get better terms for the loans you do take out, including potentially lower interest rates.

          Recommended: What Credit Score Do You Need for a Personal Loan?

          How to Build Your Credit Score

          Building your credit score is all about persistence and creating consistent habits that can have a positive affect on your score.

          For example, your payment history accounts for fully 35% of your FICO credit score, which is the highest weight of any factor. Payment history simply refers to how often you’ve made your debt payments on time.

          That means that, even without taking any other action, making on-time payments can have a positive impact on your credit score. Keeping a lower total debt balance by paying down any revolving balances you carry can build your credit score. That’s because the amount you owe versus the amount of credit you have available counts for another 30% of your score, the second most highly weighted category.

          What Else Can You Get With a 627 Credit Score?

          Whether or not you focus on building your credit score, a 627 FICO score can still unlock access to credit. Here’s a closer look at which types of loan products you’re likely to qualify for.

          Can I Get a Credit Card With a 627 Credit Score?

          Typically, you need a credit score of 670 or higher to qualify for an unsecured credit card with a competitive interest rate. That said, plenty of card issuers offer credit cards specifically designed for those with fair, poor, and even nonexistent credit. However, these products usually involve higher interest rates, and credit cards are already known for often having high interest rates. It’s important to think carefully about whether you can truly afford to use a card with a higher interest rate.

          Another option you may find is a secured credit card. These allow you to put down a cash deposit as collateral (therefore making the deal less risky for the issuer). Typically, that cash deposit acts as your credit limit, capping how much you spend. Activity on these cards is reported to the credit bureaus and can help you build your credit history. You may be able to graduate from a secured card to an unsecured card after showing that you’ve managed your debt responsibly.

          You will likely need to build your score into the very good or higher range in order to qualify for credit cards that offer lower interest rates and more rewards, such as points or cash back.

          Tip: Focus on paying off your credit card every month in full on the due date to avoid ever paying any interest on your purchases.

          Can I Get an Auto Loan With a 627 Credit Score?

          There’s not a specific minimum credit score required to take out an auto loan. Some lenders will want to see a 670 credit score or higher. Others will approve loans to those with a 600 or higher score. Some people may qualify with an even lower score.

          What usually occurs is that the lower your credit score, the more interest you will pay for the privilege of borrowing cash for a car purchase. For instance, at the end of 2024, those with a credit score between 781 and 850 would on average be assessed an interest rate of 5.25% for a new car loan and 7.13% for a used car loan, according to Experian® research. For those with a score of 627, the rates would be higher: 9.83% for a new car loan and 13.92% for a used car loan. These higher interest rates can cost you thousands of additional dollars over the life of a loan.

          If you have a lower credit score, it may make more financial sense to purchase a cheaper car in cash rather than to apply for a car loan. It can be worthwhile to consider this and other approaches when you need to buy a car.

          Can I Get a Mortgage With a 627 Credit Score?

          Excellent news: If you’re in the market for a new home, your 627 credit score can make the cut. Most conventional home lenders require a minimum credit score of 620, which means your score is just on the right side of the equation.

          Again, however, a higher credit score can help you get a lower interest rate. Additionally, keep in mind that your mortgage lender will be looking at other factors as well, including your income, job stability, how much debt you carry, the amount you have saved, and more. In other words, your credit score isn’t the end of the story.

          Also, there are certain types of loans that can be available to those with lower credit scores at the discretion of the lender. These can include FHA, VA, and USDA loans. Depending on a variety of factors, you may qualify for these programs.

          Can I Get a Personal Loan With a 627 Credit Score?

          Personal loans are usually unsecured loans, meaning they aren’t secured by any kind of collateral. They typically have a fixed interest rate that’s considerably lower than that of credit cards, and they have one- to seven-year terms in most cases. The lump sum amount you receive with a personal loan can range from $1,000 to $100,000.

          Borrowers can use the funds for just about any purpose they want. For instance, you might use the funds for a kitchen remodel or to pay for a wedding. These loans do, however, tend to come with stricter eligibility requirements than other types of loans.

          With a credit score of 627, you may or may not qualify for a personal loan. For instance, you might only be approved by a lender who charges you a higher interest rate than they would charge those with higher scores. Still, using a personal loan to consolidate debt could help build your credit score over time and may still be worth it in the long run, even if the interest rate is somewhat higher than you would like.

          If you are contemplating a personal loan for any purpose, a personal loan calculator can help you understand the total cost of your loan over its lifetime. This can be a valuable step before you decide whether or not to forge ahead.

          Recommended: How to Apply for a Personal Loan

          The Takeaway

          A credit score of 627 is in the fair category, which is below the good range. You may still qualify for some types of loans and lines of credit, though you likely won’t get the lowest interest rates and most favorable terms. Those tend to be reserved for those with very good or excellent scores. If you work on building your credit score into the good or higher range, you should have more competitive options to choose among for products like car loans, mortgages, credit cards, and personal loans.

          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

          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.


          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 .

          *Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

          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.


          Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

          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.


          SOPL-Q424-034

          Read more
          Jan
          06
          2025

          Current HELOC Rates in Missouri Today

          By | mortgage | Comments Off on Current HELOC Rates in Missouri Today

          MISSOURI HELOC RATES TODAY

          Current HELOC rates in

          Missouri.



          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 Missouri.

          Key Points

          •   To understand how to get the best home equity line of credit rates in Missouri, it helps to know the factors that shape interest rates.

          •   Key factors influencing HELOC rates in Missouri include home equity, credit score, income, and combined debt-to-income ratio.

          •   HELOCs offer lower interest rates because your home serves as collateral. You pay interest only on the amount borrowed, not the full credit line.

          •   Comparing lenders and their qualification requirements is crucial to finding the best HELOC deals in Missouri.

          •   Money from HELOCs can be used for any purpose, including renovations, education expenses, and debt consolidation.

          Introduction to HELOC Rates

          If you’re pondering how to get equity out of your home and considering a home equity line of credit (HELOC), this guide will help you decide if a HELOC is right for you and smooth your application process if you do decide to apply. Best of all, it will help you get the most competitive HELOC interest rate available. You’ll learn the key things that influence HELOC rates in Missouri and how to ensure you’re ready to complete a HELOC application.

          Let’s start at the beginning with what is a home equity line of credit.

          What Is a HELOC?

          A HELOC is a revolving credit line that’s based on the equity you have in your home. If you qualify, you may be able to borrow as much as 90% of your home’s value minus your mortgage. Missouri HELOC rates can vary, so it’s important to compare offers from different lenders to find the best option for your financial situation.

          HELOCs offer lower interest rates than many other borrowing methods because your home serves as collateral. It’s also important to know that HELOC rates are variable, so the rate can change during the loan term. HELOCs have two distinct time periods, and it’s important to understand the difference.

          The Draw Period

          During the home equity line of credit’s draw period, which usually spans 10 years, you can access funds up to the limit of your credit, make payments, and borrow again. During this time, interest payments will be required, but principal payments are usually optional. For effective management of your finances during this phase, consider utilizing a HELOC interest-only calculator.

          The Repayment Period

          During the repayment period (typically 10 to 20 years), borrowing ends, and the principal is paid back with interest. This is when a HELOC repayment calculator will come in handy.

          Where Do HELOC Interest Rates Come From?

          HELOC rates are tied to the prime rate. The prime rate is a lender’s benchmark interest rate for creditworthy customers. Lenders set their prime rate in part in response to changes in Federal Reserve policy. Understanding this can help borrowers keep an eye on rate fluctuations and make informed decisions about when to apply for a HELOC.

          How Interest Rates Impact HELOC Affordability

          The interest rate you secure on a HELOC has a noticeable impact on both your monthly payment amount and the cost of interest over the life of the credit line. Take a look at this chart to see how different interest rates and terms affect payments.

          Loan Amount Loan Term Interest Rate Monthly Payment Total Interest Paid
          $100,000 20 years 8.00% $836 $100,746
          7.00% $775 $86,072
          10 years 8.00% $1,213 $45,593
          7.00% $1,161 $39,330
          $50,000 20 years 8.00% $418 $50,373
          7.00% $388 $43,036
          10 years 8.00% $607 $22,797
          7.00% $581 $19,665
          $25,000 20 years 8.00% $209 $25,186
          7.00% $194 $21,518
          10 years 8.00% $303 $11,398
          7.00% $290 $9,833


          HELOC Interest Rate Trends

          One way to better understand HELOC interest rates in Missouri is to have a sense of where the average prime rate has been in recent years. Since 2018, the prime rate has fluctuated. It hit a low of 3.25% in 2020 and a high of 8.50% in 2023. Looking at the graphic below, you can see how unusual it is to see a rate below 4.00%.

          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

          Historical U.S. Prime Rates

          Factors Influencing HELOC Rates

          The prime rate is important, but it isn’t the only thing that will guide what HELOC rate you will be offered. There are several other important factors that play a significant role in determining HELOC rates, including your credit score and loan-to-value (LTV) ratio. We’ll examine them one by one.

          Home Equity

          Home equity is the amount of your home value that you actually own. It’s calculated by subtracting your home loan balance from the market value of your property. For example, if your home is worth $350,000, and your mortgage balance is $250,000, you have $100,000 in home equity. Homeowners generally need a minimum of 15% equity in their property to qualify for a HELOC.

          Credit Score

          Maintaining a high credit score, ideally 680 or higher, is of utmost importance when applying for a HELOC. Many lenders prefer a credit score of 700 or above.

          Stable Income

          How stable your job is may be just as important as your actual salary level. A steady income stream serves as a reliable indicator of a reduced likelihood of default, potentially resulting in more favorable HELOC rates. Consistent earnings serve as a testament to your financial dependability, a quality that lenders highly value when assessing your application.

          Loan-to-Value Ratio

          Most lenders require your combined loan-to-value ratio (mortgage balance plus loan amount / appraised home value) to be 90% or less, although some will allow you to borrow 100% of your home’s value. The ratio is a key metric in determining your credit limit. Here’s an example: Let’s say your home value is $500,000. Your mortgage balance is $300,000, and you’re applying for a $100,000 HELOC:

            $300,000 + $100,000 = $400,000

            $400,000 / $500,000 = 80%

             Your combined LTV ratio would be 80%, well within the safety zone.

          Variable vs Fixed Interest Rates

          HELOCs have variable interest rates, as we’ve noted. While variable interest rates often start lower than fixed rates, they can adjust up or down in accordance with prevailing market conditions. Experimenting with different interest rate numbers using a HELOC interest-only calculator can provide you with valuable insights into the potential effects of these fluctuations.

          Tools & Calculators

          Online calculators are useful both before you apply for a HELOC or home equity loan or afterward, when rates change. Here are three of our favorites:

          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 Missouri HELOC rates, it is essential to prioritize enhancing your credit score, among other things. Consider these your to-dos before applying for any form of financing based on your home equity.

          Cultivate Your Credit Score

          Maintaining on-time payments and reducing your credit card balances are two ways to help ensure a healthy credit score. Regularly reviewing your credit report and addressing any errors is another good step to take. Mistakes do happen.

          Assess Your Home Equity

          You’ll need a minimum of 15%–20% equity in your home before applying for a HELOC. Your equity is your home’s value minus whatever you owe on your mortgage. Divide that result by the home value to get a percentage of equity. (Check a real estate web site for a rough idea of your home’s value.)

          Calculate Your Debt-to-Income Ratio (DTI)

          Your DTI ratio is how much you owe in monthly debt payments divided by your gross monthly income. Home equity lenders generally look for a DTI that’s below 36%, though some will allow a ratio below 50%. A lower DTI can help you qualify for more favorable terms on your HELOC.

          Application Process for a HELOC in Missouri

          The application process for a HELOC in Missouri involves several steps. Taking them one at a time, completing the entire application, and double-checking everything for accuracy before submitting is the recipe for a smooth application process.

          Step 1. Run the Numbers

          Check that your credit score is 680 or above and that your DTI ratio is under 36%. Estimate your home equity to understand how much you can borrow. Some lenders offer online prequalification tools to streamline this process.

          Step 2. Compare Lenders

          Look at published offers from different lenders. Consider interest rates, but also examine qualification requirements, limits, fees, and the length of draw and repayment periods.

          Step 3: Gather Your Documents

          When preparing your HELOC application, it helps to gather and organize all the necessary documents in advance. This typically includes proof of income (such as W-2 forms and at least one tax return), and property documents such as proof of insurance. If you’re self-employed, lenders may ask for a profit-and-loss statement and two years’ tax returns.

          Step 4: Submit Your Application

          Check over everything for accuracy and don’t leave questions unanswered. This will help ensure a smooth path through the lender’s evaluation process.

          Step 5: Get an Appraisal

          A home appraisal plays a pivotal role in determining eligibility for a HELOC. If the appraised value of your home exceeds the outstanding balance of your mortgage, you may qualify for a HELOC. The lender will guide you through the appraisal process.

          Step 6: Prepare for Closing

          Before you can access your HELOC funds, you’ll need to sign an agreement and remit any fees that may be required. Some lenders make funds available within three days of the signing of your paperwork.

          Tax Benefits and Considerations

          Homeowners can deduct HELOC interest if the borrowed funds are used for buying, building, or significantly improving their primary residence. Interest deductions are limited to interest on the first $375,000 of the principal for individual taxpayers ($750,000 for married couples filing jointly). Consulting a tax advisor can help you confirm eligibility and itemize the deduction.

          Closing Costs and Fees

          HELOC closing costs are generally lower than typical home-buying or refinancing costs. An appraisal fee ($300-$600) is often the highest expense. Other costs may include application, origination, and administrative fees. Some lenders charge annual maintenance fees, transaction fees, inactivity fees, or early termination fees.

          Alternatives to HELOCs

          A HELOC is not the only option you have if you need to borrow money. There are different types of home equity loans — or rather, different ways to borrow against your home equity — as well as ways to borrow that don’t involve using your home as collateral. Below we’ll explore home equity loans, cash-out refinances, personal loans, and credit cards. Weigh the options to find the best fit for your needs.

          Home Equity Loan

          If you’ve been wondering what is a home equity loan, and how it is different from a HELOC, here are the basics: A home equity loan, like a HELOC, is secured by your home. Unlike a HELOC, it typically has a fixed rate for the entire term. And the money you borrow with a home equity loan comes as a lump sum versus through a line of credit.

          Borrowers can usually access up to 85% of the equity built in their home through a home equity loan (versus 90% with a HELOC). A home equity loan is a smart option for those who need a specific amount of money for a large, one-time expense. Here’s a quick summary of HELOCs vs. home equity loans:

          HELOC Home Equity Loan
          Type Revolving line of credit Installment loan
          Interest Rate Usually variable-rate Usually fixed-rate
          Repayment Repay only what you borrow; you may have the option to make interest-only payments during the draw period. Starts immediately at a set monthly payment
          Disbursement Charge only the amount you need. Lump sum

          Cash-Out Refinance

          Homeowners can get cash by doing a mortgage refinance for more than they owe. As you consider a cash-out refinance vs. a home equity line of credit, one thing to think about is whether the interest rate on a new loan would be higher than your current rate. If so, you’ll want to look carefully at the total cost of this method as compared to the cost of a HELOC or home equity loan. Some borrowers like the fact that a refinance leaves them with one monthly payment as opposed to two.


          Personal Loan

          A personal loan is a flexible loan that you pay back in regular payments over a term of 2 to 7 years. Like a HELOC, a personal loan can be used for various purposes, including home improvements, debt consolidation, and other expenses. Because personal loans are usually unsecured, interest rates may be higher than the rate you would obtain with a HELOC.

          Credit Cards

          Credit cards also typically come with higher interest rates than HELOCs, which can make them much more expensive if you carry a large balance from month to month. While credit cards offer flexibility for smaller purchases, a HELOC or home equity loan may be better suited for larger expenses such as home improvements or debt consolidation.

          The Takeaway

          Understanding the intricacies of the best HELOC rates in Missouri is the best way to make smart choices about borrowing. By carefully comparing HELOC rates in Missouri, prospective borrowers can effectively secure competitive terms, potentially saving money over the long haul. It is imperative to evaluate factors such as creditworthiness, property values, and prevailing market trends to identify and obtain the most advantageous HELOC rate.

          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 brokered by SoFi.

          View your rate

          FAQ

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

          With an 8.00% interest rate and a 10-year term, your monthly payment will come to $607. But exactly how much you’ll pay will depend on your interest rate and loan term. The same 8.00% interest rate over a 20-year term would cost $418 per month, although you would pay more interest overall if you had the 20-year term.

          Is a HELOC a smart move for you?

          If you need to borrow a large sum but not all at once, or if you aren’t sure how much you need to borrow, a home equity line of credit could provide you with a flexible option. You’ll only pay interest on the amount you actually borrow, but the credit line will be open should you need to borrow more. If you can secure a competitive interest rate thanks to good credit and a healthy level of home equity and are comfortable securing a loan with your home, a HELOC could be a good fit.

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

          The monthly payment for a $100,000 HELOC can fluctuate based on the interest rate and repayment terms. Assuming a 20-year term, here’s the payment amount at several interest rates: $716 (6.00%); $746 (6.50%); $775 (7.00%); $806 (7.50%); $836 (8.00%).

          What are the benefits of a HELOC?

          The main benefit of a HELOC is that it is so flexible: You borrow what you need from the credit line when you need it, and you only pay interest on the amount you borrow. Borrowers also like HELOC’s competitive interest rates and potential tax advantages.

          What disqualifies you from getting a home equity loan?

          Several factors can disqualify you from getting a home equity loan, including a lackluster credit history, high debt-to-income ratio, and insufficient home equity.

          How difficult is it to get a HELOC?

          The difficulty of getting a HELOC depends on your financial situation and the lender’s requirements. Factors such as credit score, home equity, and income will play a role. Preparing the necessary documentation and understanding the application process can make it easier to secure a home equity line of credit. Comparing lenders and their qualification criteria can also help.

          Does HELOC affect credit score?

          Initially, a HELOC may cause a dip in your score, because getting approved for one necessitates a hard credit inquiry. But after that, as long as you make your payments promptly, a HELOC could have a positive impact on your score.

          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.


          ²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
          All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
          You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
          In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.


          Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
          Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

          Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

          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.

          SOHL-Q424-035

          Browse other Missouri home guides.

          More HELOC resources.

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

          Read more
          Jan
          06
          2025

          Current HELOC Rates in West Virginia Today

          By | mortgage | Comments Off on Current HELOC Rates in West Virginia Today

          WEST VIRGINIA HELOC RATES TODAY

          Current HELOC rates in

          West Virginia.



          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 West Virginia.

          Key Points

          •   Key factors influencing West Virginia home equity line of credit rates include home equity, credit score, income, and combined loan-to-value (CLTV) ratio.

          •   HELOCs have two phases: draw and repayment, with flexible borrowing and repayment options during the draw period.

          •   Interest rates for HELOCs in West Virginia are typically lower than other financing options but can fluctuate due to variable rates.

          •   Using a HELOC interest calculator can help estimate monthly payments and total interest costs, aiding in informed decision-making.

          •   To secure the best HELOC rates in West Virginia, maintain a high credit score, stable income, and low loan-to-value ratio.

          Introduction to HELOC Rates

          This article provides an in-depth look at HELOC rates in West Virginia, helping readers understand the factors that influence these rates and how to secure the best deals. If you’ve been paying off your home loan and need funds for renovations, debt consolidation, or other expenses, this guide will explain what is a home equity line of credit and equip you with the knowledge to make informed decisions. We’ll start with the basics, because once you fully understand HELOCs, you’ll have an even greater appreciation for how important interest rates are.

          What Is a HELOC?

          There are various types of home equity loans available, and a HELOC is one of them. A HELOC is a line of credit secured by your home. You can borrow against it as needed, with a ceiling that may be up to 90% of your home’s value (minus your mortgage balance). Interest rates on HELOCs are typically lower than other financing options because your home serves as collateral. However, HELOCs have variable interest rates that can fluctuate, making repayment amounts somewhat unpredictable. It’s important to consider the current HELOC rates in West Virginia when planning your finances.

          A HELOC has two phases: draw and repayment.

          The Draw Period

          During the draw period of HELOCs, typically lasting 10 years, you can access funds in increments as you need them, up to your credit limit. You are usually required to make interest payments, but principal payments may be optional. If you do pay down what you owe, you can borrow again.

          The Repayment Period

          The repayment period of HELOCs usually spans 10 to 20 years. At this point, borrowing ends and you repay the principal with interest. A HELOC monthly payment calculator can help you estimate your payments and prepare for potential changes.

          Where Do HELOC Interest Rates Come From?

          HELOC interest rates are linked to the prime rate and can be influenced by broad economic and housing market factors. The prime rate is the benchmark interest rate that banks charge their most creditworthy customers. Federal Reserve policy decisions regarding interest rates can influence the prime rate. Not every borrower gets the prime rate, of course, and West Virginia lenders adjust the rates they offer based on other factors that we will discuss below.

          How Interest Rates Impact HELOC Affordability

          Interest rates significantly impact the affordability of HELOCs. Over a 20-year term, a 1% difference in interest rate can result in substantial additional interest costs. For example, on a $60,000 loan, the difference between a 7.00% and an 8.00% interest rate could amount to almost $10,000 in additional interest.

          HELOC Interest Rate Trends

          HELOC interest rates tend to mirror the trends of the prime interest rate. So one way to better understand HELOC interest rates in West Virginia is to know where the average prime rate has been in the last few years. Since 2018, the average prime rate has fluctuated from a low of 3.25% in 2020 to a high of 8.50% in 2023. These changes directly impact West Virginia HELOC rates.

          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

          Historical U.S. Prime Rates

          Factors Influencing HELOC Rates

          The prime rate isn’t the only thing governing HELOC interest rates in West Virginia. Sufficient home equity, a strong credit score, stable income, and a lower combined loan-to-value (CLTV) ratio will also be things lenders look for as they determine how risky (or not) you will be as a borrower. We’ll look at each of these as they are so important.

          Home Equity

          Possessing ample home equity enhances your financial standing in the eyes of lenders, potentially securing more favorable interest rates. Homeowners generally require a minimum of 15% to 20% equity in their property to qualify, and the more equity the better where HELOC rates are concerned.

          Credit Score

          Maintaining a credit score of 680 or higher is helpful for securing a HELOC, and some lenders prefer a credit score of 700 or higher. A more robust credit score can significantly enhance your ability to access highly competitive HELOC rates in West Virginia, potentially saving you thousands of dollars over the life of your loan.

          Stable Income

          Lenders will evaluate your overall income, but they will also be looking at how steady and reliable your income is. If your income is unstable, you may be asked to provide more documentation of it with your application, such as additional years of tax returns.

          Loan-to-Value Ratio

          Lenders usually require a combined loan-to-value (CLTV) ratio of 90% or less for a HELOC. You can figure out your CLTV by adding the amount you owe on your current mortgage to the amount you would like in a credit line. Divide by the estimated value of your home. If the answer is more than 90%, you may need to adjust how large a HELOC you seek.

          Variable vs Fixed Interest Rates

          HELOCs feature variable interest rates, which will fluctuate throughout the loan term, within some guidelines that will be established in your HELOC agreement. Variable interest rates start out lower than typical fixed rates, but then adjust up and down with market conditions. Using a HELOC repayment calculator can help you understand how these rates affect your payments in West Virginia.

          Tools & Calculators

          Online calculators are helpful when you are thinking about applying for a HELOC or home equity loan as well as afterward, when variable rates change. Here are three useful ones:

          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 in West Virginia, it is essential to maintain a high credit score, and a low loan-to-value ratio. Here are some things you can do to better your chances of approval at a good rate.

          Take Good Care of Your Credit Score

          By maintaining timely payments and reducing credit card balances, you can significantly enhance your credit score, which is important to securing a more favorable starting HELOC rate. Before you submit a HELOC application, check your credit report for any inaccuracies (yes, they do happen). If you find one, request a correction.

          Assess Your Home Equity

          Your mortgage payments helped you build home equity over time. To find out if you have the minimum of 15% equity lenders look for, subtract whatever you owe on your mortgage from your home’s estimated value (use an online estimate from a real estate site). Divide the answer by the home’s estimated value. You’ll get a percentage of equity.

          Calculate Your Debt-to-Income Ratio (DTI)

          Your debt-to-income (DTI) ratio, calculated by dividing your monthly debt payments by your gross monthly income, serves as a good indicator of your ability to repay in the eyes of lenders. Typically, home equity lenders prefer a DTI below 36%, but an even lower DTI is generally more favorable.

          Application Process for a HELOC in West West West Virginia

          The application process for a HELOC in West Virginia involves several steps. Take them one at a time and complete applications accurately for best results.

          Step 1. Run the Numbers

          Is your DTI ratio below 36% and your credit score 680 or better? Do you have at least 15% equity in your home? Making sure you meet these minimums should save you headaches later.

          Step 2. Compare Lenders

          Have a look at the posted interest rates and terms for HELOCs among lenders in West Virginia. Examine any publicly available qualification criteria, credit minimums, and limits. This should help you spot lenders that suit your needs. If a lender offers an online prequalification process, you can go through it and consider the feedback.

          Step 3: Gather Your Documents

          No one wants to get halfway through completing an application only to find important information is missing. Pull together these items before you begin: proof of identification; proof of income (pay stubs, most recent W-2, latest tax return); employment history, such as a resume; and home insurance information. You may need your most recent mortgage statement as well.

          Step 4: Submit Your Application

          Submit your HELOC application via the lender’s preferred channel (online, via phone, in person). Double-check everything for accuracy before you sign off. Mistakes can slow processing.

          Step 5: Get an Appraisal

          A home appraisal will likely be part of your HELOC process. It serves as a critical determinant in ascertaining the precise amount of equity that is available for you to borrow. Your lender will tell you what’s needed, but if an in-person appraisal is required, try to schedule it promptly.

          Step 6: Prepare for Closing

          Before you are able to access your HELOC funds, it is essential that you sign the HELOC documents and pay any required fees. Some lenders obligingly make funds available within three business days following the closing of the HELOC. Take time to ensure you understand all terms and conditions before finalizing your HELOC.

          Tax Benefits and Considerations

          Homeowners can deduct HELOC interest if the borrowed funds are used for buying, building, or significantly improving their primary residence. Deductions are limited to interest on the first $375,000 of the mortgage principal for individual taxpayers ($750,000 for married couples filing jointly). Consulting a tax advisor is crucial to navigate the specific tax implications — you’ll have to itemize to get this deduction.

          Closing Costs and Fees

          HELOC closing costs are typically lower than home-buying or cash-out refinance costs. The appraisal fee, usually the highest, is $300 to $600. Other costs may include application, origination, and administrative fees. Some lenders charge annual maintenance fees and transaction fees for withdrawals.

          Alternatives to HELOCs

          There are other ways besides a HELOC to get equity out of your home. One of the most common alternatives is a home equity loan. Below we’ll explain HELOC vs. home equity loans, as well as other options, so you can make an informed decision.

          Home Equity Loan

          Unlike HELOCs which function somewhat like a credit card, a home equity loan provides a lump sum amount and is paid back at a fixed interest rate. You’ll begin making payments on the full amount you borrow at the outset of the loan. Borrowers can usually access up to 85% of the equity built in their home through a home equity loan (vs. 90% with a HELOC). Both a HELOC and a home equity loan are secured by your home, so both carry the risk of foreclosure if you fail to keep up with payments.

          Cash-Out Refinance

          A cash-out refinance is a special type of mortgage refinance: Homeowners can refinance their mortgage for more than they owe. They pay off their original mortgage and then use the cash that remains for any purpose.

          Two things to consider where a cash-out refinance vs. a home equity line of creditis concerned: A cash-out refi leaves you with one monthly payment, as opposed to two. However, it also leaves you with a new interest rate. And if that rate is not as low as the rate on your initial mortgage, this method may not be ideal for you.


          Personal Loan

          A personal loan is repaid in regular installments over a predetermined term, typically two to seven years. Some borrowers like the idea of having a loan that is not secured by their home. However, personal loan interest rates rarely beat out HELOC rates, so if you are comfortable using your home as collateral, you might find it to be a less costly way to borrow.

          Credit Cards

          While credit cards are well suited to making everyday purchases, they have higher interest rates than HELOCs, making them a more expensive way to carry a large balance.

          The Takeaway

          A home equity line of credit can serve as a valuable financial tool for homeowners seeking to capitalize on the equity they’ve built in their home. HELOCs typically provide competitive interest rates and flexible repayment options. When considering a HELOC in West Virginia, it’s helpful to compare loan offers from multiple lenders to find the most favorable rates and terms available.

          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 brokered by SoFi.

          View your rate

          FAQ

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

          The monthly payment for a $50,000 HELOC can fluctuate based on the interest rate and repayment terms. Assuming a 10-year term, here’s the payment amount at several interest rates: $607 (8.00%); $594 (7.50%); $581 (7.00%); $568 (6.50%); $555 (6.00%).

          Is a HELOC a good idea right now?

          HELOCs can be advantageous for home renovations or consolidating debt, but whether one is a good idea for you will depend on your ability to repay the loan responsibly. Look at current HELOC rates. Use a HELOC repayment calculator and plug in rates that are higher than the current rate to see what a larger monthly payment might be if costs drift upward with the HELOC’s variable rate. Think about whether you can afford to add that to your monthly budget.

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

          Your monthly payment on a $100,000 HELOC will depend on how much of the credit line you’ve used to date. If you have drawn only $40,000 of your $100,000 limit, the payment might be just a few hundred dollars. On the other hand, if you’ve used the entire $100,000 credit line and are paying 7.50% interest over 20 years, your monthly payment would be $806.

          What are the benefits of a HELOC?

          The benefits of a HELOC include flexible access to funds, competitive HELOC rates, and potential tax advantages. Perhaps the best part of having a HELOC is that you only pay interest on the portion of the credit line that you are actively using. But the remainder of the credit line is there in case you need it.

          Do you need an appraisal for a HELOC?

          Most lenders mandate a home appraisal for a HELOC to ascertain the precise value of your property and the extent of equity you possess. This pivotal step is instrumental in establishing the credit limit on your HELOC.

          What disqualifies you from getting a home equity loan?

          Several factors, such as a poor credit history, insufficient equity, and a high debt-to-income ratio, can disqualify you from obtaining a home equity loan.

          How difficult is it to get a HELOC?

          The level of difficulty associated with obtaining a HELOC is directly influenced by your current financial situation. When evaluating your application, lenders take various factors into account, such as your credit score, the amount of equity you have in your home, and your income. Assuming all three are healthy, you shouldn’t have difficulty getting a HELOC.

          Does HELOC affect credit score?

          A HELOC can affect your credit score in several ways. Applying for a HELOC results in a hard inquiry, which can temporarily lower your score. Additionally, high utilization of your HELOC credit line can negatively impact your score. Missing payments can do the same. However, making payments on time can help your credit score.

          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.


          ²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
          All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
          You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
          In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.


          Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
          Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

          Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

          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.

          SOHL-Q424-058

          Browse other West Virginia home guides.

          More HELOC resources.

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

          Read more
          Jan
          06
          2025

          Current HELOC Rates in Utah Today

          By | mortgage | Comments Off on Current HELOC Rates in Utah Today

          UTAH HELOC RATES TODAY

          Current HELOC rates in

          Utah.



          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 Utah.

          Key Points

          •   Home equity lines of credit (HELOCs) can help you fund home improvements, debt consolidation, education expenses, and other big-ticket investments.

          •   When comparing HELOC lenders in Utah, consider interest rates and terms, fees, credit line minimums and limits, and the reputation of the lender you’re considering working with.

          •   HELOC rates in Utah are influenced by the prime interest rate and other economic variables.

          •   Factors like your home equity position, credit score, income, and combined loan-to-value (CLTV) ratio, may significantly impact the HELOC rates that lenders in Utah offer you.

          •   You’ll qualify for the most favorable HELOC rates if you prioritize building your credit score, maintain a steady source of income, and ensure that you have a low debt-to-income ratio.

          Introduction to HELOC Rates

          A HELOC is a revolving line of credit. It works like a credit card, but it’s secured by your home’s equity. HELOC rates are influenced by factors including the prime rate and a borrower’s financial profile. Understanding these influences can help you navigate the market and get the best deal possible on your home equity line of credit.

          What Is a HELOC?

          What is a home equity line of credit? A HELOC is a revolving line of credit similar to a credit card, except it’s secured by your home’s equity. A HELOC isn’t like a traditional loan. It lets you borrow funds and repay them repeatedly during the draw period.

          The Draw Period

          A HELOC draw period is typically a decade. During those 10 years, a homeowner can access funds up to a preapproved credit limit, and interest payments are generally required only on the money withdrawn. Principal payments may be optional. HELOCs’ flexibility make them particularly appealing for addressing larger financial obligations.

          Recommended: HELOC Interest-Only Calculator

          The Repayment Period

          The repayment period on a HELOC is generally 10 to 20 years, during which the borrower pays back the loan principal and interest. Using a HELOC repayment calculator can help a homeowner plan and prepare, since variable interest rates may fluctuate, impacting the cost of the loan.

          Where Do HELOC Interest Rates Come From?

          When you want to get equity out of your home, it’s important to understand interest rates. HELOC rates are tied to the prime rate, which derive, somewhat distantly, from Federal Reserve rates and other broader economic factors.

          How Interest Rates Impact HELOC Affordability

          Interest rates have a significant impact on any home loan’s affordability. A 1% fluctuation in the interest rate may result in a borrower paying thousands of dollars more in interest over the life of the loan. Here is a look at three examples — a $25,000, a $50,000 and a $100,000 HELOC, all repaid over 10 or 20 years, and at two different interest rates:

          Loan Amount Loan Term Interest Rate Monthly Payment Total Interest Paid
          $100,000 20 years 8.00% $836 $100,746
          7.00% $775 $86,072
          10 years 8.00% $1,213 $45,593
          7.00% $1,161 $39,330
          $50,000 20 years 8.00% $418 $50,373
          7.00% $388 $43,036
          10 years 8.00% $607 $22,797
          7.00% $581 $19,665
          $25,000 20 years 8.00% $209 $25,186
          7.00% $194 $21,518
          10 years 8.00% $303 $11,398
          7.00% $290 $9,833


          HELOC Interest Rate Trends

          HELOC interest rates tend to closely follow the prime interest rate. Understanding and anticipating the possibility of rate fluctuations will help homeowners make informed decisions as they consider the best time to apply for a HELOC.

          Historical Prime Interest Rate

          The prime rate’s fluctuations over the years, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023, have had a direct influence on HELOC rates in Utah.

          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

          Historical U.S. Prime Rates

          Factors Influencing HELOC Rates

          Beyond the prime rate, HELOC rates in Utah are influenced by the borrower’s home equity, credit score, income, and loan-to-value (LTV) ratio. If these factors are optimal, they will increase a homeowner’s chance of securing a favorable HELOC rate.

          Home Equity

          If you have significant home equity, you can usually score a favorable interest rate when you apply for a home equity line of credit. Homeowners with a minimum of 15% equity will generally qualify for a HELOC. The higher your equity, the less risk a lender assumes.

          Credit Score

          To qualify for a HELOC, maintain a credit score of 680 or higher. If your score is 700 or above, even better. The higher your score, the lower the risk you present to lenders.

          Stable Income

          Lenders look at your income when determining your ability to pay back a HELOC. A borrower with steady income is less likely to default, and will therefore get a better interest rate. You’ll need to provide income documentation when you submit your application.

          Loan-to-Value Ratio

          Many lenders require a combined loan-to-value ratio (mortgage balance + desired HELOC amount / appraised home value) of 85% or less. If your home is worth $500,000, your mortgage balance is $300,000, and your HELOC balance is $100,000, your combined LTV ratio is going to be 80%.

          Variable vs Fixed Interest Rates

          HELOCs are characterized by variable interest rates, as noted above. These rates are subject to change over the loan’s duration. Variable interest rates tend to start out lower than fixed rates, but will increase or decrease depending on prevailing market conditions. The fluctuations will have an impact on your HELOC rates in the state of Utah.

          Tools & Calculators

          Online calculators are super useful if you’re preparing to borrow against your home’s equity. A HELOC Monthly Payment Calculator, for one, can help you get an idea of how much your monthly payments might be, and to determine how much you might feel comfortable borrowing. Plug in a range of interest rates, and you can see how having a variable-rate loan might affect your monthly bills. Here are a few of our favorite calculators:

          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 be eligible for the most desirable HELOC rates in Utah, it’s important to maintain your credit score, a steady source of income, and a low debt-to-income ratio. These factors play a key role in determining your eligibility for favorable HELOC offers, since they provide lenders a comprehensive assessment of your financial situation and creditworthiness.

          Take Good Care of Your Credit Score

          By making timely payments and reducing or paying off credit card balances, you can continually improve your credit score. This is important if you want to secure more favorable HELOC rates in the state of Utah. The higher your score, the better your chances of qualifying for the best HELOC options, which will give you greater financial flexibility.

          Assess Your Home Equity

          The first thing you need to do when you prepare a HELOC application is to assess your home equity. Making regular mortgage payments over time helps home equity build. Home equity can also be enhanced through renovations that increase the property’s value. Increasing home equity leads to better terms and credit amounts when you apply for a home equity line of credit.

          Calculate Your Debt-to-Income Ratio (DTI)

          Your debt-to-income (DTI) ratio, calculated by dividing your monthly debt payments by your gross monthly income, is a good indicator of your attractiveness as a borrower to home equity lenders. Typically, they prefer a DTI below 36%. A lower DTI is even more favorable.

          Application Process for a HELOC in Utah

          Applying for a HELOC in Utah involves a series of steps to demonstrate your financial strength. Complete them correctly and you’ll have the best chance of obtaining an optimal HELOC rate. Applying for a HELOC, from submitting the application through closing, may take 30 to 60 days:

          Step 1. Run the Numbers

          Check your credit score, calculate your DTI ratio, and use an online estimate of your home’s value. Try to make sure you have at least 15% home equity before you apply for a HELOC.

          Step 2. Compare Lenders

          Visit lender sites or check in with your bank’s mortgage officer in order to compare loan qualification requirements, minimums and maximums, fees, length of the draw, and repayment periods. Some lenders offer more competitive rates and benefits, including discounts for automatic payments or remote closing options.

          Step 3: Gather Your Documents

          You’ll need to have a government-issued I.D. and proof of income (recent pay stubs, W-2 forms, and a recent tax return) on hand. Are you self-employed? Lenders may ask for a profit-and-loss statement and two years of tax returns. Lenders typically require a homeowners insurance declaration page as part of your property documentation. Make sure your policy is up to date.

          Step 4: Submit Your Application

          The next step is to give the lender your HELOC application. You can probably do this online or in person. Be sure you submit a complete and accurate application to increase your chances of approval and securing a competitive rate.

          Step 5: Get an Appraisal

          After submitting your application, you’ll need to meet a home appraisal requirement. This might be an in-person appraisal. Or the lender may use an automated valuation model (AVM), in which an algorithm uses existing data to compute a home’s estimated value. The appraisal can help you determine the amount of equity you have in your home, and will also likely affect the HELOC rate you’ll qualify for. Higher appraisal values tend to lead to larger credit lines.

          Step 6: Prepare for Closing

          Once you find a HELOC offer at a comfortable interest rate, and with favorable terms, you’re ready to close on the loan agreement. Before you can access your HELOC funds, you’ll have to sign loan documents and pay necessary fees. Lenders may make funds available in as little as three days after the HELOC’s closing. Ensure that all paperwork is in order and fees are paid promptly so you can efficiently access your funds.

          Tax Benefits and Considerations

          As a homeowner, you can deduct the interest you pay on a HELOC if the funds borrowed are used to buy, build, or markedly improve your primary residence. Deductions must be limited to interest on the first $375,000 of the mortgage principal for an individual taxpayer, and $750,000 for married couples who file jointly. You’ll need to itemize the deductions on your tax return. Consult a tax advisor for help.

          Closing Costs and Fees

          The good news is, HELOC closing costs are lower than those for home-buying or cash-out refinancing. The appraisal fee — the largest expense — may range from $150 to around $500. Other costs to know about include application, loan origination, and administrative fees. Lenders may also charge annual maintenance, transaction, inactivity, or early termination fees. Or they may waive closing costs, but in this case will often charge a higher interest rate.

          Alternatives to HELOCs

          Financing options other than HELOCs include different types of home equity loans, cash-out refinancing, and personal loans. Every option has advantages and considerations.

          Home Equity Loan

          What is a home equity loan> Unlike a HELOC, it puts a lump sum in your pocket. You pay back different types of home equity loans at a fixed interest rate. A home equity loan calculator can help you estimate your borrowing capacity.

          Borrowers can usually access up to 85% of the equity they’ve built through a home equity loan. Here’s an at-a-glance comparison of a HELOC vs. home equity loan:

          HELOC Home Equity Loan
          Type Revolving line of credit Installment loan
          Interest Rate Usually variable-rate Usually fixed-rate
          Repayment Repay only what you borrow; you may have the option to make interest-only payments during the draw period. Starts immediately at a set monthly payment
          Disbursement Charge only the amount you need. Lump sum

          Cash-Out Refinance

          Homeowners can also tap into home equity via a mortgage refinance. This means applying for a refi of your mortgage loan for the purpose of pulling out cash. This option, however, often comes with higher interest rates.


          Personal Loan

          A personal loan is a flexible, typically unsecured loan. You pay it back in regular payments over a term of 2–7 years. Unlike certain home equity loans, personal loans do not require collateral. Look closely at terms to evaluate whether a personal loan or a home equity loan better suits your needs.

          Credit Card

          A HELOC comes with a lower interest rate than a credit card. This tends to make it a cheaper option for large balances, such as for home renovations, education expenses, or a debt consolidation.

          The Takeaway

          HELOCs make it easy to access the equity in your home. Competitive interest rates and flexible repayment options make a home equity line of credit a valuable financial tool. Make sure you understand all of the terms and conditions, though — especially concerning variable interest rates and the potential impact on your credit score.

          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 brokered by SoFi.

          View your rate

          FAQ

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

          A $50,000 HELOC’s monthly payment will fluctuate based on the interest rate and repayment terms. With an 8.00% interest rate and a 10-year term, your monthly payment will be about $607. The same 8.00% interest rate over a 20-year term will cost you $418 per month, although you’ll pay more in total interest during the 20-year term.

          Is a HELOC a good idea right now?

          It depends on your financial situation and your needs. HELOC interest rates are better than those on credit cards, which can make them useful for spendy projects. But it’s important to consider where variable interest rates can go down the road, and the potential impact on home equity.

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

          You can estimate your monthly payment on $100,000 using a HELOC monthly payment calculator. It will crunch your numbers based on the loan amount, interest rate, and repayment period. For example: If you had a 6.00% interest rate and a 20-year repayment term, you’d have a $716 monthly payment. At a 7.00% interest rate, your payment would jump to $775.

          What are the benefits of a HELOC?

          A HELOC offers multiple benefits, including low interest rates compared to credit cards and the flexibility to borrow and repay funds as you need to during the draw period. A home equity line of credit can be used for home improvements, debt consolidation, or education expenses. Additionally, the interest you pay on a HELOC may be tax-deductible.

          Do you need an appraisal for a HELOC?

          Yes, an appraisal is typically required for a HELOC. It allows lenders to determine the value of your home and the amount of equity available.

          What can disqualify you from getting a home equity loan?

          Several factors can stand in the way of your getting a home equity loan. These include a low credit score, high debt-to-income ratio, insufficient home equity, or a history of late payments.

          How difficult is it to get a HELOC?

          It will depend on your financial situation and the lender’s requirements. HELOCs typically require a good credit score, sufficient home equity, and a stable income. The application process involves providing thorough documentation and undergoing a home appraisal. Comparing lenders and understanding their qualification requirements can help you weigh the ease or difficulty of obtaining a home equity line of credit.

          Does HELOC affect credit score?

          It can, in several ways. Applying for a HELOC may result in a hard inquiry, and that can temporarily lower your score. High utilization of your credit line can also negatively impact your score. But if you make timely payments on your HELOC, your score can improve over time.

          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.


          ²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
          All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
          You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
          In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.


          Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
          Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

          Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

          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.

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          ✝︎ To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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