Compare HELOC rates in Iowa.

Introduction to HELOC Rates

For Iowa homeowners looking to cash in on their home equity, this guide provides an overview of HELOC interest rates. Interest rates are a big deal because they have a significant impact on the affordability of your home equity line of credit. Securing even a slightly lower rate can translate to savings of thousands, or even tens of thousands of dollars.

Of course, understanding your options for how to get equity out of your home is also important. We’ll walk you through different types of home equity loans and mortgage refinancing, and the pros and cons of each. By the end, you’ll understand the application process, the magic numbers to help you qualify, and of course, how to get the best available interest rate.

To begin, what is a home equity line of credit, exactly?

What Is a HELOC?

A HELOC is a revolving credit line secured by your home. The amount you can borrow depends on your home equity position. You can access the funds, make payments, and borrow again. And you’ll pay interest only on the amount of the credit line that you actually use. Lenders typically allow borrowing up to 90% of your home’s value, minus the mortgage principal.

A HELOC has two main phases: the draw period and the repayment period.

The Draw Period

During the draw period, typically lasting 10 years, you can access funds up to your credit limit. Interest payments are usually required during this period, but principal payments may be optional.

The Repayment Period

The repayment period of a HELOC, usually 10 to 20 years, follows the draw period. During this phase, borrowing ends, and you must repay the principal with interest. Interest rates are generally lower than other types of financing because your home serves as collateral. However, variable interest rates can fluctuate, making repayment somewhat unpredictable. Using a HELOC repayment calculator can help you plan for these fluctuations and ensure you can afford the payments.

Where Do HELOC Interest Rates Come From?

HELOC interest rates are tied to the prime rate, which is the benchmark interest rate banks charge their most creditworthy customers. Federal Reserve policy decisions also influence HELOC rates. Understanding these factors can help borrowers anticipate rate fluctuations and make informed decisions about the best time for a HELOC.

How Interest Rates Impact HELOC Affordability

Savvy homeowners know that interest rates matter a lot — that’s why they’re all over your news feed. Interest rates exert a profound influence on the affordability of HELOCs in particular. Over the span of a 20-year term, a seemingly minor 1% increase in interest rate can result in more than $10,000 in additional interest.

For example, below you’ll see the monthly payment and total interest paid for a $75,000 HELOC repaid over 20 years at three different interest rates:

•   At 6.00%: monthly payment $537, total interest paid $53,958

•   At 7.00%: monthly payment $581, total interest paid $64,554

•   At 8.00%: monthly payment $627, total interest paid $75,559

HELOC Interest Rate Trends

Changes in the prime interest rate are especially relevant to HELOC borrowers because of the HELOC’s variable rates. It’s impossible to predict exactly where the rate will go, but looking at average prime rates in recent years will give you an idea of how much they tend to swing. The average prime rate reached a low of 3.25% in 2020 and a high of 8.50% in 2023, as you can see in the chart below. And over the last half-century, rates as low as 2020’s have been rare.

Historical Prime Interest Rate

Since 2018, the prime rate has undergone significant fluctuations, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023. These variations directly influence HELOC rates. By utilizing a HELOC interest calculator, you can gain valuable insights into how these historical trends impact the affordability of your HELOC, empowering you to make informed financial decisions. Additionally, understanding the differences between cash refinance vs. home equity line of credit can help you choose the best option for your financial situation.

Historical U.S. Prime Rates

Factors Influencing HELOC Rates

Besides the prime rate, many other factors influence HELOC rates in Iowa. By focusing on these key areas, homeowners look out for issues that might prevent them from securing the best available rates.

Home Equity

Having substantial equity in your home makes you appear less risky to lenders, potentially leading to lower interest rates. Homeowners typically need at least 15% equity in their property to qualify for a HELOC. Using a home equity loan calculator can help you determine your equity and plan your financial strategy accordingly.

Credit Score

Maintaining a credit score of 700 or higher is important for securing more favorable interest rates on HELOCs. Some lenders will accept 680, but you may pay a higher rate. A robust credit score serves as a testament to your financial responsibility, effectively mitigating the risk for lenders and potentially unlocking more advantageous terms.

Stable Income

When applying for a HELOC, lenders evaluate your income to ascertain your capacity for repayment. A steady income signifies a diminished probability of default, potentially resulting in more favorable HELOC interest rates. Reinforcing your application with concrete evidence of consistent income, such as pay stubs and tax returns, can significantly enhance your chances of approval.

Loan-to-Value Ratio

Most lenders require your combined loan-to-value ratio (mortgage balance plus desired HELOC divided by your appraised home value) to be 85% 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. If your home value is $500,000, your mortgage balance is $300,000, and your HELOC balance is $100,000, then your LTV ratio is 80%.

Variable vs Fixed Interest Rates

HELOCs are characterized by variable interest rates, which are subject to change throughout the HELOC’s duration. These variable rates commence at levels lower than conventional fixed rates but undergo adjustments in accordance with market conditions. This is one important detail that distinguishes HELOCs vs home equity loans. The latter usually have a fixed interest rate, which some homeowners feel more comfortable with.

Tools & Calculators

Online tools can assist you in approximating your payments and comprehending the financial implications of your credit line. For instance, a HELOC interest-only calculator can help you predict your monthly payments during a HELOC’s draw period.

How to Qualify for a Competitive HELOC Rate

So how do you set yourself up for a competitive HELOC rate? You’ll need to have a good credit score, a stable source of income, and a low loan-to-value ratio. Check it out:

Strengthen to Your Credit Score

By consistently paying your bills on time and diligently working to reduce credit card balances, you can significantly enhance your credit score, which plays a pivotal role in securing more favorable HELOC rates. Regularly reviewing your credit report and promptly addressing any inaccuracies or errors can also contribute to improving your overall creditworthiness and financial standing.

Assess Your Home Equity

Regular home loan payments help in building home equity over time. Home equity can be enhanced through renovations that boost the property’s value, too. Increased home equity can lead to better terms and higher amounts when applying for a HELOC.

Calculate Your Debt-to-Income Ratio (DTI)

Your debt-to-income ratio, often abbreviated as DTI, represents the percentage of your monthly income that is allocated toward servicing your debt obligations. When applying for a HELOC, lenders generally prefer applicants with a DTI below 36% (though some will go as high as 50%). Nevertheless, the lower your DTI, the more favorable your terms are likely to be.

Application Process for a HELOC in Iowa

The application process for a HELOC in the state of Iowa entails a series of steps. Lenders will scrutinize your financial records and property-related information to make an informed decision regarding your eligibility for the HELOC and determine the specific terms and conditions that will govern your agreement.

Step 1. Crunch the Numbers

This is really prepwork before you initiate an application: Check your credit scores (over 680?), calculate your DTI (under 36%?), and get a good estimate of your home equity (more than 15%?). If your numbers are on the up and up, you’ve got a green light to apply.

Step 2. Compare Lenders

See what offers you might qualify for when it comes to interest rates, but also compare their qualification requirements, minimums and maximums, fees, the length of the draw and repayment periods they’re offering, and other factors.

Step 3: Gather Your Documents

Required records typically include income documentation, such as recent W-2 statements, pay stubs, and income tax returns, to demonstrate your ability to manage payments. Additionally, prepare documents related to your home equity and credit history. Proof of homeowners insurance may also be called for.

Step 4: Submit Your Application

Submit your HELOC application online, by phone, or in person. The lender will then assess your eligibility and subsequently determine the specific terms of your HELOC.

Step 5: Get an Appraisal

An appraisal is a crucial step in determining the true market value of your home. If the appraisal comes in higher than your mortgage balance, you may be eligible for a HELOC.

Step 6: Prepare for Closing

Before accessing your HELOC funds, you must sign loan documents and pay necessary fees. Some lenders are known to make funds available within a relatively short time frame, typically around three days following the official closing of the HELOC.

Tax Benefits and Considerations

Homeowners may be able to deduct HELOC interest if the borrowed funds are used for buying, building, or significantly improving their primary residence. Interest deductions are limited to the first $375,000 of the mortgage principal for individual taxpayers ($750,000 for married couples filing jointly). Consulting a tax advisor is recommended to navigate the specific tax implications and confirm eligibility for deductions.

Closing Costs and Fees

HELOC closing costs are typically lower than home-buying or mortgage refinance costs. The appraisal fee, ranging from $150 to $500, is often the highest expense. Other costs can include application, origination, and administrative fees. Some lenders charge annual maintenance fees, transaction fees for withdrawals, inactivity fees, or early termination fees. Lenders may reduce or waive closing costs but charge higher interest rates to compensate.

Alternatives to HELOCs

Besides HELOCs, your options include home equity loans, cash-out refinancing, and unsecured personal loans. Let’s take a closer look at each.

Home Equity Loan

What is a home equity loan? Unlike HELOCs, home equity loans provide a lump sum amount and are paid back at a fixed interest rate. Borrowers can usually access up to 85% of the equity in their home through a home equity loan. This option is suitable for those who need a fixed amount of money for a specific purpose.

Cash-Out Refinance

A cash-out refinance lets homeowners tap into home equity by refinancing for more than what’s owed on their mortgage, taking the difference in cash. It can be beneficial for those needing a large lump sum but may come with higher interest rates. Accessing up to 85% of a home’s value is common.

If you’re considering a cash-out refinance vs. a home equity line of credit, there are two things to keep in mind. First, a cash-out refi leaves you with one monthly payment, as opposed to two with a HELOC and a mortgage. Second, you’ll have a new interest rate. And if that rate is higher than the rate on your previous mortgage, this method may not be right for you.

Personal Loan

A personal loan is a flexible unsecured loan that you pay back in regular monthly payments over a set term of 2-7 years. This option is suitable for those who are less comfortable putting their home on the line in exchange for a lower interest rate.

Credit Cards

Credit cards typically come with much higher interest rates than HELOCs, which can make them impractical if you carry a large balance from month to month. While credit cards offer flexibility for smaller purchases, HELOCs provide a more cost-effective solution for larger expenses such as home renovations or debt consolidation.

The Takeaway

When contemplating a HELOC in Iowa, it’s imperative to conduct thorough research to obtain the most favorable rates in the state. Factors such as credit score, home equity, and loan-to-value ratio exert a significant influence on HELOC rates. By comparing offers from multiple lenders and maintaining a robust credit profile, homeowners can secure highly competitive rates for their borrowing needs.

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.

FAQ

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

The monthly payment on a $50,000 HELOC depends 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 total interest with the 20-year term.

Is a HELOC a good idea right now?

Deciding whether a HELOC is a sound financial decision hinges on your current financial standing. These versatile tools can be advantageous for home improvement projects or debt consolidation. However, homeowners should carefully consider interest rates and your ability to manage an additional financial obligation over the long term.

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

With a $100,000 HELOC, if you have drawn the maximum and are paying it off over a 20-year term, your monthly payment would range from $775 to $900 if your interest rate was between 7.00% and 9.00%.

What are the benefits of a HELOC?

HELOCs provide homeowners with a flexible financial solution, offering convenience in accessing funds as needed. They are particularly beneficial for homeowners seeking to finance substantial expenses, such as extensive home renovations or educational costs. The competitive interest rates and potential tax benefits associated with HELOCs enhance their attractiveness.

Do you need an appraisal for a HELOC?

Yes, an appraisal is usually required for a HELOC. Lenders need to assess the present market value of your home to determine the amount of equity available and set the credit limit accordingly.

What disqualifies you from getting a home equity loan?

Numerous elements can potentially disqualify you from securing a home equity loan, including an unfavorable credit history, inadequate home equity, and an elevated debt-to-income ratio. That’s why it’s important for homeowners to “run the numbers” before they apply: Check your home equity stake, credit score, LTV ratio, and DTI.

How difficult is it to get a HELOC?

The level of difficulty in obtaining a home equity line of credit depends on the financial profile of an individual. Lenders take into consideration various factors such as credit score, the amount of home equity available, and income. Maintaining a strong financial standing can significantly enhance the smoothness of the HELOC application process and increase the likelihood of approval.

Does HELOC affect credit score?

Indeed, HELOCs can have an impact on your credit score. Applying for a HELOC results in a hard inquiry, which may lead to a temporary reduction in your score. Moreover, your credit score can be affected over time by how you manage the HELOC, including whether you make timely payments and keep your utilization low.

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.

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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

SOHL-Q424-025

Compare HELOC rates in Texas.

Introduction to HELOC Rates

A HELOC is a revolving line of credit that works like a credit card but is secured by your home’s equity. HELOC rates are influenced by factors like economic conditions, the federal funds rate, and a borrower’s financial profile. Understanding these factors can help you navigate the market and get the best available deal 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 that is similar to a credit card but is secured by your home’s equity. A HELOC isn’t like a traditional loan. It allows you to borrow and repay funds repeatedly during the draw period.

The Draw Period

A home equity line of credit’s draw period typically spans a decade. During that time, homeowners can access funds up to a preapproved credit limit. Interest payments are generally required only on the money withdrawn. Principal payments may be optional. The flexibility of HELOCs make them particularly appealing for addressing large financial obligations.

Recommended: HELOC Interest-Only Calculator

The Repayment Period

The repayment period of a HELOC is usually 10 to 20 years. During this period, the borrower pays back both the principal and interest. Using a HELOC repayment calculator will help homeowners plan and prepare, since variable interest rates can fluctuate and impact the overall 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 a little something about interest rates. HELOC interest rates are tied to the prime rate, Federal Reserve rates, and broader economic factors.

How Interest Rates Impact HELOC Affordability

Interest rates have a significant impact on the affordability of any home loan. A 1% fluctuation in the interest rate can result in a borrower paying thousands of dollars in additional interest over the life of the loan. Here is a look at one example, a $50,000 HELOC repaid over 20 years at three different interest rates:

•   At 6.00%: monthly payment $358, total interest paid $35,972

•   At 7.00%: monthly payment $388, total interest paid $43,036

•   At 8.00%: monthly payment $418, total interest paid $50,373

HELOC Interest Rate Trends

HELOC interest rates closely follow the prime interest rate. Understanding and anticipating potential rate fluctuations can help homeowners make informed decisions regarding when 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 directly influenced HELOC rates in Texas.

Historical U.S. Prime Rates

Factors Influencing HELOC Rates

In addition to the prime rate, HELOC rates in Texas are significantly influenced by a borrower’s home equity, credit score, income, and loan-to-value (CLTV) ratio. When these factors are optimal, they increase a homeowner’s chance of securing a favorable HELOC rate.

Home Equity

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

Credit Score

To secure the most advantageous interest rates on HELOCs, maintain a credit score of 680 or higher — ideally, 700 or above. A higher score indicates you present lower risk to lenders.

Stable Income

Lenders assess your income to determine your ability to pay back a HELOC. A borrower with a steady income stream is less likely to default, and will almost always get a better interest rate. Be sure to provide documentation of your income when you apply.

Loan-to-Value Ratio

Many lenders require your combined loan-to-value ratio (mortgage balance + desired HELOC amount / appraised home value) to be 85% or less. For example, 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 80%.

Variable vs Fixed Interest Rates

HELOCs tend to have variable interest rates. That means, your rate may change throughout the life of the loan. Variable interest rates often start lower compared to typical fixed rates, but adjust upward or downward depending on market conditions. Understanding how variable rates work is key to managing a HELOC in Texas.

Tools & Calculators

Financial tools including a HELOC monthly payment calculator, a HELOC interest-only calculator, and a home equity loan calculator can be helpful resources. These widgets will help you to estimate payments and better understand the potential financial implications of a home equity line of credit.

How to Qualify for a Competitive HELOC Rate

To obtain the most desirable HELOC rates available in Texas, homeowners should compare multiple lenders. Your credit score and debt-to-income ratio will be key factors when it comes to snagging a highly competitive HELOC offer.

Strengthen to Your Credit Score

Making payments on time and reducing credit card balances can improve your credit score. The higher your credit score, the less risky you appear to lenders.

Assess Your Home Equity

The first thing you need to do when you start a HELOC application is assess your home equity. If you’ve made timely mortgage payments, you’ve built home equity over time. Home renovations also boost the property’s value, and therefore your equity.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is important. To calculate, take how much you owe in monthly debt payments (auto loan, student loan, etc.), and divide by your gross monthly income. Home equity lenders often look for a DTI below 36% — the lower your DTI, the better. This ratio is crucial for determining HELOC eligibility.

Application Process for a HELOC in Texas

An application for a HELOC in Texas will require you to submit documents and obtain a home appraisal.

Step 1. Run the Numbers

Assessing your financial situation before you apply is essential. Check your credit scores and calculate your debt-to-income (DTI) ratio, which lenders use to determine your ability to repay the loan. A DTI below 36% will increase your chances of approval. Estimate your home equity to ballpark how much you can borrow. Some lenders offer helpful prequalification tools on their websites.

Step 2. Compare Lenders

See what offers and interest rates you might qualify for. Compare the lenders’ requirements, loan minimums and maximums, fees, and other factors. You’ll also want to note the duration of a lender’s draw, and the repayment periods.

Step 3: Gather Your Documents

Begin putting together all the necessary documents before you plan to apply. Required items are typically proof of income, employment history, credit reports, and documentation of your home’s value. Having these documents ready will speed up the application process.

Step 4: Submit Your Application

Once you have all your documents ready, you can file your HELOC application. This can often be done on the internet, by phone, or in person at the lender’s office. To avoid potential processing delays, make sure all information you provide is accurate.

Step 5: Get an Appraisal

After you submit your application, a lender may request a home appraisal. This is necessary to determine your home’s current market value. If an appraisal shows the value of your home exceeding your mortgage’s outstanding balance, the lender may approve you for a HELOC.

Step 6: Prepare for Closing

Before you’re granted access to funds from your HELOC, your lender will require you to sign loan documents and pay necessary fees. Certain lenders may make funds available within three days after closing. Make sure you understand all terms and conditions.

Tax Benefits and Considerations

HELOC interest qualifies for a tax deduction if the homeowner uses the funds to buy, build, or significantly improve their primary residence. Interest deductions are limited to the first $375,000 of the mortgage principal for individual taxpayers ($750,000 for married couples filing jointly).

Closing Costs and Fees

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

Alternatives to HELOCs

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

Home Equity Loan

Unlike HELOCs, home equity loans tend to put a lump sum in your pocket. You pay back different types of home equity loans at a set interest rate. 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:

Cash-Out Refinance

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

Recommended: Cash-Out Refinance vs Home Equity Line of Credit

Personal Loan

A personal loan is a flexible, typically unsecured loan. You pay it back in regular payments over a set term of two to seven years. Unlike certain home equity loans, personal loans do not require collateral. Evaluate whether a personal loan or a home equity loan better suits your needs.

Credit Cards

A HELOC comes with a lower interest rate than a credit card, making it a cheaper option for carrying large balances, such as for home renovations or 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 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.

FAQ

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

A $50,000 HELOC’s monthly payment can fluctuate based on the interest rate and its 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 total interest with the 20-year term.

Is a HELOC a good idea right now?

This depends on your financial situation and needs. HELOC interest rates are better than those on credit cards and can be useful for spendy projects. But it’s important to consider the variable interest rates down the road, as well as the potential impact on your 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, which crunches your numbers based on the loan amount, interest rate, and repayment period to give you an estimated monthly payment.

For example, if you had a 20-year repayment term and a 6.00% interest rate, your monthly payment would be $716. At a 7.00% interest rate, your payment would jump to $775.

What are the benefits of a HELOC?

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

Do you need an appraisal for a HELOC?

An appraisal is typically required for HELOCs to determine the value of your home and the amount of equity available.

What disqualifies you from getting a home equity loan?

Several factors can disqualify you from getting a home equity loan, including 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 depends 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, which can temporarily lower your score. Also, high utilization of your credit line can negatively impact your score. But making timely payments on your HELOC can improve your score 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.

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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

SOHL-Q424-053

Compare HELOC rates in Arkansas.

Introduction to HELOC Rates

For homeowners who have been making regular home loan payments over the years, leveraging their accumulated equity can be a relatively cheap source of cash. But with so many financing options out there, how do you choose the best one for your financial situation and goals? And how do you know you’re getting the best available interest rate?

This article provides an overview of Arkansas HELOC interest rates. Readers will learn about the HELOC application process, the benefits of HELOCs, and other ways to borrow against your home. By the end, you’ll understand the factors influencing these interest rates and how to secure a competitive deal that fits your long-term needs.

First we’ll get into what is a what is a home equity line of credit.

What Is a HELOC?

A HELOC is a revolving credit line that allows the homeowner to borrow up to 90% of your home’s value, minus what you owe on your mortgage. Because a HELOC works somewhat like a credit card, you don’t have to borrow the entire amount at once. You can borrow in increments as you need the money. And because the HELOC is secured by your home, it usually has a lower interest rate than a credit card or personal loan.

A HELOC has two phases: draw and repayment.

The Draw Period

During the HELOC’s draw period (usually 10 years), you can access funds up to your credit limit, make payments to reduce your balance, and borrow again. Interest-only payments are typically required during this period, but principal payments may be optional.

The Repayment Period

During the repayment period (typically 10 to 20 years), borrowing ends, and you pay back the principal with interest (but only on the amount borrowed, not the full credit line). HELOCs have variable interest rates that fluctuate over the loan term, making repayment unpredictable. A HELOC repayment calculator can help you understand the impact of interest rate changes on your payments.

Where Do HELOC Interest Rates Come From?

HELOC interest rates are tied to the prime rate and influenced by economic and housing market factors. The prime rate is the benchmark interest rate for a bank’s most creditworthy customers. Federal Reserve policy decisions also impact HELOC rates.

Understanding these factors can help borrowers anticipate rate fluctuations and make informed decisions about the best time for a HELOC.

How Interest Rates Impact HELOC Affordability

Interest rates significantly impact the affordability of HELOCs over a 10-year draw and 20-year repayment period. A mere 1% difference in interest rate can result in thousands of dollars in additional interest over the duration of the loan. This example, for a $50,000 HELOC repaid over 20 years, shows the monthly payment and total interest paid at three different interest rates:

•   At 6.00%: monthly payment $358, total interest paid $35,972

•   At 7.00%: monthly payment $388, total interest paid $43,036

•   At 8.00%: monthly payment $418, total interest paid $50,373

HELOC Interest Rate Trends

HELOC rates follow the prime interest rate trends. Since 2018, the prime rate has ranged from a low of 3.25% in 2020 to a high of 8.50% in 2023. The chart shows prime rate fluctuations over the last 50 years. Understanding these trends can help you predict where HELOC rates are headed.

Historical Prime Interest Rate

Historical U.S. Prime Rates

Factors Influencing HELOC Rates

HELOC rates are also influenced by the borrower’s financial profile.

Home Equity

Possessing substantial home equity places you in a lower risk category for lenders, thereby securing you more favorable interest rates. Customarily, homeowners are required to have a minimum of 15% equity to qualify for a HELOC. Employing a home equity loan calculator can give you an estimate of your equity and potential borrowing capacity.

Credit Score

You need to maintain a credit score of 680 or higher when seeking a HELOC in Arkansas, and many lenders prefer it to be 700+. Building your credit score can increase your chances of securing more beneficial terms.

Stable Income

A steady income serves as a reliable indicator of a lower likelihood of default. That means consistent employment in the same job over the years can be just as important as how much you make.

Loan-to-Value Ratio

Most lenders require your combined loan-to-value ratio (your mortgage balance + desired HELOC, divided by your 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. If your home value is $500,000, your mortgage balance is $300,000, and your HELOC balance is $100,000, then your LTV ratio is 80%.

Recommended: HLEOC Interest-Only Calculator

Variable vs Fixed Interest Rates

HELOCs feature variable interest rates, which are subject to change over the course of the loan term. These rates may start lower compared to typical fixed rates but then change — going either up or down — with market conditions.

Tools & Calculators

Online calculators can be valuable tools to have at your disposal when deciding between a HELOC vs a home equity loan. You can utilize our calculators to plan your budget, estimate your interest-only payment during the draw period, and your larger monthly payment when borrowing is over.

How to Qualify for a Competitive HELOC Rate

To secure the most favorable Arkansas HELOC rates, there are steps you can take. First, work to cultivate your credit score over time, evaluate the state of your home equity, and precisely calculate your debt-to-income ratio.

Take Care to Your Credit Score

Consistently pay your bills on time, and diligently pay down your credit card balances, and your credit score will benefit. Review your credit reports on a regular basis as well, and dispute any errors you find.

Assess Your Home Equity

Regular mortgage payments help in building home equity over time. Home equity can be enhanced through renovations that boost the property’s value. Increased home equity can lead to better terms and higher amounts when applying for a HELOC.

Calculate Your Debt-to-Income Ratio (DTI)

Your debt-to-income ratio (DTI) is calculated by dividing your total monthly debt payments by your monthly income. Generally, home equity lenders prefer a DTI below 36%, but the lower your DTI, the more favorable it is.

Application Process for a HELOC in Arkansas

The HELOC loan application process in Arkansas consists of multiple essential steps. Here they are in detail.

Run the Numbers

Check your credit scores, calculate your DTI, and get a good estimate of your home equity before you apply for a HELOC. Some lenders allow borrowers to prequalify for a HELOC online, streamlining the application process.

Compare Lenders

See what interest rates you qualify for in Arkansas, but also compare lenders’ qualification requirements, loan minimums and maximums, fees, the length of the draw and repayment periods they’re offering, and other factors.

Gather Your Documents

Before applying for HELOC loans, it is imperative to gather and organize all the necessary documents. These typically include proof of income (W2s, pay stubs), employment history (a resume), credit reports, and documentation of your home’s value. Having these documents readily available will not only streamline the application process but also ensure a smoother and more efficient experience.

Submit Your Application

Submitting your HELOC application takes place online, by phone, or in person. Make sure to complete all fields; leaving anything blank or failing to attach documentation can slow or stall the process.

Get an Appraisal

If your home appraises for more than your mortgage balance, the lender may approve you for a HELOC. The appraisal helps determine the amount of equity you have in your home, which affects the loan amount you can qualify for.

Prepare for Closing

Before accessing your HELOC funds, you must sign loan documents and pay necessary fees. Certain lenders conveniently make funds available within a mere three business days following the closing of the HELOC loans.

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 the first $375,000 of the mortgage principal for individual taxpayers ($750,000 for married couples filing jointly). Consulting a tax advisor can help borrowers navigate the specific tax implications and confirm your eligibility for deductions.

Closing Costs and Fees

HELOC closing costs are usually lower than home buying or cash-out refinance costs. The appraisal fee, typically the highest expense, ranges from $150 to $500. Other costs may include application, loan origination, and administrative fees. Some lenders charge annual maintenance fees, transaction fees for withdrawals, inactivity fees, or early termination fees. Many lenders waive closing costs but may charge a higher interest rate.

Alternatives to HELOCs

There are different types of home equity loans in addition to home equity lines of credit (HELOCs), other financing options include home equity loans, cash-out refinancing, and personal loans. Carefully consider the pros and cons of each option, including HELOCs versus home equity loans and cash-out refinancing versus home equity lines of credit, to determine the best fit for your specific financial needs and circumstances.

Home Equity Loan

Now we come to what is a home equity loan. Unlike home equity lines of credit, home equity loans provide a lump sum amount and are repaid at a fixed interest rate. Homeowners can typically borrow up to 85% of the equity built in their homes through a home equity loan. The chart below breaks down the differences between these two popular options.

Cash-Out Refinance

This type of mortgage refinance allows homeowners to pay off their current mortgage for more than they owe and take the difference in cash. A cash-out refi will leave you with one monthly payment (a new mortgage) rather than the two you would have if you carry a mortgage plus a HELOC or home equity loan. However, if you have a rock-bottom interest rate on your current mortgage, a refi might not make sense at this time.

Personal Loan

An unsecured personal loan is repaid in regular monthly payments over a term of two to seven years. Personal loans do not require collateral, making them a good alternative for individuals who lack home equity. However, interest rates are typically higher than those for HELOCs and home equity loans.

Recommended: Cash-Out Refinance vs Home Equity Line of Credit

Credit Cards

Credit cards typically come with higher interest rates than HELOCs, which can make them considerably more expensive if you carry a substantial balance over an extended period of time. While credit cards offer convenience and flexibility for smaller purchases, they often don’t make sense for larger expenses such as home improvements or debt consolidation.

The Takeaway

Understanding HELOCs and their alternatives can be a complex endeavor. In a nutshell, HELOCs offer competitive interest rates and flexible repayment for a host of big-ticket items. If you’ve cultivated a good credit score, have a low DTI ratio, and substantial home equity, a HELOC is worth considering. Just make sure to shop around with multiple lenders to find the best available rates and terms before making a decision.

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.

FAQ

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

The monthly payment for a $50,000 HELOC, which is a type of revolving credit that uses the equity in your home as collateral, is determined by the interest rate and repayment terms. Employing a HELOC monthly payment calculator can be helpful in approximating the payments. For instance, with a 7.25% interest rate and a 10-year repayment period, the monthly payment would amount to approximately $587.

Is a HELOC a good idea right now?

Deciding whether a HELOC is a good choice is contingent upon your financial situation. While HELOC loans can make paying for home improvements or debt consolidation a bit more cost-effective and convenient, they are not without drawbacks. Carefully consider the current interest rates, your ability to repay, and the possible impact on your overall financial stability before making a decision.

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

The monthly payment for a $100,000 home equity line of credit (HELOC) can fluctuate based on the prevailing interest rate, the chosen repayment term, and the amount you draw. For example, if the interest rate is set at 7.25% and the repayment term is 10 years, the monthly payment would hover around $1,174.

What are the benefits of a HELOC?

HELOC loans provide numerous advantages, including flexible access to funds, competitive interest rates, and potential tax benefits. These versatile loans can be utilized for a wide range of purposes, encompassing home renovations, education expenses, and debt consolidation. However, responsible management of the loan is crucial to avoiding financial strain and ensuring a positive borrowing experience.

Do you need an appraisal for a HELOC?

In most cases, a HELOC loan requires an appraisal to ascertain the property’s current market value. However, some lenders may offer appraisal-free options based on automated valuation models. The appraisal serves as a crucial safeguard to ensure that the loan amount does not surpass the property’s equity, safeguarding both the borrower and the lender.

What disqualifies you from getting a home equity loan?

Several factors, including a low credit score, inadequate home equity, a high debt-to-income ratio, and unstable income, can impede your ability to secure a home equity loan.

How difficult is it to get a HELOC?

Obtaining a HELOC can be challenging due to various factors, primarily credit score, home equity, and income stability. Generally, lenders mandate a minimum credit score of 680, along with home equity of at least 15%. Assessing your financial situation in advance can significantly improve your chances of qualifying for a HELOC.

Does HELOC affect credit score?

HELOC loans can impact your credit score in various ways. Submitting an application for a HELOC may trigger a hard inquiry, which can temporarily cause a small reduction in your score. Conversely, prudent use and punctual payments can contribute to maintaining or even enhancing 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.

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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

SOHL-Q424-014

Compare HELOC rates in Kansas.

Introduction to HELOC Rates

This guide provides a handy overview of current Kansas HELOC rates. We’ll walk you through all you need to know about HELOC interest rates, the application process, and what homeowners need to do to secure an advantageous deal. By the end, readers will be able to confidently navigate the HELOC marketplace, select the option that best suits their needs, and utilize it responsibly to achieve their long-term financial goals.

To begin, what is a home equity line of credit?

What Is a HELOC?

A HELOC is a revolving credit line, similar to a credit card, that allows homeowners to get equity out of their home to pay for big projects. Because their home serves as collateral, borrowers usually find that HELOC interest rates are lower than those for personal loans. You can borrow up to 90% of your home’s value, minus your primary home loan. A HELOC has two phases: draw and repayment.

The Draw Period

During the initial draw period of a HELOC, usually lasting a decade, homeowners can access funds up to their credit limit, make payments, and borrow again as needed (thus, the term “revolving credit”). Typically, interest-only payments are required during this phase, while principal payments remain optional. A HELOC interest-only calculator can help you determine what your payments will be during the draw period.

The Repayment Period

The repayment period of a HELOC usually spans 10 to 20 years, during which borrowing ends and the principal is repaid with interest. Borrowers pay interest only on the amount borrowed. However, variable interest rates can fluctuate, making repayment unpredictable and potentially more expensive over time. Here’s a comparison chart that boils down the differences between a HELOC vs a home equity loan, another type of financing.

Where Do HELOC Interest Rates Come From?

HELOC interest rates are tied to the prime rate and influenced by economic and housing market factors. The prime rate is the benchmark interest rate banks offer their most creditworthy customers. Federal Reserve policies also impact HELOC rates. Understanding these factors (even loosely; you won’t be tested) helps borrowers anticipate rate changes and make informed decisions about the best time for a Kansas HELOC.

How Interest Rates Impact HELOC Affordability

Interest rates have a significant impact on the affordability of a HELOC. Over the course of a 20-year loan term, a 1% difference in interest rate can result in a substantial $11,000 upcharge in total interest paid. The table below illustrates how the interest rate and repayment term impacts your monthly payment. This underlines the importance of securing the most favorable rate possible.

HELOC Interest Rate Trends

As we noted above, fluctuations in the prime rate serve as indicators of where HELOC rates in Kansas are likely to go. By staying alert to this and other trends, borrowers are empowered to make timely decisions about their finances.

Historical Prime Interest Rate

Since 2018, the prime rate has fluctuated significantly, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023. Below the table, the graphic shows the ups and downs of the prime rate over the last 50 years. The rate rarely dips below 4.00% or rises above 10.00% — but it does happen now and then.

Historical U.S. Prime Rates

Factors Influencing HELOC Rates

Zooming in on HELOC interest rates reveals other factors that can raise or lower the rate you’re offered. They include your home equity level, credit score, income, and loan-to-value ratio. These metrics help lenders evaluate the risk associated with a HELOC, which ultimately determines the interest rate they offer to the borrower.

Home Equity

Substantial home equity can make borrowers appear less risky to lenders, potentially leading to lower interest rates. Typically, homeowners need at least 15% equity in their property to qualify for a HELOC. A home equity loan calculator can help you determine your equity stake.

Credit Score

Maintaining a credit score of 680 or higher is needed to qualify for a HELOC, with some lenders preferring a credit score of 700+.

Stable Income

Of course, lenders evaluate your income to make sure you can fulfill your repayment obligations. But did you know that a steady income serves as an indicator of reduced likelihood of default? So if you’ve been employed by the same company for many years, you may have an advantage over someone with a higher income who recently changed jobs.

Loan-to-Value Ratio

Your loan-to-value ratio comes into play when borrowing money. It’s calculated by dividing your desired financing amount by the appraised value of your home: HELOC amount / home value. The “combined LTV” (or CLTV) takes into account your mortgage balance too: HELOC amount + mortgage balance / home value. Lenders often require a CLTV ratio of 85% or less.

For example, if your home value is $500,000, with a $300,000 mortgage and a $100,000 HELOC, your CLTV ratio is 80%.

Variable vs Fixed Interest Rates

HELOCs are characterized by variable interest rates that are subject to change throughout the loan’s duration. Initially, variable interest rates can be lower than conventional fixed rates; however, they are adjusted based on prevailing market conditions. Understanding this distinction is crucial in making an informed choice between a HELOC and a home equity loan, which typically has a fixed interest rate.

Tools & Calculators

Presenting an extensive collection of financial tools, including a HELOC repayment calculator, a HELOC monthly payment calculator, and a Home Equity Loan calculator. These resources are designed to assist you in estimating your payments and determining what interest rate and repayment term you can afford.

How to Qualify for a Competitive HELOC Rate

Now that you know all the factors that influence your HELOC interest rate, here’s a To Do list: Cultivate your credit score, maintain a steady income, and aim for a low LTV ratio.

Tend to Your Credit Score

Making timely payments and reducing credit card balances can lead to a substantial boost in your credit score, which helps a lot in securing favorable HELOC rates.

Assess Your Home Equity

The first step in a HELOC application is to calculate your home equity. Regular mortgage payments will build home equity over time. Home equity can also be enhanced through renovations that boost the property’s value.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is how much you owe in monthly debt payments (auto loan, student loan, etc.) divided by your gross monthly income. Lenders generally look for a DTI that’s below 36%, but the lower your DTI, the better.

Application Process for a HELOC in Kansas

Now that you know how to prepare your finances for HELOC lenders, we’ll review the process for applying for a HELOC in Kansas. By gaining a clear understanding of the steps, you can effectively prepare for a successful HELOC application.

Step 1. Crunch the Numbers

Check your credit scores, calculate your DTI, and get a good estimate of your home equity before you apply for a HELOC. Some lenders offer online prequalification, simplifying the process. Remember that lenders prefer a credit score above 680, a DTI ratio below 36%, and an equity stake of 15% or above.

Step 2. Compare Lenders

By now you know why you want to compare interest rates, but also compare lenders’ qualification requirements, loan minimums and maximums, fees, and the length of the draw and repayment periods they’re offering.

Step 3: Gather Your Documents

Gather all the paperwork — real or digital — that you’ll need for your HELOC application. This typically includes proof of income (pay stubs, W2s, tax returns), employment history, bank statements, and mortgage statements. Having them ready will expedite and accelerate the application process for your HELOC.

Step 4: Submit Your Application

Submitting your HELOC application takes place online, by phone, or in person. Ensure that all necessary documentation is included to prevent any delays in the processing of your application.

Step 5: Get an Appraisal

The lender will typically schedule the appraisal for you. As long as your home appraises for more than your mortgage balance, the lender may approve you for a HELOC.

Step 6: Prepare for Closing

Before accessing your HELOC funds, you must sign loan documents and pay necessary fees. Certain lenders may make funds available within three business days of closing. Congratulations!

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 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 and confirm eligibility for deductions related to HELOC loans. Understanding these benefits can help you make informed decisions about your home equity line of credit.

Closing Costs and Fees

HELOC closing costs are generally lower than for a home loan or mortgage refinance. The appraisal fee, $150–$500, is often the highest expense. Other costs include application, loan origination, and administrative fees. Some lenders charge annual maintenance, transaction, inactivity, or early termination fees. Lenders may reduce or waive closing costs for a higher interest rate.

Alternatives to HELOCs

In addition to HELOCs, other financing options include home equity loans, cash-out refinancing, and personal loans. Compare the pros and cons of each to determine the most suitable option for your specific financial circumstances.

Home Equity Loan

What is a home equity loan? Unlike HELOCs, home equity loans provide a lump sum amount that is repaid immediately with monthly payments that remain the same for the life of the loan. Borrowers can usually access up to 85% of the equity built in their home through a home equity loan.

Cash-Out Refinance

Cash-out refinancing lets homeowners refinance for more than what’s owed on the mortgage and take the difference in cash. A cash-out refi can provide a substantial lump sum but may come with higher interest rates. Accessing up to 85% of a home’s value is common, requiring at least 15% equity post-refinance. Our cash-out refinance vs home equity line of credit guide can fill you in on the details.

Personal Loan

A personal loan is an installment loan repaid in set monthly payments over a term of 2 to 7 years. One advantage is that you don’t have to offer your home as collateral to get this loan. However, personal loans tend to have higher interest rates than HELOCs or home equity loans.

Credit Cards

Credit cards 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 are good for everyday purchases, HELOCs are better suited for larger expenses such as home renovations or debt consolidation.

The Takeaway

HELOCs provide a flexible option to tap into the equity in your home to meet a variety of financial needs in the Sunflower State. Offering competitive interest rates and the freedom to borrow as needed, a HELOC can serve as a valuable financial tool. However, borrowers should compare lenders and make sure they understand all the terms and conditions before proceeding with an application.

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.

FAQ

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

The monthly payment for a $50,000 HELOC varies depending 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 total interest with the 20-year term.

Is a HELOC a good idea right now?

Whether a HELOC is a good idea right now depends on your financial situation and needs. HELOC loans offer flexibility and competitive interest rates, making them suitable for large expenses like home renovations. However, it’s important to consider the potential risks and ensure you can manage the payments.

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

The monthly payment on a $100,000 HELOC varies based on several factors, including the interest rate, repayment term, and how much you’ve drawn. Let’s assume you draw the full $100,000. At a 6.00% interest rate over 20 years, the payment would be $716 per month. An interest rate of 8.00% and the same term means a payment of $836.

What are the benefits of a HELOC?

HELOCs have numerous advantages, encompassing relatively low interest rates and the ability to draw funds as they’re needed. Best of all, you only pay interest on what you borrow at any given time.

Do you need an appraisal for a HELOC?

Indeed, a HELOC of credit typically requires an appraisal. This evaluation serves to determine the value of your home, which directly influences the maximum loan amount you are eligible to borrow.

What disqualifies you from getting a home equity loan?

A number of factors can make you ineligible for a home equity loan, such as a poor credit score, inadequate home equity, and a high debt-to-income ratio.

How difficult is it to get a HELOC?

It all depends on your financial circumstances. But if your credit score is above 680, your available home equity is above 20%, and your income is stable and high enough to afford the monthly payments, you probably won’t have a problem getting approved for a HELOC. Just make sure to gather your documentation in advance and that you fully understand what you’re signing up for.

Does HELOC affect credit score?

Yes, a HELOC can affect your credit score. Applying for a home equity line of credit may result in a hard inquiry, which can temporarily lower your score. Additionally, high balances on a HELOC can increase your credit utilization, potentially impacting your score. However, managing your HELOC loans responsibly can help maintain a good 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.

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-Q424-026