Compare mortgage rates in Washington.

Introduction to Mortgage Interest Rates

Securing a competitive mortgage rate is crucial for saving money over the life of your home loan. Mortgage interest rates drive the amount a lender charges for borrowing money to purchase a home. In Washington state, mortgage rates are influenced by various economic factors and consumer characteristics. This comprehensive guide provides an in-depth look at mortgage rates in Washington, including historical trends, factors affecting rates, type of mortgage loans available, and strategies for securing a competitive rate.

Where Mortgage Rates Come From

The Federal Reserve, also known as the Fed, plays a pivotal role in determining mortgage rates. The Fed sets the short-term interest rates that banks use as a benchmark for setting their own rates. Although home loan rates are not directly tied to Fed rates, they generally follow the same economic trends. When the Fed raises interest rates, mortgage rates generally rise, and when the Fed lowers rates, mortgage rates typically decline.

But there are also consumer factors that influence rates, including the homebuyer’s credit score, down payment, income, and assets.

How Interest Rates Affect Home Affordability

Mortgage rates have a significant impact on home affordability, often playing a more substantial role than the purchase price of the home itself. Even small changes in interest rates can significantly affect the monthly mortgage payments and the overall cost of homeownership.

For instance, a $300,000 loan with a 30-year term and an interest rate of 4.00% would result in monthly payments of $1,432. If the interest rate increases by just 1 percentage point to 5.00%, the monthly payments would jump to $1,610, adding up to a difference of over $64,000 in total interest paid over the life of the loan.

Should Homebuyers Wait for Interest Rates to Drop?

Many homebuyers, especially novices buying a first home, face the dilemma of whether to purchase a home immediately or wait for interest rates to drop. While it is impossible to predict the future of interest rates with certainty, reading the news about the Fed’s potential action on its rates can help homebuyers make an informed decision.

But ultimately, whether to buy or wait may depend on your personal situation. A lease ending or a baby coming can press the issue. And in some markets, home prices may be rising, which could outweigh any savings on a minor interest rate drop.

Homebuyers who are concerned about rising interest rates may consider locking in a rate now and refinancing later if rates decrease. Most lenders offer a rate lock option, which allows borrowers to secure a specific interest rate for a certain period of time, typically ranging from 30 to 90 days. This can provide peace of mind and protect against potential rate increases during the homebuying process.

Recommended: Average Monthly Expenses for One Person

Washington Mortgage Rate Trends

Understanding historical mortgage rate trends can provide perspective on current rates. Below is a look at almost two decades of Washington rates (the Federal Housing Finance Agency stopped tracking states in 2018). As you can see, Washington’s average rate tends to be a little lower than the U.S. average. This is impressive when you consider that the overall cost of living in Washington is above the national average.

Historical U.S. Mortgage Rates

Looking at the U.S. average rate over a few decades offers further insight. Mortgage rates in Washington state are still below the historical highs experienced in the early 1980s, when rates reached over 18%.

Factors Affecting Mortgage Rates in Washington

Numerous factors influence mortgage rates in Washington and nationwide. Rates are determined by a complex combination of factors that can be broadly categorized into two buckets: the state of the economy and the borrower’s financial status. Let’s examine each in more detail:

Economic Factors

Economic factors that affect mortgage rates include the federal funds rate, inflation, and unemployment rate.

•  The Fed: As mentioned earlier, the federal funds rate set by the Federal Reserve is a key determinant of mortgage rates. When the Fed raises the federal funds rate, banks typically increase their interest rates, including those for mortgages. Conversely, when the Fed lowers the federal funds rate, mortgage rates tend to decrease.

•  Inflation: The general increase in prices of goods and services over time may affect mortgage rates. When inflation rises, the purchasing power of money decreases, making it more expensive for lenders to lend money. As a result, lenders may increase interest rates.

•  Unemployment: When the unemployment rate (the percentage of the labor force that is unemployed) is high, the Fed may lower its rates to try to stimulate the labor market.

Consumer Factors

Consumer factors that affect mortgage rates include credit score, down payment, income and assets, and the type of mortgage loan.

•  Credit score: This numerical representation of an individual’s credit history and repayment behavior is a key detail lenders examine. A higher credit score indicates a lower risk of default, making borrowers more attractive to lenders. Individuals with higher credit scores typically qualify for lower mortgage interest rates.

•  Down payment: A larger down payment reduces the amount of money that needs to be borrowed, which lowers the risk for the lender. Consequently, borrowers who make a larger down payment often receive lower mortgage interest rates.

•  Income and assets: A steady income and sufficient assets provide assurance to lenders that the borrower can meet their financial obligations. Borrowers with stable employment, a history of consistent income, and a healthy financial cushion are more likely to secure favorable mortgage rates.

•  Type of mortgage loan: Adjustable-rate mortgages (ARMs) often start with lower initial rates compared to fixed-rate mortgages. Government-backed loans, such as VA loans and FHA loans, may offer lower rates than conventional loans. And shorter loan terms generally come with lower interest rates than longer terms.

Types of Mortgages Available in Washington

Various mortgage types — including fixed-rate, adjustable-rate, FHA, VA, and USDA loans — are available to meet the needs of different homebuyers in Washington. Conventional loans are not insured by the government and are offered by banks and credit unions. They are the most popular type of mortgage loan and can be fixed-rate or adjustable-rate.

Fixed-Rate Mortgage

Fixed-rate mortgages maintain the same interest rate throughout the life of the loan, ensuring that the principal and interest payments remain stable and predictable, which protects against fluctuating mortgage interest rates. These mortgages are available in various terms, commonly ranging from 10 to 30 years. The choice of loan term affects the monthly payment amount and the total interest paid over the life of the loan. Shorter loan terms generally have higher monthly payments but lower total interest paid, while longer loan terms have lower monthly payments but higher total interest paid.

Adjustable-Rate Mortgage (ARM)

Adjustable-rate mortgages (ARMs) start with a lower introductory interest rate, typically fixed for a period of 5, 7, or 10 years. After the introductory period, the interest rate can adjust periodically, usually once a year, based on a specified index. This can result in fluctuations in monthly mortgage payments.

The initial lower interest rate of ARMs can be attractive to borrowers who plan to sell their home or undertake a mortgage refinance before the introductory interest-rate period ends. However, it is important to carefully consider the potential for future interest rate increases and the impact they may have on monthly payments.

FHA Loans

Backed by the Federal Housing Administration, FHA loans are designed to make homeownership more accessible to borrowers with lower credit scores and smaller down payments. FHA loans typically have more flexible credit and income requirements compared to conventional loans, making them a good option for people who qualify as a first-time homebuyer or those with less-than-perfect credit.

The FHA insurance program reduces the risk to lenders by guaranteeing a portion of the loan amount. This allows lenders to offer FHA loans with more favorable terms, including lower down payments and more flexible credit requirements. FHA loans require both an upfront and monthly mortgage insurance premium (MIP), an additional cost which can be rolled into the borrower’s monthly payment. Even with this cost, an FHA loan can put homeownership within reach for many who could not otherwise qualify.

VA Loans

VA loans are offered by the U.S. Department of Veterans Affairs (VA) to eligible veterans, active-duty military personnel, Reserve and National Guard members, and surviving spouses. VA loans provide competitive interest rates and do not require a down payment, making them an attractive option for qualified borrowers.

The first step for anyone interested in a VA loan is to obtain a Certificate of Eligibility
from the VA.

USDA Loans

USDA loans are designed for low-income borrowers looking to purchase a home in a rural area. Provided by the U.S. Department of Agriculture (USDA), these loans are available to borrowers who fall below a defined income threshold. They offer competitive interest rates and do not require a down payment, making them an attractive option for eligible borrowers in rural communities. The USDA guarantees a portion of USDA loans, reducing the risk to lenders and allowing them to offer favorable terms to eligible borrowers.

Jumbo Loans

In most parts of the U.S., conventional mortgage loans have a cap of $806,500 in 2025 for a single-family home. This cap is set by the Federal Housing Finance Agency (FHFA) and is known as the conforming-loan limit. But sometimes buyers need to borrow more, and that’s where jumbo loans come in. These are also known as non-conforming loans.

Conforming loan levels are set by county, and most counties in Washington have the standard $806,500 limit. But in a few higher-priced housing markets, such as King County (Seattle), Pierce County (Tacoma), and Snohomish County, the limit is higher: $1,037,300.

Popular Places to Get a Mortgage in Washington

Securing a mortgage often depends on choosing the right location, where home prices are affordable and mortgage terms are favorable. Some areas in Washington offer more affordable housing options and a lower cost of living, making them an attractive place to purchase a home.

Least Expensive Locations

Here are some of the least expensive locations in Washington to get a mortgage, based on median home prices and cost of living data, benchmarks used in SoFi’s best affordable places in the U.S. guide. Remember, Washington is costlier than the U.S. average. The average home value in the state is $591,888:

•   Port Angeles: The overall cost of living here is 13% below the state average, and the average home value is $447,800.

•   Bellingham: This northern city has a below-average cost of living. The average home value here is $653,330.

•   Olympia: The average home price in this city with easy access to both forests and waterfront is $532,406. Its cost-of-living index is slightly below the state average.

•   Yakima: With an average home value of $347,826 and a very low cost-of-living index, this is one of the least expensive cities in the entire state.

•   Spokane: Its cost of living is 10% below average, and the median home value is $389,697.

Most Expensive Locations

As is often the case, large cities are on the pricier side when it comes to buying a home. Seattle, where the cost of living is the second highest in the state, has an average home value of $851,242 while Redmond, Bellevue, and Bainbridge Island all have home prices well north of $1 million.

Tips for Securing a Competitive Mortgage Rate in Washington

A competitive mortgage rate is crucial for saving money over the life of a loan. As noted above, even a small difference in interest rate can result in thousands of dollars in savings over the life of a mortgage. Here are some ways to securing a competitive mortgage rate in the current environment in Washington:

Compare Interest Rates and Fees

Take the time to compare interest rates and fees from multiple lenders. In addition to the interest rate, it is important to consider any upfront costs or closing fees associated with the loan. These fees can vary between lenders and can add to the overall cost of the mortgage.

Get Preapproved

Getting preapproved for a mortgage strengthens your position as a buyer and allows you to move quickly when you find the right property. Going through the mortgage preapproval process demonstrates to sellers that you are a serious and qualified buyer.

Washington Mortgage Resources

Washington offers various resources and programs to assist homebuyers, particularly first-time buyers and those with limited financial resources. Some programs offer assistance with down payments and closing costs.

First-Time Homebuyer Programs

Washington state offers several programs to assist first-time homebuyers, including:

•   Washington State Housing Finance Commission (WSHFC) Covenant Homeownership Program is for eligible first-time homebuyers. Eligibility criteria include: The homebuyer or a parent/grandparent/great-grandparent must have lived in Washington state before April 1968 and be Black, Hispanic, Native American, Alaska Native, Native Hawaiian or other Pacific Islander*, Korean or Asian Indian.

•   Home Advantage and House Key Opportunity Programs also help homebuyers, who must take an education course to learn more about the homebuying process before working with the program loan officers.

•   USDA, FHA, and VA loans are also available in Washington State.

Down Payment Assistance

In addition to first-time homebuyer programs, Washington state also offers down payment assistance programs to help eligible borrowers:

•   WSHFC Down Payment Assistance Program down payment assistance is for homebuyers who use the agency’s Home Advantage or Opportunity programs. If your household income is under the program limits (up to $180,000), your credit score is at least 620, and you’re otherwise qualified for a home loan, you are probably eligible.

Tools & Calculators

The WSHFC website provides a variety of tools and calculators to help homebuyers estimate their monthly mortgage payments, determine their borrowing power, and compare different loan options.

Refinancing Options in Washington

The FHA Streamline Refinance allows FHA-insured homeowners to refinance into current mortgage rates with minimal hassle. For example, there is rarely the need for a new appraisal or full credit check.

VA loan holders may be eligible for an Interest-Rate Reduction Refinance Loan (IRRRL), which allows them to refinance their existing VA loan into a new loan with a lower interest rate without the need for a new appraisal or full credit check.

Recommended: The Cost of Living in the U.S.

Closing Costs, Taxes, and Fees in Washington

Buyers in Washington can expect to pay between 3%-6% of the home’s purchase price in closing costs.

The Takeaway

Mortgage rates in Washington are influenced by a variety of factors, including the Federal Reserve’s monetary policy and each homebuyer’s personal financial profile. Homebuyers should carefully consider their financial situation and the current mortgage rate environment before making a decision about whether or not to purchase a home. Fortunately, there are a number of resources available to help homebuyers in Washington get the best possible mortgage rate.

FAQ

What is a mortgage rate?

A mortgage rate is the interest rate that you pay on your mortgage loan. It is expressed as a percentage and is added to the principal amount of the loan to determine your monthly payments.

Will mortgage rates drop in Washington?

It is difficult to predict whether or not mortgage rates will drop in Washington. However, there are a number of factors that could affect mortgage rates, including unemployment, inflation, and the Federal Reserve’s monetary policy.

Will mortgage rates ever go back to normal?

It is difficult to say when or if mortgage rates will ever go back to normal because there isn’t really a “normal” rate. Current mortgage rates are due to a number of factors, each of which can change at any time.

Will Washington home prices ever drop?

It is difficult to predict whether or not Washington home prices will ever drop. However, there are a number of factors that could affect home prices, including the overall economy, the supply of homes on the market, and the demand for homes.

Is it a good time to buy a house in Washington?

Whether or not it is a good time to buy a house in Washington depends on your individual financial situation and goals. There are a number of factors to consider, including the current mortgage rate environment, the cost of homes in your desired area, and your long-term plans.

How do I lock in a mortgage rate?

You can lock in a mortgage rate by getting a mortgage rate lock from a lender. A mortgage rate lock guarantees that you will get a certain interest rate for a specified period of time. This can protect you from rising interest rates.

How do mortgage interest rates work?

Mortgage interest rates are determined by a number of factors, including the Federal Reserve’s monetary policy. When the economy is strong and inflation is low, mortgage rates tend to be lower. Conversely, when the economy is weak and inflation is high, mortgage rates tend to be higher.

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.

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

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

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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

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Compare home equity loan rates in Kansas.

Introduction to Home Equity Loan Rates

Welcome to our comprehensive guide on home equity loan rates in Kansas. If you’ve built up equity in your home and need cash for a renovation or other big project, you’re in the right place to learn all about the current home equity loan interest rate environment, what determines the rate you may be offered, and how you can get the best deal. We’ll also cover the different types of home equity loans, so you can figure out which option is best for you.

Step one? Let’s review what is a home equity loan.

How Do Home Equity Loans Work?

A home equity loan uses your home as collateral. Because this type of loan is secured with your property, it typically offers lower interest rates than a personal loan. The interest rate is usually fixed, which means your payments will be consistent. To qualify for a home equity loan in Kansas, as elsewhere in the U.S., you typically need to have at least 20% equity in your primary residence. You’ll repay the loan over a term negotiated with your lender, which could be anywhere from 5 to 30 years.

A home equity loan is different from a home equity line of credit (HELOC). To learn what is a home equity line of credit, keep reading.

Where Do Home Equity Loan Interest Rates Come From?

Kansas home equity loan interest rates are a product of economic factors, with lenders’ prime rates playing a significant role. The prime rate is what banks charge their most creditworthy clients. Federal Reserve policy on interest rates helps lenders determine their prime rate. Keeping an eye on these factors might help you decide when is the best time to apply for a home equity loan.

How Interest Rates Impact Home Equity Loan Affordability

The interest rate you’re given will play a big part in how affordable your loan is over the long run. The chart below shows how different rates and terms affect the monthly payment amount. Even small increases in the monthly payment can mean significantly higher costs over the life of the loan.

Home Equity Loan Rate Trends

If you’re paying attention to the prime rate lenders are offering, you might wonder what kind of changes you can expect. It helps to have a sense of the history of rates over time. The chart below shows how the prime rate has changed in recent years, hitting a low of 3.25% in 2020 and a high of 8.50% in 2023. Below that, you can see the trajectory of the prime rate over more than 50 years.

Historical Prime Interest Rates

Source: TradingView.com

Factors Influencing Home Equity Loan Rates

In the state of Kansas, as elsewhere in the U.S., several factors beyond the prime rate come into play when determining home equity loan rates. Your credit score, loan-to-value ratio, home value, property location, and lender policies all contribute to the rate you’re offered. Understanding these elements will equip you to secure the most favorable rate for your loan.

Credit Score

You probably recall that when you got your home loan, your credit score was an important part of the lender’s criteria. The same is true with a home equity loan. Lenders usually want to see a credit score of 680 or higher from a home equity loan applicant, although higher scores may get you a better rate.

Home Value

Lenders often use independent appraisals to determine the market value of your property before offering a loan. This appraised value of your home is key to determining exactly how much they are willing to lend you.

Loan-to-Value (LTV) Ratio

Once you know your home’s appraised value, you and the lender can compute your LTV ratio. Your combined LTV ratio is calculated by dividing the loan amount you’re seeking plus any remaining balance on your first mortgage by the appraised value of the home. The maximum combined LTV lenders typically allow for home equity loans is around 85%.

Home Value Stability

If your home’s value is on the rise, lenders are more likely to greenlight a larger home mortgage loan, as an increasing property value helps lower their risk. But if home values in your area are dropping, lenders may tighten their belt and offer smaller home mortgage loans.

Property Location

Where your property is located can also impact your interest rate. If your home is in an area that is at a higher risk for natural disasters, you may have a higher interest rate, reflecting the fact that the lender is taking on more risk by lending in these areas. High-risk areas are those that are more likely to experience hurricanes, floods, tornados, or wildfires, for example.

Lender Policies

Each lender has its own policies that might impact the interest rate you’re offered. This is why it’s a good idea to shop around and compare interest rates, fees, and closing costs from multiple lenders. By doing your research and comparing your options, you might be able to find more favorable terms and save money over time.

How to Qualify for the Lowest Rates

There are a few things you can do to improve your chances of qualifying for the best Kansas home equity loan rates.

Build a Strong Credit Score

In the world of personal finance, your credit score is your golden ticket to better terms and rates. It’s a good idea to periodically check your credit report (and correct any inaccuracies). Don’t max out every credit card you have. And of course, pay your bills in a timely manner.

Manage Debt-to-Income Ratio

When you’re considering a home equity loan, your debt-to-income (DTI) ratio is a key player. You can compute it by adding up all your monthly debt obligations (such as a car loan or student loan) and dividing the total by your gross monthly income. Lenders are typically looking for a DTI ratio below 36%, though some lenders are willing to go as high as 50%.

Obtain Adequate Property Insurance

Sufficient property insurance is a must, for you and your lender. It protects both of you in the event of a disaster. Make sure your home is thoroughly insured before you begin the application process.

Maintain Sufficient Home Equity

As noted above, you’ll need to have at least 20% equity in your home to qualify for a home equity loan.

Fixed vs. Variable Interest Rates

Home equity loans typically come with a fixed interest rate, which means your monthly payment will stay the same over the life of the loan. While a fixed interest rate can provide peace of mind, it may also mean that you’ll start with a slightly higher rate than you would with a variable-rate loan.

Tools & Calculators

By using online tools and calculators, you can get a full understanding of your home equity loan options and what the costs will be. Use the three calculators below when thinking about the best home equity loan rates in Kansas.

Closing Costs and Fees

Home equity loans typically come with closing costs that fall between 2% and 5% of your loan amount. These costs can include fees for services such as appraisals, credit reports, document preparation, title searches, and title insurance. Be sure to factor in these costs when you compare offers from different lenders.

Tax Deductibility of Home Equity Loan Interest

Here’s a tip: The interest on your home equity loan could be tax deductible if you’re using the money you borrow to significantly improve your home. Couples filing jointly can deduct the interest on up to $750,000 in home equity loans, while for single filers the ceiling is $375,000. Just remember to itemize your deductions when you file your tax return — and save your renovation receipts.

Alternatives to Home Equity Loans

Along with home equity loans, there are a few other ways to get equity out of your home: home equity lines of credit (HELOCs), reverse mortgages, and cash-out refinancing. Each option has its own set of features.

Home Equity Line of Credit (HELOC)

A HELOC is somewhat like a credit card, but one that is secured by your home. You have a set credit limit that you can borrow against, and you only pay interest on the amount you’ve borrowed. When considering a HELOC vs. a home equity loan, note that the interest rate on HELOCs is variable, which means it can go up if interest rates rise, while the interest rate on a home equity loan is usually stable.

Home Equity Conversion Mortgage (HECM)

An HECM is a government-backed reverse mortgage that allows homeowners 62 and older to receive payments based on the value of their home. The funds can be received as a lump sum, regular installments, or a line of credit. No payments are required until the homeowner leaves the home. HECMs typically have higher closing costs and longer processing times than other loan options. (While SoFi does not offer HECMs at this time, we do offer home equity loans and HELOCs.)

Cash-Out Refinance

A cash-out refinacnce is a special type of mortgage refinance.You get a new mortgage that pays off your old one and lets you pocket some cash to use for any purpose you like. Most lenders will let you borrow up to 85% of your home’s equity. If you’re considering a cash-out refinance vs. a home equity line of credit one important consideration is the interest rate for the refinance. If your original mortgage has a very low interest rate, a refi may not make sense if current rates are significantly higher.

The Takeaway

Understanding home equity loan rates and the factors that influence them can help you get your financial house in order before you apply for a loan, and then make the best decision for your personal situation once you have lenders’ offers in hand. By shopping around, using online tools and calculators, and considering all options, including a HELOC, you can achieve your financial goals with confidence.

FAQ

What would the monthly payment be on a $50,000 loan?

To figure out what the monthly payment would be on a $50,000 home equity loan, you need to consider the current home equity rates in Kansas and the loan term. At 7.00% interest and a 20-year term, the monthly payment would be $388. Use a loan calculator for the most accurate estimate of your personal situation.

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

The monthly payment on a $100,000 home equity line of credit (HELOC) can vary greatly depending on the interest rate, how much you draw on the account, and the repayment terms. If you used the full $100,000 of your credit line, your monthly payment would be $1,213 if you had a 10-year term and an interest rate of 8.00%.

What is the payment on a $25,000 home equity loan?

The monthly payment on a $25,000 home equity loan could range from around $150 to $500 depending on your interest rate (6.00% vs. 8.00%, in this example) and loan term (5 years vs. 30 years).

Curious about the payment on a $30,000 home equity loan?

When you’re considering a $30,000 home equity loan, the interest rate and the loan term will impact your monthly payments. A home equity loan calculator can help you estimate the payment you would need to make at different interest rates and loan terms.

What might disqualify you from getting a home equity loan?

There are a number of factors that can disqualify you from getting a home equity loan. They include having a credit score that’s too low, lacking adequate equity in your home, having a high debt-to-income ratio, and carrying insufficient insurance coverage on the property you want to finance. Any of these can be a red flag for a potential lender.

What are the benefits of a HELOC?

HELOCs have a lot going for them. They offer flexibility in borrowing, lower interest rates than most credit cards, and you only pay interest on the amount of the credit line that you actually use. This makes a HELOC an especially good option if you need money for a project, such as a renovation, but aren’t sure exactly what it will cost.

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.

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