Jan

2026

Free Virginia Home Equity Loan Calculator

By Dana Paltao | mortgage | Comments Off

Virginia Home Equity Loan Calculator

By SoFi Editors | Updated December 18, 2025

For Virginia homeowners, the equity built up in a property represents a significant financial asset. A home equity loan allows you to borrow against this value, providing access to funds for major expenses like renovations, debt consolidation, or educational costs.

A Virginia home equity loan calculator can serve as an invaluable first step in your financial planning. By using a calculator, you can estimate potential loan amounts, project monthly payments, and compare different scenarios before engaging with lenders.

This guide will cover what a home equity loan is, how to use a home equity loan calculator, and other important considerations to help you make an informed financial decision.

Key Points
• A Virginia home equity loan calculator is a useful tool for estimating monthly payments and maximum borrowing power.
• A home equity loan is a type of second mortgage that allows you to borrow against the equity you have in your home.
• Home equity loan funds are received as a lump-sum amount, and the interest rate is typically fixed.
• A borrower’s credit score and debt-to-income ratio are primary factors that influence home equity loan offers.
• The repayment term for a home equity loan generally ranges from five to 30 years.

Calculator Definitions

• Home Value: This is your property’s current market value, not the original price you paid for it. A realistic valuation will give a more accurate calculation.

• Desired Loan Amount: This is the specific amount of money you intend to borrow to meet your financial needs. It’s wise to base this figure on actual costs for a project or expense.

• Current Mortgage Balance: This figure represents the total outstanding amount you owe on your primary home loan. It should also include the balance on all loans or credit lines you have that are secured by your home.

• Home Equity Loan Repayment Term: This is the length of time over which the loan is to be repaid. These terms typically range from five to 30 years.

• Interest Rate: This is the rate charged by the lender on the borrowed funds. The interest rate is a primary factor in determining the total cost of the loan over time.

• Maximum Loan Amount: This is the estimated highest amount a homeowner might be eligible to borrow. This figure is based on your available home equity and overall financial standing.

• Estimated Monthly Payment: This is the projected, consistent payment that will be due each month. It covers the repayment of both the loan principal and the accrued interest.

• Available Equity Amount: This represents the difference between your home’s estimated market value and your outstanding mortgage balance, forming the basis of your borrowing capacity.

How to Use the Virginia Home Equity Loan Calculator

Using a Virginia home equity loan calculator allows you to explore possibilities and understand potential costs before formally applying with a lender. Here’s a step-by-step going on how to use it:

Step 1: Enter Your Home Value

Input your home’s current market value. For the most realistic result, base this estimate on recent sales of comparable homes in your neighborhood, rather than using your original purchase price.

Step 2: Input Your Desired Loan Amount

Enter the amount of money you wish to borrow. This should be based on your actual financial needs, whether for a specific home improvement project, debt consolidation, or another major expense.

Step 3: Type in Your Current Mortgage Balance

Provide the total outstanding balance on your primary mortgage and any other loans secured by your home. This allows the calculator to determine the amount of equity you have available to borrow against.

Step 4: Select a Home Equity Loan Repayment Term

Choose a repayment term, noting that options generally range from five to 30 years. This decision involves a significant trade-off: longer terms result in lower monthly payments but higher total interest costs, while shorter terms have higher payments but lower total interest.

Step 5: Estimate Your Interest Rate

Enter an estimated interest rate. The actual rate you qualify for will depend on several factors, most notably your credit history and score. Generally, a higher credit score will secure a more favorable, lower interest rate from lenders.

Step 6: Review Your Results

The calculator will provide you with an estimated monthly payment and a potential maximum loan amount. Use this information to assess whether the monthly payment fits comfortably within your household budget and to understand your borrowing capacity.

What Is a Home Equity Loan?

A home equity loan is a type of second mortgage that allows you to borrow against the equity you have built in your home. The loan is provided as a single, lump-sum payment, which you receive upfront after closing. This structure makes it particularly well-suited for large, one-time expenses where the total cost is known in advance.

Characteristics of a home equity loan include:

• Collateral: Your home is used as collateral to secure the loan.

• Fixed interest rate: These loans typically have a fixed interest rate, meaning your rate will not change over the loan’s term.

• Predictable payments: Repayment consists of fixed monthly installments that cover both principal and interest, making budgeting straightforward and predictable.

• Set term: The loan is repaid over a predetermined period, generally ranging from five to 30 years.

“Home equity” itself is defined as the difference between your home’s current market value and the total outstanding balance of your mortgage.

Home Equity Trends in Virginia

As home values have risen over the last five years, so have homeowner equity levels. In fact, equity levels have doubled since 2020, a collective increase of $5.7 trillion (see chart below). About half of homeowners with a mortgage are considered “equity rich,” which means their mortgage balance is less than 50% of the home’s value.

In Virginia, equity levels increased 186% over the same period. The average home equity in 2025 per homeowner is $121,500. This could be why there is so much interest around how to get equity out of your home.

Current home equity loan rates by state.

Compare current home interest rates by state and find a home equity loan rate that suits your financial goals.

Select a state to view current rates:

How to Use the Home Equity Loan Calculator Data to Your Advantage

The output from a home equity loan calculator is more than just a set of numbers; it is actionable data that you can use for strategic financial planning. Here’s how homeowners can leverage the calculator’s estimates for practical purposes:

• Budgeting: Use the estimated monthly payment to see if a new loan can fit comfortably within your existing household budget. This check helps determine affordability and avoid future financial strain.

• Scenario comparison: Run the numbers for different loan terms. For example, compare a 15-year term to a 30-year term to see how it affects both the monthly payment and the total interest you would pay over time. This analysis helps you find the right balance between short-term affordability and long-term cost.

• Defining a realistic loan amount: The calculator can show you the maximum amount you might be able to borrow. Use this information not as a target, but as a ceiling to help you define a responsible borrowing limit that aligns with your financial goals without creating unnecessary debt.

• Informing lender discussions: When you approach lenders, you will already have a clear understanding of what loan amount and payment schedule works for you. This allows for a more productive conversation and helps you effectively compare the official offers you receive.

Home Equity Loan Scenarios

Applying these concepts to hypothetical scenarios clarifies how a home equity loan can be used to meet common financial goals. Take a look at the following three situations in which a home equity loan may come in handy:

Scenario 1: Funding a Major Home Renovation

A homeowner in Virginia wants to complete a major kitchen and bathroom remodel. They have received firm quotes from contractors and know the project will cost $50,000. Because the cost is fixed and they need the funds upfront to pay the contractor, a home equity loan is a suitable choice. Its lump-sum disbursement and fixed-rate structure provide the certainty needed for a project with a set budget.

Scenario 2: Consolidating High-Interest Debt

Another homeowner has accumulated debt across multiple credit cards, each with a high, variable interest rate. A home equity loan’s single, lump-sum payment allows them to pay off all credit card balances at once. They are left with one manageable monthly payment at a much lower, fixed interest rate.

Tips on Home Equity Loans

Prospective borrowers can improve their chances of qualifying for favorable terms and ensure the loan serves their financial goals effectively by following these tips:

• Strengthen your financial health: Lenders look for evidence of financial responsibility. Before applying, focus on maintaining a strong credit score and a well-managed debt-to-income (DTI) ratio. A higher score and lower DTI often lead to better interest rates and loan terms.

• Meet the equity requirement: Lenders typically require homeowners to have at least 20% equity in their home to qualify. You can calculate your equity by subtracting your current mortgage balance from your home’s estimated market value.

• Shop around and compare offers: Obtain quotes from multiple lenders, including banks and credit unions, to compare interest rates, fees, and terms. This simple step can lead to significant savings over the life of the loan.

• Understand the risks: A home equity loan uses your home as collateral. This means that if you fail to make your payments as agreed, the lender has the right to foreclose on your property.

• Borrow only what you need: While you may be approved for a large loan amount, it is wise to borrow only what is necessary to meet your financial goal. Avoiding unnecessary debt will keep your monthly payments lower and reduce your overall financial risk.

Alternatives to Home Equity Loans

While there aren’t technically different types of home equity loans, there are different ways to borrow against your home equity. It is important for every homeowner to evaluate all available options for tapping into their home equity. Four alternative options include:

Home Equity Line of Credit (HELOC)

A home equity line of credit, or HELOC, is a revolving line of credit secured by your home, operating much like a credit card. It features a variable interest rate and is structured with two distinct phases: a “draw period,” during which you can access funds as needed up to your credit limit, followed by a “repayment period,” where you pay back the principal and interest.

A HELOC interest-only calculator can calculate what your payments might be during the initial period. To determine your principal plus interest amount during the subsequent repayment period, you can use a HELOC repayment calculator.

A HELOC is best suited for: Ongoing projects with uncertain costs, such as a phased home renovation, or for homeowners who want the flexibility to borrow and repay funds over time without reapplying for a new loan.

Home Improvement Loan

A home improvement loan is a type of unsecured personal loan, meaning your home is not used as collateral. This reduces the risk to the homeowner, as the property cannot be foreclosed upon for non-payment. The application and funding process is typically faster than for a home equity loan. However, because they are unsecured, these loans may come with higher interest rates and shorter repayment terms.

A home improvement loan is best suited for: Smaller projects, urgent repairs, or for homeowners who have not yet built significant equity or are unwilling to place their home at risk.

Personal Line of Credit

Similar to a HELOC, a personal line of credit is another unsecured, revolving credit option. The difference is that it is not secured by the home, which eliminates the risk of foreclosure, though interest rates may be higher than those for a secured line of credit.

A personal line of credit is best suited for: Those that need flexible access to a smaller amount of cash and do not want to use your home as collateral.

Cash-Out Refinance

A cash-out mortgage refinance replaces your existing primary mortgage with a new, larger one. The difference between the new loan balance and your old mortgage balance is given to you as a single, lump-sum payment of cash. The end result is a single, consolidated monthly mortgage payment.

When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance results in a single mortgage payment, whereas a home equity line of credit (or home equity loan) is a payment separate from your primary mortgage.

A cash-out refinance is best suited for: Homeowners who need a large sum of money and, at the same time, can secure a more favorable interest rate or a better term on their primary mortgage.

Recommended:HELOC vs. Home Equity Loan

The Takeaway

A Virginia home equity loan calculator empowers homeowners to estimate their borrowing potential, project monthly payments, and assess affordability before making any commitments. The decision to borrow against your home is significant. Virginia homeowners should carefully weigh the immediate benefits of accessing cash against the profound responsibility of placing their most valuable asset as collateral.

SoFi now offers home equity loans. Access up to 85%, or $750,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.

Unlock your home’s value with a home equity loan from SoFi.

View your rate

FAQ

How is a home equity loan different from a home equity line of credit (HELOC)?

A home equity loan provides a one-time lump sum of cash with a fixed interest rate and consistent monthly payments. In contrast, a HELOC is a revolving line of credit with a variable interest rate, allowing you to borrow and repay funds as needed during a specified draw period. The loan is ideal for a single, large expense, while a HELOC is better for ongoing or uncertain costs.

Is the interest rate on a home equity loan fixed or variable?

Home equity loans typically come with a fixed interest rate. This is a key feature that provides predictability and stability for borrowers. A fixed rate ensures that your monthly payment amount will remain the same for the entire life of the loan, making it easier to budget for repayment.

What are the typical loan terms for a home equity loan?

Repayment terms for home equity loans are generally lengthy, offering flexibility to fit different budgets. These terms can range anywhere from five to 30 years. A longer term will result in a lower monthly payment, while a shorter term will lead to less interest paid over the life of the loan.

What are the qualification requirements for a home equity loan?

To qualify, lenders primarily look for sufficient home equity (typically at least 20%), a good credit score (often 620 or higher), and a manageable debt-to-income (DTI) ratio (below 50%). You will also need to provide proof of a steady and verifiable source of income to demonstrate your ability to repay the loan.

Learn more about mortgages:

Jan

2026

Can You Afford a $770 Car Payment? Here’s How to Tell

By Dawn Papandrea | | Comments Off

This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.

Buying a car should be exciting. But nowadays you can’t ignore the financial burden — or the risk of overextending yourself.

The average price of a new car reached a new record high of over $50,300 last month, a good $10,000 above what it was in 2020, according to Kelly Blue Book estimates. Used cars average more than $26,000, and some of the most affordable ones are the hardest to find.

The real shock, though, is what these stats mean for car payments. By the end of last year, financing a new car cost an average of $772 a month, and 1 in 5 buyers were paying at least $1,000, according to Edmunds, an online car shopping guide. Even used car payments averaged a hefty $570.

The pressure is clearly mounting, too. In order to make the math work, more buyers are stretching loans out over six or seven years — sometimes paying thousands more in interest. Federal Reserve data shows the rate of auto loan delinquencies has risen sharply since the pandemic and is now at its highest level since 2010.

So what?

For many of us, a car is one of the biggest purchases we’ll make, and auto loans make up nearly a third of all non-mortgage household debt in the U.S. If you’re in the market for a car, take the time to run the numbers so you know what you can afford before you start shopping.

Here are three ways to gauge what your budget should be:

• The % of income method: Probably the simplest approach is to keep your payment under a certain percentage of your net monthly take-home pay. Edmunds recommends staying below 15% if you’re buying a new car and 10% if you’re buying a used one (because repairs and maintenance costs add up.)

So if you bring home $4,000 per month, your payment shouldn’t be more than $600 if you’re buying a new car and $400 if you’re buying a used one.

(Of course, you’ll want to consider the cost of auto insurance, too. Edmunds says ideally you don’t want to go above 20% of your take-home to cover all car costs.)

• The debt analysis method: This approach relies on your debt-to-income (DTI) ratio, taking into account not just your income, but your other debts, too. Your DTI is how much of your monthly gross income is used for debts (car loans, student loans, mortgages, credit cards, etc.) and lenders say ideally you shouldn’t go over 36%.

So if your gross income is $12,000 a month, and your current debts total $3,500, a DTI of 36% means you could afford a car payment of up to $800. (Because 36% of $12,000 = $4,300 and $4,300 – $3,500 = $800.)

Pro tip: Work backwards to figure out how much car payment you can afford. Take 36% of your gross monthly income (or check your DTI in SoFi’s free debt tracker) and then subtract your total monthly debt obligations from that number.

• The down payment method: The “20/4/10 rule,” as it’s known, also takes into account your down payment and the length of your loan. This general rule of thumb recommends putting 20% down, taking out a loan of no more than four years, and keeping your payment and other car costs to 10% of your monthly income.

So if you want to buy a $30,000 car, you’d put down $6,000, borrow the other $24,000 over four years, and make sure your car bills didn’t exceed the 10% threshold. (For a benchmark, a $24,000 4-year loan charging 10% interest would cost just over $600 a month.)

Keep in mind that a lot will also depend on the terms of your auto loan, especially the interest rate and how long you have to repay it. You may not have a ton of flexibility with the interest rate (though new cars generally have lower rates,) but you can lower your payment by borrowing for longer. Just remember that you’ll pay a lot more interest over the life of the loan, and if you need to sell before it’s paid off, you could end up owing more than your car is worth.

(To better understand how these levers could play into your payment, try running different scenarios through an auto loan calculator like this one.)

The bottom line: These methods are just meant to guide, and your payment sweet spot may differ. The important thing is to have a clear strategy that you’re comfortable with before you hit the car lot. That starts with understanding how your income, debt obligations, and loan terms factor into your payment.

Free Vermont Home Equity Loan Calculator

By Dana Paltao | mortgage | Comments Off

Vermont Home Equity Loan Calculator

By SoFi Editors | Updated December 30, 2025

A home equity loan is a great option to fund a major renovation, to consolidate debt, or to achieve other significant financial goals. Use the Vermont home equity loan calculator to help you estimate your potential borrowing power based on the equity you’ve built in your property. This guide is designed to help homeowners learn how to use the calculator to its full potential. Gain a better understanding of key definitions, tips, risks, and alternatives to a home equity loan.

Key Points
• Our Vermont home equity loan calculator is a useful tool for comparing different loan scenarios and understanding potential costs.
• A home equity loan provides funds as a single, lump-sum payment based on the equity you have in your home.
• Home equity loan interest rates are influenced by personal financial factors, such as your credit score and debt-to-income (DTI) ratio.
• The interest on a home equity loan may be tax-deductible. Be sure to check with a tax advisor about tax implications.
• Home equity loans typically feature fixed interest rates, which ensures that the monthly payments are consistent for the duration of the loan.

Calculator Definitions

Here are definitions to get familiar with before you use the Vermont home equity loan calculator.

• Home Value: The home value is the current estimated market value of your property, not the original purchase price.

• Desired Loan Amount: The desired loan amount is the principal amount that will be repaid over the loan term. You can input this amount, or use the slider.

• Current Mortgage Balance: This is the total outstanding amount you owe on your primary home loan.

• Home Equity Loan Repayment Term: This is the length of time (typically between five and 30 years) over which you will repay the loan. The term you select directly affects how much your monthly payment is.

• Interest Rate: Interest, expressed as a percentage, is the cost of borrowing money.

• Maximum Loan Amount: This figure represents an estimate of your borrowing capacity, the highest amount a lender might offer based on your available equity and financial profile.

• Estimated Monthly Payment: This is the estimated amount of your monthly payment to repay the loan. It includes both principal and interest. The calculator displays a payment amount for both a maximum loan amount and your desired loan amount.

• Available Equity Amount/Percentage: This is the portion of a home’s equity that a lender might allow a homeowner to borrow against. It represents the difference between the home’s market value and any outstanding mortgage balance.