Who can I send money to with Zelle
Help Center > SoFi Checking and Savings > P2P > Zelle® FAQ > Who can I send money to with Zelle®️?
Who can I send money to with Zelle®️?
Updated May 07, 2024
Zelle®️ is a great way to send money to family, friends, and people you are familiar with such as your personal trainer, babysitter or neighbor1.
Since money is sent directly from your SoFi account to another person’s bank account within minutes2, Zelle®️ should only be used to send money to friends, family and others you trust.
If you don’t know the person or aren’t sure you will get what you paid for (for example, items bought from an online bidding or sales site), you should not use Zelle®️. These transactions are potentially high risk (just like sending cash to a person you don’t know is high risk).
Neither SoFi nor Zelle®️ offers purchase protection for payments made with Zelle®️ – for example, if you do not receive the item you paid for or the item is not as described or as you expected.
1U.S. checking or savings account required to use Zelle®️. Transactions between enrolled users typically occur in minutes.
See also:
What if the recipient’s bank doesn’t offer Zelle®?
How do I split the bill with Zelle®?
Can I pay a small business with Zelle®?
Open an online bank account with SoFi.
Experience the best online bank and get up to a $300 cash bonus,
up to 3.60% APY, and no account fees. Plus, easily send and receive money with Zelle®.
For more questions and answers related to SoFi products, visit our Help Center.
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
1
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.
Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.
See additional details at http://www.sofi.com/legal/banking-rate-sheet
2 No Account Fee
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
† †
Who is eligible for a Direct Deposit Bonus?
How do I earn the Direct Deposit Bonus?
3. You will receive the bonus amount in your SoFi Checking account within 7 business days of completing all requirements listed above. You are only eligible to receive one bonus amount. You must have an open SoFi Checking account in good standing at the time of the bonus payment.
What is an Eligible Direct Deposit?
Not Eligible Deposits that are not from an employer, payroll or benefits provider or government agency and deposits that are non-recurring in nature are not eligible. Examples of deposits that are not eligible include check deposits, peer-to-peer transfers (e.g., transfers from Zelle, PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), bank ACH funds transfers, wire transfers from external accounts, and IRS tax refunds. SoFi Bank shall, in its sole discretion, assess your Eligible Direct Deposit activity to determine eligibility and may require additional documentation to complete this verification.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your initial Eligible Direct Deposit. After SoFi validates the details of your Eligible Direct Deposit, your Direct Deposit Bonus will be based on the date we received your initial Eligible Direct Deposit.
What else is important to know?
New and existing SoFi members who have never set up direct deposit with SoFi are eligible for the Direct Deposit Bonus. Bonuses are limited to one bonus per SoFi member. In the case of a joint account, direct deposit activity will only be counted towards the primary account holder’s eligibility for the bonus (the primary account holder is the member who opened the joint account first).
1. Set up your first Eligible Direct Deposit. SoFi must receive it on or before 1/31/26.
2. Once SoFi receives and recognizes your first Eligible Direct Deposit, we will add up the Total Eligible Direct Deposits received over the next 25 calendar days. This total will determine the bonus amount.
Total Eligible Direct Deposit
Bonus Amount
Timing
$1.00 - $999.99
$0
To determine your bonus amount, SoFi will add up all your Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit.
$1,000.00 - $4,999.99
$50
$5,000.00 or more
$300
Eligible: Recurring ACH deposit of regular income to your SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by your employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”)
•This promotion is available between 12/7/2023 at 12:01AM ET and 1/31/2026 at 11:59PM ET. SoFi reserves the right to modify or end the promotion at any time without notice. The terms of this promotion take precedence over the terms of any prior Direct Deposit promotion.
•SoFi reserves the right to exclude any members from participating in this promotion for any reason, such as suspected fraud, misuse, or suspicious activity.
•SoFi members with Eligible Direct Deposit activity can earn 3.60% annual percentage yield (APY) on savings balances. Interest rates are variable and subject to change at any time. These rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at http://www.sofi.com/legal/banking-rate-sheet.
•Bonuses are considered miscellaneous income, and may be reportable to the IRS on Form 1099-MISC (or Form 1042-S, if applicable). SoFi is required to do this reporting in compliance with the applicable federal and state reporting requirements. Recipient is responsible for any applicable federal, state or local taxes associated with receiving the bonus offer; consult with your tax advisor to determine applicable tax consequences.
•This promotion is offered by SoFi Bank, N.A, Member FDIC (“SoFi”)
HELOC Interest-Only Calculator
HELOC Interest Calculator
HELOC Interest-Only Calculator
A Home Equity Line of Credit (HELOC) interest-only calculator is a simple, useful tool to help you budget for the costs of borrowing against your HELOC.
Turn your home equity into cash. Call us for a complimentary consultation or get pre-qualified online.
What Is a HELOC Interest-Only Calculator?
An interest-only HELOC calculator allows you to estimate the cost of paying interest on your HELOC during the time where you’re paying only interest (and no principal) — the so-called “draw period”. You’ll also be able to see what your monthly payments will be after the draw period, when you’re paying both principal and interest.
What Is a HELOC?
A HELOC is a financial product that allows you access to a line of credit based on the equity you’ve built in your home over time. HELOCs are often available at relatively low interest rates. Assuming you have adequate income to handle making both a mortgage payment and a HELOC payment, you can have both a HELOC and a home mortgage loan.
How to Use the HELOC Interest-Only Calculator
This HELOC calculator allows you to gain a deeper insight into the overall cost of your credit line. To use it, simply enter the amount of your HELOC that you have used thus far, as well as the HELOC’s term in years, and the HELOC’s interest rate expressed as an APR. The calculator assumes you will make payments monthly.
Using the information you provide, the calculator will estimate your monthly interest-only payment.
Recommended: Mortgage Calculator with Taxes and Insurance
Why Calculate Monthly Payments with a HELOC Interest-Only Calculator?
Some HELOCs allow you to pay only interest during the draw period, with payments against the principal kicking in later during the repayment period. This arrangement can allow borrowers access to cash at a low cost up-front, but can result in much larger payments composed of both principal and interest due further down the line.
This calculator will help you see how much your interest-only payment amounts to. If you were a first-time homebuyer when you purchased your home and you’ve never had a HELOC before, this can be especially helpful.
However, it’s important to understand that your payment amount may increase substantially during the HELOC’s repayment period. Furthermore, many HELOCs come with a variable interest rate, which means your rate — and therefore payments — may change over time.
Benefits of Using a HELOC Interest-Only Calculator
A HELOC interest-only calculator helps you see how much your interest-only payments will cost each month, which can help you figure out whether or not you can afford to take out a HELOC (much the way a mortgage calculator or a home affordability calculator can help you determine your budget for buying a home).
If you already have a HELOC, the calculator can help you determine how much you can comfortably afford to draw on your credit line before the interest costs become challenging for your budget.
Benefits of a HELOC
Along with offering borrowers access to cash at a relatively low cost, HELOCs are commonly used to fund home renovations or improvements — through 2025, interest paid on funds borrowed from a HELOC for these purposes are tax-deductible.
When repaid diligently, a HELOC may also help boost your credit score over time. And unlike many other forms of borrowing against home equity, with a HELOC, you only take out what you need too — which may help you avoid over-borrowing (and therefore paying more interest than necessary).
HELOC Requirements
To qualify for a HELOC, you must own a home and have built up equity in it — which is to say, you must own some portion of your home’s value. For instance, if your house is worth $300,000 and you still owe $200,000 toward your mortgage principal, you probably have about $100,000 in equity (though you’ll want to check your mortgage’s specific amortization schedule for full details).
Additionally, when you take out a HELOC, the lender will review your credit score, cash flow, employment history, and other such financial factors that are usually part of a lending decision. (The process is similar to qualifying for a mortgage.) Most lenders will allow you to borrow up to 85% of what your home is worth, minus whatever you still owe on it.
HELOC Process
You can begin the HELOC process with most lenders these days online. You’ll answer questions about both your financial standing and the property or properties you own (and whose equity you’re hoping to borrow against). Once you fill out the online application, you’ll be contacted by a representative of the company, who will walk you through the remaining steps in the preapproval process. This may involve a physical inspection or appraisal of your property — it’s a lot like the underwriting process for most types of mortgage loans.
Once your lender has fully approved your application and offered their terms, you’ll decide whether or not to accept the HELOC — and if so, sign the appropriate documentation. You’ll then have access to draw from the HELOC during the draw period, which is usually about 10 years long. The repayment period comes afterward, and may be up to 20 years.
HELOC Example
Say your home is worth $500,000, and you own $300,000 worth of its equity. You choose to take out $150,000 against its value in a HELOC. Over the course of the HELOC, you’ll pay back not only whatever portion of that $150,000 credit line you use, but also whatever interest is accrued over the draw and repayment periods. Keep in mind that if you opt for an interest-only draw period, your payments during the repayment period will likely be substantially larger.
Recommended: The Most Affordable States
Tips on HELOCs
In order to successfully apply for a HELOC, be sure you’re in good financial standing. If you have high levels of outstanding debt or a poor credit score, you may not qualify for a HELOC, or you may qualify only for an expensive high interest rate. The process of applying for a HELOC is similar to applying for a mortgage or a mortgage refinance.
Additionally, consider the purpose of the HELOC. While some projects, like home improvement, may be worth going into debt for, taking out a HELOC to fund a wedding or vacation might not make financial sense in the long run. A HELOC isn’t the only solution if you need to borrow against your home and a home loan help center can help you explore your options.
The Takeaway
A HELOC can be a relatively low-cost way for homeowners to access the equity they’ve worked hard to build in the form of cold, hard cash. But in order to understand how much you might need to pay each month in interest, it helps to use a HELOC interest-only calculator.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit brokered by SoFi.
FAQ
How do you calculate an interest-only payment on a HELOC?
Given how complex interest calculations can be, the best way to calculate an interest-only HELOC payment is to utilize an interest-only HELOC calculator, which will do the math for you.
Is it better to pay interest only on a HELOC?
Not necessarily. While interest-only payments may make money from a HELOC more accessible in the short term (since payments will be lower), it’s important to understand that, later on during the repayment period, those payments will dramatically increase. To lower your overall HELOC cost, consider paying principal throughout the HELOC’s lifetime.
How do you calculate an interest-only payment?
Interest-only payment calculations depend on amortization. Your lender could provide you with a full amortization schedule, but an interest-only calculator can quickly give you a good estimate.
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 Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*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.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
SOHL-Q224-1914261-V1
More articles and resources
Turn your home equity into cash with a HELOC
Read more
HELOC Monthly Payment Calculator
Monthly HELOC Payment Calculator
HELOC Monthly Payment Calculator
Are you considering opening a home equity line of credit (HELOC) but feel unsure of how much it will cost? A HELOC monthly payment calculator can help you estimate how much you’ll spend each month, as long as you know how much of the line of credit you are using, the interest rate, and the length of the HELOC repayment term.
Turn your home equity into cash. Call us for a complimentary consultation or get pre-qualified online.
What Is a HELOC Monthly Payment Calculator?
A HELOC monthly payment calculator is a tool that potential borrowers can use to determine how much you might need to budget each month when it comes time to repay your home equity line of credit. If you’ve ever used a mortgage calculator or a mortgage calculator with taxes and insurance, you know how useful computing payments can be.
The calculator will help you gain a general understanding of the cost of a HELOC, but keep in mind that HELOCs are a revolving line of credit: If you use some of your line of credit but not all of it, or repay some of what you borrowed during the HELOC’s draw period, the amount you owe each month can change. HELOC interest rates are often variable as well, meaning they will change over time.
Recommended: Home Affordability Calculator
How to Use the HELOC Monthly Payment Calculator
Using our monthly HELOC payment calculator is easy. To begin, you’ll enter your:
• Existing HELOC balance
• Repayment term
• Annual percentage rate (APR) offered to you on the HELOC
This calculator assumes you will make monthly payments on your HELOC.
Why Calculate Monthly Payments With a HELOC Calculator?
Calculating monthly payments for your HELOC is important because it can help you understand how much you’ll owe every month if you tap into your home’s equity by using a credit line to borrow money. Once you see the monthly payment estimate, you can review your budget and determine if you can afford to take on this new debt.
If you’re not confident you’ll be able to make each monthly payment, a home equity line of credit might not be right for you. After all, HELOCs are secured by your property. If you fall behind on payments, the lender can foreclose on your home.
Benefits of Using a HELOC Monthly Payment Calculator
There are several benefits of using a HELOC monthly payment calculator, including:
• Understanding how interest rates impact borrowing money: Having access to cash when you need it — for renovations, debt consolidation, and emergency expenses — sounds nice. But once you see how much the interest rate can affect the cost of borrowing, you might think twice before taking out a HELOC if you’re not able to handle the repayment.
• Setting budget expectations: Thinking several years into the future can be tough, but it’s crucial that you do that when taking out a HELOC. Seeing what monthly payments will be for the 10 or 20 years can help you build your budget and make sure you have enough flexibility in your spending to afford the repayments.
Recommended: Home Loan Help Center
HELOC Requirements
Just because you want a HELOC and think you can afford one doesn’t mean a lender will necessarily give you one. There are generally a few HELOC requirements that you must meet to qualify, including:
• Enough home equity: First and foremost, you need to have built up enough equity in your home, because that’s what you’re borrowing against. At a minimum, lenders may want to see 15% equity, and many prefer 20%.
• Strong credit: Though it can vary by lender, you’ll need at least a credit score of 680, if not 700, to get a HELOC. Have a score below 680? It’s not impossible to get a HELOC, though your choice of lenders may be more limited, and interest rates may be higher. Being on time with payments on your current mortgage is one good way to care for your credit score.
• A low debt-to-income ratio: Having strong credit is not enough. Lenders also want to see that you’ll be able to afford payments. That means you need to make significantly more money than you owe to outstanding debts (like a mortgage, car loan, or student loan). The lower your debt-to-income (DTI) ratio, the more qualified you are as a borrower.
HELOC Process
The process of applying for a HELOC is straightforward and akin to applying to one of the many different types of mortgage loans:
1. Shop around: Look for various lenders offering home equity lines of credit. Research their credit score requirements, as well as their interest rates and terms.
2. Apply: After you’ve selected your preferred lender, apply online or in person. If you went through a mortgage preapproval process, you’ll find this process is similar. You will likely need a home appraisal, and the lender will review your income, assets, and credit score.
3. Accept the offer: HELOCs take one to two months for approval. Once you’re approved, you can review the offer from the lender and begin drawing funds if you accept it.
HELOC Example
In general, with a home equity line of credit, you can borrow up to 80% of the equity you’ve built in your home (though this can vary). Let’s see how that breaks down with an example:
• Home value: $500,000
• Amount still owed on the house: $200,000
• Equity built: $300,000
Assuming you are approved for 80% of your equity, your line of credit can be as large as $240,000. Of course, you might not need to use the maximum credit line. HELOCs can be especially helpful in situations, such as a home renovation, when you aren’t sure exactly what a project will cost (it can be hard to get a precise estimate as the cost of living differs by state).
Tips on HELOCs
Thinking about getting a HELOC? Here are some tips for getting approved and managing your line of credit responsibly. Many are the same tips to qualify for a mortgage you may have followed when you purchased your home:
• Shop around for lenders: Don’t go with the first lender you find. Compare rates, terms, and customer reviews.
• Improve your credit before applying: Pay down debts as much as possible to reduce your DTI, and make on-time payments and reduce your credit utilization to boost your credit score. This will help your chances of approval — and at a lower rate.
• Use a monthly HELOC payment calculator: Before accepting a HELOC offer, use our calculator to determine what your monthly payments will look like during the credit line’s repayment period. Review your budget to make sure you’ll be able to afford the repayments. Remember that during the HELOC’s “draw” period which is typically 5 or 10 years, you can borrow against the line of credit and pay only interest. But during the repayment period, your payments will get larger.
• Don’t overdraw: Only use your home equity line of credit for necessary expenses. Just because you have money available to borrow does not mean you have to borrow it all.
• Read the fine print: Make sure you understand how your repayments work, as well as potential fees, such as early cancellation penalties. Remember that if you decide a HELOC isn’t for you, there are other ways to access cash based on your home equity, including a mortgage refinance that could free up cash.
The Takeaway
A HELOC can be a great way to tap into your home’s equity to fund renovations, pay down higher-interest debt, or cover unexpected expenses that life throws at you. However, it’s important to understand what you’re getting into by using a monthly HELOC payment calculator before applying.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit brokered by SoFi.
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 the term. For instance, if the interest rate is 7.00% and the repayment term is 20 years, the monthly payment would be $387. (This assumes a draw period of 10 years during which you make only interest payments on what you have borrowed.) A HELOC monthly payment calculator can help you do the math.
How do you calculate the HELOC payment monthly?
To calculate your HELOC’s monthly payment, you can use a monthly HELOC payment calculator. You’ll need to know the amount borrowed, the interest rate, and the repayment term.
What is the monthly payment on a $100,000 home equity line of credit?
The monthly payment on a $100,000 HELOC depends on the interest rate and the term. For instance, if the interest rate is 5.00% and the term is 30 years, the monthly payment would be $537. (This assumes a draw period of 10 years during which you make only interest payments on what you have borrowed.) However, this amount can change if you have a variable interest rate.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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 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.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
SOHL-Q224-1915669-V1
More articles and resources
Turn your home equity into cash with a HELOC
Read more
Home Equity Loan Calculator
Home Equity Calculator
Home Equity Loan Calculator
If you’re a homeowner in search of financing, you may be able to tap into your home equity with a home equity loan. This home equity loan calculator will give you an idea of how much you can borrow based on your ownership of your home. By entering some basic information, you can quickly estimate your maximum home equity loan amount.
Turn your home equity into cash. Call us for a complimentary consultation or get pre-qualified online.
What Is a Home Equity Loan Calculator?
A home equity loan calculator gives you an idea of whether you can qualify for a home equity loan, along with how much you can borrow and your monthly payment amount. The calculator bases these figures on your current home value and existing mortgage balance.
You usually need at least 15% to 20% equity in your home to qualify for a home equity loan. Equity is the difference between your home’s value and current mortgage loan balance (plus any other loans secured by your home, such as a home equity loan or line of credit).
How to Use the Home Equity Loan Calculator
Using the home equity loan calculator is easy. All you need to do is enter two basic pieces of information:
• Home’s estimated value (remember, this is not what you paid for your home but rather its current estimated market value)
• Existing mortgage balance (include the balance on all loans or credit lines you have that are secured by your home)
After you provide this information, the home equity loan calculator will reveal your estimated maximum home equity loan amount. Note that this calculator assumes good or excellent credit. If you have weaker credit, you might have higher loan costs or not qualify for a home equity loan. Keep in mind that this calculator only provides an estimate. You’ll need to work with a lender directly to get a specific offer based on your financial situation.
Recommended: Home Loan Help Center
Benefits of Using a Home Equity Loan Calculator
Here are the main advantages of using a home equity loan calculator.
• It crunches the numbers for you. Instantly estimate your potential loan amount without doing the math by hand.
• It shows your maximum loan amount. This calculator shows the most you might be able to borrow — but remember that you don’t have to borrow the full amount if it exceeds your financing needs.
What Is a Home Equity Loan?
A home equity loan is a type of loan that’s secured by your home. It provides a lump-sum of funding upfront that you pay back in monthly installments over time. You can usually choose a repayment term that ranges anywhere from five to 30 years.
You’ll pay interest on the loan, along with any additional fees. Similar to a mortgage, home equity loans typically come with closing costs, which may total between 2% and 5% of your loan amount.
Benefits of a Home Equity Loan
There are several benefits to taking out a home equity loan, including:
• High loan amounts: Depending on how much equity you have in your home, you may be able to access a large loan amount. This may be helpful if you’re looking to pay for a pricey renovation or other high-cost project.
• Competitive interest rates: Since home equity loans are secured by your home, they may offer better interest rates than unsecured personal loans.
• Lengthy repayment terms: Depending on the lender, you might get to choose a repayment term as long as 30 years.
• Fixed interest rate: Most home equity loans come with a fixed interest rate, so you don’t have to worry about your rate increasing over time. A fixed rate also makes it easy to estimate your long-term loan costs up front.
• Predictable monthly payments: Your monthly payments will stay the same over the life of your loan, making it easier to work them into your budget.
• Possible tax breaks: Through 2025, you can claim a tax deduction on your home equity loan interest if you use the loan to “buy, build, or substantially improve [your] residence.”
Recommended: First-Time Homebuyer Guide
Home Equity Loan Requirements
Specific requirements for a home equity loan will vary by lender, but to get a home equity loan you’ll have to go through a process similar to the mortgage preapproval process. Lenders generally consider the following:
• Loan-to-value (LTV) ratio: LTV compares the amount you owe against your home with its current value. Lenders usually want to see an LTV no higher than 80%. (LTV = Loan Value ÷ Property Value.) On a $400,000 home, for example, that means that you should owe no more than $320,000.
• Credit score and history: You’ll need a good or excellent credit score to qualify for the best rates. Lenders also review your credit report for any red flags, such as missed payments or loan delinquencies.
• Income: You’ll need to show that you have sufficient income to pay back your home equity loan in addition to making your mortgage payment or other debt payments.
• Debt-to-income (DTI) ratio: Your DTI compares your monthly debt payments with your gross income. Lenders generally prefer a DTI lower than 50%.
Home Equity Loan Process
If you decide to take out a home equity loan, here are the steps you’ll need to take:
1. Shop around: Get prequalified with multiple lenders so you can compare several offers from home equity loans. Taking the time to research your options and find the best deal could save you thousands of dollars in the long run.
2. Fill out the application: Once you’ve selected a lender, you can fill out a complete application with your personal and financial details. You’ll need to upload verifying documentation, too, such as pay stubs, W-2s, and bank statements.
3. Prepare for an appraisal: You might need to get an in-person appraisal to assess your current home value. However, some lenders can complete this process online without requiring an in-person visit.
4. Close on your loan: It may take two to six weeks for the lender to process your application and underwrite your loan. Your final steps in the process will be paying closing costs and signing your loan agreement.
5. Receive your loan and start repayment: The lender will send your home equity loan funds as a lump sum. You’ll start paying back your loan on a monthly basis on your agreed-upon terms.
Home Equity Loan Example
Let’s say that you own a home worth $400,000 and have an outstanding mortgage balance of $200,000. In this case, you’d hold 50% equity in your home, which is sufficient to qualify for a home equity loan.
Now let’s say that you took out a $100,000 home equity loan at an 8% interest rate. Here’s what your monthly payments and long-term interest costs would be on different repayment terms, according to a mortgage calculator.
| Repayment term | Monthly payments | Total interest charges |
|---|---|---|
| 5 years | $2,027.64 | $21,658.37 |
| 10 years | $1,213.28 | $45,593.11 |
| 15 years | $955.65 | $72,017.38 |
| 20 years | $836.44 | $100,745.62 |
| 30 years | $733.76 | $164,155.25 |
Tips on Home Equity Loans
Home equity loans can be a useful financing option, especially if you’re using them toward a renovation or other project that will boost the value of your home. They’re also useful if you have a fixed-cost project, such as a deck installation or roof replacement.
If you aren’t sure how much a big project will cost or you just want a more flexible form of financing, a home equity line of credit (HELOC) might be preferable. HELOCs also let you tap into your home equity, but you can borrow from them on an as-needed basis and only pay interest on the amount you take out.
Keep in mind, however, that both home equity loans and HELOCs use your home as collateral. If you can’t afford repayment, the lender can seize your home through foreclosure. You could also end up underwater if your home value decreases, which occurs when you owe more debt on your home than it’s worth.
Another option if you need cash for a big home project is a mortgage refinance, and specifically a cash-out refinance, which allows borrowers to refinance their loan while also taking out funds based on their home equity. As with any refinancing, you’ll end up with a new mortgage interest rate and a new loan term, which could be longer or shorter than your current term.
The Takeaway
Home equity loans can offer large loan amounts, competitive interest rates, and predictable monthly payments for qualifying homeowners. Plus, you might qualify for a tax break if you’re using your loan to improve your home.
At the same time, borrowing against your home is risky if you can’t afford the monthly loan payments. Before you borrow, use a home equity loan calculator to estimate how much you might be able to borrow.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit brokered by SoFi.
FAQ
How do you calculate home equity loan payments?
You can calculate home equity loan payments based on your loan amount, interest rate, and repayment term.
How much would a $75,000 home equity loan cost per month?
The monthly cost of a $75,000 home equity loan would depend on your interest rate and repayment term. If you assume an 8% interest rate, your monthly payments would be $1,521 on a five-year term, $910 on a 10-year term, $627 on a 20-year term, and $550 on a 30-year term. Expect lower payments with a lower interest rate and higher payments with a higher rate.
What is a risk of taking out a home equity loan?
The main risk of taking out a home equity loan is losing your home to foreclosure if you can’t afford repayment. It’s also possible that you could end up owing more on your home than the property is worth if your home value goes down.
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 Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*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.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
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