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By Rebecca Moretti |
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Comments Off on Cheaper is Cooler: Cutting Back Is Trending
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People are getting compliments for skipping gel manis for drugstore press-on nails. They’re flaunting how little they paid for Lululemon-dupes. They’re posting videos of cash-stuffed envelopes to show how much they haven’t spent.
As many Americans shift to thrift, cutting back is more than sensible — it’s cool.
Social media feeds are filling up with proud posts about setting “no buy/low buy” rules, and influencers are increasingly “deinfluencing” people from buying stuff. Post-pandemic “revenge spending” has been replaced with “revenge saving.” For many young adults, “nights out” are out.
Data backs up the frugal trend: Spending at restaurants, bars, and hotels fell 11% in May, contributing to the smallest monthly increase in overall consumer spending since 2020.
Americans’ personal savings rate (aka the % of disposable income that people save vs. spend) is ticking back up, rising to 4.5% in May from 3.5% in December. Workers are contributing a record share of their paychecks to their 401(k)s.
Young, Smart, and Trying Not to Go Broke
The switch is especially noticeable among young adults. From January to April, purchases among people 18 to 24 were down 13% year-over-year, while spending among older groups rose, according to Circana market research data cited by the Wall Street Journal.
Unemployment rates among Americans in their early 20s has ticked up this year as entry-level jobs get tougher to find. Meanwhile, for the first time since the pandemic began, not paying your federal student loans has serious consequences.
So what? As tariff price-hikes loom and economic jitters grow, many Americans are tightening their belts. Here are a few ways to embrace financial restraint the cool way — and maybe even have fun doing it:
• Go for the thrill of the “treasure-hunt”: Whether it’s poring through the racks at Ross or thrifting at a second-hand store, finding a hidden gem in the racks never disappoints. Plus, your friends will be impressed by that vintage Levi’s vest you discovered for $5.
• Go out by staying in: Join the Gen Z homebody trend by skipping $20 bar cocktails. Instead, host a cozy dinner party, a potluck buffet, a boardgame night, or a pizza-making experience at home. Your friends (and your wallet) will love you for it.
• Give DIY a try: Compliments feel even better when you can say you did it yourself. It doesn’t have to be as complicated as retiling your own kitchen, either. Instead of dropping $6 on a Starbucks latte, pull up a few videos and learn how to become your own barista (and maybe your own chef). Then post your creations.
• Make saving a game: Participate in one of the many challenges going viral on social media (like the 100-envelope challenge). Financial experts generally recommend setting aside enough to cover three to six months’ worth of living expenses in an emergency savings fund, and you can give yourself a little treat each time you hit one of your monthly goals.
• Curate “freemium” experiences: From concerts in the park and gallery openings to open-mic and line-dance nights, Googling free events near you can pay off. (Pro tip: Some things, like cultural events sponsored by foreign consulates, may even have free food.) Instead of paying $40 for a workout class, follow a tutorial or get friends together for a group backyard workout. Or, get some (free!) fresh air with an outdoor jog.
• Get creative with upcycling: It’s not just good for the environment — it’s also good for your wallet. You can upcycle by finding new purposes for old things (think: turning an ill-fitting skirt into a top, using plastic containers and candle jars as storage). Sustainability is always in style.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
By Mario Ismailanji |
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Comments Off on Week Ahead on Wall Street: Trade Countdown
An uneasy calm has settled over markets, but the quiet is unlikely to last. With the Independence Day holiday in the rearview mirror, attention now turns to potential fireworks elsewhere.
The main event is Wednesday, the date a 90-day pause on a slate of broad, reciprocal tariffs is set to expire. Back in April, the Trump administration temporarily reduced these country-specific duties to a 10% baseline to allow time for new bilateral trade agreements to be negotiated.
Since then, the president has signaled little appetite for extending the delay, suggesting the looming deadline will stick for any countries that haven’t reached a deal.
Now, investors have so far been largely sanguine about all this — stocks are near record highs, after all — but a return to a high-tariff environment could have major ripple effects, even if not quite as severe as initially feared in April.
Federal Reserve officials have said they expect tariffs to raise prices this summer, though the degree to which they could reignite inflation remains to be seen. How things play out will be crucial in setting the market’s tone for the rest of the summer.
Monday
• Nothing of note.
Tuesday
• June NFIB Small Business Optimism: This measures how small business owners feel about current and future economic conditions.
• June New York Fed Survey of Consumer Expectations: This is a measure of peoples’ expectations for inflation, jobs prospects, earnings growth, and more.
• May Consumer Credit: Borrowing activity gives insight into broader economic activity.
Wednesday
• May Wholesale Inventories and Sales: Wholesalers often operate as an intermediary between manufacturers and retailers, serving as a key part of the goods supply chain.
• FOMC Meeting Minutes: The Federal Reserve releases detailed notes of every FOMC meeting three weeks after their conclusion. Investors often look for more information on Fed officials’ views for hints on the outlook for interest rates and the economy.
• Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market.
Thursday
• Weekly Jobless Claims: This high frequency labor market data gives insight into filings for unemployment benefits. Initial jobless claims have remained mostly steady, while continuing claims have increased of late.
• Fedspeak: St. Louis Fed President Alberto Musalem will discuss the economy and monetary policy at an Official Monetary and Financial Institutions Forum event. San Francisco Fed President Mary Daly will discuss the economic outlook and challenges for policymakers at an event hosted by MNI Connect.
• Earnings: Conagra Brands (CAG), Delta Air Lines (DAL)
Friday
• June Treasury Statement: This summarizes the U.S. federal government budget by tracking government revenues and expenditures.
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Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
• Your credit score and debt-to-income (DTI) ratio usually influence the home equity loan rates you’re offered.
• What different lenders will offer you can vary, so it’s wise to shop around to find the best repayment term and interest rate on a home equity loan.
• With fixed interest rates, you’ll make the same payments every month, which can make budgeting easier.
• Specialized online calculators can help you figure out how much your monthly payments and overall interest would be for different home equity loans.
• If you want to leverage your home equity, you can also consider a HELOC or a cash-out refinance instead of a home equity loan.
Introduction to Home Equity Loan Rates
Home equity loans can be a powerful financial resource for homeowners. What is a home equity loan? Simply put, it’s a way you can borrow money by tapping the equity you already have in your home. The cash can be used for major expenditures like home renovations, a child’s college education, or paying down high-interest debt. And the better the interest rate you get on your loan, the better it will be for your finances.
From watching the trends to prepping for your home equity loan application, you’ll find out everything you need to know about home equity loans and their interest rates here. This guide will explore Williamsville home equity loan rates, detailing how they’re affected by broad economic factors as well as your personal financial information. We’ll discuss lenders’ typical requirements for borrowers and the potential advantages and drawbacks of these loans. We’ll also take a look at the different types of home equity loans, including home equity lines of credit (HELOCs) and cash-out refinances.
How Do Home Equity Loans Work?
A home equity loan is one way a homeowner can borrow money against the equity in their home. If you’re not sure how much equity you have in your house, it’s easy to calculate: It’s the market value of your home minus the balance of your existing mortgage.
For example, if your house is worth $250,000 and you still owe $200,000 on your mortgage, you have $50,000 in equity. In general, lenders will loan you up to 85% or sometimes 90% of your home’s equity. In this example, you might be able to borrow up to $45,000. You can use a home equity loan calculator to help you determine your home equity and maximum loan amount.
Since home equity loans are secured by your home, their interest rates tend to be lower than rates for unsecured personal loans. Home equity loans usually have a term between five and 30 years, and the rates are most commonly fixed, which keeps your payments predictable. If you’ve been wondering how to get equity out of your home, a home equity loan could be an answer.
Where Do Home Equity Loan Interest Rates Originate?
Williamsville home equity loan interest rates, like rates nationally, are influenced by many different factors, some relating to the economic situation and some to your personal financial details.
For example, the Federal Reserve’s monetary policy, particularly changes to the federal funds rate, has a significant impact on the broader lending market. Lenders often set their base interest rates by adding a margin to the prime rate, which tends to follow the federal funds rate. If the prime rate increases, you’ll probably see rates for different types of home equity loans, including home equity loans, rise as well.
In addition, your credit score and debt-to-income (DTI) ratio influence the rate you’re offered. A higher credit score and a lower debt-to-income ratio will typically get you more favorable terms. Understanding these factors can help you make the best choice for your situation.
How Interest Rates Impact Affordability
One of the most important elements in determining the overall affordability of a home equity loan is the interest rate. A seemingly small difference in rates can have a major effect on your finances. Say you’re thinking about a $100,000 home equity loan with a 15-year repayment term. At an 8.50% interest rate, your monthly payment would be approximately $986, with total interest over the loan’s life adding up to $77,253.
But if that rate were just one percentage point higher, at 9.50%, your monthly payment would increase to around $1,044, and the total interest you’d pay would rise to about $87,960. That’s more than $10,700 extra you’d pay over those 15 years if you get the higher rate.
The chart below shows more about how changes in your loan amount, interest rate, and term interact to result in different monthly payments.
Loan Amount
Loan Term
Interest Rate
Monthly Payment
$100,000
20 years
8.00%
$836
7.00%
$775
10 years
8.00%
$1,213
7.00%
$1,161
$50,000
20 years
8.00%
$418
7.00%
$388
10 years
8.00%
$607
7.00%
$581
$25,000
20 years
8.00%
$209
7.00%
$194
10 years
8.00%
$303
7.00%
$290
Fixed vs Adjustable Interest Rates
Home equity loans usually have fixed interest rates, meaning that your payments are exactly the same every month during the duration of the loan. This predictability is a plus for budgeting and long-term financial planning.
However, occasionally, these loans can come with adjustable rates. Adjustable rates may start off at a relatively low rate, but after a set initial period, the loan’s rate can change with the market. The rate’s adjustments create the potential for higher payments down the road – and a sense of unpredictability.
As you weigh your options, think about your financial situation and how you’d handle potential rate adjustments as well as your tolerance for uncertainty.
Home Equity Loan Rate Trends
Predicting interest rate movements with absolute certainty is impossible given the multitude of factors at play. However, by examining recent and historical patterns, we can glean some insights.
The prime rate is, as we’ve mentioned, guides home equity loan rates in Williamsville and across the nation, and it has seen its fair share of fluctuations in the past few years, shifting from a low of 3.25% in 2020 to a high of 8.50% in 2023.
Historical Prime Interest Rates
Since 2018, the prime rate has seen its share of ups and downs, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023. Take a look at the history of the prime rate to get a sense of how high or low it may go this year.
Since 2018, the prime rate has seen its share of ups and downs, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023. Take a look at the history of the prime rate to get a sense of how high or low it may go this year.
Date
Prime Rate
9/19/2024
8.00%
7/27/2023
8.50%
5/4/2023
8.25%
3/23/2023
8.00%
2/2/2023
7.75%
12/15/2022
7.50%
11/3/2022
7.00%
9/22/2022
6.25%
7/28/2022
5.50%
6/16/2022
4.75%
5/5/2022
4.00%
3/17/2022
3.50%
3/16/2020
3.25%
3/4/2020
4.25%
10/31/2019
4.75%
9/19/2019
5.00%
8/1/2019
5.25%
12/20/2018
5.50%
9/27/2018
5.25%
Source: St. Louis Fed
Being aware of historical fluctuations and staying attuned to economic shifts can help you time your application as strategically as possible.
How to Qualify for the Lowest Rates
While you can’t control the prime rate, there is a lot you can do to secure the most favorable home equity loan rates in Williamsville. What you want to deliver to lenders, ideally, is a credit score of 700 or higher, a debt-to-income (DTI) ratio of no more than 50% (or better yet, 36% or less), a stable home value, and good home insurance.
Even if you haven’t decided yet on a HELOC vs. a home equity loan or even a cash-out refinance, the same strategies apply if you want to secure the most competitive interest rates and loan terms.
Maintain Sufficient Home Equity
In general, if you want a home equity loan, you’ll need to keep at least 20% equity in your home. If you’re not sure how much equity you have, it’s easy to calculate. Simply subtract your mortgage balance from your current home value. For instance, if you owe $200,000 on your mortgage but your home is valued at $250,000, you’ve got $50,000 in equity.
Most lenders will loan you up to 85% or 90% of your available equity. In this example, that translates to a loan for as much as $45,000.
To help you get the most favorable home equity loan rates, you’ll want a credit score of 680 or higher, with many lenders favoring an even more robust 700+. The better your score, the more it speaks to your financial prudence and the more likely it is to potentially lead to more favorable loan terms.
You can work to elevate your credit standing by being diligent about making payments on time, keeping credit card balances low, and avoiding new debt. Regularly perusing your credit report for inaccuracies and disputing any mistakes you find can also work in your favor. By maintaining a solid credit score, you can put yourself on the fast track to qualifying for lower home equity loan rates and more appealing loan terms.
Manage Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is a key factor when it comes to securing a home equity loan with favorable rates. Lenders typically look for a DTI ratio below 50%, but the sweet spot is even lower, at 36% or less. You can calculate your DTI ratio for yourself by dividing your total monthly debt payments by your gross monthly income.
If you need to improve your DTI ratio, focus on paying down your debts, increasing your income, or, if you can, both. A lower DTI shows lenders that you have managed debt well and can handle more. It can make you a more appealing borrower and potentially convince lenders to offer you better rates and terms on your home equity loan.
Obtain Adequate Property Insurance
Property insurance is a necessity for home equity loans, especially in areas susceptible to natural calamities, like tornados, earthquakes, or floods. Lenders need to be certain that the property you’re using as collateral is safeguarded. Not only will it protect you in case of disaster, securing comprehensive property insurance may also help you snag more favorable home equity loan rates.
It’s a good idea to explore different insurance options to find the best rates and coverage, but be sure you’re including everything your potential lenders want to see covered.
Current home equity loan rates by state.
Compare current home equity loan interest rates by state and find a home equity loan rate that suits your financial goals.
Select a state to view current rates:
Tools & Calculators
Using online resources like these can empower you to make sound decisions about home equity loan rates and terms. A home equity loan calculator, for instance, can show you what your monthly payments would be based on the loan amount, interest rate, and term. By using online tools to weigh and compare various scenarios, you’re better equipped to pinpoint the best home equity loan rates and terms that align with your budget and financial situation.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Ain payments shown depend on the accuracy of the information provided.
Closing Costs and Fees
When you get a home equity loan, you can expect the closing costs to run somewhere between 2% and 5% of the loan amount. The table below shows some typical closing costs.
Service
Typical Fees
Appraisal
$300-$500
Credit report
$30-$50 or more
Document prep
$100-$500
Loan origination
0.5%-1.0% of the loan amount
Notary
$20-$100
Title insurance
0.5%-1.0% of the loan amount
Title search
$75-$250 or more
While some lenders offer no-closing-cost loans, they often come with higher rates.
Tax Deductibility of Home Equity Loan Interest
Here’s a tip: The interest on your home equity loan might just be tax-deductible. For single filers, interest is deductible on the first $375,000 of loan debt. Married couples filing jointly can deduct the interest on up to $750,000 of debt. But remember that you can’t take the standard deduction if you want to claim this – you’ll need to itemize.
To get the most up-to-date information, talk to a qualified tax advisor, who can help you figure out what will make the most sense for your situation.
Alternatives to Home Equity Loans
While a home equity loan can be a solid choice, there are other options to explore that also allow you to tap your home’s equity. Two of these are home equity lines of credit (HELOCs) and cash-out refinances, a kind of mortgage refinance.
Home Equity Line of Credit (HELOC)
What is a home equity line of credit? A HELOC is like a credit card, but it’s backed by your home equity. It offers a flexible way to borrow funds up to a set limit, with interest payments required only on the amount you use. In the initial “draw” period, you may only need to pay interest on what you withdraw; during the repayment period, you’ll pay back the principal and any additional interest. HELOCs do typically come with variable interest rates, which can be challenging to work into your budget.
Lenders typically want to see a credit score of 680 or higher (700 is even better) and a debt-to-income ratio below 50% (though 36% or less is the sweet spot). They generally allow you to borrow up to 90% of your home equity.
If you’re comfortable with the ebb and flow of variable rates, a HELOC could be a good choice. To see what your monthly payments for a HELOC would be, consider using a HELOC monthly payment calculator. And to learn how much interest you pay during the “draw” period of a HELOC, try a HELOC interest-only calculator.
Cash-Out Refinance
A cash-out refinance could also be a strategic way to use your home equity to access cash. You replace your existing mortgage with a new that’s larger than what you owe, and take the difference as a lump sum.
If you’re comparing the benefits of a cash-out refinance vs. a home equity line of credit, consider the fact that requirements for borrowing tend to be different. It’s typically easier to qualify for a cash-out refi than for a home equity loan or a HELOC. Cash-out refinances usually require a minimum credit score of 620 and a DTI ratio of 43% or less. They can have either fixed or variable interest rates, with variable rates sometimes offering more equity access.
And remember: A cash-out refi means you have one single monthly payment, which can make it easier to budget.
The Takeaway
When you’re contemplating a home equity loan in Williamsville, it’s essential to understand the factors that influence home equity loan rates. Building a robust credit score, managing your debt effectively, and ensuring you have adequate property insurance are all key steps to securing the most favorable rates. Alternatives like HELOCs and cash-out refinances offer different features and requirements, so it’s a good idea to compare them with home equity loans, too, to find the most suitable option for your financial goals.
SoFi now offers home equity loans. Access up to 85%, or $350,000, 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.
Home equity loans are versatile tools that can be used for a variety of purposes, from large purchases to home renovations, educational expenses, medical bills, and even debt consolidation. They provide a lump sum that you repay in fixed payments over a set term. Before you take out a home equity loan, be sure it aligns with your financial goals and that you understand the risks involved, such as potential foreclosure if you can’t make the payments.
What might your monthly payments look like on a $50,000 loan?
Your monthly payment on a $50,000 home equity loan depends on the loan term and interest rate. For example, with a loan at a 7.00% interest rate over 15 years, the monthly payment will be about $449. At an 8.50% interest rate over 15 years, the payment will be around $492. You can use an online loan calculator to help you figure out what payments might result from different loan terms.
What might prevent you from being approved for a home equity loan?
There are several reasons that you might not be approved for a home equity loan. For one, most lenders require a minimum credit score of 680 (700 or higher for the most competitive rates), so a low credit score could be a dealbreaker. A high debt-to-income ratio, typically more than 50%, could also be a problem. And you’ll need to have a healthy amount of home equity, usually at least 20%. If you can, it’s smart to spend a little time assessing your financial position, working on your credit score, and paying down your debts before applying.
What are the perks of a home equity loan?
Home equity loans can have a number of perks. You get a lump sum that you usually pay back at a fixed interest rate, which means you have a predictable monthly payment to make and can plan your budget effectively. Since your home secures the loan, you’ll generally get a lower interest rate than you might with an unsecured personal loan. And the interest may be tax-deductible.
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• Home equity loans in Cincinnati give you the opportunity to borrow a lump sum, using your home as collateral.
• With fixed interest rates, you’ll get the benefit of predictable monthly payments.
• Working to strengthen your credit score and keeping your debt-to-income ratio in check can help you get more favorable interest rates in Cincinnati.
• Lenders may allow you to borrow up to 85% or 90% of your available home equity.
• Having property insurance is a must for most home equity loans.
Introduction to Home Equity Loan Rates
Welcome to our comprehensive guide on home equity loan rates in Cincinnati, Ohio. What is a home equity loan? Simply put, it’s a way to get a loan by drawing on the money you’ve already invested in your home (your equity).
In this guide, we’ll explore the current home equity loan rates, the factors that influence them, and how to qualify for the most favorable terms. We’ll also look into the differences between fixed and adjustable interest rates, the impact of these rates on your financial plan, and the potential risks and benefits of home equity loans. And we’ll touch on two alternatives that also draw on home equity: home equity lines of credit (HELOCs) and cash-out refinances.
Armed with this knowledge, you’ll be better equipped to decide if a home equity loan is the right choice for you and how to approach the lending process with confidence.
A home equity loan allows you to borrow against the equity you have in your home. To calculate your equity, take the market value of your home and subtract the balance of your mortgage. For example, if your home is worth $500,000 and you have a mortgage of $350,000, you have $150,000 in equity. Lenders will typically let you borrow up to 85% or 90% of your home’s equity, meaning that in this example, you may be able to borrow up to $135,000.
Home equity loan rates are typically fixed, and you can choose a loan term of five to 30 years. These loans are best for large expenses such as home renovations or debt consolidation. A home equity loan calculator can help you determine your home equity and maximum loan amount.
Where Do Home Equity Loan Interest Rates Originate?
Home equity loan rates are influenced by a combination of economic and personal factors. The Federal Reserve’s monetary policy, particularly changes to the federal funds rate, has a significant impact on the lending market. Lenders often set their base interest rates by adding a margin to the prime rate, which tends to move in tandem with the Fed’s decisions. For example, if the prime rate increases, you can expect rates for different types of home equity loans to rise as well.
Additionally, your credit score and debt-to-income ratio play a role in the rate you’re offered. Higher credit scores and lower debt-to-income ratios generally lead to more favorable rates.
Understanding these influences can help you anticipate rate fluctuations and make informed decisions about getting a home equity loan.
How Interest Rates Impact Affordability
Your interest rate is a big factor in the affordability game. A single percentage point can add up to significant extra interest over the life of your loan. For example, let’s say you have a $100,000 home equity loan with a 15-year repayment term at 8.50% interest. You’d be looking at a monthly payment of around $985 and total interest of about $77,253.
Now, if that rate were one percentage point higher, at 9.50%, your monthly payment would jump to around $1,044, and the total interest paid would rise to $87,960. That’s an extra $10,707 over the life of the loan. So when considering your options, don’t underestimate the impact of the interest rate.
Fixed vs Adjustable Interest Rates
While home equity loans (unlike HELOCs) most often have fixed interest rates, some lenders do offer them with adjustable rates, so it’s important to understand what impact that can have. Fixed rates are the unsung heroes of predictability, staying constant throughout your loan term and making budgeting easier to manage.
On the flip side, adjustable rates generally kick off lower but are subject to market changes. If the market stays mellow, your rate follows suit, but if it gets tumultuous and rates shoot up, you could be in for a bumpy ride and higher payments.
When you’re pondering fixed or adjustable rates for your home equity loan, consider what matters most to you — steady predictability or the chance for lower initial payments.
Cincinnati Home Equity Loan Rate Trends
As we’ve seen, the trends in home equity loan rates are influenced by different economic factors. Take the prime rate, for instance, which is closely linked to the Federal Reserve’s federal funds rate. It has swung dramatically in recent years, from a low of 3.25% in 2020 to a high of 8.50% in 2023.
Stepping back for a longer historical perspective, below, we can see that the rollercoaster ride is not unique to the last few years.
These fluctuations have a direct impact on home equity loan rates in Cincinnati, making it important to keep your finger on the pulse of current market conditions. While nobody can predict the future with certainty, having a grasp of past patterns can certainly help you time your application to secure a more favorable rate.
How to Qualify for the Lowest Rates
Even if you haven’t decided yet on a HELOC vs. a home equity loan, the tactics are the same to secure the most favorable interest rates: Maintain a strong credit score and keep your debt-to-income ratio in check. Here’s what to do to position yourself for a good rate.
Maintain Sufficient Home Equity
To be eligible for a home equity loan, you need to maintain at least 20% equity in your home. Here’s how you can calculate how much equity you’ve built up: Subtract your mortgage balance from your current home value. For instance, if your mortgage balance is $400,000 and your home is valued at $550,000, your home equity is $150,000.
Most lenders permit you to borrow up to 85% or 90% of your equity, which means you could potentially borrow up to $135,000. Keeping a healthy amount of home equity not only helps you secure attractive home equity loan rates, but it also provides a financial cushion in case you need it.
Build a Strong Credit Score
To qualify for the lowest available home equity loan rates, a robust credit score is your not-so-secret weapon. Lenders are typically on the lookout for scores of 680 or higher, with many favoring the 700+ range. Why? A higher credit score is an indicator of financial responsibility, signaling to lenders that you’re likely to be a safe bet, and that impression can translate to more attractive loan terms.
If you’re in the habit of making timely payments and keeping your credit card balances in check, you’re already on the right track. It’s also a smart move to review your credit report for any inaccuracies and address them before you apply. This proactive step can help you secure a better rate, which means more money saved over the loan’s lifetime.
Manage Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is a critical factor when it comes to qualifying for a home equity loan and scoring the best rates. Your DTI ratio is calculated by dividing your total monthly debt payments by your gross monthly income. A lower DTI ratio signals to lenders that you’re in a good position to handle your monthly payments, making you a more appealing candidate. Lenders generally look for a DTI ratio under 50%, but the sweet spot is 36% or lower.
To lower your DTI, chip away at existing debts or explore ways to increase your income, which can include anything from side hustles to career advancements.
Obtain Adequate Property Insurance
Property insurance is a must-have for most home equity loans, especially if you live in an area vulnerable to natural disasters. It’s a safety net for both you and the lender in case of property damage. Make sure your insurance policy covers not just your home’s value but also any improvements you’re planning to make. If you’re not sure about the appropriate coverage, a chat with your insurance agent can set you on the right path.
Current home equity loan rates by state.
Compare current home equity loan interest rates by state and find a home equity loan rate that suits your financial goals.
Select a state to view current rates:
Tools & Calculators
Online tools and calculators can be your best friends when it comes to home equity loans. They help you estimate monthly payments, total interest paid, and the impact of different home equity loan rates on your finances.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Closing Costs and Fees
When it comes to home equity loans, you can expect to pay anywhere from 2% to 5% of the loan amount in closing costs. These can include fees for appraisals, credit reports, and more. The chart below shows some of the most common.
Service
Typical Fees
Appraisal
$300-$500
Credit report
$30-$50 or more
Document prep
$100-$500
Loan origination
0.5%-1.0% of the loan amount
Notary
$20-$100
Title insurance
0.5%-1.0% of the loan amount
Title search
$75-$250 or more
Some lenders may offer no-closing-cost loans, but be mindful of potentially higher rates.
Tax Deductibility of Home Equity Loan Interest
Here’s a tip that could save you some money: The interest on your home equity loan might just be tax deductible if it’s used to improve your home. For single filers, interest is deductible on the first $375,000 of loan debt. Spouses filing together can deduct the interest on up to $750,000 of debt. Just remember, you’ll need to itemize to claim this deduction. Consult your tax advisor to get the most up-to-date advice.
Alternatives to Home Equity Loans
There are a few alternatives to home equity loans, including HELOCs and cash-out refinancing, which both let you tap your home’s equity as collateral. HELOCs allow you to borrow up to a certain amount of money with a variable interest rate. A cash-out refinance is a type of mortgage refinance that lets you replace your current mortgage with a one that’s larger than the amount you still owe on your house, allowing you to take the difference in cash.
Home Equity Line of Credit (HELOC)
What is a home equity line of credit? A HELOC is akin to a credit card, giving you the ability to borrow funds as you need them up to a set limit. You can withdraw money during the initial “draw” period; you then repay principal and interest on what you’ve used during the repayment period. Bear in mind that HELOC rates are usually variable, so they can fluctuate with the market.
To qualify for a HELOC, you generally need a 680 credit score (though 700 is preferred) and a debt-to-income ratio below 50% (but ideally under 36%). Homeowners can often borrow up to 90% of their home equity.
To evaluate the total cost of a HELOC, you can turn to a HELOC repayment calculator. A HELOC interest-only calulator can help you calculate how much interest you might be paying during the initial “draw” period of a HELOC.
Cash-Out Refinance
A cash-out refinance lets you replace your existing mortgage with a larger one, tapping into your home’s equity to access a cash sum in addition to a new home loan.
If you’re looking at the merits of a cash-out refinance vs. home equity line of credit, note that the standards for borrowing tend to be different. Lenders typically allow you to borrow up to 80% of your home’s equity. They’ll usually want to see a credit score of 620 or above and a debt-to-income ratio of 43% or less. Cash-out refinances can have either fixed or variable rates, with the latter offering more equity access. And here’s a bonus of these refinances: You’ll have just one monthly payment to manage.
The Takeaway
When you’re considering a home equity loan in Cincinnati, it’s important to understand the factors that can influence your rate so you can work to improve your options. A strong credit score, a manageable debt-to-income ratio, and property insurance can help you secure better terms. HELOCs and cash-out refinances have different features, so compare your options to find the best financing – online calculators can help. And as always, it’s a good idea to consult with a qualified financial advisor to make the most informed decision for your situation.
SoFi now offers home equity loans. Access up to 85%, or $350,000, 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.
A home equity loan can be a useful option for making large purchases, financing home renovations, or paying down high-interest debt. The flexibility of these loans makes them a useful financial tool for homeowners who need a significant amount of money without having to sell their property.
What’s the monthly cost of a $50,000 home equity loan?
The monthly payment on a $50,000 home equity loan can vary depending on the loan term and interest rate. For example, at 7.00% interest over 15 years, the monthly payment will be about $449. At 8.00% interest over 15 years, the payment will be about $478. Use a loan calculator to help you determine the best loan term and interest rate for your situation.
What would the payment be on a $30,000 home equity loan?
The payment on a $30,000 home equity loan is determined by the interest rate and the repayment term of the loan. For example, at 7.00% interest over 10 years, the monthly payment would be approximately $348. At 8.00% interest over 15 years, the monthly payment would be about $287. Use a mortgage payment calculator to help you determine your payment and the total interest you will pay.
What might prevent you from qualifying for a home equity loan?
There are several factors that could prevent you from securing a home equity loan. For one, lenders generally look for a minimum credit score, often around 680 or more, so having a low one could work against you. A high debt-to-income (DTI) ratio, typically above 50%, might also be a red flag. Having less than 20% equity in your home could be a disqualifier as well. Lenders will also consider the stability of your home’s value and the adequacy of your property insurance. If you don’t meet these criteria, you may need to work on improving your financial situation or consider other types of loans.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945. All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
• In Tucson, the rates for home equity loans are typically influenced by the prime rate, your credit score, and your debt-to-income ratio.
• Shopping around and comparing offers from multiple lenders can help you get the best rate.
• If you have a credit score of 700+ and a DTI under 36%, you’re likely to have access to more competitive rates and terms.
• The interest on home equity loans may be tax-deductible.
• Home equity loans usually come with fixed interest rates, ensuring that payments will be predictable.
Introduction to Home Equity Loan Rates
If you own your home, a home equity loan can be a powerful financial resource. In this article, we’ll explore how. First things first: What is a home equity loan? It’s a way you can leverage the equity you’ve built up in your home to access a lump sum, usually at a fixed interest rate.
This is your comprehensive guide to home equity loan rates in Tucson, AZ. We’ll delve into how these rates are determined by a mix of economic and personal financial factors. We’ll also explore the potential benefits and pitfalls of different types of home equity loans, including home equity lines of credit (HELOCs) and cash-out refinances, and provide you with practical tips to secure the most favorable rates. Whether you’re planning a major home makeover, trying to streamline your debt, or have your sights set on a significant purchase, understanding home equity loan rates will empower you to make the right financial choice for you.
How Do Home Equity Loans Work?
A home equity loan is essentially a second home mortgage. It draws on the value you already own in your home and allows you to borrow a lump sum of money, which you can use for a variety of purposes.
After you’ve received your funds, you pay back your home equity loan in monthly installments over a period of five to 30 years, depending on the term of your loan. Your home secures the loan, so the interest rate is generally lower than you’d find with an unsecured personal loan. Most home equity loan interest rates are fixed, meaning that your monthly payments will stay the same throughout the life of the loan.
If you’re wondering how to get equity out of your home, home equity loans can be a great option. To qualify for a home equity loan, you’ll typically need to have at least 20% equity in your home. In other words, your mortgage balance should be no more than 80% of your home’s market value.
Where Do Home Equity Loan Rates Come From?
The interest rate on your home equity loan is determined by a variety of factors, including economic conditions and your personal financial situation. The Federal Reserve’s changes to the federal funds rate affect the prime rate, which affects home equity loan rates. For instance, if the prime rate increases, you can expect rates for home equity loans to rise as well.
Your personal credit score and debt-to-income ratio are also key factors in determining the interest rate you will be offered. Additionally, the amount of the loan and the repayment term can influence the rate, with larger loans and longer terms sometimes resulting in a higher rate due to increased risk to the lender.
How Interest Rates Impact Home Equity Loan Affordability
Your interest rate is a pivotal factor in the overall affordability of a home equity loan. Even a seemingly small difference in rates can have a significant impact on your finances. Let’s say you’re considering a $100,000 home equity loan with a 15-year repayment term. At an 8.50% interest rate, your monthly payment would be approximately $986, with total interest over the loan’s life amounting to $77,253.
But if that rate were just one percentage point higher, at 9.50%, your monthly payment would increase to around $1,044, and the total interest paid would rise to about $87,960. That’s more than $10,700 over the loan’s life if you get the higher rate.
The chart below illustrates how changes in your loan amount, interest rate, and term interact to result in different monthly payments.
Loan Amount
Loan Term
Interest Rate
Monthly Payment
$100,000
20 years
8.00%
$836
7.00%
$775
10 years
8.00%
$1,213
7.00%
$1,161
$50,000
20 years
8.00%
$418
7.00%
$388
10 years
8.00%
$607
7.00%
$581
$25,000
20 years
8.00%
$209
7.00%
$194
10 years
8.00%
$303
7.00%
$290
Fixed vs Adjustable Interest Rates
Home equity loans most often come with fixed interest rates. A chief benefit of this is that your monthly payments will remain the same throughout the entire duration of your loan.
Other kinds of loans, including HELOCs, typically have adjustable rates, which start out with a fixed rate for a set period and then adjust in accordance with the market. Fixed rates might be a touch higher than adjustable ones at the start, but they provide a predictability that can be reassuring as you plan your monthly and yearly budget. On the other hand, adjustable rates do often kick off at a lower rate, but during their adjustable stage, they are subject to market shifts, which could end up costing you more in the long run.
As you’re comparing home equity loan rates, think about how important stability is to you versus the potential for lower initial costs with adjustable rates.
Home Equity Loan Rate Trends
Predicting future trends in interest rates is tricky at best — there are an enormous number of factors at play. Let’s look at the prime rate, a major factor in home equity loan interest rates. Its recent history demonstrates just how variable it is. As you can see in the chart below, it plummeted to 3.25% in March of 2020 and soared to 8.50% in July, 2023.
Fluctuations like these have an immediate impact on home equity loan rates in Tucson, making it crucial to stay on top of current market conditions. While nobody can predict the future with absolute certainty, understanding past patterns may help you time your application to get a more favorable rate.
How to Qualify for the Lowest Rates
To secure the most favorable home equity loan rates, your financial game plan needs to be solid. Here’s what lenders are looking for: a credit score of 700 or higher, and a debt-to-income (DTI) ratio no more than 50% (or better yet, 36% or less).
Even if you haven’t decided yet on a HELOC vs. a home equity loan, the tactics are the same to get yourself in shape to secure the most competitive interest rates and loan terms.
Maintain Sufficient Home Equity
To be eligible for a home equity loan, you need to maintain at least 20% equity in your home. Calculating your equity is easy: Simply subtract your current mortgage balance from your home’s appraised value. For example, if your mortgage balance is $400,000 and your home is valued at $550,000, your equity is $150,000.
The amount of equity you have is important, since it determines the maximum loan amount you can get and the rate you can secure. Most lenders let you borrow as much as 85%, or sometimes 90%, of your available equity. In the example above, that translates to a loan of up to $135,000. A home equity loan calculator can help you evaluate exactly how large a loan you may be able to access.
Build a Strong Credit Score
To help you get the most favorable home equity loan rates, you’ll want a credit score of 680 or higher, with many lenders favoring a robust 700+. A solid credit score bears witness to your past financial prudence and can open doors to more attractive loan terms.
Looking at your credit report, lenders typically take into account your payment history, credit usage, and the length of your credit history when assessing your creditworthiness. By consistently paying your bills on time and keeping your credit card balances in check, you can maintain or even increase your score’s health. Regularly reviewing your credit report for any inaccuracies and disputing them if necessary can also be prudent.
Manage Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is a critical factor in qualifying for a home equity loan. This ratio compares your monthly income to your monthly debt obligations, including the proposed home equity loan payment. Lenders generally require a DTI ratio below 50%, and ideally below 36%.
Improving your DTI involves paying down your existing debts, increasing your income, or both.
A lower DTI ratio demonstrates that you have managed debt well and that you can afford the loan you’re asking for. It can help your chances of securing a home equity loan and may also help you qualify for better home equity loan rates.
Obtain Adequate Property Insurance
Property insurance is a must-have for home equity loans, especially if you’re in an area that’s at risk for natural disasters, like floods. Lenders need to know that the property securing the loan is well-protected. Having the right insurance can also save you from extra costs and worries if the unexpected occurs.
When you’re ready to apply for a home equity loan, make sure you have all the necessary documentation to show that your house is fully insured. Not only does this protect your investment, but it also keeps you in good standing with your lender, which could help you secure more attractive home equity loan rates.
Current home equity loan rates by state.
Compare current home equity loan interest rates by state and find a home equity loan rate that suits your financial goals.
Select a state to view current rates:
Tools & Calculators
Online tools and calculators can help you estimate loan amounts and monthly payments based on your home’s equity, your credit score, and other financial factors. They can also help you see how different interest rates and loan terms can impact your monthly payments. By inputting your specific details, you can make more informed decisions and choose the home equity loan that best fits your needs.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Closing Costs and Fees
Home equity loan closing costs usually cost between 2% and 5% of the loan amount, so it’s smart to remember them as you plan your loan.
These costs can include a variety of expenses, such as appraisals, credit reports, document preparation, loan origination fees, notary fees, and the costs associated with title searches and insurance. Here are some typical prices:
• Appraisal fee: $300-$500
• Credit report fee: $30-$50 or more
• Document preparation: $100-$500 (may also be billed on an hourly basis if an attorney is involved or be built into the loan origination fee)
• Loan origination fee: 0.5%-1.0% of the loan amount
• Notary fee: $20-$100
• Title insurance fee: 0.5%-1.0% of the loan amount
• Title search fee: $75-$250 or more
While no-closing-cost home equity loans are sometimes an option, they often come with higher interest rates.
Tax Deductibility of Home Equity Loan Interest
There’s another benefit of home equity loans to consider.
If you’re taking out the loan in order to improve your home, the interest on your home equity loan may be tax deductible. For single filers, interest is deductible on the first $375,000 of loan debt. Spouses filing together can deduct the interest on up to $750,000 of debt. But remember that you’ll need to itemize if you want to claim this deduction.
Currently, this tax break runs through 2025. It may be extended beyond that, though, so consult your tax advisor to get the most up-to-date information and advice.
Alternatives to Home Equity Loans
Although home equity loans are a popular choice, there are other options to consider if you’re in a position to draw on your home equity. A home equity line of credit (HELOC) is a flexible solution that offers a revolving line of credit with variable interest rates. Another alternative is a cash-out refinance. It’s a kind of mortgage refinance that allows you to replace your current mortgage with a new one that has a higher balance.
Home Equity Line of Credit (HELOC)
What is a home equity line of credit? A HELOC is like a credit card, but with the substantial backing of your home equity. It offers a flexible way to borrow funds up to a set limit, with interest charged only on the amount you use. HELOCs do typically come with variable interest rates, which can be challenging to work into your budget.
Lenders generally look for a credit score of 680 or higher (700+ is even better) and a debt-to-income ratio below 50% (though less than 36% is the sweet spot). If you’re comfortable with the ebb and flow of variable rates, a HELOC could be a good choice, allowing you to borrow up to 90% of your home equity.
A cash-out refinance can also be a strategic way to access a chunk of your home’s equity. You replace your existing mortgage with a new home loan that’s larger than what you owe, and pocket the difference as a lump sum.
If you’re considering the benefits of a cash-out refinance vs. a home equity line of credit, take into account the fact that requirements for borrowing tend to be different. It’s usually easier to qualify for a cash-out refi than for a home equity loan or a HELOC. Cash-out refinances typically require a minimum credit score of 620 and a DTI ratio of 43% or less. They may have either fixed or variable interest rates, with variable rates sometimes offering more equity access. One more plus: a cash-out refi results in a single monthly payment, which can make it easier to manage.
The Takeaway
When you’re ready to explore home equity loans in Tucson, it’s important to have a strong credit score, a manageable debt-to-income ratio, and adequate property insurance, as these factors can affect the rates you’re offered. Online tools and calculators can help you estimate your payments and loan amounts. Be sure to consider the closing costs and fees, so you can budget for the total cost of the loan. And don’t forget to weigh the pros and cons of other options, like HELOCs and cash-out refinances, to find the right option for you.
SoFi now offers home equity loans. Access up to 85%, or $350,000, 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.
Home equity loans can be a great way to finance big expenses, like home renovations, medical bills, or college tuition. You might also use a home equity loan to consolidate high-interest debt. The loan is disbursed as a lump sum, which you can repay with fixed monthly payments over a set term. Before you apply for a home equity loan, it’s wise to consider your financial goals and the potential risks of borrowing against your home.
What’s the monthly payment on a $30,000 home equity loan?
The monthly payment you can expect for a $30,000 home equity loan will vary depending on the interest rate and term you choose. For example, a 7.00% interest rate over a 15-year term would mean a payment of about $270 per month. If you get an 8.00% interest rate and a 20-year term, the monthly payment would be around $251. A home equity loan calculator can give you more results for different loan terms and rates.
What might prevent you from securing a home equity loan?
Several factors could stand in the way of your securing a home equity loan. For starters, lenders generally look for a minimum credit score of 700 for the most competitive rates, so a low credit score could be a problem. A high debt-to-income ratio, typically more than 50%, could also be a red flag. And of course, you’ll need to have a healthy amount of home equity, usually at least 20%. If you can, it’s a good idea to take some time to evaluate your financial picture, work on your credit score, and manage your debts before applying.
What are the benefits of a home equity loan?
Home equity loans offer a number of benefits, including a lump sum of cash and payments that usually come with a fixed interest rate, which means that your monthly payments always stay the same. These loans can work well for large, one-time expenses such as home renovations or high-interest debt consolidation. Additionally, home equity loan rates are generally lower than those of unsecured loans, making them a cost-effective option when you need money. However, it’s important to remember that these loans come with the possibility of foreclosure if you don’t make your payments.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945. All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
