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Jun
23
2025

Week Ahead on Wall Street: Evolving Geopolitics

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This week, financial markets are in a precarious situation, with a fast-moving geopolitical shock threatening to overshadow the latest economic data releases.

The direct military conflict that erupted between Israel and Iran on June 13 shattered a period of improving economic sentiment, triggering a classic flight to safety. The immediate market reaction saw crude oil prices spike and stocks sell off, as investors favored traditional safe haven assets like gold and government bonds.

The conflict marks a serious escalation from a years-long shadow war to overt, state-on-state hostilities, with both sides exchanging missile and drone attacks targeting military, nuclear, and energy infrastructure.

The primary risk for the global economy is a broadening of the conflict and disruption to energy supplies, particularly through the Strait of Hormuz, a critical channel for about a quarter of the world’s daily oil supply.

While a full blockade would be a very bad scenario, the present conflict has already added a significant risk premium to energy prices, which could fuel an inflation resurgence. The Federal Reserve’s latest economic projections, released just last week, may have already become stale.

An environment already grappling with significant uncertainty has gotten even more uncertain.

Economic and Earnings Calendar

Monday

•   June S&P Global US PMIs: These indexes track how purchasing managers across different industries feel about the business environment.

•   May Existing Home Sales: Most home transactions in any given month tend to come from the existing market, and as a result set the tone for the broader housing market.

•   Fedspeak: Chicago Fed President Austan Goolsbee will participate in a moderated discussion and Q&A as part of the Milwaukee Business Journal’s Mid-Year 2025 Outlook event. New York Fed President John Williams and Fed Governor Adriana Kugler will host a Fed Listens event.

•   Earnings: FactSet Research Systems (FDS)

Tuesday

•   June Philadelphia Fed Non-Manufacturing Activity: The Philadelphia Fed’s survey of services executives in the region on business conditions and their outlook.

•   April FHFA House Price Index: This is a broad measure of single-family house prices released by the Federal Housing Finance Agency.

•   April S&P CoreLogic Case-Shiller Home Price Index: This is a private sector measure of national home prices. After a period of slight decline in the second half of 2022 and early 2023, the index returned to growth and is now at record highs.

•   June Richmond Fed Manufacturing Activity: The Richmond Fed’s survey of manufacturing executives in the region on business conditions and their outlook.

•   June Richmond Fed Non-Manufacturing Activity: The Richmond Fed’s survey of services executives in the region on business conditions and their outlook.

•   June Conference Board Consumer Confidence: How consumers feel about economic conditions affect their spending habits. This survey places a particular focus on job availability and the state of the labor market.

•   Fedspeak: Cleveland Fed President Beth Hammack will discuss monetary policy at the Barclays-CEPR Monetary Policy Forum 2025. Fed Chair Jerome Powell will testify before the House Committee on Financial Services on The Federal Reserve’s Semi-Annual Monetary Policy Report. Williams will give keynote remarks at a Center for Economic Growth and NY CREATES event.

•   Earnings: Carnival (CCL), FedEx (FDX)

Wednesday

•   May New Home Sales: While only a minority of home transactions in any given month come from new constructions, these home prices tend to be more cyclical and give insight into developing trends.

•   Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market.

•   Earnings: General Mills (GIS), Micron Technology (MU), Paychex (PAYX)

Thursday

•   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.

•   May Wholesale and Retail Inventories: Wholesalers and retailers often operate as intermediaries for the sale of manufactured products, serving as a key part of the goods supply chain.

•   1Q GDP Third Estimate: The primary measure of economic activity in the United States, which is measured as total expenditure on a country’s goods and services.

•   May Chicago Fed National Activity Index: This is a monthly index put together that incorporates 85 indicators from four categories: production and income; employment, unemployment, and hours; personal consumption and housing; and sales, orders, and inventories.

•   May Factory and Durable Goods Orders: These metrics give insight into underlying trends for leading cyclical indicators.

•   June Kansas City Fed Manufacturing Activity: The Kansas City Fed’s survey of manufacturing executives in the region on business conditions and their outlook.

•   Weekly Jobless Claims: This high frequency labor market data gives insight into filings for unemployment benefits. Jobless claims have continued to show a labor market that remains strong despite having cooled.

•   Fedspeak: Richmond Fed President Tom Barkin will discuss the economy at a New York Association for Business Economics event. Hammack will give opening remarks at an event hosted by the regional Fed bank on housing, the workforce, and economic development. Fed Governor Michael Barr will discuss community development and the Fed’s objectives at the Cleveland Fed bank conference.

•   Earnings: McCormick & Company (MKC), Nike (NKE), Walgreens Boots Alliance (WBA)

Friday

•   May Personal Income and Spending: These numbers give insight into how Americans are doing, which is important since consumer spending accounts for about two-thirds of economic growth in the United States.

•   May Personal Consumption Expenditures Price Index: The Fed targets this inflation measure for its price stability mandate and believes PCE to be the best measure of consumers’ spending habits.

•   June University of Michigan Consumer Sentiment: How consumers feel about economic conditions affect their spending habits. This survey places a particular focus on inflation and its trajectory.

•   June Kansas City Fed Non-Manufacturing Activity: The Kansas City Fed’s survey of services executives in the region on business conditions and their outlook.

•   Fedspeak: Williams will serve as chair for a Bank for International Settlements event. Hammack and Fed Governor Lisa Cook will participate in a Fed Listens event at the Cleveland Fed conference.

 

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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.

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Jun
22
2025

Current Home Equity Loan Rates in San Francisco, CA Today

By | 1_Web_ML | Comments Off on Current Home Equity Loan Rates in San Francisco, CA Today

SAN FRANCISCO HOME EQUITY LOAN RATES TODAY

Current home equity loan

rates in San Francisco, CA.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare home equity loan rates in San Francisco.

Key Points

•   Home equity loan rates are influenced by Federal Reserve policy and borrower creditworthiness.

•   Even a small difference in the rate can lead to a big difference in the total interest paid.

•   Home equity loans usually come with fixed interest rates, which can make monthly payments predictable.

•   To snag the best rates, aim for a stellar credit score, a low debt-to-income ratio, and at least 20% equity in your home.

•   Interest on home equity loans might be tax-deductible if used for home improvements.

Introduction to Home Equity Loan Rates

Welcome to our guide on home equity loan rates in San Francisco. In this article, we’ll explore the current rates, share the factors that determine what rate you, personally, will be offered, and cover the steps you can take to qualify for the best terms. Whether you’re looking to fund home renovations, consolidate debt, or cover other significant expenses, understanding home equity loan rates is essential for making informed financial decisions.

How Do Home Equity Loans Work?

A home equity loan is a second mortgage that uses your home as collateral. Funds are disbursed in a lump sum and typically repaid in equal monthly installments over five to 30 years. Using home equity to secure the loan results in a lower interest rate than borrowers would get with an unsecured loan. And interest rates are typically fixed, which is why the monthly payments are predictable.

Borrowers need at least 20% equity in their primary residence to qualify for a home equity loan. (Your equity is the home’s estimated market value minus your current home loan balance.) Lenders often allow borrowing up to 85% of available equity. These loans can be used for any purpose; borrowers often cover home improvements, education, medical bills, or use the funds to pay off higher-interest debts.

Where Do Home Equity Loan Interest Rates Originate?

Home equity loan interest rates are influenced by a variety of economic and personal factors. Lenders set home equity loan rates based on the prime rate, which in turn is driven largely by policies of the Federal Reserve. (So when the Fed shifts its rates, home equity loan rates usually shift, too.) Lenders also adjust their rate offer up or down for each borrower based on the credit score, debt-to-income (DTI) ratio, income, and amount of equity that each individual has in their home.

How Interest Rates Impact Affordability

Interest rates play a pivotal role in the affordability of home equity loans. Even the slightest variation can translate to significant differences in the total interest you will pay over the life of the loan. For instance, on a $100,000 loan with a 20-year term, an 8.00% rate means $100,746 in interest, while 9.00% jumps to $115,934 — that’s a $15,000 gap. That’s why it pays to weigh your options and secure the most cost-effective home equity loan.

Recommended: Home Equity Loan Calculator

Home Equity Loan Rate Trends

While no one has a crystal ball for interest rates, a look at the past can provide some perspective on the current market. The prime rate, which is a key benchmark for home equity loan rates, has been all over the place in the last few years. In 2020, it was as low as 3.25%. By 2023, it had climbed to 8.50%.

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.

Source: TradingView.com

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.

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

How to Qualify for the Lowest Rates

To snag the most favorable home equity loan rates, there are a few things you should focus on. Here are four items to tick off your to-do list:

Maintain Sufficient Home Equity

As you’re learning what is a home equity loan, you’re also making your mortgage payments and building equity. You typically need to have at least 20% equity in your home. To calculate your equity, look up your home’s estimated value on a real estate site. Then subtract your mortgage balance from your current home value. Divide the answer by your current home value to get a percentage. For example, if your home is valued at $550,000 and your mortgage balance is $400,000, your home equity would be $150,000. Divide $150,000 by $550,000 and you get 0.27, or 27%.

Build a Strong Credit Score

generally look for scores of 680 or higher. A higher credit score is a testament to your financial responsibility and can translate to more attractive loan terms. To nurture your credit score, concentrate on paying bills on time, keeping credit card balances in check, and steering clear of new debt.

Manage Debt-to-Income Ratio

Your debt-to-income (DTI) ratio is a crucial piece of the puzzle when it comes to qualifying for a home equity loan with favorable rates. Lenders typically look for a DTI ratio below 50%, with 36% or lower being the sweet spot. (To compute your DTI ratio, add up all your monthly debt payments and divide by your gross monthly income.) To manage your DTI ratio, consider paying down some existing debt, finding ways to boost your income, or both.

Obtain Adequate Property Insurance

Property insurance is a common prerequisite for home equity loans, especially in areas susceptible to natural disasters like floods. This insurance is a safety net for both you and the lender. Before you apply for a home equity loan, ask a lender if there are any specific insurance requirements and ensure your policy meets those standards.


Helpful Tools & Calculators

An online calculator can be a big help in comparing home equity loan rates and terms. And it’s not the only calculator you’ll find helpful during your home equity loan process:

Run the numbers on your home equity loan.

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

Closing costs for home equity loans typically range from 2% to 5% of the loan amount. These fees can include an appraisal, credit report, and title insurance. Some lenders waive these fees.

Recommended: What Is a Home Equity Line of Credit?

Tax Deductibility of Home Equity Loan Interest

Here’s a tip: The interest on home equity loans could be tax-deductible if the funds are used to purchase, build, or make significant improvements to your home. This tax break is currently set to last through 2025 and interest on home loans may continue to be deductible in 2026, depending on how tax policy is set. (A tax advisor can provide personalized advice. You may need professional help to claim this deduction, as you’ll have to itemize your deductions on your tax return.) 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.

Alternatives to Home Equity Loans

Home equity loans are a popular choice, but they’re not your only option. You might also consider different types of home equity loans such as a home equity line of credit (HELOC) or a cash-out refinance. Each of these options has its own features and eligibility requirements. The basics:

Home Equity Line of Credit (HELOC)

A HELOC works much like a credit card, but with lower interest rates. It gives homeowners the flexibility to borrow what they need as they need it, up to a predetermined limit. As you consider a HELOC vs. a home equity loan, understand this: With a HELOC, you only pay interest on the amount of the credit line that you actually use. After an initial “draw” period (often 10 years) when you can use the credit line, you begin to repay the principal plus interest. To see what payments might be like during the draw period, use a HELOC interest-only calculator. The interest rate on a HELOC is variable and can change over time, which means your costs could go up if rates rise. A HELOC repayment calculator can help you see what payments would be like at different interest rates.

To qualify for a HELOC, you typically need a credit score of at least 680, but a score of 700 or higher is preferred, and a debt-to-income (DTI) ratio no higher than 50%, with 36% or less being ideal. HELOCs can be a good option for homeowners who want to borrow up to 90% of their home’s equity and pay for expenses over time.

Cash-Out Refinance

A cash-out refinance is a type of mortgage refinance that replaces your existing mortgage with a larger one, unlocking cash based on your home equity. Most lenders will consider lending up to 80% of your equity. You’ll typically need a credit score of at least 620 and a debt-to-income ratio below 43%. Because this is a new mortgage, you’ll need to choose between fixed and variable rates. You’ll also need to choose a loan term. As you think about a cash-out refinance vs. a home equity line of credit consider this: With a refi, there’s just one monthly payment to keep track of instead of the two loan payments you would have with a home equity loan or a HELOC.

Here’s a look at the three ways you can borrow by getting equity out of your home and how they compare:

Home Equity Loan

 HELOC

 Cash-Out Refinance
Borrowing Limit Up to 85% of borrower’s equity Up to 90% of borrower’s equity 80% of borrower’s equity for most loans
Interest Rate Fixed Generally variable May be fixed or variable
Type of Credit Installment loan: Borrowers get a specific amount of money all at once that they then immediately begin repaying, with interest, in regular installments. Revolving credit: Borrowers receive a line of credit. They have a draw period (5-10 years) during which they borrow and can only pay interest, followed by a repayment period (10-20 years) to repay the principal plus interest. Installment loan: Borrowers receive a lump sum payment from the excess funds of their new mortgage, which has a new rate and repayment terms.
Repayment Term Generally 5-30 years A draw period of 5-10 years, followed by a repayment period of 10-20 years Generally 15-30 years
Fees Closing costs (typically 2-5% of the loan amount) Closing costs (typically 2%-5% of the loan amount), plus other possible costs, depending on the lender (annual fees, transaction fees, inactivity fees, early termination fees) Closing costs (typically 2-5% of the loan amount)

The Takeaway

When you’re ready to consider a home equity loan, make sure you’re in the best financial shape possible. That means building a strong credit score, keeping your debt-to-income ratio in check, and getting the right property insurance. These factors can all affect the rate and terms you’re offered. You can also use tools and calculators to help you estimate costs and compare offers from different lenders. With a little planning and research, you’re sure to find the best possible rate 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.


View your rate

FAQ

What can a home equity loan be used for?

A home equity loan can be a smart way to borrow for big home renovation projects. It can also be used for other large expenses, such as medical bills or college tuition. There are no restrictions on how you use the funds. However, in 2025, how you use the money will affect whether the interest you pay on the loan is tax-deductible. (Consult a tax advisor.)

What would a $25,000 home equity loan payment be?

The monthly payment on a $25,000 home equity loan varies depending on the interest rate and term. For example, at 7.00% over 10 years, you’d be looking at around $290 a month. But if the interest rate is 8.00% and the term is 20 years, your monthly payment could be closer to $209.

What might keep someone from getting a home equity loan?

There are a few things that might prevent you from qualifying for a home equity loan. Most lenders look for a credit score of at least 680 and a debt-to-income ratio below 50% (with even lower being ideal). You’ll also need to have at least 20% equity in your home. If your home’s value has dropped, or if you have significant other debt already, you might not qualify.

What are the benefits of a home equity loan?

Home equity loans offer a fixed interest rate, which means the monthly payment amount is nicely predictable. And because a home equity loan is secured by your home, it will typically have a lower interest rate than a personal loan, which is unsecured.

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.

SOHL-Q225-202

Browse other California home guides.

Browse home equity loan rates by state guides.

More home equity resources.

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Read more
Jun
22
2025

Current Home Equity Loan Rates in Albany, NY Today

By | 1_Web_ML | Comments Off on Current Home Equity Loan Rates in Albany, NY Today

ALBANY HOME EQUITY LOAN RATES TODAY

Current home equity loan

rates in Albany, NY.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare home equity loan rates in Albany.

Key Points

•   Home equity loan rates in Albany are influenced by the prime rate and the personal finances of each borrower.

•   Elevating your credit score and maintaining a healthy debt-to-income ratio can be your ticket to lower rates.

•   Home equity loan rates can vary widely, so it’s wise to compare offers from multiple lenders.

•   Use a home equity loan calculator to get a sense of what your monthly payments and total interest costs might be.

•   Explore other options, like a home equity line of credit and a cash-out refinance, to ensure you find the one that best suits your needs.

Introduction to Home Equity Loan Rates

Home equity loan rates are a key consideration when you’re thinking about how to get equity out of your home in Albany. We’ll help you understand what they are, how they can affect your finances, and how to find the best rate and loan type for your personal situation as a homeowner. First step? Make sure you understand what is a home equity loan and how it differs from other ways of borrowing against your home’s equity.

How Do Home Equity Loans Work?

A home equity loan is a second mortgage (assuming you’re still paying off your first home loan). It uses your home as collateral and provides you with a lump sum of money. You’ll begin repaying the loan as soon as you receive it, with interest, and pay it back over a predetermined period — typically five to 30 years.

Because home equity loans usually have a fixed rate, your monthly payments will be consistent and predictable. Your home secures the loan, so the interest rates are often lower than those of unsecured personal loans. To qualify, you generally need at least 20% equity in your home.

Recommended: HELOC Monthly Payment Calculator

Where Do Home Equity Loan Interest Rates Originate?

Home equity loan rates change over time and even from borrower to borrower. They are influenced by a variety of factors, including the economy and your own financial picture. One big factor is the prime rate, which is influenced by the Federal Reserve’s policies. But once a lender sets its own rate, with the prime rate providing direction, the lender can adjust its rate based on the specific borrower. Your credit score, debt-to-income ratio, loan amount, and loan term can all impact the interest rate you receive.

How Interest Rates Impact Affordability

Now, let’s talk about how interest rates can tip the scales when it comes to home equity loan affordability. What might seem like a small interest rate variance can result in a hefty interest payment over time. Need proof? Take a look at the chart below, which shows you how different loan terms and rates affect monthly payments for varying loan amounts.

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


Home Equity Loan Rate Trends

Predicting interest rate movements with absolute certainty is no easy task, but history can be a helpful guide as to what is a “high” or “low” rate. The prime rate, which as we’ve noted is a key influencer of home equity loan rates, has its ups and downs.

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.

Source: TradingView.com

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.

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

How to Qualify for the Lowest Rates

To snag the most favorable home equity loan rates, there are a few things you can focus on before submitting your applications. By ticking these boxes, you’re not just qualifying for a loan—you’re setting yourself up for the best deal out there.

Maintain Sufficient Home Equity

As noted above, you’ll want to maintain at least 20% equity in your home. Crunch the numbers by subtracting your outstanding mortgage balance from your home’s current value. (Find the latter on an online real estate site.) Let’s say your mortgage balance is $300,000 and your home’s value is $550,000. That leaves you with $250,000 in home equity. Divide your equity number by the home value to arrive at a percentage. You can also use a home equity loan calculator to assess your borrowing power.

Build a Strong Credit Score

Lenders usually look for a credit score of 680 or higher when considering home equity loans, and many prefer a score of 700 or above. A strong credit score demonstrates financial responsibility and can lead to more favorable rates. To improve your credit score, focus on making timely payments, keeping credit card balances low, and avoiding new debt. Regularly check your credit report for errors and dispute any inaccuracies.

Manage Debt-to-Income Ratio

Your debt-to-income (DTI) ratio is a critical piece of the home equity loan puzzle. To determine yours, divide your monthly debts (car loan, student loan, credit card debt, etc.) by your gross monthly income. Lenders typically look for a ratio under 50%, but the sweet spot is 36% or less. The lower your DTI, the better your chances of securing a more competitive rate. To enhance your DTI, consider paying down existing debts and exploring opportunities to boost your income.

Obtain Adequate Property Insurance

Property insurance is often a must-have for home equity loans. Lenders want to be sure that your property, which is the collateral for the loan, is protected. Before you apply, make sure to check with your insurance provider to ensure that your coverage is up to date.


Useful Tools & Calculators

Using a home equity loan calculator is a smart way to get a handle on the financial side of things. You can estimate your monthly payments by plugging in your loan amount, interest rate, and term. Here are three calculators you’ll find useful during your loan search:

Run the numbers on your home equity loan.

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

The closing costs for a home equity loan typically fall between 2% and 5% of the loan amount. An appraisal and credit report will be required and will be included in your costs. Other costs relate to document preparation, loan origination, a title search, and title insurance, for example. While no-closing-cost loans are an option, they generally come with higher rates.

Tax Deductibility of Home Equity Loan Interest

Here’s a tip: The interest on home equity loans can be tax-deductible if you use the funds to buy, build, or improve your home. As of 2025, couples filing jointly can deduct interest on up to $750,000 of qualified home equity loans, and single filers can claim interest on up to $375,000 in loans. To benefit from this, you’ll need to itemize your deductions when filing your tax return. Discuss this with a tax advisor; tax-deductibility rules can change year-to-year.

Recommended: Different Types of Home Equity Loans

Alternatives to Home Equity Loans

While home equity loans are a common choice in Albany, you may want to consider other options, such as a home equity line of credit (HELOC) or a cash-out refinance, which is a special type of mortgage refinance. Each of these options comes with its own set of benefits and risks.

Home Equity Line of Credit (HELOC)

A HELOC is a bit like a credit card, but one that is secured by the equity in your home. As you consider a HELOC vs. a home equity loan, here are some points of difference: HELOCs allow you to borrow money as you need it, vs. all at once, and you only pay interest on the amount you borrow.

There is a draw period, during which most lenders only require you to pay interest. A HELOC interest-only calculator can help you see what those payments might look like. Then there is a repayment period when you’ll repay the principal plus interest. HELOC interest rates are variable, so payment amounts can be unpredictable. To qualify, you’ll need a credit score of at least 680 (but 700 is better) and a debt-to-income ratio of no more than 50% (but 36% is ideal).

Cash-Out Refinance

A cash-out refinance gives you a lump sum based on your home equity. You can use the money to pay off higher-interest debts or cover renovation costs, for example. Lenders typically allow you to borrow up to 80% of your equity, although some may go higher. Most require a minimum credit score of 620 and a maximum DTI ratio of 43%. You can choose between a fixed or adjustable interest rate. When thinking about a cash-out refinance vs. a home equity line of credit, remember that the former is a completely new mortgage — so you’ll want to look carefully at how mortgage interest rates now compare to the rate on your original loan.

Here’s a quick reference guide to the three options:

Home Equity Loan

 HELOC

 Cash-Out Refinance
Borrowing Limit Up to 85% of borrower’s equity Up to 90% of borrower’s equity 80% of borrower’s equity for most loans
Interest Rate Fixed Generally variable May be fixed or variable
Type of Credit Installment loan: Borrowers get a specific amount of money all at once that they then immediately begin repaying, with interest, in regular installments. Revolving credit: Borrowers receive a line of credit. They have a draw period (5-10 years) during which they borrow and can only pay interest, followed by a repayment period (10-20 years) to repay the principal plus interest. Installment loan: Borrowers receive a lump sum payment from the excess funds of their new mortgage, which has a new rate and repayment terms.
Repayment Term Generally 5-30 years A draw period of 5-10 years, followed by a repayment period of 10-20 years Generally 15-30 years
Fees Closing costs (typically 2-5% of the loan amount) Closing costs (typically 2%-5% of the loan amount), plus other possible costs, depending on the lender (annual fees, transaction fees, inactivity fees, early termination fees) Closing costs (typically 2-5% of the loan amount)

The Takeaway

As you’re thinking about a home equity loan, it’s important to build a strong credit score, manage your debt-to-income ratio, and obtain adequate property insurance. These factors can significantly impact the home equity loan rates you are offered and your overall eligibility. It’s a good idea to explore alternatives like a HELOC and a cash-out refinance and compare rates and terms to find the best financial solution for your needs.

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.


View your rate

FAQ

What can you use a home equity loan for?

Home equity loans are a versatile financial tool you can use to cover large purchases, home improvements, and to consolidate high-interest debt. Their flexibility makes them an attractive option for significant expenses.

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

The beauty of a home equity line of credit (HELOC) is its flexibility. During the draw period, which can last 5, 10, or even 20 years, you may only need to pay interest on the amount you’ve borrowed, which isn’t necessarily going to be the full $100,000. If you did use the entire credit line of $100,000, your interest rate for repayment would likely be a variable one. But at an average of 8.00% and a repayment term of 20 years, you would pay $836 per month.

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 loan term. For a 20-year fixed-rate loan at 8.00%, for example, the monthly payment would be approximately $251.

What might disqualify you from securing a home equity loan?

There are a few things that might prevent you from getting a home equity loan, such as not having enough equity in your home, having a low credit score, or having a high debt-to-income (DTI) ratio. Most lenders will want you to have at least 20% equity in your home, and a credit score of 680 or higher. A DTI ratio over 50% can also make it hard to get a loan. Additionally, not having enough property insurance or having a history of missed credit or loan payments can be a red flag for lenders.

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.

SOHL-Q225-203

Browse New York home guides.

Browse home equity loan rates by state guides.

More home equity resources.

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Read more
Jun
22
2025

Current Home Equity Loan Rates in Evansville, IN Today

By | 1_Web_ML | Comments Off on Current Home Equity Loan Rates in Evansville, IN Today

EVANSVILLE HOME EQUITY LOAN RATES TODAY

Current home equity loan

rates in Evansville, IN.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare home equity loan rates in Evansville.

Key Points

•   Federal Reserve policies and your unique financial profile are the main factors in determining your home equity loan rate.

•   Comparing rates from multiple lenders can lead to significant savings.

•   A strong credit score and low debt-to-income ratio are crucial for qualifying for the best rates.

•   Home equity loans are fixed-rate loans, so their monthly payment amount is stable.

•   Good coverage with property insurance is a must before borrowing, particularly in flood-prone areas.

Introduction to Home Equity Loan Rates

A home equity loan can be a powerful financial tool for homeowners. It allows you to borrow a lump sum of money at a lower interest rate than you would have with an unsecured loan. This article will explore the current home equity loan rates in Evansville, Indiana, and explain how these rates are determined. We’ll discuss the benefits and risks of home equity loans and the application process. If you decide to move forward and apply for a home equity loan, you’ll have a solid understanding of how to secure the best rates and use this financial product to your advantage.

How Do Home Equity Loans Work?

A home equity loan is essentially a second mortgage that allows you to borrow a lump sum based on your home’s equity (which is the market value of your home minus the balance of any outstanding home loan). Many lenders will let you borrow up to 85% of your equity. These loans typically come with fixed interest rates and are repaid in monthly installments over a period of five to 30 years.

Recommended: Home Equity Loan Calculator

Where Do Home Equity Loan Interest Rates Originate?

The interest rates for different types of home equity loans are influenced by economic factors but also by each borrower’s personal profile. The Federal Reserve’s monetary policies have a ripple effect on lending rates. Lenders often adjust their rates according to the prime rate, which is a reflection of the Fed’s stance. Your credit score, debt-to-income (DTI) ratio, and credit history play a significant role, with higher scores typically translating to lower rates. Additionally, larger loan amounts and longer repayment terms may lead to higher rates due to the increased risk for the lender.

How Interest Rates Impact Affordability

Your interest rate is a key player in how affordable your home equity loan will be over time. Even a fraction of a percentage point can add up to significant savings. For instance, on a $100,000 loan with a 15-year repayment, the difference between an 8.50% and 9.50% interest rate is a monthly payment of $985 versus $1,044. Over the entire term, the lower interest rate would save you roughly $10,000. Understanding this can help motivate you to take the time to research offers from different lenders and find the best possible rate.

Home Equity Loan Rate Trends

Anticipating the ebb and flow of interest rates is no easy feat, given the many factors at play. But examining recent patterns may offer some helpful insight. Take the prime rate, for example, a key influencer of many loan products. In 2020, it sat at a mere 3.25%, but by 2023, it had soared to 8.50%. These fluctuations have a direct impact on home equity loan rates. By keeping an eye on them, you can time your application to coincide with more favorable rates.

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.

Source: TradingView.com

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.

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

How to Qualify for the Lowest Rates

To snag the most favorable home equity loan rates, you’ll want to present a robust financial profile. Take these steps before you apply:

Maintain Sufficient Home Equity

To be eligible for a home equity loan, homeowners are advised to maintain a minimum of 20% equity in their home. Calculating your home equity is a simple matter of subtracting your current mortgage balance from the appraised value of your home (you can use an online estimate from a real estate web site for this purpose).

For instance, if your mortgage balance is $400,000 and your home is valued at $550,000, your home equity would be $150,000. Divide your equity by your home value to arrive at your percentage of equity (in this example, 27%). The more equity you have, the greater assurance to the lender of your financial stability — and the more favorable your loan terms will likely be.

Build a Strong Credit Score

When it comes to home equity loans, a credit score of 680 is often the starting point, but the higher, the better. A robust credit score is a sign of financial prudence and can translate to more attractive loan rates. Those with a history of timely payments, low credit balances, and a diverse credit portfolio are more likely to secure favorable terms. Focusing on your credit score before you apply for a home equity loan is a strategic move that can lead to long-term savings.

Manage Debt-to-Income Ratio

Your DTI ratio is a key number that lenders look at when you’re applying for a home equity loan. (To compute your DTI ratio, add up all your monthly debts — car payment, student loan, credit card payment, etc. — and divide by your gross monthly income.) The lower your DTI, the more likely it is that a lender will see you as a good candidate for a loan. Most lenders look for a DTI that’s below 50%, but the lower the better. A DTI below 36% is considered ideal. If your DTI is higher than you’d like, you may want to consider paying down some existing debt or finding ways to increase your income before applying for a home equity loan.

Obtain Adequate Property Insurance

Property insurance is a must-have for home equity loans, particularly in flood-prone areas. This insurance safeguards both you and the lender in the event of property damage. Before the loan is disbursed, lenders may ask for proof of insurance, and should you fail to maintain coverage, the lender might impose their own policy, which could be pricier.


Useful Tools & Calculators

These online tools can help you assess your readiness for a home equity loan. Playing with different loan amounts and interest rates in the payment calculator can also help you understand the financial implications of taking out a home equity loan. You’ll find these useful during your home equity loan search.

Run the numbers on your home equity loan.

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

As you’re exploring what is a home equity loan, don’t forget to factor in its costs. When it comes to closing costs for home equity loans, you’re typically looking at a range of 2% to 5% of the loan amount. Common fees include appraisal, credit report, document preparation, origination, notary, title search, and title insurance. No-closing-cost loans exist but they may have higher interest rates.

Tax Deductibility of Home Equity Loan Interest

You’ll be pleased to know that the interest on your home equity loan may be tax deductible if you’ve used it to buy, build, or improve your home. The current guidelines are in place through 2025, with the potential for extension. A tax advisor can provide personalized advice, and you may need professional help anyway in order to claim this deduction, as you’ll have to itemize your deductions on your tax return. 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.

Alternatives to Home Equity Loans

A home equity loan isn’t the only way to get equity out of your home. You might also consider a home equity line of credit (HELOC) or a cash-out refinance. Each has its own unique features and requirements. Here’s help weighing the pros and cons:

Home Equity Line of Credit (HELOC)

A HELOC is like a low-interest credit card for homeowners, offering a flexible borrowing limit and interest payments on what you use. Like a home equity loan, it is secured by your home. As you look at a HELOC vs. a home equity loan, note that the rates on a HELOC are usually variable, which means they can change, potentially impacting your costs.

A HELOC typically has two phases: a draw period and a repayment period. During the draw period, you can draw on the credit line and only pay interest on what you have borrowed. (A HELOC interest-only calculator is useful to understand what those payments might look like.) In the repayment period, you’ll repay all that you have borrowed, with interest. That’s when a HELOC repayment calculator will come in handy.

Lenders typically look for a credit score of 680 or higher (700 is even better) and a debt-to-income ratio below 50% (aim for 36% or less). HELOCs are great for those who have fluctuating borrowing needs and prefer to spread costs over time.

Cash-Out Refinance

A cash-out refinance is a special kind of mortgage refinance. It replaces your existing mortgage with a larger one and puts some extra cash in your pocket. Most lenders allow you to borrow up to 80% of your home’s value. Typically, a credit score of 620 and a DTI of 43% or less are the benchmarks.

You can choose between fixed or variable rates, with the latter potentially granting access to more equity. If you’re considering a cash-out refinance vs. a home equity line of credit, remember that the former leaves you with one new mortgage while the latter means you’ll have a second payment to make each month. Whether or not a cash-out refi is right for you will depend largely on how competitive current interest rates are with the rate on your existing home loan.

Recommended: HELOC Monthly Payment Calculator

The Takeaway

If you’re considering a home equity loan in Evansville, building a strong credit score, managing your debt-to-income ratio, and obtaining adequate property insurance can help you get the best terms. Before committing to a home equity loan, it’s smart to explore other financing options, like a HELOC or a cash-out refinance. Whatever home equity lending option feels right for you, it’s important to shop around and compare rates from multiple lenders.

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.


View your rate

FAQ

What are the common uses for a home equity loan?

A home equity loan is a versatile financial tool. You can use it to finance a large purchase, make home improvements, or consolidate high-interest debt. Many homeowners find these loans appealing because they allow you to tap into your home’s value without having to sell. Whether you’re dreaming of a new kitchen, aiming to clear up credit card debt, or have a significant expense on the horizon, a home equity loan can be the solution.

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

The beauty of a $100,000 HELOC is its flexibility, which also means the monthly payment can vary. During the draw period, which is often the first 10 years, you might only need to pay interest. At a 7.00% interest rate, that could be $583 per month. Once the draw period ends, the repayment period begins, and you’ll start paying both principal and interest. The exact amount will depend on the remaining balance and the interest rate at that time.

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

The payment on a $25,000 home equity loan depends on the interest rate and the loan term. For example, at an 8.00% interest rate over a 20-year term, the monthly payment would be about $209. This fixed-rate loan means your monthly payment won’t change, which can be helpful for budgeting.

What are the benefits of a home equity loan?

Home equity loans tend to offer lower interest rates than credit cards or personal loans because your home serves as collateral on the loan. They also allow borrowers to obtain substantial amounts of money for any purpose. The funds come in a lump sum, with predictable, fixed-rate payments that can be made over a long term.

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.

SOHL-Q225-204

Browse Indiana home guides.

Browse home equity loan rates by state guides.

More home equity resources.

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Read more
Jun
22
2025

Current Home Equity Loan Rates in Kansas City, MO Today

By | 1_Web_ML | Comments Off on Current Home Equity Loan Rates in Kansas City, MO Today

KANSAS CITY HOME EQUITY LOAN RATES TODAY

Current home equity loan

rates in Kansas City, MO.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare home equity loan rates in Kansas City.

Key Points

•   Home equity loan rates in Kansas City are influenced by the prime rate.

•   To get the best rates, aim for a credit score of 680 or higher and a debt-to-income ratio below 50%.

•   Fixed rates offer the stability of knowing your monthly payments won’t fluctuate.

•   Even a small difference in rates can mean big changes in costs.

•   Property insurance is often a must-have, especially in disaster-prone areas.

Introduction to Home Equity Loan Rates

Welcome to our guide on home equity loan rates in Kansas City, MO. In this article, we will explore how to get equity out of your home, including the current lending rates, the factors that influence them, and how to qualify for the best terms. Home equity loans are a valuable financial tool for homeowners, allowing you to borrow against the equity in your home for various purposes, such as renovations, education, and debt consolidation. We’ll break down the process, from understanding the interest rates to comparing offers from different lenders, to help you make informed decisions about your financial future.

How Do Home Equity Loans Work?

Before you apply, it’s important to understand what a home equity loan is, exactly. A home equity loan is a second mortgage that uses your home as collateral and provides a lump sum of money you can use for any purpose. You’ll repay it in equal monthly installments over a fixed term, typically five to 30 years. Because the loan is secured by your home, you’ll generally get a lower interest rate than you would with an unsecured personal loan. Most home equity loans have a fixed interest rate, so your payments will be predictable. To qualify for a home equity loan, you’ll need to have at least 20% equity in your home. Some lenders may allow you to borrow up to 85% of your equity.

A home equity loan calculator can help you determine your home equity and how much you might borrow against it.

Where Do Home Equity Loan Interest Rates Originate?

Like the rate on your original home loan, home equity loan rates are determined by a few different factors. The Federal Reserve’s policies can affect lending rates. Lenders set home equity loan rates based on the prime rate, which in turn is driven largely by the Fed. Lenders also adjust their rate offer up or down for each borrower based on the credit score, debt-to-income (DTI) ratio, income, and amount of equity that each individual has in their home.

The amount of your loan and the repayment term can also affect your rate. Generally, larger loans and longer terms will have higher rates. Lender competition can also impact rates.

How Interest Rates Impact Affordability

The interest rate on your home equity loan is one of the most important factors in determining its affordability. Even a small difference in the interest rate can have a big impact on the cost of the loan. For example, over 15 years, a $100,000 loan with an interest rate of 8.50% would have a monthly payment of $984 and total interest costs of $77,253. If the interest rate increased to 9.50%, the monthly payment would increase to $1,044 and the total interest costs would increase to $87,960.

Recommended: What Is a Home Equity Line of Credit?

Home Equity Loan Rate Trends

Predicting interest rate movements is a bit like forecasting the weather — there are many variables at play. But looking at recent trends can provide some insight into whether the rates you’re seeing in the marketplace are high or low. The prime rate, which is a big influencer on home equity loan rates, has been quite the rollercoaster in the past few years. It hit a low of 3.25% in 2020 and then soared to 8.50% by 2023, as shown below. These fluctuations can make a real difference in the rates you’re offered.

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.

Source: TradingView.com

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.

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

How to Qualify for the Lowest Rates

To land the most favorable home equity loan rates, you’ll want to present a robust financial profile. Take these steps before you file your application.

Maintain Sufficient Home Equity

As we’ve seen, you’ll need at least 20% to qualify for a home equity loan. To calculate your equity, simply subtract your outstanding mortgage balance from your home’s current value (find that number on an online real-estate site). For example, if your home is worth $550,000 and you have a remaining mortgage of $400,000, you’ve got $150,000 in equity. To determine the percentage of equity, divide your equity amount by your home’s value. (So in this case, you would have 27% equity.)

Build a Strong Credit Score

To snag the most favorable home equity loan rates, a robust credit score is your ticket. Lenders often set the bar at 680, but rates get even better at 700 and above. A higher score tells a story of financial prudence and can open doors to more attractive loan terms. If you’re in the habit of paying on time and keeping those credit card balances low, you’re already on the right path. Do a quick review of your credit report to spot any errors that, once corrected, could give your score a boost.

Manage Debt-to-Income Ratio

Your DTI ratio is a big deal when it comes to securing a home equity loan. Lenders typically look for a ratio that’s under 50%, with 36% or less being the sweet spot. This ratio is a comparison of your monthly income to your monthly debt commitments. (To compute your DTI, add up all your monthly debt payments and divide by your gross monthly income.) A lower DTI is a sign that you’re in a good place to manage monthly loan payments. If your ratio is around 50%, consider paying down your existing debts or finding ways to increase your income before you apply.

Obtain Adequate Property Insurance

Property insurance is a standard requirement for home loans, so if you haven’t updated yours in a while, give it a look to make sure you are fully protected. Having the right insurance coverage not only safeguards you from extra expenses but also streamlines the loan application process. If you happen to reside in a high-risk area, it’s wise to explore insurance policies that align with your potential lender’s requirements.


Useful Tools & Calculators

Online tools and calculators can allow you to play around with different numbers and see how they might affect the affordability of your loan and your monthly payment amount, among other things. Here are three you’ll find especially helpful:

Run the numbers on your home equity loan.

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

The typical closing costs for home equity loans usually fall between 2% to 5% of the loan amount. These fees cover a range of expenses, from appraisals to title search and more. While no-closing-cost home equity loans are an option, they often come with higher interest rates. It’s crucial to include a comparison of closing costs when you are looking at offers from multiple lenders to find the best deal.

Tax Deductibility of Home Equity Loan Interest

Here’s a little-known fact: The interest on home equity loans can be tax-deductible if you use the funds to buy, build, or significantly improve your home. This tax benefit is currently set to last through 2025, and there’s a chance it could be extended. If you file jointly, you can deduct interest on up to $750,000 of qualified home equity loans. Single filers can deduct interest on loans up to $375,000. To claim this deduction, you’ll need to itemize your deductions on your tax return, so work with a tax advisor for guidance.

Alternatives to Home Equity Loans

There are different types of home equity loans and if you’re considering a home equity loan, you might also want to explore a home equity line of credit (HELOC) or a cash-out refinance, which is technically a mortgage refinance. Here’s how they compare:

Home Equity Line of Credit (HELOC)

A HELOC is similar to a credit card in that you have a certain limit you can borrow up to. You only pay interest during the draw period (a HELOC interest-only calculator can be helpful at this time). Then after some time, typically 10 years, you’ll pay back the principal and interest (this is when a HELOC monthly payment calculator is handy).

To qualify, you’ll generally need a credit score of 680 or higher (700 is preferred) and a debt-to-income ratio of less than 50% (36% is the ideal). When you consider a HELOC vs. a home equity loan, HELOCs tend to be best for people who aren’t sure exactly how much they will need to borrow or for expenses that will be incurred over time.

Cash-Out Refinance

A cash-out refinance replaces your existing mortgage with a larger one, providing you with a lump sum based on your home equity. As you consider a cash-out refinance vs. a home equity line of credit, these are some difference: Qualifying for a cash-out refinance is often more accessible than for home equity loans or HELOCs, typically requiring a credit score of 620 or higher and a debt-to-income ratio under 43%. Rates can be fixed or variable, and unlike with a home equity loan or HELOC, you’ll have just one payment to manage.

Here’s a look at how the three options stack up:

Home Equity Loan

 HELOC

 Cash-Out Refinance
Borrowing Limit Up to 85% of borrower’s equity Up to 90% of borrower’s equity 80% of borrower’s equity for most loans
Interest Rate Fixed Generally variable May be fixed or variable
Type of Credit Installment loan: Borrowers get a specific amount of money all at once that they then immediately begin repaying, with interest, in regular installments. Revolving credit: Borrowers receive a line of credit. They have a draw period (5-10 years) during which they borrow and can only pay interest, followed by a repayment period (10-20 years) to repay the principal plus interest. Installment loan: Borrowers receive a lump sum payment from the excess funds of their new mortgage, which has a new rate and repayment terms.
Repayment Term Generally 5-30 years A draw period of 5-10 years, followed by a HELOC repayment period of 10-20 years Generally 15-30 years
Fees Closing costs (typically 2-5% of the loan amount) Closing costs (typically 2%-5% of the loan amount), plus other possible costs, depending on the lender (annual fees, transaction fees, inactivity fees, early termination fees) Closing costs (typically 2-5% of the loan amount)

The Takeaway

If you’re considering a home equity loan in Kansas City, start by checking your credit score and calculating your DTI ratio. You’ll also want to make sure you have enough insurance on your property, as this can affect your loan rate. Consider whether a home equity loan, a HELOC, or a cash-out refinance would best suit your needs. Use online tools to estimate your payments and interest. As you consider loan offers, don’t forget to factor in closing costs.

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.



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FAQ

What can you use a home equity loan for?

Home equity loans are a versatile financial tool. The money you borrow with a home equity loan can be used for home improvements, educational expenses, medical bills, or debt consolidation. These loans provide a lump sum of money with fixed-rate interest, which can make budgeting for repayment easier. In some cases, the interest on a home equity loan may be tax deductible if the funds are used for home improvements.

What’s the monthly payment on a $50,000 home equity loan?

The monthly payment for a $50,000 home equity loan varies based on the loan term and interest rate. For instance, a 15-year fixed-rate loan at 7.50% would mean a monthly payment of approximately $464. Opting for a 30-year term at the same rate would lower the monthly payment to around $350. It’s important to note that the total interest paid over the life of the loan is usually higher with a longer term.

What’s the monthly payment on a $30,000 home equity loan?

The monthly payment on a $30,000 home equity loan is affected by the home equity loan rates and the loan term. For a 15-year fixed-rate loan at 7.50%, the monthly payment would be about $278. If you choose a 30-year term at the same rate, the monthly payment would be roughly $210. These payments include both principal and interest. Longer terms offer lower monthly payments but increase the total interest paid over the life of the loan.

What might prevent you from securing a home equity loan?

There are a few things that could keep you from securing a home equity loan. Lenders generally look for a minimum credit score of 680 and a debt-to-income (DTI) ratio under 50%. Falling short on either of these could mean you don’t qualify for the most competitive home equity loan rates, or don’t qualify at all. You’ll also need to have at least 20% equity in your home. And if you live in an area that’s prone to natural disasters, having insufficient property insurance could be a dealbreaker.

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