Free Wisconsin Home Equity Loan Calculator
Wisconsin Home Equity Loan Calculator
By SoFi Editors | Updated December 18, 2025
home equity loan allows Wisconsin homeowners to borrow against the value they have built in their property. Often called a second mortgage, it provides a one-time, lump-sum payment that is repaid over a set period with a fixed interest rate.
A Wisconsin home equity loan calculator is a recommended first step in the process. Simply enter in your mortgage balance, current home value, and a few other financial details to see your maximum borrowing amount and estimated monthly payment.
What follows is a breakdown of exactly what a home equity loan is, what the funds can be used for, how to use the home equity loan calculator, and more.
- Key Points
- • A home equity loan provides funds in a single lump sum with a fixed interest rate, which means the monthly payments remain stable and predictable throughout the life of the loan.
- • A Wisconsin home equity loan calculator estimates your potential monthly payments and compares different loan scenarios.
- • A borrower’s credit score and debt-to-income ratio influence the interest rate and terms offered by a lender.
- • Terms for a home equity loan typically range from five to 30 years.
- • Alternatives to home equity loans include home equity lines of credit, home improvement loans, personal lines of credit, and cash-out refinances.
Calculator Definitions
• Home Value: This is the current market value of your property, not the original purchase price. It represents what your home could likely sell for in today’s real estate market.
• Desired Loan Amount: This is the specific lump sum of money you wish to borrow from a lender. This figure represents the principal amount of the new home equity loan.
• Current Mortgage Balance: This is the total outstanding amount you still owe on your primary home loan. It should also include the balance of any other existing loans secured by your home.
• Home Equity Loan Repayment Term: This is the length of time over which you will repay the loan. Typical repayment terms for home equity loans range from five to 30 years.
• Interest Rate: This is the cost of borrowing money, expressed as a percentage rate. For most home equity loans, this is a fixed rate that does not change for the duration of the loan term.
• Maximum Loan Amount: This is the highest amount a lender might offer, based on your available equity, credit profile, and income. Lenders typically allow borrowing up to a certain percentage of your home’s value.
• Estimated Monthly Payment: This is the calculated amount you would pay each month to repay the principal and interest on the loan over the selected term.
• Available Equity Amount: This is the portion of your home’s value that you own outright. It is calculated as the difference between your home’s current market value and your current mortgage balance.
How to Use the Wisconsin Home Equity Loan Calculator
Using a Wisconsin home equity loan calculator empowers homeowners to model different financial scenarios. It provides a clear, preliminary look at your borrowing potential and estimated costs before you formally engage with a lender. Here’s exactly how to use it:
Step 1: Enter Your Home Value
Input the estimated current market value of your home. For the most accurate calculation, use recent sales of comparable homes in your neighborhood or a professional appraisal if you have one.
Step 2: Input Your Desired Loan Amount
Enter the lump sum of cash you wish to borrow. This amount should correspond to the specific needs you have, such as the total cost of a home renovation project or the combined balance of debts you intend to consolidate.
Step 3: Type in Your Current Mortgage Balance
Find the total outstanding balance on your primary mortgage and any other loans secured by your property, such as an existing home equity loan or HELOC. Enter this total into the calculator.
Step 4: Select a Home Equity Loan Repayment Term
Select a loan term from the available options, which typically range from five to 30 years. Remember that longer terms result in lower monthly payments but higher total interest costs over time, while shorter terms have higher payments but lower overall interest costs.
Step 5: Estimate Your Interest Rate
Enter an estimated interest rate. Your actual rate will depend on personal financial factors like your credit history, income, and debt-to-income ratio, but using current market averages will provide a useful preliminary calculation.
Step 6: Review Your Results
The calculator will display your results, including the estimated monthly payment and the maximum potential loan amount you might qualify for. These figures are estimates intended for planning purposes and can help you assess affordability and compare different loan structures.
What Is a Home Equity Loan?
A home equity loan is a type of second mortgage that provides a one-time lump sum of cash, which is secured by the equity in your property. In essence, you are borrowing against the portion of your home that you own. Because the loan is secured by a valuable asset — your home — it often comes with more favorable terms than unsecured debt like personal loans or credit cards.
Its core characteristics include:
• Lump-sum disbursement: The borrower receives the full loan amount at once upon closing. This makes it ideal for large, one-time expenses where the total cost is known upfront, such as a major renovation or a significant purchase.
• Fixed interest rate: The interest rate is typically fixed for the life of the loan. This results in predictable, consistent monthly payments that do not change, which is a critical feature during periods of economic volatility.
• Repayment structure: The loan is repaid in regular monthly installments that cover both principal and interest. These payments are made over a predetermined fixed term, which generally ranges from five to 30 years.
• Use of home as collateral: Your home secures the loan, which is why lenders can offer lower interest rates compared to unsecured loans. However, this also introduces a significant risk: if you fail to make payments as agreed, the lender has the right to foreclose on your property.
Understanding these features is the first step to determining if a home equity loan aligns with your financial strategy and risk tolerance.
Recommended: What Is a Home Equity Loan and How Does It Work?
Home Equity Trends in Wisconsin
Over the past five years, rising home values have significantly increased homeowner equity nationwide, with total equity doubling since 2020 — an estimated gain of $5.7 trillion. Today, roughly half of homeowners with a mortgage are considered “equity rich,” meaning their loan balance is less than 50% of their home’s value.
In Wisconsin, homeowner equity grew by 95% during the same period, reaching an average of $154,616 per homeowner in 2025. This surge in equity helps explain the growing interest in ways to tap into home equity.
Current home equity loan rates by state.
Compare current home interest rates by state and find a home equity loan rate that suits your financial goals.
Select a state to view current rates:
How to Use the Home Equity Loan Calculator Data to Your Advantage
The output from a home equity loan calculator can be used for strategic financial planning. By understanding how to interpret and apply this data, you can make more confident and informed decisions.
First, the data provides a clear path for budgeting and assessing affordability. The estimated monthly payment allows you to see exactly how a new loan will impact your monthly cash flow, enabling you to determine whether you can comfortably manage the additional payment before speaking to a lender.
Second, the calculator is an essential tool for loan comparison and scenario modeling. By adjusting the loan term input, for example, you can instantly see the trade-off between a lower estimated monthly payment and higher total interest costs. Modeling different scenarios helps you identify the loan structure that best aligns with your financial goals.
Finally, seeing your maximum loan amount helps set realistic expectations. It gives you a baseline for what you might be able to borrow, which is invaluable for planning large projects like a home renovation or for understanding the scale of debt consolidation that may be possible.
Home Equity Loan Scenarios
Here’s how a home equity loan might be applied to common financial situations.
Scenario 1: Home Remodels
Imagine a homeowner who wants to undertake a complete kitchen renovation with a projected cost of $40,000. They use a home equity loan to secure the full amount in a single lump sum. This allows them to pay their contractor and purchase materials without delay. By investing the funds back into their property, they not only improve their living space but also potentially increase their home’s market value.
Scenario 2: Debt Consolidation
Consider a homeowner with $25,000 in high-interest credit card debt spread across multiple cards with variable rates. By taking out a home equity loan, they can pay off all these balances at once. This strategy replaces several unpredictable, high-interest payments with a single, fixed-rate monthly payment that is often lower and easier to manage, simplifying their finances and potentially saving a significant amount in interest charges over time.
Tips on Home Equity Loans
Below are several best practices to secure favorable terms and use the home equity loan responsibly:
• Build a strong credit profile to unlock lower interest rates: Lenders view a high credit score as a sign of financial health. A stronger score directly impacts the interest rate you can secure, which in turn lowers your monthly payment in the calculator. While a score of 620 is often the minimum to qualify, lenders reserve the most attractive rates for applicants with scores of 680 or higher.
• Manage your debt-to-income ratio for stronger approval odds: Your debt-to-income (DTI) ratio, which compares your monthly debt to your gross income, is a key metric lenders use. Lenders’ DTI requirements vary, but a common maximum is 50%, with some preferring 45% or lower.
• Maintain sufficient home equity: Lenders require you to maintain a certain level of equity in your home even after taking out a loan, typically at least 15%. This cushion protects both you and the lender if property values decline. Staying on top of your primary mortgage payments is the most direct way to build and maintain your equity stake.
• Shop around to minimize costs: Interest rates and fees can vary significantly between lenders. Compare offers from banks, credit unions, and online lenders. This simple step can lead to substantial savings in interest costs over the life of the loan.
Finally, always remember that a home equity loan uses your home as collateral. Before proceeding, be confident in your ability to make the required monthly payments to avoid the risk of foreclosure.
Alternatives to Home Equity Loans
While there aren’t technically different types of home equity loans, it is not the only option for accessing the value you’ve built in your home. Several alternatives exist, each with distinct features, benefits, and considerations that may better suit your specific financial situation.
Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) is a revolving line of credit secured by your home. It has a two-phase structure: a “draw period” (typically 10 years), during which you can borrow funds as needed up to your credit limit, followed by a “repayment period” (often up to 20 years). Unlike a home equity loan’s fixed interest rate, a HELOC’s rate is typically variable, meaning your payments can fluctuate over time.
A HELOC interest-only calculator can calculate what your payments might be during the initial period. To determine your principal plus interest amount during the subsequent repayment period, you can use a HELOC repayment calculator.
Choose a HELOC for: Ongoing projects with uncertain costs, such as a phased home renovation, or if you want the flexibility to borrow and repay funds over time without reapplying for a new loan.
Recommended: What Is a Home Equity Line of Credit?
Home Improvement Loan
A home improvement loan is a type of unsecured personal loan, meaning your home is not used as collateral. This eliminates the risk of foreclosure if you are unable to make payments. However, because it is unsecured, interest rates may be higher and available loan amounts smaller compared to a home equity loan.
Choose a home improvement loan for: Smaller projects, urgent repairs, or if you don’t have significant equity or are unwilling to place your home at risk.
Personal Line of Credit
A personal line of credit is another unsecured, revolving credit option similar to a HELOC. The difference is that it is not secured by the home, which eliminates the risk of foreclosure, though interest rates may be higher than those for a secured line of credit.
Choose a personal line of credit when: You need flexible access to a smaller amount of cash and do not want to use your home as collateral.
Cash-Out Refinance
A cash-out mortgage refinance replaces your existing mortgage with a new, larger one, and you receive the difference between the two loan amounts in cash.
When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance is fundamentally different. A home equity loan or line of credit is a second mortgage that leaves your original mortgage intact. A cash-out refinance consolidates your housing debt into a single loan with a new interest rate and term.
Choose a cash-out refinance when: You need a large sum of money and, at the same time, can secure a more favorable interest rate or a better term on your primary mortgage.
Recommended: HELOC vs. Home Equity Loan
The Takeaway
A Wisconsin home equity loan calculator is an invaluable first step for any homeowner considering borrowing against their property’s value. It provides clear, personalized estimates that empower you to plan with confidence and assess affordability before making a commitment.
SoFi now offers home equity loans. Access up to 85%, or $750,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
Unlock your home’s value with a home equity loan from SoFi.
FAQ
How is a home equity loan different from a home equity line of credit (HELOC)?
A home equity loan provides a single lump sum of cash repaid with a fixed interest rate, resulting in predictable monthly payments. A HELOC is a revolving line of credit, similar to a credit card, where you can borrow money as needed up to a set limit, typically with a variable interest rate.
How much can I borrow with a home equity loan?
The amount depends on your home’s equity, credit score, income, and debt-to-income ratio. Lenders typically allow you to borrow up to 85% of your home’s equity. This ensures you retain a portion of your equity as a financial cushion.
What can I use home equity loan money for?
A home equity loan can be used for various purposes. Common uses include funding home renovations, consolidating high-interest debt like credit card balances, paying for education expenses, or covering other large purchases and major life expenses.
What are the typical loan terms for a home equity loan?
Repayment terms for a home equity loan generally range from five to 30 years. The term you choose will affect your monthly payment amount and the total interest you pay over the life of the loan.
Are there closing costs or fees with home equity loans?
Yes, home equity loans typically have closing costs that can range from 2% to 5% of the total loan amount. These fees may cover expenses for an appraisal, a credit report, document preparation, and a title search.
Learn more about mortgages:
SoFi Loan Products 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.
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 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.
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.
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.
SOHE-Q425-049
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Free West Virginia Home Equity Loan Calculator
West Virginia Home Equity Loan Calculator
By SoFi Editors | Updated December 23, 2025
For West Virginia homeowners, the value built up in their property represents one of the most significant financial assets available. Tapping into cash through a home equity loan can be a good way to fund major home-improvement projects, consolidate higher-interest debt, or cover other significant expenses. However, the decision to borrow against your home requires careful consideration and a clear understanding of the financial implications — and that’s where a home equity loan calculator comes into play. This guide will help you use the calculator to determine your borrowing power, pinpoint the right balance of loan term and interest rate, and see what your monthly payments might be. In just a few minutes, you can learn how to get equity out of your home with confidence, and at the lowest cost possible.
- Key Points
- • A home equity loan provides a single, lump-sum loan and your home serves as collateral.
- • Home equity loans typically feature a fixed interest rate, resulting in predictable monthly payments.
- • The interest rate borrowers are offered on a home equity loan is influenced by their credit history, equity, income, and debts.
- • Repayment periods for home equity loans generally range from five to 30 years.
- • Interest paid on a home equity loan may be tax-deductible.
Calculator Definitions
• Home Value: This is the current estimated market value of your property, not the original purchase price. You can find it on a real estate website.
• Desired Loan Amount: This is the sum you wish to borrow with a home equity loan.
• Current Mortgage Balance: The amount still owed on your primary home loan plus the balance of any other existing loans secured by the home is your mortgage balance for the purposes of this calculator.
• Home Equity Loan Repayment Term: This is the length of time over which the loan will be repaid, with terms typically ranging from five to 30 years.
• Interest Rate: The lender will charge interest for borrowing the funds. It’s typically a fixed rate for the life of a home equity loan.
• Maximum Loan Amount: The home equity calculator will estimate the highest amount a lender might offer to lend you, based on your home’s value and existing mortgage balance.
• Estimated Monthly Payment: This is the projected amount due each month to repay the loan, according to the home equity payment calculator. It includes both principal and interest.
• Available Equity Amount/Percentage: Your equity is the portion of your home’s value that you own outright. The calculator will show this as a dollar value and a percentage.
How to Use the West Virginia Home Equity Loan Calculator
Using an online home equity loan calculator is a straightforward process that provides a quick snapshot of your borrowing potential.
Step 1: Enter Your Home Value
Input the current market value of your home. If a real estate site shows a range, use the midpoint or your best estimate.
Step 2: Input Your Desired Loan Amount
Enter the amount of money you hope to borrow.
Step 3: Input Your Current Mortgage Balance
Provide the remaining balance on your primary mortgage plus any other loans secured by the house. This figure is essential for calculating your home equity.
Step 4: Select a Home Equity Loan Repayment Term
Choose a repayment period of between five and 30 years. This selection directly impacts the size of your estimated monthly payment.
Step 5: Estimate Your Interest Rate
Enter an estimated interest rate for the loan. To get a realistic estimate, it is advisable to research current market conditions or request quotes from lenders.
Step 6: Review Your Results
The home equity calculator will provide key outputs, such as the estimated monthly payment and the maximum loan amount. Use the payment number to assess the loan’s affordability and determine how the new bill might fit into your household budget.
What Is a Home Equity Loan?
The home equity loan payment calculator gives you a clear and fast result. But before you dive into a home equity loan application, it’s a good idea to make sure you understand what a home equity loan is, exactly. Technically, a home equity loan is a second mortgage, assuming you are still paying your first mortgage. You borrow against the equity you’ve built in your home with your home loan payments. Defining features of a home equity loan are structure and predictability. It provides a one-time, lump-sum payment of cash that you repay over a set period, typically between five and 30 years. Repayment is made through monthly payments. The interest rate on home equity loans is usually fixed, which means your payment amount will not change over the life of the loan.
Because the loan is secured by your home, lenders can often offer more competitive interest rates than those available for unsecured debt like personal loans or credit cards. However, using your home as collateral also means that missed payments could result in foreclosure.
Recommended: What Is a Home Equity Line of Credit?
Home Equity Trends in West Virginia
Like homeowners across the U.S., those in West Virginia have benefited from rising home prices, which have resulted in a significant increase in home equity in recent years. West Virginia saw a more than 400% increase in equity. The average West Virginia homeowner now has around $36,000 in home equity. This is lower than equity amounts in many other U.S. states (Virginia homeowners, for example, have more than $120,000 in home equity). But $36,000 in equity is still adequate to serve as collateral on a home equity loan for many borrowers. The graphic shows how equity levels have risen nationwide in the last five years.
Current home equity loan rates by state.
Compare current home interest rates by state and find a home equity loan rate that suits your financial goals.
Select a state to view current rates:
How to Use the Home Equity Loan Calculator Data to Your Advantage
The outputs from a home equity loan calculator can help you think strategically about borrowing,
The estimated monthly payment figure can help with budgeting. Homeowners can incorporate this estimate into their monthly spending plan to assess the loan’s affordability and feel confident that a new loan payment wouldn’t put a strain on their finances.
The maximum loan amount provides a clear picture of your borrowing potential. This information helps you understand the scale of projects you can realistically undertake, such as a major home renovation, or the amount of high-interest debt you could consolidate. It sets practical boundaries before you kick off a big renovation project.
Running scenarios using the calculator can help you fine-tune your borrowing plan. Try adjusting the amount you plan to borrow or the repayment term up or down to see how this will impact your monthly payment.
Home Equity Loan Scenarios
The decision to take out a home equity loan is often best understood through practical examples. The structure of this loan — a single lump sum with fixed monthly payments — makes it an ideal solution for situations where you have advance notice of how much money you need, as in these scenarios:
Scenario 1: Major Home Remodel
A homeowner is planning a kitchen renovation and has budgeted $50,000 for the contractor, materials, and appliances. The homeowner uses the home equity loan calculator to determine that a $50,000, 15-year loan at 8.15% will yield a monthly payment of $482, which fits within the family’s budget. The home equity loan provides a necessary lump sum, which is helpful in covering upfront costs.
Scenario 2: Consolidating High-Interest Debt
A homeowner has debt piling up across multiple credit cards, and each card has a high, variable interest rate. The unpredictable payments are both costly and difficult to budget for. The home equity payment calculator shows that the homeowner can borrow $35,000, enough to pay off all the credit card debt, and at an interest rate of 8.50%, the 10-year loan will have a steady monthly payment of $434. This is noticeably less than the latest payments on the credit cards, so the homeowner moves forward and consolidates the debt into one loan.
Recommended: HELOC vs. Home Equity Loan
Tips on Home Equity Loans
Securing a home equity loan with favorable terms largely depends on demonstrating your financial responsibility to lenders. The following tips are actionable strategies that can help you present yourself as a strong, low-risk applicant.
• Build a strong credit profile: Lenders view a strong credit history as a testament to your financial prudence. To qualify for a home equity you will likely need a score of at least 680, but for the best interest rates you’ll want to aim for a score of 700 or more.
• Manage your debt-to-income ratio: Your debt-to-income (DTI) ratio is the total of your monthly debt payments divided by your gross monthly income. Lenders want to see that you can comfortably manage another payment, so they typically look for a DTI ratio below 50%, and ideally below 36%. Reducing existing debts before applying can make you a more attractive borrower.
• Maintain sufficient home equity: To qualify for a loan, you will need at least 20% equity in your home. Building this stake comes from making consistent mortgage payments and, when possible, making extra payments toward the principal to demonstrate to lenders that you retain a significant financial interest in the property.
• Compare offers from multiple lenders: It is crucial to shop around. Different financial institutions may offer varying rates, fees, and terms. Comparing offers from several lenders is the best way to ensure you find the most cost-effective loan for your situation.
Alternatives to Home Equity Loans
While a home equity loan is a powerful financial tool, it is not the only option for accessing funds. Take a look at your other options:
Home Equity Line of Credit (HELOC)
There aren’t really different types of home equity loans, but there are different ways to borrow against your equity. A HELOC is another popular option. It’s a revolving line of credit secured by your home; you use it much as you would a credit card. Instead of a lump sum, it provides flexibility to borrow funds as needed up to a set limit during a “draw period.” During the draw phase, you need only pay interest on what you have borrowed (a HELOC interest-only calculator can help you compute what an interest-only payment might be).
After the draw phase, you enter a repayment phase when you repay what you have borrowed, with interest. (A HELOC repayment calculator is handy then.) Unlike the fixed interest rate typical of a home equity loan, HELOCs usually have a variable rate, meaning payments can fluctuate. This option is often more suitable for ongoing projects with uncertain costs or for homeowners who want a financial safety net they can tap into as needed.
Home Improvement Loan
A home improvement loan is a type of unsecured personal loan, meaning it is not backed by your home as collateral. This eliminates the risk of foreclosure if you are unable to make payments. However, because the lender takes on more risk, these loans often come with less competitive interest rates and shorter repayment terms compared to a home equity loan.
Personal Line of Credit
A personal line of credit is another unsecured, revolving credit line that is not tied to your home’s equity. It functions similarly to a HELOC but without using your property as collateral. This can be a viable alternative for those who do not have sufficient home equity or prefer not to risk their home, but the interest rates are typically less favorable than secured options.
Cash-Out Refinance
A cash-out mortgage refinance involves replacing your existing mortgage with a new, larger one and receiving the difference in cash. When you consider a cash-out refinance vs. home equity line of credit or home equity loan, a key difference is that the refinance results in a single, new mortgage. The HELOC or home equity loan are both second mortgages, and with these you will have a second monthly payment to make on top of your first mortgage. A cash-out refinance can be a good option if you can secure a lower interest rate on the new mortgage than you have on your original loan. If not, it may not make sense to refinance.
The Takeaway
A home equity loan payment calculator can help West Virginia homeowners assess their borrowing capacity and understand the potential cost of tapping into their home equity. You can experiment with different combinations of loan amount and loan term to see how these factors affect your monthly payment amount. Seek out rate quotes from multiple lenders to arrive at the mix of interest rate and loan terms that fit your budget and your borrowing needs.
SoFi now offers home equity loans. Access up to 85%, or $750,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
Unlock your home’s value with a home equity loan from SoFi.
FAQ
How is a home equity loan different from a home equity line of credit (HELOC)?
A home equity loan provides a one-time lump sum of cash with a fixed interest rate and predictable monthly payments. In contrast, a HELOC is a revolving line of credit with a typically variable interest rate, allowing you to borrow and repay funds as needed. With a home equity loan you will start repaying what you have borrowed immediately, with interest. With a HELOC, you can pay only interest for an initial draw period of up to 10 years.
What can I use home equity loan money for?
Funds from a home equity loan are flexible and can be used for a wide range of purposes. Common uses include major home renovations, consolidating higher-interest debt, or paying a wedding or another significant one-time purchase.
Is the interest rate on a home equity loan fixed or variable?
Home equity loans almost always come with a fixed interest rate. This means the interest rate remains the same for the entire life of the loan, which results in consistent and predictable monthly payments.
Does a home equity loan replace my first mortgage?
A home equity loan is a second mortgage and is an entirely separate loan from your primary mortgage. You will have two separate mortgage payments each month: one for your original mortgage and one for the new home equity loan.
Learn more about mortgages:
SoFi Loan Products 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.
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 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.
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.
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.
SOHE-Q425-048
Get prequalified in minutes for a SoFi Home Loan.
Free Virginia Home Equity Loan Calculator
Virginia Home Equity Loan Calculator
By SoFi Editors | Updated December 18, 2025
For Virginia homeowners, the equity built up in a property represents a significant financial asset. A home equity loan allows you to borrow against this value, providing access to funds for major expenses like renovations, debt consolidation, or educational costs.
A Virginia home equity loan calculator can serve as an invaluable first step in your financial planning. By using a calculator, you can estimate potential loan amounts, project monthly payments, and compare different scenarios before engaging with lenders.
This guide will cover what a home equity loan is, how to use a home equity loan calculator, and other important considerations to help you make an informed financial decision.
- Key Points
- • A Virginia home equity loan calculator is a useful tool for estimating monthly payments and maximum borrowing power.
- • A home equity loan is a type of second mortgage that allows you to borrow against the equity you have in your home.
- • Home equity loan funds are received as a lump-sum amount, and the interest rate is typically fixed.
- • A borrower’s credit score and debt-to-income ratio are primary factors that influence home equity loan offers.
- • The repayment term for a home equity loan generally ranges from five to 30 years.
Calculator Definitions
• Home Value: This is your property’s current market value, not the original price you paid for it. A realistic valuation will give a more accurate calculation.
• Desired Loan Amount: This is the specific amount of money you intend to borrow to meet your financial needs. It’s wise to base this figure on actual costs for a project or expense.
• Current Mortgage Balance: This figure represents the total outstanding amount you owe on your primary home loan. It should also include the balance on all loans or credit lines you have that are secured by your home.
• Home Equity Loan Repayment Term: This is the length of time over which the loan is to be repaid. These terms typically range from five to 30 years.
• Interest Rate: This is the rate charged by the lender on the borrowed funds. The interest rate is a primary factor in determining the total cost of the loan over time.
• Maximum Loan Amount: This is the estimated highest amount a homeowner might be eligible to borrow. This figure is based on your available home equity and overall financial standing.
• Estimated Monthly Payment: This is the projected, consistent payment that will be due each month. It covers the repayment of both the loan principal and the accrued interest.
• Available Equity Amount: This represents the difference between your home’s estimated market value and your outstanding mortgage balance, forming the basis of your borrowing capacity.
How to Use the Virginia Home Equity Loan Calculator
Using a Virginia home equity loan calculator allows you to explore possibilities and understand potential costs before formally applying with a lender. Here’s a step-by-step going on how to use it:
Step 1: Enter Your Home Value
Input your home’s current market value. For the most realistic result, base this estimate on recent sales of comparable homes in your neighborhood, rather than using your original purchase price.
Step 2: Input Your Desired Loan Amount
Enter the amount of money you wish to borrow. This should be based on your actual financial needs, whether for a specific home improvement project, debt consolidation, or another major expense.
Step 3: Type in Your Current Mortgage Balance
Provide the total outstanding balance on your primary mortgage and any other loans secured by your home. This allows the calculator to determine the amount of equity you have available to borrow against.
Step 4: Select a Home Equity Loan Repayment Term
Choose a repayment term, noting that options generally range from five to 30 years. This decision involves a significant trade-off: longer terms result in lower monthly payments but higher total interest costs, while shorter terms have higher payments but lower total interest.
Step 5: Estimate Your Interest Rate
Enter an estimated interest rate. The actual rate you qualify for will depend on several factors, most notably your credit history and score. Generally, a higher credit score will secure a more favorable, lower interest rate from lenders.
Step 6: Review Your Results
The calculator will provide you with an estimated monthly payment and a potential maximum loan amount. Use this information to assess whether the monthly payment fits comfortably within your household budget and to understand your borrowing capacity.
What Is a Home Equity Loan?
A home equity loan is a type of second mortgage that allows you to borrow against the equity you have built in your home. The loan is provided as a single, lump-sum payment, which you receive upfront after closing. This structure makes it particularly well-suited for large, one-time expenses where the total cost is known in advance.
Characteristics of a home equity loan include:
• Collateral: Your home is used as collateral to secure the loan.
• Fixed interest rate: These loans typically have a fixed interest rate, meaning your rate will not change over the loan’s term.
• Predictable payments: Repayment consists of fixed monthly installments that cover both principal and interest, making budgeting straightforward and predictable.
• Set term: The loan is repaid over a predetermined period, generally ranging from five to 30 years.
“Home equity” itself is defined as the difference between your home’s current market value and the total outstanding balance of your mortgage.
Recommended: What Is a Home Equity Loan and How Does It Work?
Home Equity Trends in Virginia
As home values have risen over the last five years, so have homeowner equity levels. In fact, equity levels have doubled since 2020, a collective increase of $5.7 trillion (see chart below). About half of homeowners with a mortgage are considered “equity rich,” which means their mortgage balance is less than 50% of the home’s value.
In Virginia, equity levels increased 186% over the same period. The average home equity in 2025 per homeowner is $121,500. This could be why there is so much interest around how to get equity out of your home.
Current home equity loan rates by state.
Compare current home interest rates by state and find a home equity loan rate that suits your financial goals.
Select a state to view current rates:
How to Use the Home Equity Loan Calculator Data to Your Advantage
The output from a home equity loan calculator is more than just a set of numbers; it is actionable data that you can use for strategic financial planning. Here’s how homeowners can leverage the calculator’s estimates for practical purposes:
• Budgeting: Use the estimated monthly payment to see if a new loan can fit comfortably within your existing household budget. This check helps determine affordability and avoid future financial strain.
• Scenario comparison: Run the numbers for different loan terms. For example, compare a 15-year term to a 30-year term to see how it affects both the monthly payment and the total interest you would pay over time. This analysis helps you find the right balance between short-term affordability and long-term cost.
• Defining a realistic loan amount: The calculator can show you the maximum amount you might be able to borrow. Use this information not as a target, but as a ceiling to help you define a responsible borrowing limit that aligns with your financial goals without creating unnecessary debt.
• Informing lender discussions: When you approach lenders, you will already have a clear understanding of what loan amount and payment schedule works for you. This allows for a more productive conversation and helps you effectively compare the official offers you receive.
Home Equity Loan Scenarios
Applying these concepts to hypothetical scenarios clarifies how a home equity loan can be used to meet common financial goals. Take a look at the following three situations in which a home equity loan may come in handy:
Scenario 1: Funding a Major Home Renovation
A homeowner in Virginia wants to complete a major kitchen and bathroom remodel. They have received firm quotes from contractors and know the project will cost $50,000. Because the cost is fixed and they need the funds upfront to pay the contractor, a home equity loan is a suitable choice. Its lump-sum disbursement and fixed-rate structure provide the certainty needed for a project with a set budget.
Scenario 2: Consolidating High-Interest Debt
Another homeowner has accumulated debt across multiple credit cards, each with a high, variable interest rate. A home equity loan’s single, lump-sum payment allows them to pay off all credit card balances at once. They are left with one manageable monthly payment at a much lower, fixed interest rate.
Tips on Home Equity Loans
Prospective borrowers can improve their chances of qualifying for favorable terms and ensure the loan serves their financial goals effectively by following these tips:
• Strengthen your financial health: Lenders look for evidence of financial responsibility. Before applying, focus on maintaining a strong credit score and a well-managed debt-to-income (DTI) ratio. A higher score and lower DTI often lead to better interest rates and loan terms.
• Meet the equity requirement: Lenders typically require homeowners to have at least 20% equity in their home to qualify. You can calculate your equity by subtracting your current mortgage balance from your home’s estimated market value.
• Shop around and compare offers: Obtain quotes from multiple lenders, including banks and credit unions, to compare interest rates, fees, and terms. This simple step can lead to significant savings over the life of the loan.
• Understand the risks: A home equity loan uses your home as collateral. This means that if you fail to make your payments as agreed, the lender has the right to foreclose on your property.
• Borrow only what you need: While you may be approved for a large loan amount, it is wise to borrow only what is necessary to meet your financial goal. Avoiding unnecessary debt will keep your monthly payments lower and reduce your overall financial risk.
Alternatives to Home Equity Loans
While there aren’t technically different types of home equity loans, there are different ways to borrow against your home equity. It is important for every homeowner to evaluate all available options for tapping into their home equity. Four alternative options include:
Home Equity Line of Credit (HELOC)
A home equity line of credit, or HELOC, is a revolving line of credit secured by your home, operating much like a credit card. It features a variable interest rate and is structured with two distinct phases: a “draw period,” during which you can access funds as needed up to your credit limit, followed by a “repayment period,” where you pay back the principal and interest.
A HELOC interest-only calculator can calculate what your payments might be during the initial period. To determine your principal plus interest amount during the subsequent repayment period, you can use a HELOC repayment calculator.
A HELOC is best suited for: Ongoing projects with uncertain costs, such as a phased home renovation, or for homeowners who want the flexibility to borrow and repay funds over time without reapplying for a new loan.
Recommended: What Is a Home Equity Line of Credit?
Home Improvement Loan
A home improvement loan is a type of unsecured personal loan, meaning your home is not used as collateral. This reduces the risk to the homeowner, as the property cannot be foreclosed upon for non-payment. The application and funding process is typically faster than for a home equity loan. However, because they are unsecured, these loans may come with higher interest rates and shorter repayment terms.
A home improvement loan is best suited for: Smaller projects, urgent repairs, or for homeowners who have not yet built significant equity or are unwilling to place their home at risk.
Personal Line of Credit
Similar to a HELOC, a personal line of credit is another unsecured, revolving credit option. The difference is that it is not secured by the home, which eliminates the risk of foreclosure, though interest rates may be higher than those for a secured line of credit.
A personal line of credit is best suited for: Those that need flexible access to a smaller amount of cash and do not want to use your home as collateral.
Cash-Out Refinance
A cash-out mortgage refinance replaces your existing primary mortgage with a new, larger one. The difference between the new loan balance and your old mortgage balance is given to you as a single, lump-sum payment of cash. The end result is a single, consolidated monthly mortgage payment.
When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance results in a single mortgage payment, whereas a home equity line of credit (or home equity loan) is a payment separate from your primary mortgage.
A cash-out refinance is best suited for: Homeowners who need a large sum of money and, at the same time, can secure a more favorable interest rate or a better term on their primary mortgage.
Recommended:HELOC vs. Home Equity Loan
The Takeaway
A Virginia home equity loan calculator empowers homeowners to estimate their borrowing potential, project monthly payments, and assess affordability before making any commitments. The decision to borrow against your home is significant. Virginia homeowners should carefully weigh the immediate benefits of accessing cash against the profound responsibility of placing their most valuable asset as collateral.
SoFi now offers home equity loans. Access up to 85%, or $750,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
Unlock your home’s value with a home equity loan from SoFi.
FAQ
How is a home equity loan different from a home equity line of credit (HELOC)?
A home equity loan provides a one-time lump sum of cash with a fixed interest rate and consistent monthly payments. In contrast, a HELOC is a revolving line of credit with a variable interest rate, allowing you to borrow and repay funds as needed during a specified draw period. The loan is ideal for a single, large expense, while a HELOC is better for ongoing or uncertain costs.
Is the interest rate on a home equity loan fixed or variable?
Home equity loans typically come with a fixed interest rate. This is a key feature that provides predictability and stability for borrowers. A fixed rate ensures that your monthly payment amount will remain the same for the entire life of the loan, making it easier to budget for repayment.
What are the typical loan terms for a home equity loan?
Repayment terms for home equity loans are generally lengthy, offering flexibility to fit different budgets. These terms can range anywhere from five to 30 years. A longer term will result in a lower monthly payment, while a shorter term will lead to less interest paid over the life of the loan.
What are the qualification requirements for a home equity loan?
To qualify, lenders primarily look for sufficient home equity (typically at least 20%), a good credit score (often 620 or higher), and a manageable debt-to-income (DTI) ratio (below 50%). You will also need to provide proof of a steady and verifiable source of income to demonstrate your ability to repay the loan.
Learn more about mortgages:
SoFi Loan Products 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.
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 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.
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.
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.
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Free Vermont Home Equity Loan Calculator
Vermont Home Equity Loan Calculator
By SoFi Editors | Updated December 30, 2025
A home equity loan is a great option to fund a major renovation, to consolidate debt, or to achieve other significant financial goals. Use the Vermont home equity loan calculator to help you estimate your potential borrowing power based on the equity you’ve built in your property. This guide is designed to help homeowners learn how to use the calculator to its full potential. Gain a better understanding of key definitions, tips, risks, and alternatives to a home equity loan.
- Key Points
- • Our Vermont home equity loan calculator is a useful tool for comparing different loan scenarios and understanding potential costs.
- • A home equity loan provides funds as a single, lump-sum payment based on the equity you have in your home.
- • Home equity loan interest rates are influenced by personal financial factors, such as your credit score and debt-to-income (DTI) ratio.
- • The interest on a home equity loan may be tax-deductible. Be sure to check with a tax advisor about tax implications.
- • Home equity loans typically feature fixed interest rates, which ensures that the monthly payments are consistent for the duration of the loan.
Calculator Definitions
Here are definitions to get familiar with before you use the Vermont home equity loan calculator.
• Home Value: The home value is the current estimated market value of your property, not the original purchase price.
• Desired Loan Amount: The desired loan amount is the principal amount that will be repaid over the loan term. You can input this amount, or use the slider.
• Current Mortgage Balance: This is the total outstanding amount you owe on your primary home loan.
• Home Equity Loan Repayment Term: This is the length of time (typically between five and 30 years) over which you will repay the loan. The term you select directly affects how much your monthly payment is.
• Interest Rate: Interest, expressed as a percentage, is the cost of borrowing money.
• Maximum Loan Amount: This figure represents an estimate of your borrowing capacity, the highest amount a lender might offer based on your available equity and financial profile.
• Estimated Monthly Payment: This is the estimated amount of your monthly payment to repay the loan. It includes both principal and interest. The calculator displays a payment amount for both a maximum loan amount and your desired loan amount.
• Available Equity Amount/Percentage: This is the portion of a home’s equity that a lender might allow a homeowner to borrow against. It represents the difference between the home’s market value and any outstanding mortgage balance.
How to Use the Vermont Home Equity Loan Calculator
Here are the steps to use the Vermont home equity loan calculator most effectively:
Step 1: Enter Your Home Value
Start by entering the current estimated market value of your home. This figure is the basis for estimating your available equity and borrowing power.
Step 2: Input Your Desired Loan Amount
Enter the amount you would like to borrow.
Step 3: Choose Your Current Mortgage Balance
Enter the remaining balance on your primary mortgage. This figure helps determine the amount of equity you currently hold in the property.
Step 4: Select a Home Equity Loan Repayment Term
Indicate a repayment period (from five to 30 years).
Step 5: Estimate Your Interest Rate
Input an estimated interest rate to see how it impacts your potential payments.
Step 6: Review Your Results
Review the results, which will include an estimated monthly payment and a maximum potential loan amount. Use these figures to help you determine what you can afford.
What Is a Home Equity Loan?
A home equity loan is a financial tool that functions as a second mortgage, allowing homeowners to borrow against the equity they have built in their property. Having an understanding of what a home equity loan is, including the benefits and the risks, will help you determine whether this option is the right fit for your goals and finances.
Basically, a home equity loan converts your ownership stake into a lump sum of cash that can be used for just about anything. The biggest risk is that your home serves as collateral. Therefore, failing to make timely payments could lead to foreclosure. Use our Vermont home equity loan calculator to help you run the numbers and feel more at ease with your options.
Recommended: HELOC vs. Home Equity Loan
Home Equity Trends in Vermont
Since 2020, homeownership has paid off dramatically in most parts of the country, home equity increasing 142% on average (see chart). Homeowners in Vermont are benefitting from this surge, with equity levels increasing by 75% over the same period. The average home equity per homeowner is currently above $223,000.
Keeping an eye on this market trend is helpful as you explore how to get equity out of your home.
Current home equity loan rates by state.
Compare current home interest rates by state and find a home equity loan rate that suits your financial goals.
Select a state to view current rates:
How to Use the Home Equity Loan Calculator Data to Your Advantage
As you explore the Vermont home equity loan calculator and gain an understanding of the outputs, you can apply the estimates to your personal scenarios and assess affordability before committing to a home equity loan. First, the estimated monthly payment helps you determine if you can comfortably manage the new debt alongside existing financial obligations.
Next, look closely at the maximum loan. The figure provides a realistic ceiling for large-scale projects, helping you align your project scope with what you can borrow. Finally, experiment with different repayment terms to see the trade-off between short-term cash flow and long-term cost. When you input a shorter repayment term, you will see higher monthly payments but less interest paid overall. A longer term will offer lower payments at a greater total cost.
Using the Vermont home equity loan calculator to its full potential can help you figure out the best scenarios for your budget and goals.
Home Equity Loan Scenarios
Now that you are familiar with the Vermont home equity loan calculator, you can apply what you’ve learned to real-world examples. Here are two.
Scenario 1: Home Improvement
A homeowner is planning a home remodeling with a fixed cost of $40,000. A home equity loan with a fixed interest rate of 8.00% and a 15-year repayment term works well for this financial goal. The homeowner has an affordable monthly payment of $383—one that will never change over the life of the loan—so they move ahead with the project.
Scenario 2: Consolidating High-Interest Debt
Another homeowner is managing more than $25,000 in credit card debt across several credit cards averaging 25.00% APR. With a home equity loan at 9.50% interest, they consolidate the high-interest debt into a single, lower-interest monthly expense. This provides them with a more manageable and consistent payment plan while saving thousands of dollars in interest over the long haul.
Tips on Home Equity Loans
Approach a home equity loan with responsible and careful planning. Here are some tips to help you navigate the process.
• Understand the risks: The home serves as collateral on the home equity loan. You risk foreclosure if you fail to make timely payments.
• Boost your credit score: Before applying, aim for a strong credit score (680+) and a low DTI (<50%), which will improve your chances of qualifying for the most favorable rates.
• Compare offers: Get offers from a variety of lenders and compare their rates and terms.
• Borrow only what you need: It may be tempting to borrow the maximum amount you’re approved for. Try to stick to your original expense budget and avoid taking on excessive debt.
• Consider tax implications: Check with a tax advisor to find out whether the interest on your home equity loan is tax-deductible.
Alternatives to Home Equity Loans
While a home equity loan is a powerful tool to leverage the equity you’ve built up in your home, other financial products also exist that are well suited for different needs, goals, or situations. Here are some alternatives to a home equity loan:
Home Equity Line of Credit (HELOC)
As you pursue a home equity loan, you may also be wondering what is a home equity line of credit? It’s a revolving line of credit, usually with a variable interest rate, secured by your home. HELOCs are ideal for ongoing projects with uncertain costs. With a HELOC, money can be taken out as you need it, up to the limit that was approved.
HELOCs have a draw period, often 10 years, when you might pay interest only on the money borrowed. A HELOC interest-only calculator can help you compute what your payments might be during the initial period. A HELOC repayment calculator helps you determine your principal plus interest payment during the subsequent repayment period.
Recommended: What Is a Home Equity Line of Credit?
Home Improvement Loan
This is an unsecured personal loan specifically intended for renovations. Because the home improvement loan is not secured by your home, there is no risk of foreclosure if you are unable to make payments. This lack of collateral, however, means that interest rates are typically higher compared to a home equity loan.
Personal Line of Credit
A personal line of credit (not to be confused with a personal loan) is a type of revolving credit line that can be used to pay for a variety of expenses. It’s similar to how a credit card works: The lender approves you for a specific credit limit, you draw only what you need and pay interest only on the amount you use. A minimum payment is required every month, and as the debt on the credit line is repaid, money can be withdrawn again.
Cash-Out Refinance
With a cash-out mortgage refinance, you take out a new mortgage for a larger amount than what you have left on your current mortgage and you receive the difference between the new and old loan balances as a lump sum of cash.
When comparing a cash-out refinance vs. home equity line of credit, you should know that a home equity loan adds a second monthly payment, but a cash-out refinance results in a single, new primary mortgage payment.
The Takeaway
Pursuing a home equity loan is a significant commitment. Using our Vermont home equity loan calculator is a responsible move as you begin to estimate your borrowing capacity and potential monthly payments. Empower yourself by using this guide, which provides information on housing trends and alternatives associated with a home equity loan. That way you can find the financial solution that best aligns with your goals and budget.
SoFi now offers home equity loans. Access up to 85%, or $750,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
Unlock your home’s value with a home equity loan from SoFi.
FAQ
Does a home equity loan replace my first mortgage?
No, a home equity loan does not replace your first mortgage. You will make separate payments on two loans concurrently.
What are the typical loan terms for a home equity loan?
Typically, the repayment term ranges from five to 30 years. You will see that a shorter term leads to a higher monthly payment but less total interest paid. A longer term would have a lower monthly payment but more interest paid over the life of the loan.
What are the qualification requirements for a home equity loan?
You will need a credit score of at least 620 (680 for SoFi). Scores of 700+ typically earn the best rates. Lenders want to see that you possess sufficient home equity (>20%), a manageable debt-to-income ratio (below 50%), and a stable source of income.
Are there closing costs or fees with home equity loans?
Closing costs associated with home equity loans usually appear as fees for a home appraisal, title search, and loan origination. These costs range from 2% to 5% of the loan amount.
Learn more about mortgages:
SoFi Loan Products 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.
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 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.
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.
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.
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Free Utah Home Equity Loan Calculator
Utah Home Equity Loan Calculator
By SoFi Editors | Updated December 18, 2025
A home equity loan is a useful financial tool that allows homeowners to borrow against the value they have built in their property by making regular mortgage payments. This type of loan can provide a substantial lump sum of cash to fund major home renovation projects, consolidate debt, or cover other large expenses. For homeowners considering this option, a home equity loan calculator can help you explore potential borrowing capacity and estimate monthly payments. The following guide provides key details to help you use the calculator and navigate this financial decision.
- Key Points
- • A home equity loan is secured by the borrower’s residence, which serves as collateral.
- • Home equity loans typically feature a fixed interest rate, which results in consistent monthly payments for the duration of the loan.
- • A home equity loan calculator can be used to run scenarios and explore how different interest rates and loan terms affect payment amounts.
- • The repayment period for a home equity loan generally ranges from five to 30 years.
- • Interest paid on the loan may be tax-deductible.
Calculator Definitions
• Home Value: Home value is the property’s current estimated market value, not the original purchase price. Find an estimate on a real estate site.
• Desired Loan Amount: This is the specific sum of money you wish to borrow. Known as the loan principal, it will be repaid over the loan term.
• Current Mortgage Balance: The current mortgage balance is the total outstanding amount owed on your existing primary mortgage and any other existing home loans that you have.
• Home Equity Loan Repayment Term: The home equity loan repayment term is the period over which the loan will be fully repaid. These terms typically range from five to 30 years.
• Interest Rate: The interest rate is the cost of borrowing the money, expressed as a percentage. For home equity loans, this rate is typically fixed for the loan term.
• Maximum Loan Amount: The maximum loan amount is the highest estimated sum a lender might offer based on your available equity. You do not have to borrow the full amount offered.
• Estimated Monthly Payment: The estimated monthly payment is the projected amount due each month to repay the loan. This payment includes both principal and interest. The calculator gives you a payment amount for your maximum loan and your desired loan amount.
• Available Equity Amount/Percentage: The home equity calculator shows the portion of the home’s value that you own outright in dollars. The calculator also shows it as a percentage of the home value.
How to Use the Utah Home Equity Loan Calculator
A Utah home equity loan calculator should be viewed as a no-commitment diagnostic tool. It allows homeowners to stress-test their household budget against various loan scenarios. Use it by following these six easy steps.
Step 1: Enter Your Home Value
Input the current estimated market value of your home. This value is the cornerstone of the entire calculation and the basis for all subsequent estimates of your borrowing capacity.
Step 2: Input Your Desired Loan Amount
Enter the specific amount of money you need for your project or financial goal.
Step 3: Enter Your Current Mortgage Balance
Provide the outstanding balance of your current mortgage and any other loans secured by the property. This figure is essential for the calculator to determine the amount of equity you have.
Step 4: Select a Home Equity Loan Repayment Term
Select a repayment period. Shorter terms often work for borrowers doing a debt consolidation, where the objective is to eliminate debt quickly. Longer terms may be better suited for home improvement projects, where a lower monthly payment is amortized over the project’s lifetime.
Step 5: Estimate Your Interest Rate
Enter an estimated interest rate to receive a more personalized payment estimate. Remember that this is only an estimate; the actual interest rate you are offered will be determined by a lender based on your credit history and financial profile.
Step 6: Review Your Results
The home equity payment calculator will provide key outputs, such as your estimated monthly payment and maximum loan amount. You can adjust the inputs to find a loan amount, term, and interest rate that meet your needs.
What Is a Home Equity Loan?
If you’ve tested out the calculator and are thinking a home equity loan might be right for you, you’ll want to make sure you understand what a home equity loan is before you dive in. A home equity loan is, technically speaking, a second mortgage. Homeowners borrow against the equity they have built in their property. That equity — the home’s market value minus the outstanding mortgage balance — serves as the collateral. This is why home equity loans often have more favorable interest rates than unsecured debt like personal loans or credit cards.
The mechanics of a home equity loan are simple: Funds are disbursed in a single lump sum. Borrowers immediately begin making monthly payments that include both principal and interest. This continues for the entire loan term, from five to 30 years. A key feature of these loans is that they almost always come with a fixed interest rate, so monthly payments are predictable. Keeping on top of these payments is key. If you don’t repay what you have borrowed, with interest, the lender could foreclose on your home.
Recommended: What Is a Home Equity Line of Credit?
Home Equity Trends in Utah
Utah homeowners who are contemplating a home equity loan because they are sitting on a nice level of equity in their home are part of a national trend. Home equity levels have risen across the country over the last five years. The average Utah owner has 67% more equity than in 2020, thanks in part to escalating home values in the state. The median sale price in the fall of 2020 in Utah was $432,600, according to Redfin. In the fall of 2025, the number was $578,500. Here’s a look at how equity has risen nationally in billions of dollars. The home equity calculator will show you an estimate of how much equity you, personally, are sitting on.
Current home equity loan rates by state.
Compare current home interest rates by state and find a home equity loan rate that suits your financial goals.
Select a state to view current rates:
How to Use the Home Equity Loan Calculator Data to Your Advantage
The output from a home equity loan calculator is more than just numbers. Used wisely the information can help you assess affordability, compare different loan structures, and align borrowing decisions with your financial goals.
By analyzing the Estimated Monthly Payment provided by the home equity loan payment calculator, you can determine how a new loan payment would fit into your existing budget. This is a smart move to prevent overextending yourself.
The Maximum Loan Amount gives you the lowdown on how to get equity out of your home and how much equity you might harness. This estimate will be useful if you are planning large-scale projects, such as a major renovation.
Finally, using the calculator to model different loan terms — for example, comparing a 10-year repayment term to a 20-year one — shows you how much the loan term affects the payments. Remember that lower monthly payments generally mean higher interest costs over the life of the loan.
Home Equity Loan Scenarios
Imaginary examples can help clarify the use case for a home equity loan. Check out these sample scenarios.
Scenario 1: Funding a Major Home Improvement Project
Imagine a homeowner in Utah who wants to undertake a major kitchen remodel with a cost of $50,000. They have sufficient equity in their home and a stable income. By taking out a fixed-rate home equity loan for this amount, they receive the full $50,000 in a lump sum. This allows them to pay their contractor and purchase materials without worrying about depleting their emergency fund or maxing out a credit card (or both). Because the loan has a fixed interest rate and a set repayment term, their monthly payment is predictable.
Scenario 2: Consolidating High-Interest Debt
Consider another homeowner who has $25,000 in high-interest debt piled up across several credit cards. The variable interest rates make the monthly payments unpredictable and costly. The homeowner secures a $25,000 home equity loan and pays off all their cards at once. Now they have one monthly payment instead of three, and it’s at a lower, fixed interest rate — so the payment amount is steady and predictable. As long as the homeowner doesn’t acquire new high-interest debt now that their card balances are cleared, this should be a successful debt consolidation.
Tips on Home Equity Loans
Approaching a home equity loan requires careful planning. These tips can help you navigate the process:
• Build a strong credit history. Lenders view a strong credit score as an indicator of financial responsibility. Lenders typically favor credit scores of at least 680 or higher for home equity loan applicants, with many preferring 700 or more.
• Manage your debt-to-income ratio. Your debt-to-income (DTI) ratio, which is your total monthly debt payments divided by your gross monthly income, will be scrutinized. Lenders typically look for a DTI ratio below 50% for a home equity loan, and ideally below 36%. Reducing existing debts before applying for a home equity loan can lower your DTI ratio.
• Understand the risks. Only borrow if you are sure you can repay the loan. You don’t want to risk foreclosure.
• Shop around. Seek out offers from multiple financial institutions and use the home equity loan payment calculator to compare the costs of their interest rates. Don’t forget to look at fees as well.
• Borrow only what you need. Once you learn your borrowing power, it can be tempting to borrow more than necessary. Avoid taking on extra debt. One sobering thought: If your home’s market value declines, you could end up owing more than the property is worth, a situation known as being “underwater.
Alternatives to Home Equity Loans
While there aren’t really different types of home equity loans, there are other ways to use home equity funds, as well as ways to borrow that don’t involve using your home as collateral.
Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) is a revolving credit line secured by your home. A HELOC is structured with a “draw period,” typically lasting up to 10 years, where you can borrow funds and may only be required to pay interest, though only on the amount you’ve borrowed. This is followed by a “repayment period,” often up to 20 years, where you repay both principal and interest.
A HELOC interest-only calculator can calculate what your payments might be during the initial period. To determine your principal plus interest amount during the subsequent repayment period, you can use a HELOC repayment calculator.
HELOCs are often a good fit for homeowners who need flexibility for ongoing projects with uncertain costs or timelines.
Home Improvement Loan
A home improvement loan is a type of unsecured personal loan, meaning it does not use your home as collateral. Its features are:
• It’s an unsecured loan, so there is no risk of foreclosure.
• The application and funding process is often faster than for a home equity loan.
• Interest rates are typically higher than for secured loans.
• Loan amounts may be smaller than what is available through a home equity loan.
This is a smart choice for those with less home equity or for individuals who prefer not to secure a loan with their property.
Personal Line of Credit
A personal line of credit is an unsecured, revolving line of credit. It is similar to a HELOC, but it is not secured by your home equity. This means no risk of foreclosure for you as the borrower, but it may lead to higher interest rates and lower credit limits compared to a HELOC.
Cash-Out Refinance
A cash-out mortgage refinance replaces your current mortgage with a new, larger loan. The mechanics are straightforward: the new loan pays off your original mortgage, and you receive the difference between the two loan amounts in cash.
When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance results in a single, new primary mortgage with its own terms and interest rate. This choice may be beneficial if you can secure a lower interest rate on your refinance than what you currently have.
The Takeaway
One advantage of a home equity loan is the consistency of its fixed interest rate and consistent monthly payment. And a home equity loan calculator can help you quickly arrive at the combination of loan amount, payment term, and interest rate that delivers your optimal monthly bill. Always seek out rates from multiple lenders so you’ll have options. Then use the calculator to see which one best delivers a payment you can live with.
SoFi now offers home equity loans. Access up to 85%, or $750,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
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FAQ
How much can I borrow with a home equity loan?
How much you can borrow with a home equity loan depends on your home’s equity, your credit history, and your income. Lenders typically allow homeowners to borrow 85% of their available equity, requiring a protective cushion of equity to remain in the home. This means you generally cannot borrow the full amount of your equity.
What can I use home equity loan money for?
Funds from a home equity loan can be used for a wide range of purposes, including home renovations, debt consolidation, or funding other major purchases. While the use is flexible, it is important to remember that the loan is secured by your home.
Is the interest rate on a home equity loan fixed or variable?
A home equity loan almost always comes with a fixed interest rate. It’s set when the loan is originated and will not change over the repayment term. This consistency makes it easier to budget for the loan repayment over many years.
Are there closing costs or fees with home equity loans?
Home equity loans typically have closing costs, which can range from two to five percent of the total loan amount. Some lenders may offer loans with no closing costs, but this could result in a higher interest rate, so it is important to compare all terms of the loan offer.
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SoFi Loan Products 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.
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All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
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