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Feb
05
2026

Free Washington HELOC Payment Calculator

By | mortgage | Comments Off on Free Washington HELOC Payment Calculator

Washington HELOC Calculator

By SoFi Editors | Updated January 29, 2026

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A Washington HELOC calculator is a useful tool for homeowners who are sitting on comfortable levels of home equity. If you have a good credit score and otherwise meet lender qualifications, you might be able to borrow up to 90% of your equity using a home equity line of credit (HELOC). But is that a good fit for your budget? This guide will show you what your monthly payments might be on a HELOC at key points in your borrowing journey. Along the way, we’ll make sure you understand exactly what a home equity line of credit is and how it works.

  • Key Points
  • •  A home equity line of credit is a revolving credit agreement that allows for multiple withdrawals and repayments up to a specific credit limit.
  • •  Borrowing capacity is determined by your home’s current market value minus any existing mortgage balances.
  • •  A HELOC payment calculator computes estimated payment amounts during the two phases of a HELOC.
  • •  The initial phase is the draw period, typically lasting 10 years, while the second phase, the repayment period, often spans 20 years.
  • •  Interest paid on a HELOC may be tax-deductible for homeowners who itemize.

Calculator Definitions

•   HELOC Balance: If you don’t yet have a HELOC, the balance for the purpose of the calculator is the amount you think you would like to borrow. If you already have a HELOC, your current balance is listed on your account statement.

•   Current Interest Rate: You’ll be charged a percentage of the borrowed amount as interest. Your interest rate can change periodically as most HELOCs have variable interest rates. If you’re in the market for a HELOC, lenders can quote an initial rate.

•   Draw Period: This is the initial window, usually five to 10 years, during which borrowers using a HELOC can withdraw funds as needed, up to the credit limit. At this stage, you’ll likely have the ability to make interest-only payments, though you could also make payments toward the principal.

•   Repayment Period: Repayment follows the draw phase. Further withdrawals are prohibited and borrowers begin making payments that include a portion of the principal as well as interest. This phase typically lasts 10 or 20 years. Longer repayment periods usually equal lower monthly payments but more interest paid in total.

•   Monthly Interest Payment: This is the minimum cost required to carry your balance during the draw phase of the HELOC. It does not reduce the principal amount owed unless you choose to pay more than the minimum.

•   Monthly Principal and Interest Payment: This is the total required monthly obligation once the second phase of the credit line begins. This amount is calculated to ensure the total balance is satisfied by the end of the term.

How to Use the Washington HELOC Calculator

Accurate data entry is required to generate meaningful projections. Follow this guide as you use the calculator for the first time.

Step 1: Enter Your Planned or Actual HELOC Balance

Type in the amount of the credit line you have used (or the amount you plan to use). Bear in mind that your credit limit with a HELOC may be much higher. But you only pay interest on what you actually borrow.

Step 2: Estimate Your Interest Rate

Enter your current HELOC interest rate or the rate you’re being quoted by a prospective lender. Because most HELOCs feature a variable rate, it is helpful to use the calculator to test payment amounts with the current rate as well as a slightly higher rate.

Step 3: Choose the Length of the Draw Period

Select the number of years you would like to access funds, up to 10 years.

Step 4: Select Your Repayment Period

Enter the length of the second phase, commonly 10 or 20 years, to calculate your monthly payments once the principal is included. Remember, a longer term here will lower your monthly payment estimate but could cost you more in interest over the long haul.

Step 5: Review Your Results

Analyze the projected payments for both phases to ensure they remain within your financial reach. Learn more about how to use the calculator data below.

What Is a Home Equity Line of Credit?

If using the free HELOC calculator has you thinking a HELOC might be a good fit for your lifestyle and budget, take the time to learn more about this unique way of borrowing money. Here are the basics: A HELOC is technically a second mortgage, assuming you’re still paying off your original home loan. Your home is the collateral for the funds you borrow, and if you don’t repay what you owe, a lender could foreclose.

As noted above, HELOCs have two phases: a draw period, often 10 years, followed by a repayment period that lasts up to 20 years. Because these products typically feature variable interest rates, the cost of borrowing can shift with market conditions. A HELOC agreement will specify how often the interest rate can change and by how much, so that the rate shifts shouldn’t be a complete surprise.

During the draw period, many lenders won’t require you to repay any of the principal — you’ll only pay interest on the amount you have borrowed. A HELOC interest-only calculator can estimate these payments. The fact that you can borrow in increments, as the money is needed, and only pay interest makes HELOCs an attractive solution for homeowners who need money for ongoing projects, such as a series of renovations.

A HELOC repayment calculator will come in handy when you hit the second phase of the HELOC: repayment. It’s important to be prepared for this switch, as your monthly payment amount can grow substantially when the principal is added in. The repayment phase could last up to 20 years.

Recommended: Different Types of Home Equity Loans

The average home equity for an owner in Washington is close to $300,000. Homeowners in the state have experienced a significant increase in borrowing power over the last five years due to historic property appreciation. Average home equity levels increased 70% between 2020 and 2025. In Seattle, the median home sale price in 2020 was $755,000. By late 2025, it had reached $865,000. This rise in home value and equity is part of a larger national trend, as you can see in the graphic — no surprise that owners across the nation are increasingly exploring how to get equity out of their home.

How to Use the HELOC Calculator Data to Your Advantage

You’ve already seen how monthly payment estimates from the free HELOC calculator can be generated and then compared against your budget. But there are additional ways to use this data:

Assess the impact of variable interest rates: You can never truly know what the future holds for interest rates, but it’s a good idea to use the calculator to test what-if scenarios by manually adjusting the “current interest rate” cost upward by one or even two percentage points. This will allow you to see if your budget has enough flexibility to handle upward rate moves.

See the impact of principal payments: Another smart way to use the HELOC payment calculator is to see how making interest-only payments vs. paying down the principal during the draw period might affect costs when you reach the repayment stage. Run the calculator with your anticipated current HELOC balance and note the cost of the “principal and interest” repayment. Then reduce the HELOC balance by, say, 20% and run the numbers again. You’ll see how much the principal and interest payment would be cut if you were to pay back one-fifth of what you owe during the draw phase. This might not be possible for every homeowner, but it may be motivating.

Decide on using a HELOC for debt consolidation: Add up your total monthly debt on your credit cards and type that total into the “HELOC balance” field. The calculator will give you an estimate of what monthly payments would be now and in the future were you to pay off the cards using a HELOC. If you see the potential for savings, a HELOC might be the right move. Bonus: Instead of making multiple payments to different credit accounts, you would have one monthly HELOC payment.

Recommended: HELOC vs. Home Equity Loan

Tips on HELOCs

It’s probably already clear that you need to keep a close eye on interest rates and make your payments on time when you have a HELOC. These are some other ways to be smart about using this form of lending:

•  Shop around: Compare options from multiple lenders to find your best offer. Look for a competitive interest rate and low fees, as well as a repayment term and monthly payments that fit your budget. Use the HELOC payment calculator to run the numbers on each option.

•  Make a repayment plan: Before you draw funds, have a clear idea of how you will repay what you have borrowed. If the monthly principal and interest payment is a squeeze in your current household budget, do you foresee that your income will be higher when the draw phase ends? If not, dial back your spending plan.

•  Understand fees: Some HELOCs have closing costs or annual maintenance fees. Lenders may also have inactivity fees that are triggered if you don’t use the line of credit. And there could be early termination penalties if you close the account within a few years of opening it.

Alternatives to HELOCs

It’s a best practice to weigh all your financing options to ensure you choose the one that best aligns with your goals. So spend a little time learning other ways you might borrow money. Start by understanding what a home equity loan is, as it is often confused with a HELOC.

Home Equity Loan

A home equity loan, like a HELOC, uses your home as collateral. But money from a home equity loan comes as a lump sum and the loan has a fixed interest rate. The loan is repaid in equal monthly installments over a set period, anywhere from 5 to 30 years. It offers more predictability than a variable-rate HELOC but lacks the flexibility to re-borrow funds as you pay down your balance. And the principal-plus-interest payments begin as soon as you receive the funds. A home equity loan calculator can give you a sense of what payments could be based on your borrowed amount.

Home Improvement Loan

This is generally an unsecured installment loan. Since you won’t be using your home as collateral, it may carry a higher interest rate and have a lower borrowing limit than credit lines secured by equity. The money you borrow will come as a lump sum and is specifically intended for property upgrades. Loan repayment will begin at once and will be a consistent amount throughout the term.

Personal Line of Credit

Like a HELOC, this credit line offers revolving access to funds. However, it is typically unsecured and approval is based on your personal creditworthiness. It may have higher costs and more restrictive borrowing limits than a HELOC.

Cash-Out Refinance

This type of mortgage refinance replaces your existing primary mortgage with an entirely new, larger mortgage. You receive the difference between the old and new loan amounts in cash, which can be useful for large expenses. If you opt for this borrowing method, you’ll begin making your new (probably larger) mortgage payment immediately.

As you consider a cash-out refinance vs. a home equity line of credit, think about this: A refi likely only makes sense if you can secure a lower interest rate on your new loan than you had on your original mortgage. Don’t forget to factor closing costs in when you compute the costs.

The Takeaway

A HELOC calculator is a vital asset for any homeowner considering a revolving credit line. By providing detailed projections for both the draw and repayment stages, the tool allows you to avoid budget surprises when interest-only periods end. Your next step if you’re looking for a HELOC to fund major renovations or consolidate debt — or for any purpose — will be to get rate quotes from lenders so you can find the best fit for your situation.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.

Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.


View your rate

FAQ

What is the difference between a HELOC and a home equity loan?

A HELOC is a revolving credit line, so you can borrow and repay as needed, as long as the draw phase lasts. You won’t have to repay the principal until five to 10 years after you start borrowing. Throughout the life of the HELOC, your variable interest rate may fluctuate. A home equity loan is a lump-sum disbursement with a fixed interest rate and consistent monthly payments that start immediately. Both use your home as collateral.

How much can I borrow with a HELOC?

Lenders typically allow you to borrow up to 90% of your home equity with a HELOC, although lenders also tend to have a ceiling — a maximum amount they will loan to a borrower, regardless of how much equity they are sitting on.

Is a HELOC interest rate fixed or variable?

HELOCs usually have a variable interest rate. This means the monthly cost of borrowing can go up (or down) as rates change. The HELOC agreement you sign with the lender will make it clear in writing how often rates can change and by how much, so rate changes shouldn’t ever be a surprise.

Is the interest on a HELOC tax-deductible?

The interest you pay when borrowing money with a HELOC is deductible in the 2026 tax year. You’ll need to itemize on your return so that you can claim this deduction. Consult a qualified tax professional to confirm eligibility and also to track tax rules as they change in future years.

Learn more about home equity line of credits:



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.


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.


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-Q425-097

Browse other home guides.

Get prequalified in minutes for a SoFi Home Loan.


View your rate


Learn more

Read more
Feb
05
2026

Free Virginia HELOC Payment Calculator

By | mortgage | Comments Off on Free Virginia HELOC Payment Calculator


Virginia HELOC Calculator

By SoFi Editors | Updated January 23, 2026

A Virginia HELOC calculator is a practical tool for homeowners who want to estimate borrowing costs before tapping into their home equity. By adjusting key variables like interest rates, loan balances, and repayment terms, the calculator helps you understand how a home equity line of credit may fit into your monthly budget.

With home values and equity levels changing across Virginia, having a clear picture of potential payments is more important than ever. Using a HELOC calculator allows you to compare scenarios, plan for possible rate increases, and approach lenders with confidence and realistic expectations.

  • Key Points
  • •   A home equity line of credit functions as a revolving credit line, allowing users to draw and repay funds repeatedly.
  • •   This financing product is secured by the homeowner’s primary residence, which serves as collateral for the credit line.
  • •   The life of the product is split into two distinct phases: an initial draw period and a subsequent repayment period.
  • •   Borrowers are typically only required to pay interest on the specific amount of funds they have withdrawn from the line.
  • •   Interest rates for this type of credit are generally variable, meaning they can fluctuate over time.



This calculator is for informational purposes only. The outputs are estimates based solely on information you input. Calculations are not an offer to make a loan or an approval. All SoFi loans are subject to eligibility restrictions and limitations not reflected in this calculator, including a loan applicant’s credit, income, property. SoFi products, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria.

Calculator Definitions

•   HELOC Balance: This figure represents the total amount of funds a homeowner has currently withdrawn from their revolving credit line and has not yet repaid. It serves as the base amount upon which interest charges are calculated during each billing cycle.

•   Current Interest Rate: This is the percentage charged by the lender for the use of the credit line, which is usually a variable figure. It dictates the cost of borrowing and can shift based on broader economic conditions or Federal Reserve decisions.

•   Draw Period: The draw period is the initial timeframe, commonly lasting 10 years, during which a homeowner can actively withdraw money from their credit line as needed. During this phase, many providers allow for interest-only payments to help the borrower manage their monthly cash flow.

•   Repayment Period: Beginning after the draw period ends, this phase is the timeframe where the borrower must pay back the remaining balance, including both principal and interest. This period typically lasts up to 20 years, and during this time, no further withdrawals can be made from the credit line.

•   Monthly Interest Payment: This is the minimum amount due each month during the draw period, covering only the cost of the interest accrued on the used balance. This payment does not reduce the principal amount owed, meaning the total debt remains the same if only interest is paid.

•   Monthly Principal and Interest Payment: This figure represents the total monthly obligation during the repayment period, combining the cost of interest with a portion of the original debt. These payments are designed to ensure that the entire balance is fully settled by the end of the term.

How to Use the Virginia HELOC Calculator

Accurate data entry is a fundamental step because even small discrepancies in interest rates or balance amounts can lead to significant differences in monthly payments and projected long-term costs. By taking the time to provide precise information, Virginia homeowners can ensure that the results they receive are a true reflection of their potential future obligations. Here’s a step-by-step guide on exactly how to use the calculator.

Step 1: Enter Your Planned or Actual HELOC Balance

The balance you enter is the primary driver of your overall interest costs. Because this product is revolving in nature, the balance can change as you withdraw more funds or make repayments.

Step 2: Estimate Your Interest Rate

The interest rate you choose is a major factor in determining your monthly cost. Since most of these credit lines feature variable rates, the cost of debt can rise or fall based on the market. It is often wise to test higher rates as well, so you can understand how a potential rate increase might affect your ability to stay current on bills in the future.

Step 3: Choose the Length of Your Draw Period

The length of the draw period defines the timeframe during which you have the flexibility to access funds. Most standard agreements set this at 10 years, though some may differ.

Step 4: Specify Your Repayment Period

The repayment term length is what determines the size of your future monthly obligations once the draw phase concludes. A longer repayment period, such as 20 years, results in smaller monthly payments but leads to higher total interest costs over time. Conversely, a shorter period increases the monthly bill but allows you to clear the debt much faster.

Step 5: Review Your Results

The final step is to carefully interpret the data generated by the tool. Look at the transition between the draw period and the repayment period to see how the monthly obligation will change. This allows you to make an informed decision about your household budget, ensuring preparation for the “payment shock” that can occur when you start paying back the principal.

What Is a Home Equity Line of Credit?

A home equity line of credit can allow homeowners to transform the equity they’ve built in their home into a flexible, spendable resource. The foundation of this credit line is the concept of home equity, which is calculated by taking the current market value of the home and subtracting any remaining home loans.

Unlike a traditional installment product where a borrower receives all the money at once, this credit line functions more like a revolving account. You are granted a maximum limit, and you can withdraw as little or as much as needed, whenever it is required, during a set timeframe. This makes it an ideal instrument for projects with variable costs or for those who want an emergency financial cushion.

The structure of this financing is centered on its two-phase lifecycle, which dictates how funds are accessed and repaid.

•   The first phase, the draw period, offers maximum flexibility. During these initial years, the borrower can treat the credit line much like a credit card, borrowing and repaying funds repeatedly. A HELOC interest-only calculator can show you what payments would be based on your balance.

•   The second phase, the repayment period, is much more structured. The ability to borrow ends, and the focus shifts entirely to clearing the balance through regular installments of both principal and interest. A HELOC repayment calculator can show you what those payments might be.

This two-part design is what makes the product attractive for projects with ongoing or uncertain costs, as it allows the borrower to only pay interest on the money actually being used at any given moment, rather than on the entire credit limit.

However, the advantages of this flexibility come with significant responsibilities and risks. Because the credit line is secured by the home, the property serves as collateral. If payments are missed or the borrower defaults, the lender has the legal authority to initiate foreclosure proceedings to recover the funds.

Recommended: What Is a Home Equity Line of Credit?

Home equity growth has been a major financial trend across the United States over the past several years, driven largely by rising home values and limited housing supply. From 2020 to 2025, average home equity increased 142% nationwide, adding up to roughly $11.5 trillion in value. This surge has strengthened household balance sheets and given many homeowners greater access to equity-based borrowing options.

Virginia homeowners experienced even more dramatic gains during this period. In Virginia, home equity increased by approximately 186% from 2020 to 2025, with the average homeowner holding about $121,500 in equity as of 2025. These gains have expanded opportunities for homeowners to use tools like HELOCs for renovations, debt consolidation, or other financial goals, while also highlighting the importance of careful planning as borrowing against home equity becomes more accessible.

Here’s a look at how equity has risen nationwide between 2020 and 2025.

Recommended: How to Get Equity Out of Your Home

How to Use the HELOC Calculator Data to Your Advantage

A HELOC calculator is a planning tool that helps you explore how different borrowing choices could impact your finances long before you commit to a loan. By experimenting with various inputs, you can better anticipate costs, assess risk, and structure a HELOC that fits your short- and long-term plans. Here are ways you can use the HELOC calculator data to your advantage:

•  Run scenarios with different interest rates: Increase the rate in the calculator to see how rising payments might affect your monthly budget over time.

•  Review draw versus repayment periods: Compare how payments change once the draw period ends and full repayment begins.

•  Determine a safe borrowing amount: Find a balance that covers your needs without creating unnecessary financial strain.

•  Project long-term affordability: Use estimated payments to confirm your future cash flow can comfortably support the loan.

•  Prepare for lender conversations: Bring realistic numbers to the table when comparing offers or discussing terms.

•  Align borrowing with your goals: Use the data to decide whether a HELOC makes sense for short-term expenses, long-term projects, or ongoing flexibility.

Tips on HELOCs

A home equity line of credit can be a flexible way to borrow against your home, but it works best when you understand how it fits into your overall financial picture. Knowing how HELOCs function, what drives their costs, and how lenders evaluate borrowers can help you use this tool more effectively and avoid surprises.

•  Understand variable interest rates: Most HELOCs have variable rates, meaning your payments can increase or decrease over time as market rates change.

•  Know the difference between draw and repayment periods: During the draw period you may make interest-only payments, while the repayment period typically requires paying back both principal and interest.

•  Borrow only what you need: Access to a large credit line can be tempting, but limiting withdrawals helps control interest costs and long-term debt.

•  Watch for fees and closing costs: Some HELOCs include annual fees, inactivity fees, or early closure penalties that affect overall cost.

•  Protect your credit score: Timely payments and low utilization on your HELOC can help maintain or build your credit profile.

•  Plan for payment increases: Build room into your budget in case rates rise or payments jump when the repayment phase begins.

•  Compare lenders carefully: Terms, margins, and rate caps can vary widely, so reviewing multiple offers can lead to better conditions.

•  Use funds strategically: HELOCs are often most effective for planned expenses like home improvements rather than ongoing, everyday spending.

While a credit line is a powerful tool, it is not the only way to access funds, and it is worth exploring other options to see which best fits your needs.

Recommended: What Is a Home Equity Loan?

Alternatives to HELOCs

Before committing to a specific financial product, it is important to compare different instruments to ensure the selected choice matches your specific need and risk tolerance. Every financial tool has its own set of pros and cons, and what works for a major home addition might not be the best choice for a small, one-time expense. Below are four alternatives to consider:

Home Equity Loan

Often confused with a HELOC, a home equity loan is a separate product that serves as a “closed-end” second mortgage. Instead of a revolving line, you receive the funds as a single lump sum at the time of closing. These products typically feature fixed interest rates and fixed monthly payments over a term of five to 30 years. This predictability is a major advantage for those who have a single, large expense and want the security of knowing their payment will never change, regardless of what happens in the broader economy.

A home equity loan calculator can help you compare the cost of this product to that of a HELOC.

Recommended: Different Types of Home Equity Loans

Home Improvement Loan

A home improvement loan is typically an unsecured financing option, meaning it does not use your house as collateral. This makes it a lower-risk choice for homeowners who do not want to put their property on the line. Because it is unsecured, it usually comes with a higher interest rate than equity-based products, but it is excellent for fixed-cost projects where the exact spending amount is known upfront.

Personal Line of Credit

A personal line of credit is another unsecured option that functions as a revolving credit account. Like a HELOC, it allows you to borrow and repay funds as needed, but without the requirement of using home equity as a guarantee. Because there is no collateral, the borrowing limits are generally lower and the interest rates are higher than secured products. However, the impact on the borrower’s risk profile is much smaller, as a default would not lead directly to the loss of a home.

Cash-Out Refinance

A cash-out mortgage refinance is a process where you replace your primary mortgage with an entirely new, larger one. You use the new mortgage to pay off the old one and take the remaining difference in cash. This can be an attractive option if current mortgage rates are lower than the rate on your existing home loan.

When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance results in a single monthly payment rather than two.

The Takeaway

Whether you are planning a major life transition, consolidating debt, or improving your property, the decision to tap into your equity should never be made in a vacuum. A Virginia HELOC calculator can help provide the clarity needed to understand the long-term implications of borrowing, ensuring that you are making a choice that supports your overall financial health for years to come.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.

Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.


View your rate

FAQ

What is the difference between a HELOC and a home equity loan?

A HELOC is a revolving credit line where you draw funds as needed and often pay interest only during the draw period. In contrast, a home equity loan provides a lump sum upfront with a fixed interest rate and set monthly payments. While both use your home as collateral, a HELOC offers more flexibility for ongoing costs, whereas a home equity loan provides more predictability for one-time expenses.

What can I use the money for from a HELOC?

You can use the funds from a revolving credit line for almost any purpose. Common uses include major home renovations, consolidating high-interest credit card debt, funding educational expenses, or covering large medical bills. Some homeowners also maintain a credit line as a financial safety net for emergencies. However, because your home is collateral, it is best to use the funds for expenses that provide long-term value or stability.

Is a HELOC interest rate fixed or variable?

Most home equity lines of credit feature a variable interest rate, which means your rate and monthly payments can fluctuate as the economy changes. However, some lenders offer an option to convert a portion of your balance to a fixed rate during the draw period, which can provide more predictability and protection against rising interest costs in the future.

What is the benefit of having a variable interest rate?

The primary benefit of a variable rate is that it may start lower than the rates offered for fixed-rate installment products. If market interest rates stay stable or decrease, a variable rate can result in lower overall borrowing costs over time. This can be especially advantageous during the draw period when you are only paying interest on the amount you have used, allowing for more flexible cash flow management.

What is the minimum credit score I need to qualify for a HELOC?

While requirements vary by lender, most institutions look for a credit score of at least 640. Higher scores, typically 700 or above, often lead to more favorable interest rates and higher borrowing limits. Lenders also evaluate your income stability and your debt-to-income ratio to ensure you can manage the additional monthly obligation alongside your existing mortgage and other financial commitments.

Learn more about home equity line of credits:



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.


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.


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-Q425-096

Browse other home guides.

Get prequalified in minutes for a SoFi Home Loan.


View your rate


Learn more

Read more
Feb
05
2026

Free Vermont HELOC Payment Calculator

By | mortgage | Comments Off on Free Vermont HELOC Payment Calculator

Vermont HELOC Calculator

By SoFi Editors | Updated January 23, 2026

Vermont homeowners are enjoying high levels of equity, and many are thinking about how to get equity out of their home with a home equity line of credit (HELOC). A free HELOC calculator can be a useful tool as you explore a HELOC, as well as once you have one.

It allows you to estimate monthly payments during the two phases of the line of credit. This guide will show you how to use the calculator to maximum benefit. Along the way, you’ll also learn the ins and outs of HELOCs, as well as alternatives to a HELOC if this type of borrowing isn’t the right fit for you.

  • Key Points
  • •  A home equity line of credit provides a revolving account where funds can be accessed, repaid, and accessed again.
  • •  A HELOC calculator allows users to compute monthly payment amounts during the HELOC’s two phases, draw and repayment.
  • •  The HELOC is secured by the homeowner’s property, which serves as collateral for the credit line.
  • •  The draw period often lasts ten years and many arrangements allow for interest-only payments during this time.
  • •  Full repayment of both the principal balance and the interest is mandatory during the final repayment phase.

This calculator is for informational purposes only. The outputs are estimates based solely on information you input. Calculations are not an offer to make a loan or an approval. All SoFi loans are subject to eligibility restrictions and limitations not reflected in this calculator, including a loan applicant’s credit, income, property. SoFi products, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria.

Calculator Definitions

•   HELOC Balance: This figure represents the total amount borrowed against the HELOC credit limit and not yet repaid. If you don’t yet have a HELOC, the balance would be the amount you plan to borrow.

•   Current Interest Rate: This is the percentage rate applied to the used portion of the credit line to compute monthly payments. A HELOC interest rate can fluctuate with market forces. The current rate for calculator purposes would be the one quoted by a lender if you don’t yet have a HELOC.

•   Draw Period: The draw period is the primary phase of the HELOC. It may last five to 10 years. During this time the homeowner has access to the credit line and typically isn’t required to repay what they owe, only to pay interest.

•   Repayment Period: At the end of the draw period this phase begins. It may last 10 to 20 years. During this time, monthly payments are required to repay the principal plus interest. The longer the repayment term, the lower monthly payments will likely be.

•   Monthly Interest Payment: This is an estimate of the cost incurred for using the funds during the draw phase, when only interest payments are necessary.

•   Monthly Principal and Interest Payment: This is an estimate of the total amount due each month once the repayment phase begins, covering both a portion of the borrowed amount and the interest costs.

How to Use the Vermont HELOC Calculator

Follow these steps to use the calculator. By adjusting variables such as the repayment term or the HELOC balance, the homeowner can see how different scenarios affect payment numbers.

Step 1: Enter Your Planned or Actual HELOC Balance

To begin, enter your current outstanding balance if you have a HELOC, or type in an estimate of the amount you wish to borrow with a HELOC. For example, if you might use the HELOC to consolidate debt, enter the total amount you owe on your credit cards and any personal loans.

Step 2: Estimate Your Interest Rate

Identify the current percentage charge listed on your account document or put in the interest rate quoted by a prospective lender.

Step 3: Choose the Length of the Draw Period

Select the duration of the HELOC’s first phase, during which you can actively withdraw funds and may only need to pay interest on what you borrow. The maximum draw period would be 10 years.

Step 4: Select Your Repayment Period

Enter the number of years (typically 10 to 20) that you want to have to pay back the borrowed funds, plus interest. The longer this time period the less monthly payments will be, but the more interest you will likely pay over the life of the HELOC.

Step 5: Review Your Results

Carefully examine the estimated monthly payment amounts during the draw and repayment phase.

What Is a Home Equity Line of Credit?

A home equity line of credit allows homeowners to borrow funds as needed, up to a credit line. A HELOC is secured by the value of your property. Unlike traditional installment products — such as a home loan or a personal loan — which provide a lump sum, this product functions more like a credit card with a very high credit limit. It allows you to borrow, repay what you owe, and then borrow again as long as you are in the draw phase.

The “revolving” nature of the credit line is its most distinct advantage. For a homeowner in Vermont facing a multi-stage project, such as a major renovation, this flexibility can be useful. You do not have to pay interest on the full credit limit from the outset; you only pay for the funds you have actually withdrawn. A HELOC interest-only calculator can give you the payment info for that first phase only.

Once the draw period ends, the product enters the repayment period, which could last up to 20 years. At this point, you can no longer withdraw any more money. The lender then calculates a new monthly payment that includes both the interest and the principal. Vermont homeowners can use a HELOC repayment calculator to prepare for this transition, to ensure the new, larger payment fits their budget.

Because your home serves as the collateral, a HELOC is a second mortgage. This allows lenders to offer lower interest rates than you would typically find with unsecured credit cards or a personal line of credit. But it also means that the stakes are high. If a homeowner is unable to maintain the payment schedule, the lender may foreclose.

Recommended: HELOC vs. Home Equity Loan

The climate is especially good for homeowners in Vermont, where home equity lending is concerned, thanks to a significant increase in equity over the five years ending in 2025. Average home equity has increased by 75% as of 2025, and the average owner is now sitting on more than $223,000 in equity. HELOC borrowers with a good credit history are often allowed to borrow up to 90% of their equity, which for the Vermont average owner would be $200,000.

As you can see from the graphic, the increase in Vermont is part of a larger U.S. trend in equity increases. Louisiana is the only U.S. state to experience a decline in average equity between 2020 and 2025.

How to Use the HELOC Calculator Data to Your Advantage

The data generated by a HELOC calculator is helpful in budgeting. But before you draw a single dollar from the credit line, it’s helpful to think about how you might use the numbers generated by the calculator. Here are some ideas:

Try out different scenarios: Try putting in different HELOC balance numbers or repayment terms and use the estimated monthly payment numbers you generate to make decisions based on these scenarios. Maybe you’re choosing between two contractors with different costs for a kitchen job. Put both estimates in as the HELOC balance and see if the difference in the monthly payment is a factor in your decisionmaking.

Get inspired to pay down the principal: You likely won’t be required to pay down the principal in the draw phase, but you can use the calculator to see what monthly payments might be on different balance amounts and let that inspire you to chip away at the principal before you enter the repayment phase. Trimming $10,000 from your $50,000 HELOC balance, for example, might help you feel more comfortable heading into repayment.

Compute high-interest estimates: HELOCs have a variable interest rate, as we have noted. The HELOC agreement will spell out how often your rate can change and by how much. Use that information to determine how high the rate might conceivably go in the repayment phase. Put that number into the calculator to see if you can handle it.

Recommended: Different Types of Home Equity Loans

Tips on HELOCs

Managing HELOCs requires a proactive approach to personal finance. Here are some things you can do to help ensure a good experience:

•  Shop around: Lenders can offer different interest rates and have different fees and policies. Before you decide on a lender, compare options from multiple institutions, including banks, credit unions, and online lenders. Use the HELOC payment calculator to run the numbers on each option.

•  Make a repayment plan: It can be easy to fall into the habit of using the HELOC for short-term wants or lifestyle purchases, but this is a risky practice. Before you draw funds, have a clear plan for how you will repay what you borrow.

•  Understand the fees: Be aware of the full cost of the loan. Some HELOCs have closing costs or annual maintenance fees, inactivity fees might be triggered if you don’t use the line of credit, and there could be early termination penalties if you close the account within a certain timeframe.

•  Prepare for the repayment period: One of the biggest financial shocks for HELOC borrowers is the transition from the draw period to the repayment period. If you have been making interest-only payments, your monthly debt will increase significantly when principal payments are added. Plan for this.

Recommended: What is a Home Equity Loan

Alternatives to HELOCs

While a home equity line of credit is a versatile tool, it is not the ideal fit for every financial situation. Whether you’re feeling iffy about a HELOC or just want to cover all your bases, consider these other options:

Home Equity Loan

A home equity loan, like a HELOC, is a second mortgage, with your home securing the loan. The key difference is that this product provides a lump sum of cash all at once and you immediately begin repaying the loan with monthly principal-plus-interest payments. Home equity loans usually have a fixed interest rate, making it a predictable choice for those who want to avoid the fluctuations of a variable rate. A home equity loan calculator can help you estimate the payments.

Home Improvement Loan

A home improvement loan is usually unsecured, meaning your house is not at stake. Because of this, however, interest rates are usually higher than they would be on a HELOC or home equity loan. However, the approval process is often faster as you won’t need a home appraisal. Home improvement loans are generally lump-sum loans repaid, with interest, over a term of between three and 10 years. This is a good fit for those with smaller projects who don’t want to use their home as collateral and like the idea of predictable monthly payments.

Personal Line of Credit

A personal line of credit functions similarly to a HELOC in that the user can borrow and repay funds as needed. The key difference is that this credit line is usually unsecured. This means the credit limits are often lower, and the borrowing costs may be higher. This product is best for those who need ongoing access to smaller amounts of cash and have strong credit history but do not want to involve their home equity in the transaction. If you are thinking about selling your home fairly soon, for example, a personal line of credit could be a good fit.

Cash-Out Refinance

This type of mortgage refinance involves replacing the primary mortgage with a completely new, larger mortgage. The homeowner receives the difference between the two in cash. Monthly loan payments, including principal and interest, begin immediately. Because it’s a completely new loan, you can choose a fixed or variable interest rate. Borrowing money in this way can help you secure a lower overall interest rate because the loan is secured by your home. But if current interest rates are higher than the rate on your original home loan, this might not be a cost-efficient strategy.

When you compare a cash-out refinance vs. a home equity line of credit, note that a refinance delivers a lump-sum loan, while a HELOC allows you to borrow funds as needed and only pay interest on the amount you currently owe.

The Takeaway

Using a free HELOC calculator can help you understand the costs of borrowing and make important decisions regarding the amount you might borrow and the length of your repayment term. You’ll quickly see the impact a HELOC could have on your monthly budget. If a HELOC feels like the right step for you, you can use the calculator to assess the interest rates offered by different lenders.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.

Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.


View your rate

FAQ

How much can I borrow with a HELOC?

Lenders may allow you to access up to 90% percent of your home equity with a HELOC. They often have an internal maximum as well — an amount they will not exceed regardless of the homeowner’s equity amount.

What can I use the money for from a HELOC?

Money from a HELOC can be used for any purpose. Borrowers might pay off high-cost debt, make property renovations, or cover medical expenses. Some homeowners like to have the credit line as a safety net in case an unexpected expense crops up. Because the debt is secured by your residence, it’s key to watch your mounting debt number and use a HELOC payment calculator to plan for the repayment phase.

What happens when the draw period ends?

When the draw period on a HELOC finishes, you stop withdrawing funds. You enter the repayment phase, where you must make regular monthly payments covering both the principal and the borrowing cost, often over 20 years.

What is the benefit of having a variable interest rate?

A variable interest rate may start below the rate on a fixed-rate borrowing option. And if market conditions cause benchmark rates to decrease, your monthly carry cost for the balance may even go down, providing potential savings.

Learn more about home equity line of credits:



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.


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.


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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Feb
05
2026

Free Utah HELOC Payment Calculator

By | mortgage | Comments Off on Free Utah HELOC Payment Calculator


Utah HELOC Calculator

By SoFi Editors | Updated January 23, 2026

A Utah HELOC calculator helps homeowners estimate how much equity they may be able to borrow and what their potential payments could look like. By entering basic details like your HELOC balance, interest rate, and lengths of your draw and repayment periods, you can quickly see what your monthly payments will be.

Keep reading to learn exactly how to use the Utah HELOC calculator, home equity trends in Utah, alternatives to HELOCs, and more.

  • Key Points
  • •   A home equity line of credit is a form of secured financing that utilizes the residence of the borrower as collateral for the funds.
  • •   Financing of this type generally occurs in two distinct phases: an initial window for accessing funds and a final window for full repayment.
  • •   During the draw period, borrowers are often only required to make payments on the interest of the funds they have used.
  • •   The repayment period marks the phase where the borrower must pay back both the original amount used and the associated costs over a set timeframe.
  • •   To use the Utah HELOC calculator, you’ll enter in the HELOC balance, interest rate, length of the draw period, and length of the repayment period.



This calculator is for informational purposes only. The outputs are estimates based solely on information you input. Calculations are not an offer to make a loan or an approval. All SoFi loans are subject to eligibility restrictions and limitations not reflected in this calculator, including a loan applicant’s credit, income, property. SoFi products, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria.

Calculator Definitions

•   HELOC Balance: This figure represents the total amount of funds a homeowner has currently withdrawn and is actively using from their approved credit limit.

•   Current Interest Rate: This value refers to the variable percentage cost applied to the funds a borrower has chosen to access from their credit line.

•   Draw Period: The draw period is the initial window of time, frequently lasting 10 years, during which a homeowner is permitted to withdraw funds from their credit line.

•   Repayment Period: This phase begins once the window for accessing funds closes, marking the time when the borrower must pay back the used funds along with the cost of that credit.

•   Monthly Interest Payment: This is the smallest amount a borrower must pay during the initial phase, calculated solely on the amount of credit they have accessed.

•   Monthly Principal and Interest Payment: This figure combines the repayment of the used funds and the ongoing cost of the credit into one required payment during the final phase of the agreement.

The Utah HELOC calculator estimates monthly payments during both the draw period and the repayment period. Here’s a step-by-step guide on how to use it:

Step 1: Enter Your Planned or Actual HELOC Balance

Users should consult their most recent statement to find the current balance. Entering this number allows the tool to determine how much of the credit line is already in use and how that balance will translate into future monthly obligations. If you don’t currently have a HELOC, you can enter in the amount you plan to borrow.

Step 2: Estimate Your Interest Rate

Use the current rate from your lender or an average HELOC rate as a starting point. It’s also smart to test higher rates to see how future rate increases could affect your budget, since most HELOCs have variable interest rates.

Step 3: Choose the Length of Your Draw Period

The user must indicate how many years remain to access the funds. Choosing this duration correctly changes the timeline of the financing and helps the user see when the payment structure will shift. Most standard agreements provide a 10-year window, but some variations exist depending on the specific lender terms.

Step 4: Specify Your Repayment Period

This selection defines the length of time the homeowner has to pay back the full amount used, typically 10-20 years. This timeframe is the basis for the schedule of payments for both the used funds and the cost of the credit. A longer repayment period may lower monthly payments but will increase the total cost of borrowing over the life of the agreement.

Step 5: Review Your Results

Once all data is entered, the user should examine the projected monthly obligations. This step allows a beginner to determine if future payments will fit within a household budget and helps prevent surprises when the repayment phase begins.

What Is a Home Equity Line of Credit?

A home equity line of credit serves as a resource for property owners who wish to access the equity built within their homes. For those living in areas like Utah, home equity represents the portion of the property value owned outright. It is calculated by taking the current market value of the house and subtracting any remaining home loans. This equity acts as security, allowing the homeowner to open a revolving line of credit.

Unlike a home equity loan that provides a single disbursement, a HELOC provides ongoing access to funds. It functions similarly to a credit card because it is revolving. A borrower is approved for a maximum limit and can withdraw money as needed, pay it back, and then withdraw it again.

There are two primary phases to this financial product: the draw period and the repayment period.

•   The draw period typically lasts about 10 years. During this time, the homeowner has the flexibility to use the funds for various needs, such as home additions, education costs, or medical expenses. In many cases, the required monthly payments during this window are limited to the interest on the amount used. Use a HELOC interest-only calculator to see what payments would be based on your balance. Once the draw period ends, the repayment period begins.

•   The repayment period often lasts up to 20 years. During repayment, the borrower can no longer access funds and must make monthly payments that cover both the principal balance and the interest. Use a HELOC repayment calculator to see what those payments might be.

What Is a HELOC Calculator?

A HELOC calculator is a digital tool that lets homeowners project monthly payments for a home equity line of credit using details like the loan amount, interest rate, and repayment timeline. It helps borrowers understand potential costs and decide whether a HELOC fits their budget before moving forward.

Recommended: How to Get Equity Out of Your Home

Home equity has grown significantly over the past several years, driven by rising home values and strong demand across the housing market. From 2020 to 2025, average home equity increased 142% nationwide, adding roughly $11.5 trillion in value. This surge has strengthened household balance sheets and expanded homeowners’ access to equity-based financing options such as HELOCs and home equity loans.

Utah has followed this upward trend, though at a more moderate pace than the national average. Over the same period, Utah homeowners experienced a 67% increase in home equity, with the average homeowner holding about $224,566 in equity as of 2025. The five cities in Utah that saw the highest appreciation over the past five years were Payson, Woodland Hills, Spanish Fork, Mapleton, and Elk Ridge.

This growth reflects the state’s strong population growth, resilient housing market, and long-term appreciation, positioning many Utah homeowners with substantial financial flexibility.

Here’s a look at how equity has risen nationwide between 2020 and 2025.

How to Use the HELOC Calculator Data to Your Advantage

A HELOC calculator can do more than estimate monthly payments — it can help you make smarter borrowing decisions before you apply. By adjusting key inputs and reviewing different scenarios, you can use the data to understand affordability, prepare for rate changes, and choose terms that align with your financial goals.

•  Test multiple interest rates: Model higher rates to see how payment increases could affect your budget over time.

•  Compare draw and repayment periods: Evaluate how different timelines impact monthly payments depending on the period you’re in.

•  Set borrowing limits: Identify a comfortable balance that meets your needs without overextending your finances.

•  Plan for future cash flow: Use payment estimates to ensure your income can support the loan during repayment.

•  Strengthen lender discussions: Arrive prepared with clear numbers when comparing HELOC offers or negotiating terms.

Tips on HELOCs

A home equity line of credit can be a flexible financing tool, but it works best when used strategically. Understanding how HELOCs function and what to watch for can help you borrow confidently and avoid costly surprises.

•  Know how variable rates work: Most HELOCs have variable interest rates, so payments can rise if market rates increase.

•  Borrow only what you need: Drawing smaller amounts helps keep interest costs and monthly payments manageable.

•  Understand the draw and repayment periods: Payments may be interest-only at first, then increase once repayment begins.

•  Plan for rate changes: Build room into your budget in case interest rates climb over time.

•  Compare lenders carefully: Review rates, fees, and terms to find a HELOC that fits your financial goals.

Alternatives to HELOCs

A HELOC is just one tool in a broad set of financial products. Depending on specific goals, other options may be more suitable. Choosing the right product depends on whether a person needs a lump sum of cash or a revolving line of credit, and whether they are willing to use their home as collateral. Alternatives to a HELOC include:

Home Equity Loan

A home equity loan is sometimes called a “second mortgage.” It provides the borrower with a lump sum of cash all at once. The repayment schedule is fixed, meaning the monthly payments remain the same throughout the life of the loan. This predictability is helpful for those who have a specific, one-time expense and want a stable budget. Unlike a HELOC, there is no draw period; the borrower begins paying back both principal and interest immediately.

A home equity loan calculator can help you compare the cost of this product to that of a HELOC.

Recommended: Different Types of Home Equity Loans

Home Improvement Loan

A home improvement loan is often a personal financing option used for specific renovation projects. Unlike a HELOC, these are frequently unsecured, meaning the home is not used as collateral. This reduces the risk to the property but often results in a higher interest cost for the borrower compared to secured options. These are ideal for homeowners who do not have sufficient equity or who prefer not to place a second lien on their residence.

Personal Line of Credit

A personal line of credit is an unsecured revolving credit option. Like a HELOC, it allows for flexible spending and repayment. However, because it does not use the home as security, the interest costs are typically higher and the borrowing limits are usually lower, often capped around $50,000.

Cash-Out Refinance

In a cash-out mortgage refinance, the homeowner replaces the primary mortgage with a new, larger one. The difference between the old mortgage and the new one is given to the homeowner in cash.

When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance results in a single monthly payment rather than two. It can be a strategic move if current market interest rates are lower than the rate on the original mortgage. However, it requires paying new closing costs on the entire value of the home, which are often higher than the fees associated with a simple line of credit.

The Takeaway

A Utah HELOC calculator helps you better understand how borrowing against your home equity may affect your monthly budget and long-term finances. By testing different rates, balances, and repayment scenarios, you can make more informed decisions, plan for potential rate changes, and choose a HELOC that aligns with your financial goals.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.

Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.


View your rate

FAQ

What is the difference between a HELOC and a home equity loan?

A HELOC is a revolving line of credit where funds can be borrowed and repaid as needed during a draw period. A home equity loan is a second mortgage that provides a single lump sum of cash up front. HELOCs usually feature variable costs, while home equity loans typically have fixed repayment schedules and stable monthly payments from the start.

How much can I borrow with a HELOC?

Most lenders allow a borrower to access up to 90% of the equity in the home. The specific limit depends on credit history, income, and the amount of equity built in the property. Lenders typically require the homeowner to have at least 15% equity to qualify, though.

What can I use the money for from a HELOC?

Funds from a HELOC are highly flexible and can be used for almost any purpose. Common uses include major home renovations, medical bills, education expenses, or consolidating high-interest debt from sources like credit cards.

What happens when the draw period ends?

When the draw period ends, the ability to withdraw funds from the credit line is terminated. The borrower enters the repayment phase, making regular monthly payments that cover both the principal balance and the cost of the credit. This phase typically lasts 10 to 20 years until the debt is fully satisfied.

Are there closing costs or fees for a HELOC?

Yes, HELOCs can have closing costs similar to a mortgage, often ranging from 2% to 5% of the credit limit. Some lenders may waive these fees if the line remains open for a set period. Borrowers should also be aware of potential annual maintenance or inactivity fees.

Learn more about home equity line of credits:



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.


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.


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-Q425-094

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Get prequalified in minutes for a SoFi Home Loan.


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Feb
05
2026

Free Texas HELOC Loan Payment Calculator

By | mortgage | Comments Off on Free Texas HELOC Loan Payment Calculator

Texas HELOC Calculator

By SoFi Editors | Updated January 29, 2026

Texas homeowners who have built up a nice amount of equity in their home may find it useful to use a Texas HELOC calculator to explore the costs of borrowing with a home equity line of credit (HELOC). A HELOC can convert accumulated equity value into a flexible financial resource.

But it’s important to be prepared for the two phases of a HELOC, draw and repayment. This guide will help you use the calculator for best results, and along the way it will ensure that you understand what is a home equity line of credit and how it works before you start borrowing.

  • Key Points
  • •  A home equity line of credit is a revolving credit line, allowing borrowers to withdraw, repay, and re-access funds as needed during a specified timeframe.
  • •  Texas borrowers can typically access up to 90% of their equity with a HELOC.
  • •  A HELOC payment calculator can show you estimates of monthly payments during the first and second phases of a HELOC.
  • •  During the initial phase, many lenders allow for monthly payments that cover only the interest costs associated with the amount actually withdrawn.
  • •  This financing product is secured by the borrower’s home, meaning the property is subject to foreclosure in the event of default.

This calculator is for informational purposes only. The outputs are estimates based solely on information you input. Calculations are not an offer to make a loan or an approval. All SoFi loans are subject to eligibility restrictions and limitations not reflected in this calculator, including a loan applicant’s credit, income, property. SoFi products, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria.

Calculator Definitions

•   HELOC Balance: If you’re thinking about borrowing with a HELOC, the balance is the amount you think you would like to borrow. If you already have a HELOC, the balance is the amount of your credit line you have used.

•   Current Interest Rate: A HELOC lender charges borrowers interest, expressed as a percentage of the borrowed amount. If you have a HELOC, your current rate can be found in your account statement. If you are thinking about getting a HELOC, it’s a good idea to obtain rates from multiple lenders.

•   Draw Period: The draw period is the initial timeframe, commonly five to 10 years, during which the borrower can access funds up to their established credit limit. In this stage, the monthly payment is often limited to the interest costs and no repayment of the principal is required.

•   Repayment Period: This phase begins once the draw period concludes. HELOC users will stop borrowing funds and begin making regular payments that cover both principal and interest.

•   Monthly Interest Payment: This is the amount due each month during the draw period.

•   Monthly Principal and Interest Payment: During the repayment period, the principal and interest will both be included in the homeowner’s monthly payments.

How to Use the Texas HELOC Calculator

Using a free HELOC calculator is easy. Follow these steps for best results:

Step 1: Enter Your Planned or Actual HELOC Balance

Record the amount you have withdrawn from your HELOC or the total amount of the credit line you intend to utilize, keeping in mind you may not need to use the full credit line.

Step 2: Estimate Your Interest Rate

Identify the rate currently associated with the HELOC, or use a projected rate if you are interested in how costs may change as the HELOC’s rate adjusts.

Step 3: Choose the Length of the Draw Period

Input the number of years you want to have access to the credit line (10 years is standard). The repayment phase begins when the draw period ends.

Step 4: Select Your Repayment Period

Select the number of years you would like to have to pay back the principal, which could be up to 20 years. A longer timeframe will result in lower monthly payments but will likely increase the total interest costs over the life of the HELOC.

Step 5: Review Your Results

Carefully analyze the payment estimates for both the draw and repayment phases. This allows you to determine if the projected monthly obligations align with your household budget and larger financial objectives.

What Is a Home Equity Line of Credit?

If experimenting with the calculator piques your interest in a HELOC it’s a good idea to take a step back to make sure you fully understand what a HELOC is before diving into the application process.

HELOCs have two phases. The draw phase, as noted above, can be up to 10 years and during this time you likely won’t have to repay any of what you borrow — you can just pay interest. A HELOC interest-only calculator can show you what you might owe, or just use this HELOC calculator which will estimate monthly payments at both phases.

The second HELOC stage is the repayment period, which usually lasts for 10 or 20 years. Once this phase starts, the line of credit is closed to further withdrawals, and the borrower must begin paying down the principal along with interest. HELOCs have variable interest rates, so you can expect your rate to change periodically. It might rise or fall. A HELOC repayment calculator can show you what monthly payments would be at various rates at this stage.

It’s important to understand that a HELOC is technically a second mortgage (assuming you haven’t finished paying off your first home loan). Because your property is at stake if you fail to make payments on the HELOC, borrowing in this way requires a disciplined approach to use and repayment of the credit line.

Lenders look at your credit history when they decide whether or not to qualify you for a HELOC. In addition to having 15% equity in your home, you’ll need a credit score of at least 640. Some lenders prefer 680.

Recommended: Different Types of Home Equity Loans

If you’re thinking about how to get equity out of your home in Texas, you are likely not alone. The average Texas homeowner has seen moderately strong equity growth over the past five years and is now sitting on more than $63,000 in equity. If a lender allowed borrowing at 90% of this equity, the average homeowner could have a credit line of $56,000. This equity growth is part of a larger national trend, as shown in the graphic.

How to Use HELOC Calculator Data to Your Advantage

Employing the data from a Texas HELOC calculator involves more than simply asking yourself, “Can I afford these monthly payments?” There are other ways to use the data:

You can create “what-if” scenarios: Homeowners considering a HELOC can input different HELOC balances, interest rates, or repayment terms to see how each of these things will affect their monthly payment. This lets you see what a high or low monthly payment would be based on different interest rates. This is useful given that HELOC interest rates can shift over time.

You can consider debt-consolidation strategies: If you’re carrying balances on high-interest credit cards, you can add up the monthly payment amounts on your cards and compare that to the monthly payment you would have if you used a HELOC to pay off all that you owe at once. There’s a good chance your monthly payment with a HELOC would be lower than the sum of what you’re currently paying. And it would be one payment instead of multiple payments.

You can get motivated to make extra payments: Thinking about how payments will increase during the repayment phase can help prompt borrowers to pay down some of their HELOC balance during the draw phase so that they enter repayment with a smaller amount due.

Tips on HELOCs

As you’ve probably deduced by now, having a HELOC is a little more complicated than getting a personal loan or using a credit card. But used with care, it can be a very cost-efficient way to borrow large sums. Smart HELOC users know these expert tips:

•  Cultivate good credit. As noted above, you’ll need a score of at least 640 — and possibly 680 — to obtain a HELOC. But the lowest interest rates generally go to those with a score of 700 or better. To nudge your score in the right direction, make all payments on time. Avoid closing old credit accounts or opening new ones in the months before you apply for a HELOC. And don’t max out all your credit cards.

•  Shop around. Compare interest rate offers and HELOC terms from multiple lenders to find your best offer. Look for a competitive interest rate and low fees, as well as a repayment term and monthly payments that fit your budget. (Use the free HELOC calculator to compute monthly payments for each rate.)

•  Set some ground rules. Once you have a HELOC it can be tempting to use it to pay for every little thing, particularly since the monthly payments can be fairly low during the draw phase. But little charges do add up, and you can enter the repayment phase with a large monthly bill. Determine some limits for yourself so that you only use the HELOC for certain types of expenses, particularly if you’ve had trouble managing credit in the past.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

While a revolving line of credit offers significant flexibility, other financing may be more appropriate depending on whether a borrower requires a lump sum or prefers to avoid using their real estate as collateral. As you’re examining the options, start by understanding what is a home equity loan.

Home Equity Loan

Often confused with a HELOC, a home equity loan, like a HELOC, involves using your home as collateral. It is critically different in three ways: The funds are disbursed all at once, the interest rate is typically fixed, and repayment of both principal and interest begins immediately. This makes it a better choice for those who know the exact cost of a project upfront and prefer the stability of a fixed monthly payment amount. If you want to test the waters and see what payments might be like with this option, use a home equity loan calculator.

Home Improvement Loan

A home improvement loan is a type of personal loan and is typically unsecured. It provides a lump sum of cash. Unlike a HELOC, it features a fixed interest rate and a predictable schedule of equal monthly payments. In that way, it is more similar to a home equity loan. But because a home improvement loan is unsecured, the interest rate is generally higher than that of a HELOC or home equity loan.

Personal Line of Credit

A personal line of credit allows borrowers to access funds as needed, like a HELOC does, but without using the home as collateral. While opting for a personal line of credit protects the home from the risk of foreclosure, the interest rates are generally higher, and the credit limits are typically lower because the lender has no physical asset to secure the debt.

Cash-Out Refinance

A cash-out mortgage refinance involves replacing your existing primary mortgage with an entirely new, larger mortgage. You would receive the difference between the new mortgage and the old balance in cash. This is attractive, but a refinance is likely a smart move only if current market interest rates are lower than the rate on your original mortgage. A refi would also involve new closing costs, typically 2% to 5% of the loan amount.

As you consider a cash-out refinance vs. home equity line of credit, it’s important to realize that a refi consolidates your debt into a single monthly payment.

The Takeaway

A Texas HELOC calculator can allow residents sitting on a comfortable amount of home equity to enter the borrowing process with a clear understanding of their potential limits and future obligations. By illustrating the costs associated with the draw and repayment phases, calculators help homeowners anticipate the long-term impact of leveraging their property. If the costs seem manageable, the next step is to seek out prospective lenders and learn more about interest rates.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.

Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.


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FAQ

How much can I borrow with a HELOC?

The amount you can borrow depends on the equity in your home. Lenders may allow you to borrow up to 90% of your equity. (Your equity is your home’s estimated value minus your outstanding mortgage balance.) The final credit limit is also influenced by factors such as your credit score, income, and overall debt.

What can I use the money for from a HELOC?

Funds from a HELOC can be used for just about any purpose. Common uses include home renovations, debt consolidation, funding education, or covering major unexpected costs like medical bills. Some homeowners use HELOC funds to invest in a business, but this is a decision that requires careful consideration. Not all businesses ventures are profitable and if the investment doesn’t pay off and you can’t make your HELOC payments, you risk losing your home.

Is a HELOC interest rate fixed or variable?

Most HELOCs feature a variable rate that fluctuates based on a benchmark index like the prime rate. This means that your monthly borrowing costs can change over time as economic conditions shift. The HELOC agreement will spell out how often the rate can change and by how much.

Is the interest on a HELOC tax-deductible?

The costs associated with this financing may be tax-deductible if you itemize. Consult a tax professional for specific guidance as tax rules can change from year to year.

Learn more about home equity line of credits:



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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.


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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✝︎ To check the rates and terms you 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.

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