Sep

2025

Cost of Living in Arkansas

By Dana Paltao | mortgage | Comments Off

Cost of Living in Arkansas

An aerial view of the downtown Little Rock skyline with the Arkansas River and a bridge in the foreground.

Located in the West South Central region of the United States, Arkansas is notable for its hospitality, diverse economy, and natural beauty, which includes much of the scenic Ozark Mountains. You can spend your free time in the Natural State fishing, biking, and hiking in the great outdoors, or enjoy shopping, dining, and visiting with friends in communities that are famous for their small-town charm.

Arkansas is also one of the most affordable places to live in the U.S., especially when it comes to housing. Read on to learn more about the cost of living in Arkansas, and see if this state might be a good fit for you.

What’s the Average Cost of Living in Arkansas?

Average Cost of Living in Arkansas: $44,254 per year

If you’re looking for a state with an affordable cost of living, Arkansas is definitely worth checking out. It ranks tenth in the U.S. for affordability, according to data from the Missouri Economic Research and Information Center (MERIC). That’s close in cost to neighboring states Oklahoma (first), Missouri (fourth), Mississippi (second), and Tennessee (ninth); but a little less expensive than nearby Louisiana (17th) and Texas (15th).

What is the cost of living in Arkansas in dollars? The average annual cost of living in Arkansas is $44,254, according to data from the Bureau of Economic Analysis. Based on that figure, the average monthly cost of living in Arkansas would be about $3,688. (Your costs will differ, of course, depending on the size of your family and other factors. Singles typically spend significantly more per capita than married couples do on categories like food and housing, for example, and less on health care.)

Here’s how that breaks down into major cost categories.

Category	Average Annual Per-Capita Cost in Arkansas
Housing & Utilities	$6,796
Health Care	$8,098
Food and Beverages (nonrestaurant)	$3,590
Gas and Energy Goods	$1,794
All Other Personal Expenditures	$23,976

Housing Costs in Arkansas

Average Housing Costs in Arkansas: $763 to $1,297 per month

You can expect housing to be one of your biggest costs no matter where you live, but according to MERIC data, housing costs in Arkansas are well below the national average. That’s good news whether you’re buying your first home or your forever home.

Arkansas has close to 1.4 million housing units, according to census data. Zillow listed the typical Arkansas home value at about $219,391 in August 2025, compared with a U.S. average of $368,581. The average monthly mortgage cost in Arkansas is $1,916.29.

Below is a breakdown of what monthly housing prices can look like in Arkansas if you’re renting, per the latest census data.

• Median studio rent: $763

• Median one-bedroom rent: $754

• Median two-bedroom rent: $897

• Median three-bedroom rent: $1,131

• Median four-bedroom rent: $1,371

• Median five-bedroom (or more) rent: $1,109

• Median gross rent: $933

Arkansas home prices can vary significantly depending on where you are in the state. Here are typical home prices in 10 major Arkansas cities, according to Zillow, in August 2025.

Arkansas City	Average Home Value
Bentonville	$482,826
Conway	$244,068
Fayetteville	$373,061
Fort Smith	$189,454
Jonesboro	$221,107
Little Rock	$215,710
North Little Rock	$162,643
Pine Bluff	$76,793
Rogers	$377,957
Springdale	$330,537

Utility Costs in Arkansas

Average Utility Costs in Arkansas: $332 per month

Once you’ve got your housing costs covered, there are still the utility bills to consider. Costs vary based on location, family size, and time of year, but here’s a look at what you can expect to spend monthly on average in Arkansas.

Utility	Average Arkansas Bill
Electricity	$129
Natural Gas	$65
Cable & Internet	$106
Water	$35

Food & Beverage

Average Food & Beverage Costs in Arkansas: $299 per person, per month

Another ongoing expense is buying groceries. Along with your personal food choices and family size, where you live can also affect how much you’ll spend on food.

The Bureau of Economic Analysis estimates that the average Arkansan’s nonrestaurant food cost is $3,590 annually, or about $299 per month. That means a family of four can expect to spend about $1,200 on groceries each month.

The Council for Community and Economic Research, which tracks the food costs in major American cities, ranked these Arkansas cities from lowest to highest for their 2024 grocery costs, using a scale on which 100 is the national average.

Arkansas City	Grocery Items Index
Jonesboro	94.2
Fayetteville	94.6
Conway	94.8
Little Rock/North Little Rock	97.3

Transportation

Average Transportation Cost in Arkansas: $10,505 to $19,548 per year

Transportation costs can be a budget-buster, depending on the current price of gas, commute times in your area, and public transportation options.

Although public transit is available in different regions of Arkansas, most people still drive to and from work. The good news for those commuters is that the state is rated 13th in the nation for its commuting time by U.S. News and World Report’s current “Best States” rankings.

Family size, including the number of working adults in the home, also can be a factor in how much your transportation costs will be. This breakdown from MIT’s Living Wage Calculator can give you a general idea of what to expect when it comes to costs.

Family Makeup	Average Annual Transportation Cost
One adult, no children	$10,505
Two working adults, no children	$12,158
Two working adults, three children	$19,548

Health Care in Arkansas

Average Health Care Costs in Arkansas: $8,098 per person, per year

Your health needs, as well as your insurance coverage, will help determine how much you end up paying for care each year for yourself and your family. But according to the Bureau of Economic Analysis Personal Consumption Expenditures by State report, the annual cost of health care per Arkansan is $8,098. As a monthly expense, that works out to about $674.

Child Care

Average Child Care Costs in Arkansas: $733 to $1,149 or more per child, per month

Having kids generally makes a major impact on your budget, and child care is often one of the biggest monthly expenses families have to manage. As you might expect, prices tend to be higher in larger cities, like Little Rock, Fort Smith, and Fayetteville, than in Arkansas’ mid-sized and rural communities. The price you pay for care will also depend how old your child is and whether or not you choose home-based family care.

Here are the average child care costs in Arkansas, per the most recent data from CostofChildCare.Org.

Type of Child Care	Average Cost Per Month, Per Child
Infant Classroom	$1,149
Toddler Classroom	$882
Preschooler Classroom	$733
Home-Based Family Child Care	$1,050

Taxes

Highest Marginal Tax Rate in Arkansas: 3.9%

Residents of Arkansas get a bit of a break when it comes to state income taxes. At 3.9%, Arkansas’ highest marginal state income tax rate is lower than that in most of its neighboring states.

The state sales tax rate in Arkansas is 6.5%, which is among the highest in the U.S. However, Arkansas doesn’t have a state inheritance or estate tax.

Arkansas counties collect an average of 0.52% of a property’s assessed fair market value as property tax per year.

Miscellaneous Costs

Now that we’ve covered the essentials (food, housing, utilities, etc.), we can turn our focus to the fun stuff. Here’s a look at how you might spend your days (and some of your discretionary funds) as a resident of Arkansas:

• Soak up the beauty of Hot Springs National Park. There’s no cost to enter the park, and you can park in some areas downtown for free. If you have enough energy left after tackling the park’s hiking trails, be sure to check out the nearby shops, restaurants, and attractions.

• Shop, dine, or just stroll in downtown Little Rock’s River Market District. You can buy fresh veggies at the Saturday farmers market, enjoy live music, take a fare-free streetcar ride, or visit the local art galleries.

• Cheer on the Razorbacks. Single-game tickets for University of Arkansas football games, played in Razorback Stadium in Fayetteville, typically go on sale in July, and seats can range from about $35 to more than $1,000 each, depending on where they’re located.

• Take a walk through Walmart history. Find out how the Walmart retail chain got its start in Arkansas—and how it grew—at the Walmart Museum in Bentonville. Admission is free.

• Go on a wine country tour. The Arkansas River Valley remains the hub for wineries, but you can find wineries and vineyards across the state. You can time your visit to coincide with one of the state’s annual wine festivals or visit any time. A bottle of cabernet sauvignon can cost about $20, and many venues offer live entertainment on the weekends.

• Tour the trails near Bentonville on a mountain bike. A half-day tour that includes a professional guide, bike, helmet, water, and transportation to and from Bentonville costs about $100 per person

How Much Money Do You Need to Live Comfortably in Arkansas?

We all have different wants and needs, so it’s hard to say exactly how much money you might require to maintain a lifestyle that’s comfortable for you in Arkansas. But in Arkansas, the odds are in your favor. The state shines when you compare its affordability to the cost of living in other states. Per MIT’s Living Wage Calculator, a single childless adult would need to make $40,540 a year before taxes to cover expenses in Arkansas. U.S. News & World Report’s Best States ranking named Arkansas as the most affordable state in 2025. And MERIC’s cost of living data also ranked Arkansas as one of the top affordable states, at #10.

Explore the best affordable places in every state.

What City Has the Lowest Cost of Living in Arkansas?

These three cities in Arkansas all have a low cost of living, according to the Council for Community and Economic Research Cost of Living Index for 2024:

Jonesboro

Jonesboro is probably best known as the home of Arkansas State University (go Red Wolves!), and it has a lively college-town appeal. But it’s also family-friendly, and academic excellence is a priority from grade school on up. It’s a growing city with diverse employment opportunities. And there’s plenty to do, from events in the popular downtown area to relaxing in one of the city’s many parks. Jonesboro’s cost-of-living index (83.3) makes it one of the most cost-effective places to live in the U.S.

Conway

Conway — home to University of Central Arkansas, Hendrix College, and Central Baptist College — is another popular college town in Arkansas. It’s also home to several large employers, including American Transportation, Acxiom, Frigidaire, Virco Manufacturing, and Kimberly Clark. If you’re looking for cultural activities, Conway is also known for its focus on the arts: The city has its own symphony orchestra. And outdoor enthusiasts can go fishing and boating on Lake Conway and Beaverfork Lake, or explore the city’s many parks and trails. With its low cost-of-living index (83.9), Conway can be an affordable place to settle down, whether you’re just starting out or ready to retire.

Little Rock/North Little Rock

Little Rock is the capital of Arkansas, and it’s also the state’s largest city. But both Little Rock and North Little Rock are known for their vibrant arts and cultural scenes, and for their important role in American history. The Arkansas River Trail, a 15.6-mile loop that connects the two cities, offers a view of the river and city skyline for both cyclists and pedestrians. The cost of living index (93.4) is a bit higher in this area, but it’s still comfortably below the national average.

Recommended: Best Affordable Places in the U.S.

Helpful Resources for Future Arkansas Residents

A colorful row of suburban homes lines a street with green trees and flowers in the foreground.

Arkansas First-Time Home Buyer Guide

Arkansas Foreclosure Rate

A low-angle view of a large, historic brick building with a pointed roof, surrounded by green trees.

Arkansas Student Loan & Scholarship Information

The Takeaway

Best known for its Southern hospitality, natural beauty, and the slightly slower pace of its many charming small towns, Arkansas is getting noticed and it’s growing. A big part of the draw: There’s something for every potential homeowner — from cities to suburbs to wide-open rural spaces. And to top it all off, Arkansas is one of the least expensive places to live in the U.S.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

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FAQ

What are the average monthly bills in Arkansas?

Monthly bills can vary significantly based on family size and personal choices, but the average cost of utilities in Arkansas (gas, electricity, cable and internet, and water) comes to about $332 per month; groceries cost an average of $299 per person; and housing can range from $763 to $1,297 per month, on average.

Are groceries cheaper in Arkansas?

Grocery costs tend to be slightly lower than the national average in Arkansas.

What is the average cost of a home in Arkansas?

Zillow listed the typical Arkansas home value at about $219,391 in late August 2025.

Photo credit: iStock/Rdlamkin

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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.

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SOHL-Q225-146

Sep

2025

Current HELOC Rates in Chicago, IL Today

By Dana Paltao | mortgage | Comments Off

CHICAGO HELOC RATES TODAY

Current HELOC rates in

Chicago, IL.

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

View your rate

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

Compare HELOC rates in Chicago.

Key Points

• A home equity line of credit, known by the acronym HELOC, is a revolving line of credit secured by your home equity, that you can draw on as you need it.

• A HELOC can be useful for managing a large or ongoing expense, including a home remodel or college tuition, or for paying off higher-interest debt.

• The rates lenders advertise for HELOCs are tied to the prime rate, as well as to individual borrowers’ credit scores and scenarios.

• HELOCs tend to have variable rates, which means that monthly payments can fluctuate over the life of the line of credit.

• It’s important to understand the risks: If you default on a HELOC, it can lead to foreclosure on your home.

Introduction to HELOC Rates

You’ve found our comprehensive guide to home equity line of credit (HELOC) interest rates in Chicago, Illinois, which can help you make well-informed financial decisions about how to get equity out of your home, whether you are thinking about borrowing funds for a home renovation or paying for another significant expense. The following information will cover factors that influence interest rates on HELOCs, and the benefits and risks of opening one. We will also equip you with an understanding of current market conditions, and tell you how you can find and qualify for the best available interest rates.

What Is a HELOC?

Before you begin making decisions about borrowing, you’ll want to understand just what a home equity line of credit is. A HELOC is a credit line that a homeowner can set up to draw on their home equity. It will let you borrow against your accrued equity as needed, up to a limit set by your lender. With a HELOC, you must pay interest on the money you pull out, along with repaying the principal. Your home is the collateral securing your credit line. This, of course, means that if you don’t repay what you borrow, you could face foreclosure.

What is your home equity? It’s the difference between your home’s value and your mortgage balance. To qualify for a HELOC, you typically need to have at least 15% equity, and you can generally borrow up to 90% of the equity you’ve accrued. HELOC interest rates are variable, which means they often start out lower than rates on unsecured loans.

As a borrower, your HELOC would have two main phases:

The Draw Period

During the initial draw period (usually 10 years) of your HELOC, you can access funds by drawing on an as-need basis. During this time, you’ll likely only pay interest on what you pull out. Most lenders will not require you to pay down the principal, although you can if you wish to pay off the credit line and draw on it again. A HELOC interest-only calculator can be useful during the draw period, as it will tell you the monthly interest you’ll pay on withdrawals.

The Repayment Period

After the draw period ends, your 10- to 20-year repayment period will begin. Monthly payments will increase at this point, because you’ll begin to repay the principal along with the interest. Since HELOC interest rates tend to be variable, the amount you pay monthly may go up or down as time passes and rates change. A HELOC monthly payment calculator can help you compute what you might need to budget for payments.

Where Do HELOC Interest Rates Come From?

Lenders derive interest rates for HELOCs and different types of home equity loans from the prime rate — a figure that moves up or down with the Federal Reserve’s economic maneuvers. Lenders also tack on a margin, and that is why rates can vary widely in the marketplace. The national average interest rate for a HELOC in early September 2025 was 8.10%, but rates have historically ranged from 6.63% to 15.65%.

Getting rate quotes from multiple lenders is a smart thing to do before you apply for a HELOC. Your individual financial profile, including your credit score, level of debt, and the amount of equity you’ve built up in your home, will influence the interest rate you’ll be offered. A higher credit score and more equity are likely to tip the scales in your favor.

How Interest Rates Impact HELOC Affordability

You will need to invest time and energy to effectively shop around to get the best HELOC interest rate. But that should make a big difference in the end in terms of what you’ll end up paying. Even a small reduction in interest rate, if you can find one, will mean you pay less interest over the life of the HELOC. For example, if you were to withdraw $50,000 from a HELOC during your 10-year draw period, the difference in the interest you’d pay monthly based on an 8.50% versus a 9.50% rate is $42 per month (your monthly payment would be $354 or $396, respectively).

If you repay principal plus interest on that $50,000 during a 20-year repayment period, monthly payments at the lower interest rate would be $620. At the higher rate, they would be $647. That may not seem like such a large difference, but think about this: Over the full repayment term, the lower interest rate could save you more than $3,000. Remember, HELOCs have variable interest rates, so the real numbers could end up crunching somewhat differently.

Check out this chart comparing HELOCs at different credit line amounts, terms, and interest rates.

Repayment Amount	Term	Interest Rate	Monthly Payment	Total Interest Paid
$100,000	20 years	8.00%	$836	$100,746
	20 years	7.00%	$775	$86,072
	10 years	8.00%	$1,213	$45,593
	10 years	7.00%	$1,161	$39,330
$50,000	20 years	8.00%	$418	$50,373
	20 years	7.00%	$388	$43,036
	10 years	8.00%	$607	$22,797
	10 years	7.00%	$581	$19,665
$25,000	20 years	8.00%	$209	$25,186
	20 years	7.00%	$194	$21,518
	10 years	8.00%	$303	$11,398
	10 years	7.00%	$290	$9,833

HELOC Interest Rate Trends

While it’s not a sole predictor when you’re looking at HELOC rates, the prime interest rate can be a helpful gauge when you’re doing rate research. The prime rate has bounced up and down since 2018, for example — it hit a low of 3.25% back in 2020 and a high of 8.50% in 2023. Knowledge of this history will give you perspective on current rates lenders are offering in Chicago.

Date	U.S. Rate
9/19/2024	8.00%
7/27/2023	8.50%
5/4/2023	8.25%
3/23/2023	8.00%
2/2/2023	7.75%
12/15/2022	7.50%
11/3/2022	7.00%
9/22/2022	6.25%
7/28/2022	5.50%
6/16/2022	4.75%
5/5/2022	4.00%
3/17/2022	3.50%
3/16/2020	3.25%
3/4/2020	4.25%
10/31/2019	4.75%
9/19/2019	5.00%
8/1/2019	5.25%
12/20/2018	5.5%
9/27/2018	5.25%

Source: U.S. Federal Reserve

Variable vs. Fixed Interest Rates

We know that HELOCs most often come with variable rates, also known as adjustable rates. These rates tend to go up or down over time, based on market conditions. They move at intervals and may be limited by caps that the HELOC agreement should spell out. But overall, the interest amount you pay may change along with the market, and you’ll want to be aware that your HELOC will be subject to possible interest rate changes before you sign up. You may prefer a steady monthly payment, and if that’s the case, a home equity loan might be preferable for you. Keep reading for an explanation of how those work.

Helpful Tools and Calculators

If you’re thinking about jumping on a HELOC offer, it’s a good idea to first estimate what costs it will involve. Online tools can help you do this. Here are a few particularly useful ones.

Run the numbers on your HELOC.

Home Equity Loan
Calculator

Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.

Calculate
HELOC Payment
Calculator

Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.

Calculate
HELOC Interest Only
Calculator

Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .

Calculate

Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.

How to Qualify for a Competitive HELOC Rate

If you want to secure a desirable HELOC rate, start by taking a look at your personal numbers. Most important here will be your credit score, your debt-to-income (DTI) ratio, and your level of home equity. Lenders expect you to have at least 15% equity in your home, and it can’t hurt to have more. Here are some tips to help you ensure your finances pass muster before you submit your application.

Improve Your Credit Score

Maintaining a credit score of 700 or above is a key to unlocking the very best HELOC rates. You can ratchet your number higher by paying your bills on time and chipping away at any credit card balances you’ve been accumulating. Review your credit reports regularly for inaccuracies. By disputing and removing errors, you can be sure your score reflects your real financial stability.

Calculate Your Debt-to-Income Ratio (DTI)

Knowing your debt-to-income ratio requires only a simple calculation: Divide your total monthly payments (debts you’re paying off) by your gross monthly income. Most HELOC lenders want you to have a DTI under 50% to qualify. If you want to be eligible for the best HELOC interest rates in the Chicago area, you’ll do better to get your DTI below 36%. Paying down debt (or growing your earnings) are the surest ways to a better DTI.

Current HELOC rates by state.

Compare current HELOC interest rates by state and find a HELOC rate that suits your financial goals.

Select a state to view current rates:

Application Process for a HELOC in Chicago

If you’d like a quick snapshot of the HELOC rates available in Chicago, along with an estimate of the amount you could qualify for, you can prequalify online. After investigating lenders and rates available to you locally, you can decide if you want to move on to the full application. It will require detailed financial information and property specifics. Here is a step-by-step for the process:

Step 1: Run the Numbers

Before you start working on your HELOC application, it’s advisable to take a very close look at your financial profile. Check your credit score, not at just one but at all three major credit bureaus. You’ll likely need at least a 640 credit score to qualify. Calculate your DTI ratio and your home equity, and understand that the latter will grow as long as you make regular payments on your home loan and take efforts to increase your home’s value (think: curb appeal).

Once again, you can figure out your unofficial home equity percentage by subtracting your outstanding mortgage balance from your home’s estimated value and dividing the answer by that home value number. A formal appraisal may shift that approximate percentage a bit. You definitely need at least 15% equity to proceed.

Step 2: Compare Lenders

Want to find the best HELOC lenders in Chicago? Start by seeing which ones offer the most competitive rates and terms. Look at each institution’s interest rates and qualification criteria, the minimum and maximum amounts they will let you borrow, fees, and their draw and repayment period timespans. HELOC terms vary a lot among lenders, so don’t rush past the fine print.

Step 3: Submit Your Application

Gather the necessary documentation, which will include government-issued ID, recent pay stubs, W-2 forms, and your most recent tax return. If you’re self-employed, a lender may ask you for both a profit-and-loss statement and your tax returns from the last two years. Paperwork related to your property will include the declaration page from your homeowners insurance policy. You can most likely submit your HELOC application online, over the phone, or in person.

Step 4: Get an Appraisal

A home appraisal is a professional, objective analysis to determine your home’s value. It typically costs around $300 to $600 to get one. If your property appraises for $425,000, for example, and that’s more than your mortgage’s current balance, a lender will have more incentive to approve you for a HELOC. That makes this an important step that can help you determine how much equity you can potentially access. It will also influence your HELOC agreement’s terms. Remember, prospective lenders will tell you what kind of appraisal you require, so wait for instructions after you submit the application.

Step 5: Prepare for Closing

Once you’re approved for your HELOC, but before you can access funds from your credit line, you’ll have to sign your agreement and pay your closing costs. Some lenders will make the funds available to you immediately after your closing; others may require you to wait a few days before you can draw on your credit line.

Closing Costs and Fees

A HELOC typically involves lower closing costs than a home mortgage loan or a cash-out refi. The greatest expense tends to be the fee for the appraisal, but other line items include a title search, and application, origination, and administrative fees. Some lenders charge annual maintenance fees that can be up to $250 per year. Lenders sometimes offer to reduce or waive closing costs, but keep in mind that it’s often in exchange for a higher interest rate.

Recommended: HELOC vs. Home Equity Loan

Tax Benefits and Considerations

At this point, homeowners may tax-deduct HELOC interest if the funds they borrow go towards making significant improvements on the primary residence. This policy may change, however, so talk to a tax advisor, be sure deductions apply to your specific circumstances, and keep your invoices and receipts.

Alternatives to HELOCs

You can get equity out of your home with financial tools other than a HELOC, including a home equity loan or a cash-out refinance. Before you decide on a HELOC, you’ll want to consider all of your options — another popular choice is a personal loan.

Home Equity Loan

What is a home equity loan? It’s an option that gives the borrower a lump-sum loan at a fixed interest rate. You can typically use it to borrow up to 85% of your accrued home equity. Home equity lenders look for a credit score of 680 or higher, generally, and many would like your score to be 700 or above if you want their best rate.

If you have a specific need for a defined amount of money and you prefer fixed monthly payments that are predictable over the life of the loan, this might be an attractive option. A home equity loan calculator can help you predict the maximum loan amount you’ll qualify for.

Cash-Out Refinance

This is another option that will let you borrow more than you currently owe on your mortgage, and then collect the extra funds in cash. A cash-out mortgage refinance with a fixed or variable rate is likely open to you if your credit score is 620 or more and your DTI ratio is under 43%.

What is the actual difference between a cash-out refinance vs. home equity line of credit? The refinance option will require just one monthly payment, while with a HELOC you’ll have a mortgage payment and a credit line payment monthly.

Personal Loan

One up-front advantage of a personal loan is that you don’t risk foreclosure if you find yourself unable to make payments, since this option is typically unsecured. Borrowers repay these loans in regular, fixed installments over two- to seven-year periods. Lenders look for borrowers’ credit scores to be 610 or higher for these loans. They are pretty speedy to get — another advantage. But personal loans almost always carry higher interest rates than those on HELOCs.

The Takeaway

If you’re considering applying for a HELOC in Chicago, start by weighing both the potential benefits and the possible risks you’ll take on by activating one. A HELOC offers financial flexibility, It can come with more attractive interest rates than other options, making it a well-suited borrowing choice to manage a large, ongoing expense. But it also brings the risk of foreclosure on your home should you default. Always realistically assess your financial situation before taking out a line of credit. You’ll need a credit score of at least 640 to qualify, and you should look at multiple lenders’ rates if you think a HELOC is the right pick for you.

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

View your rate

FAQ

Is a HELOC a wise move at this point?

A HELOC could be a good move for you if you’re looking for flexibility to access funds in increments for big expenses, and you feel comfortable signing up for a loan with a variable interest rate — especially if a prime rate drop is in the forecast. But if set payments better suit you, the stability of a home equity loan with a fixed interest rate might be a better choice.

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

It will depend on your interest rate, repayment terms, and what portion of the credit line you use upfront. The payment on a $100,000 HELOC, if you need to borrow the full amount and you have an 8.00% rate, might be around $667 per month in interest during the draw period. During the repayment phase, your monthly payment would rise to more than $1,200 because you’d start paying down the principal, too. HELOCs’ variable interest rates mean your payments will vary.

Do you need an appraisal to get a HELOC?

Yes, you will need a home appraisal if you want to open a home equity line of credit. You’ll want to wait for your potential lender for instruction, so you know how your home should be appraised in order to meet their terms. This appraisal is necessary to help the lender determine your home’s market value right now, a number that will impact the amount you will be approved to borrow.

Will a HELOC have an impact on your credit score?

Opening a HELOC will involve a hard inquiry on your credit report, and yes, that can cause a slight, temporary dip in your credit score. But if you manage the HELOC responsibly, it can build your credit score down the line. (Missing payments, on the other hand, will definitely make you less creditworthy.)

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

SOHL-Q225-392

Browse other Illinois home guides.

Browse HELOC rates by state guides.

More HELOC resources.

What is a Home Equity Line of Credit

Learn more
Different Types of Home Equity Loans

Learn more
HELOC vs Home Equity Loan: How They Compare

Learn more

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

Sep

2025

Current HELOC Rates in Tucson, AZ Today

By Dana Paltao | mortgage | Comments Off

TUCSON HELOC RATES TODAY

Current HELOC rates in

Tucson, AZ.

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

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

Compare HELOC rates in Tucson.

Key Points

• The home equity line of credit (HELOC) interest rates offered by lenders in Tucson are influenced by the prime rate and overall economic conditions, with the borrower’s financial profile also playing a role.

• HELOCs offer a flexible way to pull equity from your home; you only pay interest on the funds you use via the credit line.

• Generally, a HELOC has a variable interest rate. This can lead to unpredictability, since your rate, and future monthly payments, can go up or down.

• You’ll generally need to have at least 15% equity in your home and a credit score of 640 or better to qualify for a HELOC, and you’ll have to meet other qualifying factors as well.

• If you default on your HELOC, a foreclosure on your home is a possible consequence.

Introduction to HELOC Rates

This guide to HELOC interest rates brings together all the information you need if you are a homeowner wanting to know how to get equity out of your home in Tucson, Arizona.

If you have been working to pay down your home loan month-to-month and accumulating significant equity in your residence, you may be wondering if a home equity line of credit is the key to paying for an update to your living space, investing in your child’s (or your) educational goals, or consolidating higher-interest debt. Our guide will help you find resources and equip you to make well-informed choices, filling you in on the factors that sway home equity loan rates, these financial tools’ advantages and potential pitfalls, and the secrets to finding favorable lenders and terms for your HELOC.

Just what is a home equity line of credit, anyway? Read on to find out exactly what a HELOC is, what it can do for you, and how to determine if it is the right choice for you.

What Is a HELOC?

A HELOC is a revolving credit line that will allow you to tap into equity you’ve built in your home. Because it is a line of credit, you can use a HELOC to borrow the money you need in increments — up to a maximum amount your lender sets, but only as you need the cash.

You will typically need to have accumulated 15% or more equity to qualify, and you should be able to borrow up to 90% of the equity you’ve got. As a homeowner, you will want to have a repayment plan. Missing HELOC payments will put your home at risk for foreclosure.

A HELOC has two phases: