Compare HELOC rates in Chicago.

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:

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.

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.

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.

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.

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:

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.

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.

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.

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

View your rate

Compare HELOC rates in Tucson.

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:

How Do Lenders Determine HELOC Interest Rates?

Lenders tend to set HELOC interest rates, along with those for different types of home equity loans, by looking at the prime rate. This key interest rate is at least somewhat influenced by the Federal Reserve and its policies. Lenders may add their own margins to the prime rate when determining the interest rates they’ll offer, and they always consider a borrower’s credit score, debt-to-income (DTI) ratio, income, and accrued home equity. That is why lenders offer unique, varying rates. It’s also why it’s a smart idea to look for quotes from multiple lenders before you take out a HELOC.

How Interest Rates Impact HELOC Affordability

What can appear to be a small difference between two lenders’ HELOC rates can make a big difference in the cost of your home equity line of credit in the long run. Your rate on a $50,000 HELOC with a term of 20 years, for example, may differ from another borrower’s by one insignificant-seeming percentage point, from 7.00% to 8.00%. If you got the higher rate, your monthly payment would be about $30 more than if you had the lower one — and the total interest you’d pay over the HELOC’s life would be nearly $7,000 more.

Keep in mind, the more you borrow with a HELOC, the greater effect you will see from even a slight interest rate increase or decrease. Even a fraction of a percentage point can affect the big picture, so you need to keep an eye on what comes after the decimal point.

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

HELOC Interest Rate Trends

If you can keep an eye on the prime interest rate, it will benefit you, since this fluctuating number may successfully clue you in on the direction HELOC rates will be heading. The prime rate has seen significant ups and downs since 2018 — it hit a 3.25% low in 2020 and a high of 8.50% in 2023.

If you can understand this key rate’s historical patterns, you’ll gain a helpful perspective in considering lenders’ rates. Many borrowers try to time their HELOC applications to coincide with a rate dip, but it’s difficult to do, and other, possibly more effective strategies are out there to help you increase the chances you’ll get the best rate available. Let’s discuss those below.

Adjustable vs. Fixed Interest Rates

If you decide to move forward with a HELOC, you’ll want to look at lender offers for starting rates, but also for specifics like how often a rate may change, and if it will likely be capped at some point. A HELOC might be just the right choice for you, if you can handle a bit of financial uncertainty from time to time.

Helpful Tools and Calculators

Before obtaining a HELOC, you will want to check out online tools and try using them to estimate your costs. Here are some useful ones to try out if you think you want to borrow against your home equity.

How Can a Homeowner Qualify for a Competitive HELOC Rate?

Trying to grab the best HELOC rate out there? Your credit score, debt-to-income (DTI) ratio, and level of home equity will be important factors in the equation. Lenders will typically look for you to have built up at least 15% equity in your home — although more will be even better. Follow these tips and you can ensure your finances are up to par before starting your application.

Improve Your Credit Score

Keep your credit score at 700 or better. This is key to unlocking the top HELOC rates. You can slowly but surely nudge your number up by paying your bills on time and paying down, or off, your credit card balances. Be sure to review your credit report, too — you may discover inaccuracies. If you dispute and resolve errors, you can ensure that your score truly reflects your level of financial responsibility.

Calculate Your Debt-to-Income Ratio (DTI)

Completing a simple equation will give you your DTI ratio: Divide your total monthly debt payments by your gross monthly income. Most HELOC lenders want to see a DTI under 50%. But if you want to qualify for Tucson’s best interest rates on HELOCs, you’ll want to try to get yours down below 36%. Try to pay down debt you’re carrying, or increase your earnings — either way, you’ll enhance your financial profile.

Applying for a HELOC in Tucson

By making the effort to get prequalified online, you’ll get a preview of the HELOC rates available to you in Tucson, plus an estimated credit line amount you may qualify for. You can scope out the various lenders and rates before moving on to complete the full application, which requires a lot more financial details and specific property information.

Closing Costs and Fees

HELOCs usually involve lower closing costs than home mortgage loans or cash-out refis. The biggest expense tends to be for the appraisal. You may be required to pay for that appraisal, plus a title search, an origination fee, and other administrative fees. Some lenders charge annual maintenance fees that could be up to $250 per year. Note: A lender might offer to reduce or waive closing costs, but that can be in exchange for a higher interest rate (not necessarily a good deal, even if it makes closing easier).

Recommended: HELOC vs. Home Equity Loan

Tax Benefits and Considerations

Homeowners are allowed by the IRS to deduct HELOC interest, currently in cases where they use the funds borrowed to make significant improvements on their primary residence. This policy could change, though. Talk to a tax advisor to be sure deductions apply to your circumstances, and save every invoice and receipt.

HELOC Alternatives

You have options other than a HELOC for getting equity out of your home. These include a home equity loan or a cash-out refinancing, in addition to a personal loan. All the choices have plusses and minuses, depending on your situation. Before you decide on a HELOC, consider every option.

The Takeaway

If you’re considering a HELOC in Tucson, weigh both the potential benefits and the possible risks you’ll be taking on. HELOCs offer financial flexibility and may carry more attractive interest rates than other options, making them an attractive borrowing choice if you’re managing large, ongoing expenses. But they come with risks, too — especially the one of losing your home should you default. Realistically assess your financial situation before you take out a loan. You’ll likely need a credit score of 640 or up to qualify. Look at multiple lenders’ rates if you think a HELOC is right for you.

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.

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

View your rate

Compare HELOC rates in Knoxville.

Introduction to HELOC Rates

This article is a great place to start your research on home equity line of credit (HELOC) rates in Knoxville, Tennessee. We’ll help you understand what a home equity line of credit is, how interest rates are determined, and how to qualify for the best rates. We’ll also cover the benefits and risks of HELOCs, and how to compare different lenders. By the end, you’ll be better equipped to decide if a HELOC is the right financial tool for your needs, and to qualify for the best rates.

What Exactly Is a HELOC?

A HELOC is a flexible financial tool that lets you leverage your home equity (the difference between your home’s value and whatever you still owe on your home loan) to borrow money. Typically, you’ll need to have at least 15% equity in your home to qualify. With a HELOC, you can access up to 90% of your equity. It’s like having a credit card with a “draw period” (often 10 years) where you can access funds and only pay interest, followed by a “repayment period” (10-20 years) where you pay back both the principal and interest.

Recommended: Different Types of Home Equity Lending

Where Do HELOC Interest Rates Come From?

HELOC interest rates are tied to the prime rate, which is influenced by the Federal Reserve. Each lender adds a margin to the prime rate, resulting in different HELOC rates. This is why it’s so important to shop around and compare rate offers from different lenders. Lenders also consider individual financial metrics, such as credit score, debt-to-income (DTI) ratio, and the amount of equity you have in your home. A higher credit score, lower DTI ratio, and more equity can lead to more favorable HELOC rates.

How Interest Rates Impact HELOC Affordability

Even a percentage point change in your HELOC rate can make a difference in your monthly payments and the total interest you’ll pay over the life of the credit line. For example, if you entered the repayment period owing $100,000 on your HELOC at an 8.00% interest rate, you would pay $1,213 each month. If you had an interest rate of 7.00%, however, you would pay $1,161. The difference may not seem so significant, but it adds up to roughly $6,000 in extra interest over a 10-year period. This is why it pays to seek out the lowest rate.

HELOC Interest Rate Trends

As you start thinking about how to get equity out of your home, you’ll likely begin to watch the prime rate closely. Its movements can hint at what is to come in the lending market. The rate hit a recent low of 3.25% in 2020 and a high of 8.50% in 2023. By looking at this historical data, you can get a sense of the potential ups and downs of HELOC rates, and put the rates you’re seeing in the current market into perspective.

Variable vs. Fixed Interest Rates

HELOCs typically come with variable (also called adjustable) interest rates that are influenced by market conditions. This means your monthly payment amounts may vary. You won’t be surprised by these changes if you’ve read your HELOC agreement. The agreement will spell out how frequently the rate can change and by how much. As long as you feel you can live comfortably with these variations, a HELOC could be a good choice for you.

Helpful Tools & Calculators

Before you take the leap and apply for a HELOC, why not use our online tools to get a sense of what your monthly payments and interest costs might look like? A few minutes with a calculator can give you some valuable insights to help you make a more informed financial decision.

How to Qualify for a Competitive HELOC Rate

To qualify for a competitive HELOC rate, you’ll want to put your best financial foot forward. Here are two things you can do in the months leading up to your application to better your chances of a great rate.

Improve Your Credit Score

A credit score of 700 or higher is your golden ticket to better HELOC rates. The secret? Timely payments on all your debts and keeping credit card balances in check. Also be sure to give your credit report a once-over, disputing any errors to give your score that extra nudge in the right direction. And avoid closing old credit accounts or opening new ones in the months leading up to your HELOC application.

Calculate Your Debt-to-Income (DTI) Ratio

Your DTI ratio is a simple concept: the sum of your monthly debt payments divided by your gross monthly income. HELOC lenders typically prefer a DTI under 50%, but the lower, the better, and for the best rates, you’ll want a DTI ratio below 36%. How to get there? Reduce your credit card balances and other debts, increase your income, or do both.

Application Process for a HELOC in Knoxville

Many lenders today offer the convenience of prequalifying for a HELOC online, which can significantly streamline the application process. This preliminary step will give you a clear picture of the rates and terms available in Knoxville before you commit to a full application. If you decide to proceed, follow these steps:

Closing Costs and Fees

The good news is that HELOC closing costs are generally lower than those for a home purchase or a cash-out refinance. The most expensive part of the process is usually the home appraisal, which can range from $300 to $600. You may also have to pay for a title search, which can cost $100 to $450, as well as application, origination, and administrative fees. Some lenders charge an annual maintenance fee, which can be up to $250.

Tax Benefits and Considerations

Here’s some more good news: You can deduct HELOC interest on your 2025 federal return if the funds are used to significantly improve your primary residence. And guess what? A tax advisor can confirm your eligibility for deductions related to the HELOC and who will keep tabs on how tax rules may change in 2026 and beyond. Understanding these potential benefits can help you make a more informed decision about leveraging your home equity.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

There are other ways to tap into your home’s equity besides a HELOC, and there’s also a personal loan, which allows you to borrow without using your home as collateral. Cover your bases by making sure you understand how these options differ from a HELOC before you seal the deal.

The Takeaway

If you’re mulling over a HELOC, take a moment to consider the advantages and potential pitfalls. They do offer flexible borrowing and possibly lower interest rates in Knoxville when compared to personal loans. But a HELOC comes with the risk of foreclosure if you fail to make your payments. So, before you leap, compare rates from different lenders, take stock of your financial well-being, and explore alternatives like cash-out refinancing or personal loans to find the perfect fit for your financial needs.

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.

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

View your rate

Compare HELOC rates in Plano.

Introduction to HELOC Rates

Our guide to home equity line of credit rates in Plano, Texas, lays out the factors that impact interest rates, and offers insider tips on how you can qualify for the lowest available rate. We’ll also cover the benefits and risks of HELOCs, current interest rate trends, and tools you can use to estimate your monthly payments and interest costs. By the end of this guide, you’ll be better equipped to decide if a HELOC is the best way for you to borrow.

What Exactly Is a HELOC?

A HELOC is a revolving credit line that uses your home as collateral. This means that in the event that you don’t repay what you borrow, the lender could foreclose on your home. In practice, using a HELOC is a lot like using a credit card. You borrow when you need funds, and you make monthly payments on the amount of the credit line that you have actually used.

To qualify, you’ll need to have at least 15% equity in your home. Your equity is the market value of your home minus whatever you still owe on your home loan. Some homeowners may be able to borrow up to 90% of their equity. The draw period and repayment period are the two phases of a HELOC, and it’s important to understand how payments will differ in each.

Recommended: Different Types of Home Equity Lending

Where Do HELOC Interest Rates Come From?

HELOC interest rates are a product of the prime rate, which is under the sway of Federal Reserve policies. Each lender tacks on a margin to the prime rate, resulting in a range of HELOC rates. This is why it’s so important to seek out rates from multiple lenders before you decide on a lending partner for your HELOC. It’s especially true because lenders also take into account individual borrower factors such as credit score, debt-to-income (DTI) ratio, and the amount of equity in the home.

How Interest Rates Impact HELOC Affordability

The interest rate on your HELOC can make a big difference in how much it costs you. Even a small difference in the interest rate can mean a lot more interest paid over the life of the loan. For example, on a $50,000 HELOC with a 20-year term, a one-percentage-point rate increase from 7.00% to 8.00% during the repayment phase can raise your monthly payment by $30 and increase the total interest paid by almost $7,000. Your exact numbers will differ due to the HELOC’s variable interest rate. But the bottom line is that you want to start your HELOC with the lowest available rate.

HELOC Interest Rate Trends

You’ll likely begin keeping an eye on the prime rate as you think about how to get equity out of your home. Having a sense of the prime rate’s history can give you some perspective on whether current rates are relatively high or low. Over the years, we’ve seen the prime rate dip to an unusually low 3.25% in 2020 and rise to 8.50% in 2023. Where the rate goes, your HELOC interest rate will likely follow.

Variable vs. Fixed Interest Rates

As we’ve noted, HELOCs usually come with adjustable (also called variable) interest rates, which means your rate can go up or down based on market conditions. If you can get comfortable with the possibility of rate increases, you can probably handle a HELOC. One thing to note: Your HELOC agreement would spell out how often your rate can change, and by how much. So there are some guardrails around the rate changes. If you’re someone who can’t rest comfortably without predictability and stable payments, a fixed-rate loan such as a home-equity loan might be more up your alley.

Helpful Tools and Calculators

Before you apply for a HELOC, you can use online calculators to see how much you can expect to pay each month based on the amount you borrow and your current interest rates. You can also learn how much interest you might pay over the life of the HELOC. Here are three useful calculators.

How to Qualify for a Competitive HELOC Rate

To secure a competitive HELOC rate, you’ll need to have at least 15% equity in your home. Take a few minutes to make sure you’ve hit that benchmark. Subtract what you still owe on your mortgage from your home’s estimated value. Then divide the answer by the home value and you’ll have a percentage. You can move on to the next steps: working on your credit score and DTI ratio.

Improve Your Credit Score

You can get a HELOC with a credit score of 640, but to ensure you’re in a prime position to secure the best available HELOC rates, aim for 700 or higher. Making payments on time and chipping away at credit card balances can give your credit score a lift. Setting up automatic payments is a good idea. Also keep an eye on your credit report so you can fix any errors that crop up. Avoid closing old credit accounts or opening new ones in the months leading up to your HELOC application.

Calculate Your Debt-to-Income (DTI) Ratio

Your DTI ratio is a simple comparison: your monthly debt payments divided by your gross monthly income. For HELOC lenders, a DTI under 50% is the general target, but the lower, the better, and the best interest rates go to those with a DTI ratio of 36% or less. To improve your DTI, focus on paying down debts, increasing your earnings, or both.

Application Process for a HELOC in Plano

For those considering a HELOC in Plano, the application process can be streamlined by prequalifying online. Taking this initial step is helpful because it allows you to understand the current HELOC rates available in Plano and to see what rate and terms you might qualify for. Once prequalified, you can then gather all of the necessary documentation required to formally submit your application, following these steps:

Closing Costs and Fees

The good news is that HELOC closing costs are typically more budget-friendly than what you’d face with a home purchase or refinance. The appraisal fee is often the most significant expense. You might also encounter an application fee, origination fee, and administrative costs. Some lenders may have annual maintenance fees, transaction fees for withdrawals, inactivity fees, or early termination fees. Some lenders are willing to reduce or even waive some of these costs, though this could mean a slightly higher HELOC interest rate, which could cancel out any savings.

Tax Benefits and Considerations

Here’s a nice counterbalance to those fees: Homeowners are eligible to deduct HELOC interest from federal taxes if the funds borrowed are used to significantly improve the primary residence. To make sure you’re getting the most out of your HELOC (and for help itemizing and capturing that deduction), it’s a great idea to chat with a tax advisor. Keep your eyes open for potential changes in how HELOC interest is handled on taxes in 2026 and beyond.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

If a HELOC doesn’t feel like the right fit, there are other options to consider. Home equity loans, cash-out refinancing, and personal loans all have their own requirements and benefits.

The Takeaway

As you mull over the idea of a HELOC, remember to consider the benefits and potential drawbacks. The flexibility and lower initial costs are attractive, but don’t forget about the variable interest rates and the risk of losing your home if payments are missed. Homeowners in Plano should take the time to compare HELOC offers from different lenders, looking at factors like credit line limits and fees as well as the interest rate. Ensure your financial health is in order, gather the necessary documentation, and be ready for a home appraisal before you apply.

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.

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

View your rate