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

Compare HELOC rates in Long Island.

Introduction to HELOC Rates

Welcome to your comprehensive guide to home equity line of credit (HELOC) interest rates on Long Island, New York. We can help you, as a homeowner, understand the current market trends, the factors that influence Long Island’s HELOC rates, and how to qualify for the best terms. You’ll learn about the benefits and risks of HELOCs, as well as what alternative financing options may be open to you. By the end, you’ll be better equipped to decide if a HELOC is right for your financial situation -– and you’ll know exactly how to apply for one.

What Exactly Is a HELOC?

To be able to decide whether a HELOC is a good option for you, you’ll need to understand exactly what a home equity line of credit is. A HELOC is a revolving line of credit that you can draw funds from as you need them, up to a limit determined by your lender and based on how much equity you have in your home. Your home equity is the difference between the property’s value and what you owe on your mortgage, and it serves as the collateral for your HELOC. To qualify, you generally need a minimum of 15% equity, and you can usually borrow up to 90% of that amount. HELOCS have two distinct phases:

Where Do HELOC Interest Rates Come From?

HELOC interest rates are set based on the prime rate, which in turn is influenced by the Federal Reserve’s actions. Lenders add their own margin to the prime rate to arrive at HELOC rates, which is why you’ll see different rates at different banks. When you apply for a HELOC, in addition to its current rates, the lender will also consider your credit score, debt-to-income (DTI) ratio, income, and the amount of equity you have in your home to arrive at the rate you’re offered.

How Interest Rates Impact HELOC Affordability

The interest rate on your HELOC has a significant effect on how much you pay each month. And even a small difference in the interest rate can have a big impact on how much interest will cost you over the whole term. For example, a $50,000 HELOC with a 10-year repayment term and a 7.00% interest rate would have a monthly payment of $581 and would cost you $19,665 in interest over the life of the loan. But if the interest rate were just one percentage point higher, to 8.00%, the monthly payment would be $607 and the total interest cost would be $22,797.

HELOC Interest Rate Trends

Keeping an eye on the prime interest rate can be helpful by giving you a sense of where HELOC rates, both on Long Island and across the country, might be heading. Over the years, the prime rate has seen plenty of ups and downs: For instance, it hit a low of 3.25% in 2020 and a high of 8.50% in 2023. Watching the prime rate’s movements and being aware of this history can give you perspective on the current HELOC rates you’re seeing.

Variable vs. Fixed Interest Rates

While HELOCs can have either variable or fixed interest rates, they typically come with the former. These variable rates often start lower than the fixed rate you might be offered on a HELOC, but they fluctuate in response to market conditions. If the prime rate goes up or down, variable rates are likely to follow. Fixed rates may start higher, but they don’t change over the life of the HELOC, offering a stability that some borrowers may prefer. If you move forward with a variable-rate HELOC, it’s a smart move to review the lender’s offer closely so that you understand the specifics of how often rates can change and at what level the rate might be capped.

Helpful Tools and Calculators

Before you apply for a HELOC, you can use online tools to help you estimate your monthly payments. Here are three calculators designed to help you as you consider financing that draws on your home equity.

How to Qualify for a Competitive HELOC Rate

To be offered an attractive HELOC rate, you’ll need to be sure that your credit score, debt-to-income (DTI) ratio, and amount of home equity are up to lenders’ standards. These tips can help you get your finances ready to present to potential lenders.

Improve Your Credit Score

Keeping your credit score at 700 or above is key if you’re aiming for a good HELOC rate. Paying your bills on time and whittling down your credit card balances can give your score a significant lift, which in turn can lead to a lower HELOC rate. Keep an eye on your credit report, too. Checking regularly could help you spot and dispute any errors so that your record is accurate.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio represents your total monthly debt payments compared to your gross monthly income and helps lenders understand how much of your income goes toward paying off your obligations. Most HELOC lenders prefer to give their most attractive rates to homeowners with a DTI ratio under 36%. To calculate your DTI ratio, tally up all your monthly debt payments, then divide that total by your gross monthly income. If the result isn’t where you’d like it, work on paying down debt and (if you can) increasing your income – through a side hustle, for example.

Application Process for a HELOC in Long Island

Applying for a HELOC is straightforward, especially if you prequalify online. This preliminary step allows you to see what rate you’re likely to be offered. And if you choose to submit a full application, you’ll just need to pull together the necessary paperwork and give your application to your lender. Let’s take a look at the details of the process:

Closing Costs and Fees

HELOC closing costs are generally more affordable than those associated with a home loan or a cash-out refinance. The most significant expense is often the appraisal, which can range from $300 to $600. You may also encounter application, origination, title search, and administrative fees, along with annual maintenance fees that could go up to $250. Your lender may offer to reduce or waive closing costs, but be aware that accepting such offers may mean an increase in your interest rate.

Recommended: HELOC vs. Home Equity Loan

Tax Benefits and Considerations

As a homeowner, you may be able to deduct HELOC interest if you use the funds you’ve borrowed to significantly improve your primary residence. There are limits on how much you can deduct and conditions on what constitutes a significant improvement, so it’s a good idea to consult a qualified tax advisor to be sure you understand all the tax implications and confirm your eligibility for HELOC-related deductions.

Alternatives to HELOCs

A HELOC may be an appealing option if you’re trying to figure out how to get equity out of your home. But before you make your final decision, it’s smart to consider all the ways you can tap your equity, as well as another popular borrowing option, the personal loan. Let’s take a look at each.

Recommended: Different Types of Home Equity Lending

The Takeaway

As you evaluate whether a HELOC is a good financial choice for you, you’ll want to consider both the benefits and the risks. HELOCs are known for their flexibility and competitive interest rates, but you’ll also need to consider the uncertainty of their variable rates as well as the possibility of losing your home if you don’t make your payments. Armed with your new understanding of HELOCs and Long Island HELOC rates, you’ll be able to assess your options and make a choice that will meet your financial needs and goals.

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 New Orleans.

Introduction to HELOC Rates

This article is your go-to guide for understanding home equity line of credit (HELOC) rates in New Orleans. We’ll walk you through everything you need to know about the factors that influence these rates and how to secure the best rate and terms. You’ll also learn about the benefits and risks of HELOCs, how to compare different lenders, and the tools available to estimate your costs. Whether you’re planning a home renovation or need funds for personal expenses, this guide will help you make an informed decision.

What Exactly Is a HELOC?

A HELOC is a revolving credit line secured by your home equity (your home’s value minus whatever you still owe on your home loan). Homeowners typically need 15% equity to qualify and can often borrow up to 90% of their equity. Of course, if you borrow with your home as collateral, your home could be at risk of foreclosure if you fail to make your payments. So it’s important to make sure you understand all the details of a HELOC. Here’s an important one: A HELOC has a draw period and a repayment period. Make sure you understand how they differ.

Recommended: Different Types of Home Equity Lending

Where Do HELOC Interest Rates Originate?

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 to determine its specific HELOC rate. From there, lenders also consider individual factors like your credit score, debt-to-income (DTI) ratio, and the amount of equity you have in your home. A higher credit score and more equity can help you get a lower HELOC rate. Understanding these factors can help you make an informed decision about when to apply for a HELOC.

How Interest Rates Impact HELOC Affordability

The interest rates on your HELOC can make a world of difference when it comes to affordability. Even a change of a single percentage point can lead to significant changes in your monthly payments and the total interest you’ll pay over the life of the loan. HELOCs have variable interest rates, so they may change over time, but as an example, consider this: If you were to draw $75,000 on a HELOC, a one-percentage-point difference in HELOC interest rate, from 7.50% to 8.50%, during the repayment phase would result in $11,000 in additional interest paid over a 20-year repayment period.

HELOC Interest Rate Trends

As you are exploring how to get equity out of your home, you’ll probably start checking the prime rate frequently, as HELOC interest rates tend to track with the ups and downs of the prime rate. It also helps to have a sense of the history of the prime rate. Since 2018, it has hit a low of 3.25% in 2020 and a high of 8.50% in 2023. This will give you a sense of where current rates fall on the spectrum, and also help you see how much the rate might change over time.

Variable vs. Fixed Interest Rates

As noted above, HELOCs often come with variable interest rates, which are also called adjustable rates. These rates usually kick off lower than fixed rates, which is a big draw. But keep in mind that your monthly payments will shift over time. If you sign on to a HELOC, the agreement you have with the lender will spell out the guardrails of your HELOC rate changes: how often rates can change; how much the rate can deviate in a given time period; and whether there is an overall cap. If you don’t think you can get comfortable with a variable rate, alternatives to HELOCs are described below.

Helpful Tools and Calculators

Before you apply for a HELOC, you can use online tools to estimate your monthly payment and interest costs. A HELOC payment calculator and HELOC interest-only calculator can help you understand how much you can afford to borrow.

How to Qualify for a Competitive HELOC Rate

If you’re aiming for a top-notch HELOC rate, focus on boosting your credit score and keeping your debt-to-income (DTI) ratio low. Follow these tips in the months leading to your application.

Improve Your Credit Score

To be in the running for the best HELOC rates, you’ll want to keep your credit score at 700 or more, though you can get a HELOC with a score of 640. It’s all about making payments on time and chipping away at balances. Also give your credit report a once-over and dispute any errors. Keeping old credit accounts open and using them wisely can also work wonders on your score.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is a simple formula: your total monthly debt payments divided by your gross monthly income. When it comes to HELOCs, a DTI under 50% is the general target, but the lower, the better, and you’re aiming to be under 36%. You can reduce your DTI ratio by cutting your debts, increasing your income, or doing a bit of both.

Application Process for a HELOC in New Orleans

If you’re considering a HELOC, you’ll be pleased to know that some lenders offer the convenience of prequalification online. This first step is particularly helpful as it gives you a clear picture of the potential HELOC rates in New Orleans that you could qualify for, without the commitment of a full application. If you decide to move forward, follow these steps:

Closing Costs and Fees

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 appraisal fee. You may also have to pay for a title search, which can cost from $100 to $450. Other potential costs include application, origination, and administrative fees. Some lenders charge annual maintenance fees, which can cost up to $250. Additionally, some lenders may charge transaction, inactivity, or early termination fees.

Tax Benefits and Considerations

Homeowners can deduct HELOC interest if the borrowed funds are used to significantly improve their primary residence. The current tax guidelines, as they stand, are valid through 2025. A tax advisor can help you navigate this deduction and also may have some insight into how this deduction may change in 2026 and beyond.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

There are other options for financing besides HELOCs that you might want to consider if you’re at all uncertain about a HELOC. One option, a personal loan, doesn’t involve using your home as collateral.

The Takeaway

When you’re mulling over a HELOC, it’s crucial to consider the advantages and potential pitfalls. These lines of credit offer a flexible way to access funds with competitive interest rates, making them an attractive option for significant expenses or home enhancements. Your interest might even be tax-deductible. But there’s the risk of foreclosure if payments are missed. Before you apply, make sure you’ve got a solid plan for repayment and all your financial ducks in a row. Shopping around for the best HELOC rates in New Orleans and comparing lenders’ offers carefully can be the smartest move you’ll make.

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 Greenville.

Introduction to HELOC Rates

In this guide, we’ll take a deep dive into home equity line of credit rates in Greenville, South Carolina, so you can confidently get equity out of your home. We’ll cover the factors that impact HELOC rates, the pros and cons of these financial tools, and how to shop around for the best deal. Whether you’re dreaming of a home makeover, looking to streamline your debt, or have a big expense on the horizon, we’ll empower you to make savvy financial choices.

What Exactly Is a HELOC?

A HELOC is a revolving credit line secured by your home equity (the value of your home less the amount you owe on your home loan). Most lenders will require you to have at least 15% equity in your home to qualify for a HELOC. You can typically borrow up to 90% of that equity. HELOCs have two main phases: the draw period and the repayment period. It’s important to understand how payments differ in each phase, given that missing payments can result in a lender foreclosing on your home.

Recommended: Different Types of Home Equity Lending

The Origin of HELOC Interest Rates

HELOC interest rates are linked to the prime rate, which is shaped by the Federal Reserve’s actions. Each lender then adds a margin to the prime rate, which is why you’ll find varying HELOC rates (and why it’s so important to seek rate quotes from multiple lenders before committing to a HELOC). Lenders also take into account factors such as your credit score, debt-to-income (DTI) ratio, income, and the amount of equity in your home.

How Interest Rates Impact HELOC Affordability

It’s no secret that interest rates play a big role in how affordable a HELOC is for you. Even a small difference in rates can add up to significant extra interest payments over time. For example, let’s say you have a $50,000 HELOC and borrow the full amount at 8.50%, repaying it over 15 years. In this case, you would have monthly payments of $492 during the repayment period and total interest of $38,627. But at a 9.50% rate, the monthly payments would be $522 and the total interest would be $43,980. HELOC rates are variable so your actual results will differ. But a lower starting rate is better.

HELOC Interest Rate Trends

While no one can predict the future, keeping an eye on the prime rate can offer some valuable insights. Over the years, we’ve seen it fluctuate from an unusually low 3.25% in 2020 to a high of 8.50% in 2023. Understanding this historical data can give you a sense of the potential ups and downs of HELOC rates and can also help put whatever rate you’re seeing in the current market into perspective.

Variable vs. Fixed Interest Rates

HELOCs often come with variable (also called adjustable) interest rates, which means your rate can change based on the market. This means your rate can be a bit unpredictable, but it’s not entirely so. Your HELOC agreement will spell out how often your rate can change and how much. You can put the potential high and low rates into a HELOC calculator to see what your payments might look like at various borrowing levels. That should help you decide if you can manage payments within the parameters. If you can’t, there are alternatives to a HELOC — we’ll get into those details below.

Helpful Tools & Calculators

Before you take the leap and apply for a HELOC, you can use online tools to get a sense of what your monthly payments and interest costs might look like. Here are three useful calculators you’ll want to keep handy.

How to Qualify for a Competitive HELOC Rate

To secure an attractive HELOC rate, you must meet specific criteria. Lenders typically look for a minimum credit score of 640, a DTI ratio below 50%, and at least 15% equity in your home. But a stronger credit score and lower DTI ratio could lead to more favorable HELOC rates. Learn how to get there:

Improve Your Credit Score

A credit score of 700 or higher can help you get the best HELOC rates. Making timely payments and chipping away at credit card balances can give your score a lift. Also check your credit report for errors and dispute any you find. Keep old credit accounts open and avoid opening new credit accounts in the months leading up to a HELOC application.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is a simple calculation: Divide your total monthly debt payments by your gross monthly income. When it comes to HELOC applications, lenders typically favor a DTI below 36% when they hand out the lowest interest rates. To boost your chance of making the grade, reduce your debt or increase your income — or better yet, do both.

Application Process for a HELOC in Greenville

The application process for a HELOC in Greenville is a breeze when you prequalify online. This initial step gives you a clear picture of the current HELOC rates and the amount you could qualify for. Once prequalified, simply gather the necessary documentation and submit a formal application to the lender. They’ll take a good look at your credit history, income, and property value to determine your eligibility and the specific terms of the loan.

Recommended: HELOC vs. Home Equity Loan

Closing Costs and Fees

When it comes to HELOCs, the good news is that closing costs are generally more affordable than what you’d encounter with a home purchase or a cash-out refinance. The appraisal fee is often the most significant expense. You might also see a title search fee (anywhere from $100 to $450), an application fee, origination fee, and some administrative fees. Keep an eye out for potential annual maintenance fees, which could be up to $250, and transaction fees for withdrawals.

Tax Benefits and Considerations

Here’s a nice counterpoint to the closing costs you’ll pay: If you use your HELOC to cover the cost of significantly improving your home, the interest could be deductible on your 2025 federal taxes. Chat with a tax advisor to make sure you’re on the right track and to confirm your eligibility, and keep records of how you spend your HELOC funds. HELOC tax benefits may change in future tax years but your tax advisor can help you keep tabs on that.

Alternatives to HELOCs

There are other ways to tap into your home equity, beyond a HELOC, and if you’re not sure about this borrowing strategy (or if you just want to cover all bases), take some time to study your options:

The Takeaway

As you mull over the possibility of a HELOC, consider the benefits and the potential pitfalls: A line of credit offers flexibility in your borrowing and HELOC interest rates are usually better than those for personal loans. But fluctuating interest rates and the risk of foreclosure are not to be taken lightly. Always take the time to weigh your financial situation and compare lenders’ rates before committing.

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