What can a HELOC be used for?

A HELOC can be used for a variety of things, including home renovations, personal expenses, and debt consolidation. It offers flexibility, allowing you to draw funds as needed during the draw period and pay interest only on the amount used. This makes it a versatile tool for managing your financial needs, especially when HELOC rates in Columbus are favorable.

Is a HELOC a smart move?

Whether a HELOC is a good idea right now depends on your financial situation and the current HELOC rates in Columbus. If you need a flexible line of credit for significant expenses and can manage somewhat unpredictable monthly payments, a HELOC might be a smart choice.

What could stop you from getting a home equity loan?

There are a few things that could stand in the way of you obtaining a home equity loan or a home equity line of credit. You need to have at least 15% equity in your home, for one thing, and some lenders require 20% equity. You’ll also need to meet a lender’s credit-score requirements and have a healthy debt-to-income ratio.

Aug

20

2025

Current HELOC Rates in Wilmington, NC Today

By Dana Paltao | mortgage | Comments Off

WILMINGTON HELOC RATES TODAY

Current HELOC rates in

Wilmington, NC.

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 Wilmington.

Key Points

• A home equity line of credit is a flexible way to borrow money.

• HELOC rates are variable, determined by the prime rate and a lender’s margin, among other factors.

• To qualify for a HELOC, you’ll need at least 15% equity in your home and a solid credit history.

• Online calculators can help borrowers estimate monthly payments and total interest costs.

• There are risks involved, like the potential for foreclosure if you can’t keep up with payments.

Introduction to HELOC Rates

In this guide, we’ll cover all the details of home equity line of credit rates in Wilmington, North Carolina, so you can understand how to get equity out of your home and the conditions that might impact the interest rate you receive. We’ll also discuss the benefits and risks of using a HELOC, how to qualify for a competitive rate, and the tools you can use to estimate your costs. By the end, you’ll have a better idea of whether a HELOC is the right financial tool for you and how to apply for one.

What Exactly Is a HELOC?

A HELOC is a flexible line of credit, secured by the equity you’ve built up in your home as you have paid down your home loan. (Your equity is the difference between your home’s current market value and your remaining mortgage balance). Most lenders require a minimum of 15% equity to qualify, though the more equity the better when it comes to getting a nice interest rate. You can borrow up to 90% of your equity. HELOCs have variable interest rates, meaning the amount you pay each month could vary throughout the process. A HELOC has two phases:

The Draw Period

With a HELOC, borrowers have a draw period, typically up to 10 years, during which they can borrow in increments up to a pre-specified credit ceiling. During the draw period, they need only make interest payments on what they have borrowed. A HELOC interest-only calculator can show you what these payments might look like.

The Repayment Period

After the draw period, you’ll enter the repayment period, which can last up to 20 years. At this time, you won’t be able to borrow any more, and you’ll begin to pay back the principal plus interest in monthly payments. A HELOC monthly payment calculator can help you see how much your payments might be at this stage.

The Origin of HELOC Interest Rates, Explained

Lenders base HELOC rates on the prime rate, which is influenced by the Federal Reserve. Each lender adds a margin to the prime rate, which is why rates vary — and thus why it is so important to seek out rate quotes from a variety of lenders before signing on to a HELOC. Lenders also consider your credit score, debt-to-income (DTI) ratio, and the amount of equity in your home when determining the interest rate to offer you in Wilmington. Knowing what factors are important to lenders can help you sharpen your financial profile before applying.

How Interest Rates Impact HELOC Affordability

The interest rates on a HELOC can make a big difference in how much you pay each month. Even a small difference — a single percentage point — can have an impact on your monthly payments and the total amount you’ll pay in interest over the life of the loan. For example, on a $50,000 HELOC with a 20-year term, an increase from 7.00% to 8.00% during the repayment phase can raise your monthly payment by $30. Over 20 years, this would increase the total interest paid by almost $7,000. Of course, the HELOC rate is variable, so your exact numbers may differ. But the more you borrow with a HELOC, the greater the effect of a change in interest rate.

HELOC Interest Rate Trends

When you’re in the market for a HELOC you might begin to pay more attention to the prime rate. It’s true that keeping an eye on the prime rate might shed some light on what to expect with HELOC rates in Wilmington. But it’s also helpful to have a sense of the history of the prime rate, so that you can see where current rates are falling by comparison. The prime rate hit a low of 3.25% in 2020 and a high of 8.50% in 2023.

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

HELOCs usually come with variable (also called adjustable) interest rates. That means rates can change over time, making it a bit trickier to predict what you’ll owe each month. There are built-in controls written into each borrower’s HELOC agreement, specifying how much the rate can change and placing a cap on it overall. So when you’re thinking about a HELOC, think about whether you can handle fluctuation in your payments.

Recommended: Different Types of Home Equity Loans

Helpful Tools and Calculators

Before you apply for a HELOC, online tools can help you estimate your monthly payment and interest costs. Keep these handy as you’re making your decision.

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 a competitive HELOC rate, you’ll want to make the most of your financial profile before filing your application. Here’s what to do:

Improve Your Credit Score

A credit score of 700 or higher is your ticket to better HELOC rates. Yes, you can get a HELOC with a lower score — at minimum, 640. But if you can nudge your number up by paying every bill on time and keeping credit card balances in check, why not do it? Set up automatic bill-pay to dodge late payments, and watch your credit report. You might spot an error that could set you back.

Calculate Your Debt-to-Income (DTI) Ratio

Your DTI ratio is a simple calculation: Divide your total monthly debt payments by your gross monthly income. HELOC lenders generally prefer to see a DTI under 50%, but the lower, the better. And for the best HELOC rate in Wilmington, you’ll want to be at 36% or below. You can improve your DTI by lowering your debts, increasing your income, or both.

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 Wilmington

The HELOC process begins with prequalification, which you can easily do online. This will give you a good idea of the rates and the amount you might qualify for with various lenders. Once you’ve prequalified, you’ll need to gather some documents before filing an application. Here is the full process:

Step 1: Run the Numbers

Check your credit score and calculate your DTI ratio as detailed above. Then, assess your home equity to make sure it is at least 15%: Subtract your outstanding mortgage balance from your home’s estimated value. Then divide the answer by your home value to arrive at a percentage. Making regular mortgage payments helps build equity. Home improvements that boost the property’s value can increase equity, too.

Step 2: Compare Lenders

Examine the rates in Wilmington. Carefully compare lenders’ qualification requirements, credit minimums and maximums, any associated fees, and the length of both the draw and repayment periods. Reading customer reviews and thoroughly checking lender reputations can also help you make a more informed decision about which lender or lenders you will apply to.

Step 3: Submit Your Application

It’s time to gather all the necessary paperwork. This includes proof of identification, income verification, and property information. For income verification, you’ll need to provide your most recent pay stubs, W-2 forms, and complete tax returns from the previous year. If you’re self-employed, you may also need to provide a profit-and-loss statement and your tax returns from the past two years. Additionally, you’ll need to have your homeowners insurance declaration page handy. Once you have everything you need, you can submit your application online, over the phone, or in person.

Step 4: Get an Appraisal

After you submit an application, you’ll likely need an appraisal. Work with the lender to ensure you get the appraisal and documentation the lender requires.The typical cost of having a pro weigh in on the value of your home is usually between $300 and $610. If your home is appraised for more than what you owe, you’ll have cleared a bar necessary for a HELOC.

Step 5: Prepare for Closing

Once you’re approved for a HELOC and decide to move forward, you’ll need to sign the HELOC documents and take care of any associated fees. Most lenders will make the funds available within three business days of the HELOC closing. Before you sign on the dotted line, be sure you understand all the terms and conditions. This is an important step to avoid any surprises and to make sure you’re prepared to use your HELOC.

Recommended: What Is a Home Equity Loan?

Closing Costs and Fees

The good news is, the closing costs for a HELOC are generally less than what you’d face with a traditional home purchase or a cash-out refinance. The appraisal fee is often the most significant expense. You might also encounter a title search fee (ranging from $100 to $450), an application fee, an origination fee, and various administrative costs. Some lenders may even offer to reduce or waive certain fees, but be sure to consider the trade-off, as this might come with a higher interest rate.

Tax Benefits and Considerations

Homeowners can take advantage of a tax deduction on the interest paid on a HELOC if the funds are used to buy, build, or renovate the primary residence. This tax benefit is set to last through 2025 and may continue in some form in future years. Before making any decisions, it’s important to consult with a tax advisor to confirm individual eligibility for deductions related to HELOCs.

Alternatives to HELOCs

There are other ways to tap into your home equity. You could take out a home equity loan, refinance your mortgage for more than you owe and take the difference in cash (a cash-out refinance), or get a personal loan. Each option has its own pros and cons so let’s consider them:

Home Equity Loan

When weighing a HELOC vs. a home equity loan note that the latter provides a lump-sum loan at a fixed interest rate. You can typically borrow up to 85% of your home’s equity. Lenders look for a credit score of 680 or more, with many favoring 700 and above. This option is great if you have a specific need for a defined amount of money and prefer the predictability of fixed payments. A home equity loan calculator can help you see what you might qualify for.

Cash-Out Refinance

A cash-out mortgage refinance lets you refinance for more than you currently owe and take the difference in cash. It’s a good option, so long as the interest costs of a new mortgage are better than what you’d have at your current rate. Things to think about with a cash-out refinance vs. a home equity line of credit: With a refi you’d need a credit score of 620 or higher and a debt-to-income ratio under 43%. You can choose between fixed or variable interest rates.

Personal Loan

A personal loan is a versatile, typically unsecured loan that you repay in regular, fixed installments over a period of two to seven years. The key benefit here is that your home is not at risk of foreclosure should you encounter financial challenges. Most lenders look for a credit score of 610 or higher. While these loans are relatively quick to secure, the interest rates may be higher compared to HELOCs or home equity loans.

The Takeaway

As you consider the potential of a HELOC, it’s important to understand both the advantages and the cautions. HELOCs present a flexible way to tap into funds, possibly at lower interest rates than other loan types. But you need to have a plan in place to make payments or else you risk your home. Investigate HELOC rates in Wilmington with multiple lenders to secure the most favorable terms. Always weigh offers from various lenders and think about alternatives like cash-out refinancing and personal loans 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.

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FAQ

What can you use a HELOC for?

A HELOC can be used for a variety of purposes, including paying for home improvements, education costs, and medical expenses. It functions like a credit card, allowing you to draw funds up to a maximum limit and pay interest only on the amount of the credit line that is used. This flexibility makes it ideal for ongoing expenses, but it’s important to have a solid repayment plan to avoid financial strain.

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

The monthly payment on a $100,000 HELOC can fluctuate depending on how much of the credit line you have used and the current interest rate. If you borrow the full $100,000 and have an 8.00% rate, you might only pay around $667 per month during the draw period, covering the interest. Once the repayment phase kicks in, you would start paying down the principal, which will adjust your monthly payment upward to $1,213.

Do I need an appraisal for a HELOC?

An appraisal is usually required as part of the HELOC qualification process. It will determine the value of your property and the amount of equity you have. The appraisal helps the lender calculate the maximum credit limit for your HELOC. This is an important step in the application process, as it ensures the loan amount is accurate and the lender’s risk is minimized.

How will a HELOC affect my credit score?

Applying for a HELOC might cause a slight, temporary dip in your credit score. But here’s the good news: Managing your payments well will have a more significant impact. Making payments on time will boost your score, while missed payments will have the opposite effect.

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

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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.

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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOHL-Q225-374

Browse other North Carolina 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

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Aug

20

2025

Is 460 a Good Credit Score?

By [email protected] | Uncategorized | Comments Off

Is 460 a Good Credit Score?

If you have a 460 credit score, you’ll likely have a difficult time getting approved for anything that involves a credit check. This means that most credit cards, auto loans, and mortgages will probably be out of your reach. You may even find it difficult to be hired for some jobs or be accepted for some apartment rentals, as landlords and employers often run a credit check as part of the application process.

If you have a 460 credit score, it’s a good idea to take steps to improve your credit as part of bolstering your overall financial picture.

Key Points

• A 460 credit score is poor, severely limiting financial options.

• High interest rates and fees are common for people with this score.

• Secured credit cards can help improve credit scores over time.

• Adding a cosigner may assist in securing an auto loan.

• Getting a mortgage is highly unlikely with a 460 credit score.

What Does a 463 Credit Score Mean?

A credit score of 460 is considered poor and falls within the lowest tier of FICO® scores, which are used in the majority of lending decisions.

FICO Scores range from 300 to 850; the higher the number, the better the score. Here’s how credit scores are categorized:

• 300-579: Poor

• 580-669: Fair

• 670-739: Good

• 740-799: Very good

• 800 or more: Excellent

Having a 460 credit score means that your score is on the low end of the spectrum. As such, your borrowing options will be limited, and you may have a tough time getting approved for credit products such as mortgages, personal loans, or credit cards.

How to Build Your Credit Score

Is 460 a bad credit score? As we discussed, lenders consider it poor. But the good news is, your credit score is hardly set in stone. You can take steps to build your credit before trying to apply for a loan. Consider these strategies:

• Pay your bills on time, every time.

• Try to use only a small portion of your available credit. This will lower your credit utilization, which can help your score.

• Keep established accounts open to help build a long credit history.

• Open new credit accounts only when truly necessary.

• Check your credit reports often, and correct any mistakes you find.

What Can You Get with a 460 Credit Score?

A 460 credit score will likely keep you from qualifying for most financial products that rely on credit, including mortgages, auto loans, personal loans and credit cards. But there are some alternatives worth considering. Let’s take a closer look at some different scenarios.

Can I Get a Credit Card with a 460 Credit Score?

Though there’s no minimum credit score required for a credit card, chances are you’ll have a hard time getting approved for one with a 460 score. If you are looking for a new credit card, consider exploring credit cards specifically designed for individuals with lower credit scores.

One option is a secured credit card, which requires a refundable security deposit that serves as collateral if payments aren’t made. When used wisely and paid on time, secured cards can be a valuable tool for improving your credit.

If you’re carrying high-interest credit card debt, a credit card consolidation loan might be a smart option to consider. It allows you to combine multiple balances into one loan (preferably with a lower interest rate). This may help lower your overall monthly payments and simplify your finances. It could help you to pay down your debt and, over time, build up your credit score.

Can I Get an Auto Loan with a 460 Credit Score?

Many lenders require a credit score of at least 600 to qualify for an auto loan, but you may be able to find some lenders that will work with someone who has a 460 credit score.

You’ll likely have an easier time securing a car loan if you add a cosigner who has a strong credit history. You’ll both apply for the loan and share financial responsibility for paying back the borrowed money. However, the cosigner doesn’t share ownership of the car.

Can I Get a Mortgage with a 460 Credit Score?

You are very unlikely to be able to qualify for a mortgage with a 460 credit score. As an example, here are three common types of mortgages with their recommended minimum credit scores:

• FHA loans: These types of loans generally require a minimum credit score of 580 to qualify for the 3.5% down payment option. Borrowers with scores between 500 and 579 may still be eligible with a 10% down payment.

• VA loans: The Department of Veterans Affairs does not set a minimum credit score, but most lenders prefer to see a score of at least 620 for approval.

• USDA loan: While the USDA itself does not mandate a minimum credit score, lenders often require a credit score of 640 or higher for automated underwriting.

Can I Get a Personal Loan with a 460 Credit Score?

Most, but not all, personal loans are unsecured, meaning they don’t require collateral. To help mitigate the lender’s risk, an applicant’s credit score is an important metric in deciding whether to approve a personal loan application. Generally speaking, the lower your credit score, the lower your chances of being approved for the loan.

If you’re applying for a personal loan with a 460 credit score, you may find that you have fewer options to choose from than a borrower with a better credit score. And if you are approved, it’s likely that the interest and fees you’re required to pay will be significantly higher than an applicant with a higher credit score.

Consider using a personal loan calculator to explore what types of loans might be available for your specific financial situation.

The Takeaway

Is 460 a good credit score? According to FICO, it falls within the “poor” credit range, so the simplest answer is that 460 is not a good credit score. Having a credit score of 460 can make it difficult to qualify for most credit products, since many lenders rely heavily on your credit score when reviewing applications for mortgages, credit cards, auto loans, and personal loans. If you do qualify for a loan, it will likely come with high interest rates and less favorable terms.

Improving your score before applying for a credit card or loan could help you secure better options. Taking steps to build your credit now could lead to more financial flexibility in the future.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

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SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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.

SOPL-Q325-001

Aug

20

2025

Is 530 a Good Credit Score?

By [email protected] | Uncategorized | Comments Off

Is 530 a Good Credit Score?

What Does a 530 Credit Score Mean?

FICO Scores, which are used in the majority of lending decisions, generally range from 300 to 850. The higher the number, the better the score. Here’s how FICO Scores are categorized:

• Poor: 300-579

• Fair: 580-669

• Good: 670-739

• Very good: 740-799

• Excellent: 800-850

It’s up to each lender to decide how it will evaluate borrowers’ creditworthiness, and there are multiple scoring models to choose from. But lenders may see a 530 credit score as a red flag and consider you to be more of a risk than a borrower with a higher score. If you’ve had past credit problems or if you lack a credit history, they might question your ability to follow through with your payments.

That doesn’t necessarily mean you won’t qualify for a loan or credit card, though. If you have other factors working for you — a low debt-to-income (DTI) ratio, solid employment, a good income, cash in the bank — your application may still be approved. Or you may be eligible for a credit card or loan designed specifically to work for borrowers with poor credit.

But be prepared: You could have to secure your loan or card with some type of collateral, or you might be asked to pay a higher interest rate. More on that below.

What Can You Get with a 530 Credit Score?

Qualifying for some loans or credit cards with a score that’s considered to be in the poor range may be challenging, but there are financing options available.

Can I Get a Credit Card with a 530 Credit Score?

With a 530 credit score, you’ll probably have a better chance of qualifying for a secured credit card vs. an unsecured credit card.

Both cards work pretty much the same, except with a secured credit card, you’ll have to put down a deposit that essentially serves as collateral and your credit limit. You can get the deposit back if you pay off your balance and close your account, or if you transition to an unsecured card.

Because your 530 credit score is in the poor range, your interest rate and other costs could be expensive, so it’s important to compare offers. Remember to look for cards that come with useful credit-building elements, such as an app that makes it easy and convenient to track your spending and saving. It’s also important to be sure the credit card you choose regularly reports to all three of the major credit bureaus.

Can I Get an Auto Loan with a 530 Credit Score?

The minimum credit score required to get a car loan can vary from one lender to the next. And some lenders may use an industry-specific scoring model for auto loans that can work a bit differently than a basic FICO Score. Still, as with most types of borrowing, the higher your credit score, the more likely you are to qualify for financing and better financing terms.

Some car dealers and lenders are willing to work with buyers who have lower credit scores. But with a 530 credit score, you’ll likely have to settle for an average APR (annual percentage rate) that’s at least a few points higher than car buyers with scores in the next highest range. Before you settle on a particular loan offer, you may want to take some time to research the average auto loan rates available to borrowers with a similar credit score.

Coming up with a higher down payment or getting a cosigner with a good credit score could help secure a loan with a lower APR, if it makes you look less risky to lenders.

If you’re wondering if it’s smarter to buy a new or used car with a 530 credit score, there are pros and cons to financing either way. Though it may seem counterintuitive, it actually may be easier to get financing for a new car, because it can be more difficult for lenders to accurately value a used car. But a used car’s price may be easier on your budget, which could help you stay on track with your monthly payments.

Can I Get a Mortgage with a 530 Credit Score?

You may want to talk to a mortgage professional about the various types of loans available to you and which might be the right choice based on your overall financial picture. Eligibility requirements can vary with different types of mortgages, and individual lenders also may have their own credit score criteria. Here are some basics to know:

• If you’re applying for a conventional mortgage loan — a loan from a private lender that isn’t insured by a government agency — you typically will need a credit score of at least 620.

• Lenders also generally like to see a minimum credit score of 620 for a VA loan, which is backed by the U.S. Department of Veterans Affairs. However, there is no required minimum score, and some lenders will accept a score as low as 580.

• With a government-insured FHA loan, you’ll need a minimum 580 credit score to qualify for a down payment as low as 3.5%. Applicants with scores as low as 500 must put down at least 10%.

• A minimum score of 640 is generally recommended for government-backed USDA loans, though borrowers without a credit history may be evaluated through other criteria.

If you have stable employment, a low DTI ratio, and other positive information on your application, you may have a better chance of getting the type of loan you want, even with a 530 credit score. But you should be prepared to pay a higher interest rate than you would be offered if you had a better credit score.

Can I Get a Personal Loan with a 530 Credit Score?

There are personal loans designed specifically for borrowers with poor credit, so you may be able to find a lender who would approve your application with a 530 credit score. This is especially true if the loan is in a lower amount and/or you’re willing to pay a higher interest rate.

If you’re able to put up an asset as collateral, you may want to consider a secured personal loan. With this type of loan, the lender is taking less risk, which could make qualifying easier. And the interest rate may be lower than with an unsecured loan.

But even unsecured personal loans tend to have lower interest rates than credit cards, which can make them a better choice for larger expenses. Knowing you’ll have a fixed payment every month can also help you stay on track as you work to build your credit score.

Wondering how a personal loan might compare to other financing options? A personal loan calculator can help you determine what your monthly payments might be.

You can also see if it makes sense to use a personal loan to pay off an existing loan or high-interest credit card balance. With a credit card consolidation loan, for example, you may be able to simplify your finances and potentially save money.

How to Build Your Credit Score

If you’re worried about qualifying for a loan or credit card with a 530 credit score, here are a few credit-building strategies to consider:

Make Timely Payments

Of all the factors that go into calculating your credit score, your payment history has the largest impact. So if you can keep up with your current bills — and catch up on older, delinquent payments — your score should start to slowly improve over time.

To make it easier to stay on track, you may want to explore debt consolidation loans. This type of loan turns multiple credit card and loan payments into one more manageable monthly bill — potentially with a lower interest rate than what you’ve been paying. Setting up automatic payments on some accounts (utilities, insurance, and car payments, for example) can also simplify the bill-paying process.

Ensure Credit Reports Are Accurate

Regularly reviewing your credit reports can help you be sure the information used to calculate your credit scores is accurate and up to date. You can also pinpoint activities that might be helping or hurting your score.

You can request a free copy of your credit report from each of the credit bureaus at least once a week via AnnualCreditReport.com.

Keeping an eye on your credit scores every month — through your bank, credit card company, or a free credit score monitoring service — can also help you quickly identify and address potential issues.

Watch Your Credit Utilization

Credit utilization, which is the percentage of your available credit that you’re currently using, is another factor that goes into determining your credit score. To find out your credit card utilization ratio, divide all your credit card balances by your total credit line.

Lenders typically like to see a credit utilization ratio below 30%. How can you lower your credit utilization? Try to avoid making just the minimum payment each month, no matter how tempting that might be, and keep your credit card balances as low as possible.

The Takeaway

If you’ve been wondering whether your 530 credit score is good or bad, the reality is that it’s in the poor range, which can make borrowing more challenging.

You may find it’s more difficult to find a lender that will approve your loan or credit card application. And if you are approved, you can expect to pay a higher interest rate than you would if you had a higher credit score. But if you remain disciplined, keep paying your bills on time, and maintain low credit card balances, you can look forward to qualifying for better financing options in the future.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

View your rate

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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.

SOPL-Q325-003

Aug

20

2025

Current HELOC Rates in Asheville, NC Today

By Dana Paltao | mortgage | Comments Off

ASHEVILLE HELOC RATES TODAY

Current HELOC rates in

Asheville, NC.

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 Asheville.

Key Points

• The rates for a home equity line of credit are influenced by the prime rate and the borrower’s financial history.

• HELOCs are a flexible, revolving line of credit secured by home equity.

• With a HELOC, you may have a variable interest rate, which can impact your monthly payments and overall costs.

• You should compare multiple lenders to find the most competitive rates.

• It’s essential to have a solid plan for paying back your HELOC to avoid financial strain and potential risks.

Introduction to HELOC Rates

In this guide, we’ll take a deep dive into home equity line of credit rates in Asheville, North Carolina, so you can confidently get equity out of your home. We’ll explore the factors that influence HELOC rates, the potential benefits and risks of HELOCs, and how to compare different lenders to find the best terms. Whether you’re looking to spruce up your home, consolidate debt, or tackle other major expenses, this guide will arm you with the knowledge you need to make smart borrowing decisions.

What Exactly Is a HELOC?

A HELOC uses your home’s equity as collateral for a revolving credit line. Your equity is the difference between your home’s value and your mortgage balance. You’ll typically need 15% equity to qualify for a HELOC, but even more equity is good if you want the most attractive interest rate. You can borrow up to 90% of your equity. A HELOC has two distinct periods:

The Draw Period

Borrowers have an initial draw period, typically up to 10 years, during which they can borrow in increments up to a specified credit ceiling. During this time, they will only have to make interest payments on what they have borrowed. A HELOC interest-only calculator can show you what these payments might look like.

The Repayment Period

After the draw period comes the repayment period, which can last up to 20 years. At this time, you won’t be able to borrow any more, and you’ll begin to pay back the principal plus interest in monthly payments. A HELOC monthly payment calculator can help you see how much your payments might be at this stage.

What Determines HELOC Interest Rates?

Lenders base their HELOC rates on the prime rate, which is largely driven by Federal Reserve policies. Each lender then adds a different margin to the prime rate, leading to variations in the rates they offer. This is why it’s so important to get rate quotes from multiple lenders when exploring a HELOC. Additionally, lenders will consider factors such as your credit score, debt-to-income (DTI) ratio, and the amount of equity you have in your home when deciding what rate to offer. Understanding this can help you put your best foot forward when applying.

How Interest Rates Impact HELOC Affordability

As you probably noticed when you bought your home and took out your home loan, even the smallest change in interest rates can make a big difference in how affordable it is to borrow money. For example, if you have a $50,000 HELOC and borrow the full amount at 8.50%, repaying it over 15 years, you would have monthly payments of $492 during the repayment period and total interest of $38,627. At 9.50%, the monthly payments would be $522 and the total interest would be $43,980. HELOC rates are variable so your actual results may differ. But a lower starting rate is better.

HELOC Interest Rate Trends

Monitoring the prime interest rate is a smart way to gauge where HELOC rates are going. The prime rate hit a low of 3.25% in 2020 and a high of 8.50% in 2023. This historical backdrop is a good reference, offering some perspective on current rates.

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

As noted above, HELOCs come with variable (also called adjustable) interest rates. This means the rate can change over the course of your HELOC according to market conditions. You’ll have to ask yourself whether you can handle that unpredictability. There are some built-in controls that will be in the HELOC agreement, specifying how much the rate can change and placing a cap on the rate overall. As long as you can live within that range and make your monthly payments, you’re in good shape.

Recommended: Different Types of Home Equity Loans

Helpful Tools and Calculators

Before you take the leap and apply for a HELOC, it’s wise to use our online tools to get a sense of what your monthly payments and interest costs might look like. You might also use these after signing on to a HELOC to compute changing costs as interest rates shift.

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

To land a top-notch HELOC rate, you’ll want to focus on a few key areas. By ensuring these financial aspects are in good standing, you’ll be in a stronger position to secure a competitive HELOC rate.

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. By making payments on time and chipping away at your credit card balances, you can give your credit score a lift. Setting up automatic payments is a good idea. Keep an eye on your credit report for any errors, too. A better credit score can unlock the door to more favorable loan terms and lower interest rates, making your HELOC more affordable and easier to manage.

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 36% or lower DTI. To improve your DTI, focus on paying down debts, increasing your earnings, or both.

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 Asheville

Many lenders offer the convenience of prequalifying for a HELOC online. This first step can provide you with a clear picture of the HELOC rates in Asheville that you may be eligible for, as well as the credit limit you may be offered. Next, you’ll proceed to the full application process:

Step 1: Run the Numbers

Before you take the plunge with a HELOC, it’s wise to take a good look at your financial landscape. Start by checking your credit scores from all three major credit bureaus and calculating your debt-to-income (DTI) ratio. Then, consider your home equity, which grows as you make regular mortgage payments and as your home’s value increases over time. Subtract your outstanding mortgage balance from your home’s estimated value. Then divide the answer by your home value to arrive at a percentage. As noted above, you’ll need at least 15% equity to move forward.

Step 2: Compare Lenders

To find the best HELOC lenders in Asheville, you’ll want to compare them and see which ones offer the best rates and terms. Look at the interest rates, qualification requirements, minimum and maximum amounts you can borrow, fees, and the length of the draw and repayment periods. Because the terms vary from lender to lender, it’s important to shop around and read the fine print before you commit to a HELOC.

Step 3: Submit Your Application

Now, gather your paperwork. You’ll need government-issued identification, recent pay stubs, W-2 forms, and copies of your last tax return. If you’re self-employed, a lender may ask for a profit-and-loss statement in addition to two years’ worth of tax returns. Property documentation includes a homeowners insurance declaration page. Submit your HELOC application online, over the phone, or in person.

Step 4: Get an Appraisal

A home appraisal is a professional and objective analysis conducted to determine your home’s value. The cost for a home appraisal ranges from $300 to $610. This step is important in determining the amount of equity you can potentially access and the specific terms of your HELOC agreement. A prospective lender will tell you what kind of appraisal is required, so wait for instructions.

Step 5: Prepare for Closing

Once you’ve been approved, before you can access your HELOC funds, you’ll need to sign the HELOC agreement and pay any closing costs. You may have to pay for an appraisal, title search, origination fee, and other fees. Some lenders charge an annual fee. Be sure you know all the costs involved with the HELOC.

Closing Costs and Fees

HELOC closing costs are usually more affordable than those associated with buying or refinancing a home. The appraisal fee tends to be the steepest expense. A title search, if necessary, may cost between $100 and $450. You might also encounter application, loan origination, and administrative fees, as well as maintenance fees (up to $250/year). Certain lenders may also charge transaction, inactivity, or early termination fees.

Tax Benefits and Considerations

You can deduct the interest on your HELOC for the 2025 tax year if you use the funds to improve your primary residence. It’s a good idea to talk to a tax professional to see if you’re eligible for these deductions and to keep tabs on how they may change in future years. You will have to itemize your return in order to capture this deduction.

Recommended: What Is a Home Equity Loan?

Alternatives to HELOCs

There are several alternatives to HELOCs, each with its own benefits and drawbacks. It’s worth considering these before you lock in a HELOC.

Home Equity Loan

With a home equity loan, you get a lump-sum loan and a fixed interest rate to keep things simple. You can usually borrow up to 85% of your equity. Lenders look for a credit score of 680 or higher, though many like 700. A big difference between a HELOC vs. a home equity loan is that with a home equity loan, you get the money all at once and begin repaying it immediately. A home equity loan calculator can show you how much you might be able to borrow.

Cash-Out Refinance

A cash-out mortgage refinance lets you borrow more than you currently owe on your mortgage and collect the extra funds in cash. If you have a credit score of 620 or more, and your DTI ratio is under 43%, this option is open to you, with a fixed or variable rate. Just make sure the new rate is better than the one you had before from a cost perspective. One cash-out refinance vs. home equity line of credit differentiator? The former leaves you with just one monthly payment.

Personal Loan

A personal loan is typically unsecured. You repay what you have borrowed in regular, fixed installments over a period of two to seven years. The key benefit here is that your home is not at risk of foreclosure should you encounter financial challenges. Most lenders look for a credit score of 610 or higher. While these loans are relatively quick to secure, the interest rates may be higher compared to HELOCs or home equity loans.

The Takeaway

Before you leap into a HELOC, it’s important to assess the benefits and potential risks. HELOCs can offer financial flexibility and often have lower interest rates than unsecured loans. But you have to be mindful of the risk of losing your home if you falter on payments. So be smart about it. Have a solid repayment plan in place. Another wise move? Seek out rate and term information from multiple lenders before locking in your selection.

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

FAQ

What’s the monthly payment on a $50,000 HELOC?

Your monthly payment on a $50,000 HELOC will depend on the interest rate and the repayment terms. During the draw period, if you used the full $50,000 but just made interest payments, your monthly bill at 8.00% would be $333. Once you enter the repayment term of 20 years, the monthly cost would rise to $607. Remember, these are only estimates because HELOCs have variable interest rates.

Is a HELOC the right choice for you?

Whether a HELOC is a good idea right now depends on your financial situation and the current HELOC rates in Asheville. If you need a flexible line of credit for significant expenses and can manage somewhat unpredictable monthly payments, a HELOC might be a good idea.

How hard is it to qualify for a HELOC?

The process of securing a HELOC is quite manageable if you meet the lender’s criteria. At minimum, you’ll need a credit score of 640, a debt-to-income (DTI) ratio under 50%, and home equity of at least 15%. Better numbers will get you better interest rates.

Will a HELOC impact your credit score?

A HELOC can indeed have an impact on your credit score. When you apply for one, you might see a slight decrease in your score due to the hard credit inquiry. However, using the HELOC responsibly — making on-time payments and not spending right up to the credit line — can actually work in your favor, potentially boosting your score. Be sure to manage your HELOC wisely to maintain or improve your credit standing.