Free New Hampshire HELOC Payment Calculator
New Hampshire HELOC Calculator
By SoFi Editors | Updated January 23, 2026
Tapping into your home’s equity is a significant financial step that needs careful planning. Before you apply for a home equity line of credit, use the New Hampshire calculator to see your estimated monthly payments during both the draw period and repayment period.
This guide offers basic information including definitions, housing trends, tips, financing alternatives, and clear step-by-step instructions on how to use the calculator. Use this knowledge to make a confident decision on whether a HELOC is right for your budget and goals.
- Key Points
- • A home equity line of credit (HELOC) is a revolving line of credit that allows you to use your home as collateral to secure funds toward a major project or expense.
- • There are two payment periods to be aware of: the draw period and repayment period.
- • Most HELOCs feature variable interest rates, meaning your monthly payments can change over time based on broader economic conditions.
- • To qualify, lenders generally require that homeowners have a minimum of 15% equity in their home.
- • Qualified borrowers may be able to access up to 90% of their home equity.
Calculator Definitions
• HELOC Balance: This term represents the total amount of money a borrower has currently withdrawn from their available credit line, or the amount a homeowner plans to borrow.
• Current Interest Rate: This is the rate at which interest accumulates on your outstanding HELOC balance.
• Draw Period: This is the specific time frame—often between 5 and 10 years—during which you can access funds from your HELOC, up to your approved credit limit.
• Repayment Period: This is the second phase—often 20 years—when the homeowner must pay back the full balance through combined principal and interest payments.
• Monthly Interest Payment: This is the monthly cost of borrowing funds based on the outstanding balance and the current variable interest rate. It does not contribute to reducing the original amount used.
• Monthly Principal and Interest Payment: This is the amount you’ll be required to pay monthly during the repayment period. Use the New Hampshire HELOC payment calculator to get estimates since your exact payment amount will be based on current rates.
How to Use the New Hampshire HELOC Calculator
Follow these easy instructions to use the New Hampshire HELOC payment calculator most effectively.
Step 1: Enter Your Planned or Actual HELOC Balance
Start with the total amount you plan to borrow from the line of credit.
Step 2: Estimate Your Interest Rate
Now, enter your desired annual interest rate. The rate can be from a prospective lender or an estimate based on your research.
Step 3: Choose the Length of the Draw Period
The draw period timeframe is typically five to 10 years.
Step 4: Select Your Repayment Period
The repayment period timeframe is typically 10 to 20 years.
Step 5: Review Your Results
Analyze the results by looking closely at the potential monthly payments during both the draw and repayment periods to see if they fit within your monthly budget.
Now that you are familiar with how to use the New Hampshire calculator, let’s explore what is a home equity line of credit.
What Is a Home Equity Line of Credit?
A home equity line of credit, known as a HELOC, is a revolving line of credit that is secured by the equity in your home. Because your home serves as collateral, lenders typically offer more competitive interest rates compared to unsecured options like credit cards or personal loans. This also means that you risk foreclosure if you fail to make payments.
As you learn how a HELOC works, keep in mind that your home equity is the difference between your home’s current market value and the outstanding balance on your home loan and any other loans you might have where your home is used as collateral. The interest rate is usually variable (unlike a standard home equity loan, which usually offers a fixed interest rate) so it’s helpful to keep an eye on market movements and trends, like the U.S. Prime Rate.
There are two phases to the HELOC. First is the draw period, which is typically 5 to 10 years. This is when you can withdraw funds as needed, up to your approved credit limit. You are often required to make payments only on the interest that accrues on your outstanding balance. Our HELOC interest-only calculator can help you assess what your payment amounts for the draw period may be.
Then you begin the repayment period, usually 10 to 20 years, when your required monthly payments will increase significantly to cover both the principal balance and the interest. During this phase, you can use a HELOC repayment calculator to help you out.
If you are a New Hampshire homeowner who has built up equity in your property, then you will want to use these tools to help you understand how to get equity out of your home.
Recommended: HELOC vs. Home Equity Loan
Home Equity Trends in New Hampshire
As you consider different types of home equity loans, you will see that the amount of equity a homeowner possesses is the key to borrowing power.
With a HELOC, it’s helpful to monitor equity levels and housing trends. For example, with the upswing in housing prices from 2020 to 2025 (see chart), many homeowners find themselves sitting on substantial equity in their homes.
Homeowners in New Hampshire have enjoyed an average equity level increase of 136% over the same period. The average home equity per New Hampshire homeowner is more than $275,000 as of 2025.
To qualify for a HELOC, lenders typically require that a homeowner maintain at least 15% equity. Also, you can borrow up to 90% of equity. With these figures, you may see that you have a sizable amount of equity to tap into.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
The New Hampshire HELOC payment calculator allows you to experiment with different loan scenarios, budget effectively, and prepare for productive conversations with lenders. Follow these steps to get the most out of the calculator:
• Explore the estimates: One of the key functions of the New Hampshire payment calculator is its ability to model scenarios. Since HELOC rates can shift over time, experiment with different HELOC balances, interest rates, or repayment terms to see how each of these figures affects the monthly payment.
• Evaluate debt consolidation: If you’re managing high-interest credit card debt, you can add up the monthly payment amounts on your cards and compare that to the monthly payment you would have if you used a HELOC to pay off all that you owe at once. There’s a good chance your monthly payment with a HELOC would be lower than the sum of what you’re currently paying. And it would be one payment instead of multiple payments.
• Approach lender conversations more confidently: Use the New Hampshire calculator ahead of time to run estimates and gain a clear understanding of your borrowing capacity. That way you can enter lender negotiations with more realistic expectations.
Tips on HELOCs
Here are some tips that apply to HELOCs:
1. Strengthen your credit score: Lenders typically require a credit score of at least 640.
2. Shop around with different lenders: Don’t commit right away. Instead, compare annual fees, inactivity fees, and prepayment penalties from a variety of lenders.
3. Prepare and plan a budget: With the transition between the two HELOC phases (the draw period and repayment period), you’ll see your monthly payments increase from interest-only to principal-and-interest.
4. Consider the risks: A HELOC uses your home as collateral. This means that the lender could foreclose on your home if you fail to make payments.
Alternatives to HELOCs
Even if you are confident that a HELOC is appropriate for your budget and goals, it’s a good idea to be aware of alternatives before making a final decision. Here are some options:
Home Equity Loan
For a single, fixed-cost project, a home equity loan is a good choice because it provides the homeowner with a one-time, lump-sum disbursement secured by their home’s equity. The home equity loan typically has a fixed interest rate, which makes for consistent and predictable monthly payments. Use a home equity loan calculator to compare the cost of a home equity loan versus a HELOC.
Recommended: What Is a Home Equity Loan?
Home Improvement Loan
A home improvement loan is a personal loan designed to be used for renovations and repairs. It is similar to a home equity loan with fixed installments and predictable payments, but it is unsecured (it does not use your home as collateral), which typically results in a higher interest rate.
Personal Line of Credit
A personal line of credit (PLOC) is a revolving line of credit that is not secured by collateral. It functions similarly to a HELOC in that you can draw and repay funds as needed. Because it is unsecured, the PLOC holds less risk (because your home isn’t on the line) but usually means a higher interest rate. To qualify, a lender will look at your financial picture including your credit score and income; your home equity doesn’t play a role.
Cash-Out Refinance
When a homeowner takes out a cash-out mortgage refinance, they replace their primary mortgage with a new, larger mortgage. This process pays off the original mortgage debt, and the homeowner receives the remaining balance as cash. This move can be beneficial if current interest rates are significantly lower than the rate on the primary mortgage.
As you consider a cash-out refinance vs. home equity line of credit or home equity loan, a key difference is that the refinance consolidates all home debt into a single payment.
The Takeaway
A HELOC could allow you to borrow a lump sum of money against your property’s value. Its fixed interest rate and predictable monthly payments make it an appealing way to access cash for big projects or to pay off debt. Using a HELOC payment calculator can estimate your borrowing capacity and show you what monthly payments might be if you choose this borrowing method. Make sure you borrow responsibly by seeking out offers from multiple lenders to find the lowest rate for your needs.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
How much can I borrow with a HELOC?
Lenders typically allow you to borrow up to 90% of your equity. The exact amount you can borrow will depend on the equity in your home. (Your equity is equal to your home’s estimated value minus your outstanding mortgage balance.)
What can I use the money for from a HELOC?
Homeowners can put HELOC funds toward almost any purpose, including home renovations, debt consolidation, or educational expenses.
Is the interest on a HELOC tax-deductible?
The interest on a HELOC may be tax-deductible. Always consult a professional tax advisor.
What is the minimum credit score I need to qualify for a HELOC?
You will need to show a 640 credit score or higher. Some lenders require at least a 680 credit score. You may be able to land more favorable terms and interest rates by having a credit score in the 700s.
Learn more about mortgages:
SoFi Loan Products 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.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi 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.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SOHE-Q425-070
Get prequalified in minutes for a SoFi Home Loan.
Free Nevada HELOC Payment Calculator
Nevada HELOC Calculator
By SoFi Editors | Updated January 23, 2026
Tapping into your home’s equity is a significant financial step that needs careful planning. Our free Nevada HELOC payment calculator helps you estimate the true cost of borrowing. Before you apply for a home equity line of credit, use the Nevada calculator to see your estimated monthly payments.
This guide offers basic information including definitions, housing trends, tips, financing alternatives, and clear step-by-step instructions on how to use the calculator. Use this knowledge to make a confident decision on whether a HELOC is right for your budget and goals.
- Key Points
- • A home equity line of credit (HELOC) is a revolving line of credit that allows you to use your home as collateral to secure funds toward a major project or expense.
- • There are two payment periods to be aware of: the draw period and repayment period.
- • Most HELOCs feature variable interest rates, meaning your monthly payments can change over time based on broader economic conditions.
- • To qualify, lenders generally require that homeowners have a minimum of 15% equity in their home.
- • Qualified borrowers may be able to access up to 90% of their home equity.
Calculator Definitions
• HELOC Balance: This term represents the total amount of money a borrower has currently withdrawn from their available credit line, or the amount a homeowner plans to borrow.
• Current Interest Rate: This is the rate at which interest accumulates on your outstanding HELOC balance.
• Draw Period: This is the specific time frame—often between 5 and 10 years—during which you can access funds from your HELOC, up to your approved credit limit.
• Repayment Period: This is the second phase—often 20 years—when the homeowner must pay back the full balance through combined principal and interest payments.
• Monthly Interest Payment: This is the monthly cost of borrowing funds based on the outstanding balance and the current variable interest rate. It does not contribute to reducing the original amount used.
• Monthly Principal and Interest Payment: This is the amount you’ll be required to pay monthly during the repayment period. Use the Nevada HELOC payment calculator to get estimates since your exact payment amount will be based on current rates.
How to Use the Nevada HELOC Calculator
Follow these easy instructions to use the Nevada HELOC payment calculator most effectively.
Step 1: Enter Your Planned or Actual HELOC Balance
Start with the total amount you plan to borrow from the line of credit.
Step 2: Estimate Your Interest Rate
Now, enter your desired annual interest rate. The rate can be from a prospective lender or an estimate based on your research.
Step 3: Choose the Length of the Draw Period
The draw period timeframe is typically five to 10 years.
Step 4: Select Your Repayment Period
The repayment period timeframe is typically 10 to 20 years.
Step 5: Review Your Results
Analyze the results by looking closely at the potential monthly payments during both the draw and repayment periods.
Now that you are familiar with how to use the Nevada calculator, let’s explore what is a home equity line of credit.
What Is a Home Equity Line of Credit?
A home equity line of credit, known as a HELOC, is a revolving line of credit that is secured by the equity in your home. Because your home serves as collateral, lenders typically offer more competitive interest rates compared to unsecured options like credit cards or personal loans. This also means that you risk foreclosure if you fail to make payments.
As you learn how a HELOC works, keep in mind that your home equity is the difference between your home’s current market value and the outstanding balance on your home loan and any other loans you might have where your home is used as collateral. The interest rate is usually variable (unlike a standard home equity loan, which usually offers a fixed interest rate) so it’s helpful to keep an eye on market movements and trends, like the U.S. Prime Rate.
There are two phases to the HELOC. First is the draw period, which is typically 5 to 10 years. This is when you can withdraw funds as needed, up to your approved credit limit. You are often required to make payments only on the interest that accrues on your outstanding balance. Our HELOC interest-only calculator can help you assess what your payment amounts for the draw period may be.
Then you begin the repayment period, usually 10 to 20 years, when your required monthly payments will increase significantly to cover both the principal balance and the interest. During this phase, you can use a HELOC repayment calculator to help you out.
If you are a Nevada homeowner who has built up equity in your property, then you will want to use these tools to help you understand how to get equity out of your home.
Recommended: HELOC vs. Home Equity Loan
Home Equity Trends in Nevada
With a HELOC, and with some of the different types of home equity loans, the amount of equity a homeowner possesses is the key to borrowing power. The housing market plays a role in influencing your home equity so it’s helpful to keep an eye on housing trends.
Thanks to a nationwide surge in home equity since 2020 (see chart), homeowners across the U.S., including those in Nevada, have benefited from rising home prices. During that period, Nevada saw a 99% increase in equity. In fact, the average Nevada homeowner has around $156,000 in home equity as of 2025.
Since lenders typically require that a homeowner maintain at least 15% equity to qualify for a HELOC, and you can borrow up to 90% of equity, many homeowners find themselves sitting on a substantial amount of tappable equity.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
The Nevada HELOC payment calculator allows you to experiment with different loan scenarios, budget effectively, and prepare for productive conversations with lenders. Follow these steps to get the most out of the calculator:
• Explore the estimates: One of the key functions of the Nevada payment calculator is its ability to model scenarios. Since HELOC rates can shift over time, experiment with different HELOC balances, interest rates, or repayment terms to see how each of these figures affects the monthly payment.
• Evaluate debt consolidation: If you’re managing high-interest credit card debt, you can add up the monthly payment amounts on your cards and compare that to the monthly payment you would have if you used a HELOC to pay off all that you owe at once. There’s a good chance your monthly payment with a HELOC would be lower than the sum of what you’re currently paying. And it would be one payment instead of multiple payments.
• Approach lender conversations more confidently: Use the Nevada calculator ahead of time to run estimates and gain a clear understanding of your borrowing capacity. That way you can enter lender negotiations with more realistic expectations.
Tips on HELOCs
Here are some tips that apply to HELOCs:
• Strengthen your credit score: Lenders typically require a credit score of at least 640.
• Shop around with different lenders: Don’t commit right away. Instead, compare annual fees, inactivity fees, and prepayment penalties from a variety of lenders.
• Prepare and plan a budget: With the transition between the two HELOC phases (the draw period and repayment period), you’ll see your monthly payments increase from interest-only to principal-and-interest.
• Consider the risks: A HELOC uses your home as collateral. This means that the lender could foreclose on your home if you fail to make payments.
Alternatives to HELOCs
Even if you are confident that a HELOC is appropriate for your budget and goals, it’s a good idea to be aware of alternatives before making a final decision. Here are some options:
Home Equity Loan
For a single, fixed-cost project, a home equity loan is a good choice because it provides the homeowner with a one-time, lump-sum disbursement secured by their home’s equity. The home equity loan typically has a fixed interest rate, which makes for consistent and predictable monthly payments. Use a home equity loan calculator to compare the cost of a home equity loan versus a HELOC.
Recommended: What Is a Home Equity Loan?
Home Improvement Loan
A home improvement loan is a personal loan designed to be used for renovations and repairs. It is similar to a home equity loan with fixed installments and predictable payments, but it is unsecured (it does not use your home as collateral), which typically results in a higher interest rate.
Personal Line of Credit
A personal line of credit (PLOC) is a revolving line of credit that is not secured by collateral. It functions similarly to a HELOC in that you can draw and repay funds as needed. Because it is unsecured, the PLOC holds less risk (because your home isn’t on the line) but usually means a higher interest rate. To qualify, a lender will look at your financial picture including your credit score and income; your home equity doesn’t play a role.
Cash-Out Refinance
When a homeowner takes out a cash-out mortgage refinance, they replace their primary mortgage with a new, larger mortgage. This process pays off the original mortgage debt, and the homeowner receives the remaining balance as cash. This move can be beneficial if current interest rates are significantly lower than the rate on the primary mortgage.
As you consider a cash-out refinance vs. home equity line of credit or home equity loan, a key difference is that the refinance consolidates all home debt into a single payment.
The Takeaway
Nevada homeowners can use the HELOC payment calculator as a strategic first step when considering tapping into their home equity. Our online tool provides monthly payment estimates, giving the homeowner a clear idea of their borrowing power. Run scenarios with different borrowed amounts, interest rates, and repayment terms to find the right mix for your budget and goals.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
How much can I borrow with a HELOC?
Lenders typically allow you to borrow up to 90% of your equity. The exact amount you can borrow will depend on the equity in your home. (Your equity is equal to your home’s estimated value minus your outstanding mortgage balance.)
What can I use the money for from a HELOC?
Homeowners can put HELOC funds toward almost any purpose, including home renovations, debt consolidation, or educational expenses.
Is the interest on a HELOC tax-deductible?
The interest on a HELOC may be tax-deductible. Always consult a professional tax advisor.
What is the minimum credit score I need to qualify for a HELOC?
You will need to show a 640 credit score or higher. Some lenders require at least a 680 credit score. You may be able to land more favorable terms and interest rates by having a credit score in the 700s.
Learn more about mortgages:
SoFi Loan Products 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.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi 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.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SOHE-Q425-078
Get prequalified in minutes for a SoFi Home Loan.
Free Missouri HELOC Payment Calculator
Missouri HELOC Calculator
By SoFi Editors | Updated January 23, 2026
Borrowing against the equity in your home requires careful consideration and planning. Before applying for a home equity line of credit, use our Missouri HELOC payment calculator to help you estimate monthly payments during the draw and repayment periods. This guide explains the key concepts and alternatives you need to know before deciding if a HELOC is the right choice for your financial goals.
- Key Points
- • A home equity line of credit (HELOC) is a revolving line of credit that allows you to use your home as collateral to secure funds.
- • HELOCs have a draw period (usually 10 years), where you can borrow funds, and a repayment period (10 to 20 years), where you repay the principal and interest.
- • With a HELOC, you can typically borrow up to 90% of your equity.
- • To qualify, you’ll need a credit score of 640 or higher.
- • A HELOC payment calculator can help you determine if you can comfortably afford a credit line, especially when payments increase during the repayment period.
Calculator Definitions
• HELOC Balance: This is the total amount of principal that you currently owe on the line of credit.
• Current Interest Rate: This is the percentage the lender charges for the use of funds. The interest rate is usually variable, meaning it fluctuates with the market.
• Draw Period: The draw phase is typically a period between 5 and 10 years when the homeowner is permitted to access funds from their HELOC as needed, up to their credit line limit. You pay interest only on the amount borrowed during the draw period.
• Repayment Period: The repayment phase begins after the draw period. It is usually 10 to 20 years.
• Monthly Interest Payment: This refers to the minimum payment required during the draw period. Some HELOCs allow for interest-only payments during this phase, which cover the interest accrued on the borrowed amount but do not reduce the principal balance.
• \ Monthly Principal and Interest Payment: This is the standard payment made during the repayment period. It includes a portion of the principal balance and the accrued interest, and is designed to pay off the line of credit over the specified term.
How to Use the Missouri HELOC Calculator
The Missouri HELOC calculator is a useful tool for homeowners to test out their finances before accessing their equity. Here are the steps to use the calculator effectively.
Step 1: Enter Your Planned or Actual HELOC Balance
Start by inputting the outstanding principal balance on your current HELOC.
Step 2: Estimate Your Interest Rate
Enter the annual interest rate for your line of credit.
Step 3: Choose the Length of the Draw Period
Choose the duration of the draw period — typically between 5 and 10 years.
Step 4: Select Your Repayment Period
Now enter the repayment period — typically 10 to 20 years.
Step 5: Review Your Results
You will see the calculator generates separate payment estimates for the interest-only draw period and the principal-and-interest repayment period. Use these estimates to help you plan.
Now that you understand how to use the calculator, we can explore what is a home equity line of credit.
What Is a Home Equity Line of Credit?
A home equity line of credit, known as a HELOC, is a revolving line of credit that is secured by the equity in your home. Because your home serves as collateral, lenders typically offer more competitive interest rates compared to unsecured options like credit cards and personal loans. If you are a Missouri homeowner who has built up equity in your property, then you will want to understand how to get equity out of your home.
Your home equity is the difference between your home’s current market value and the outstanding balance on your home loan and any other loans you might have where your home is used as collateral.
A HELOC has two phases: the draw period, usually 5 to 10 years, is when you can withdraw funds as needed, up to your approved credit limit. You are often required to make payments only on the interest that accrues on your outstanding balance. Use a HELOC interest-only calculator to help you figure out payment amounts for the draw period.
The second phase is the repayment period, usually 10 to 20 years, when you can no longer withdraw funds. Your required monthly payments will increase significantly to cover both the principal balance and the interest. Missouri homeowners can refer to a HELOC repayment calculator to help budget for this phase.
Variable interest rates are typical for a HELOC (unlike a standard home equity loan, which usually offers a fixed interest rate). Use our free Missouri HELOC calculator to experiment with estimates and ensure you’re working within your budget.
Recommended: HELOC vs. Home Equity Loan
Home Equity Trends in Missouri
Different types of home equity loans are tied to the amount of equity a homeowner possesses. With a HELOC, lenders typically require that a homeowner maintain at least 15% equity to qualify, and you can borrow up to 90% of that equity.
Home equity has surged nationwide in the last five years (see chart). In Missouri, as in many states, home equity has increased by 159% over the same period. The average Missouri homeowner is sitting on more than $87,000 in equity — more than enough to cover a major home renovation, medical treatment, or another large purchase.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
Here are ways to get the most out of the Missouri HELOC payment calculator:
• Evaluate major projects: Before diving into a project, calculate the monthly payments for both the draw and repayment periods so you can evaluate the affordability of your anticipated cost.
• Assess debt consolidation: Weigh HELOC payments against your existing debt payments to see how much a consolidation would save you each month.
• Prepare for discussions with lenders: Approach discussions with lenders more confidently by understanding your estimated borrowing limit and potential payments.
Tips on HELOCs
While a HELOC offers financial flexibility, it also comes with risks and considerations. Use the following tips to avoid pitfalls.
• Compare offers: Take the time to approach a variety of lenders and compare options. Be aware of annual fees, inactivity fees, and early termination or prepayment penalties, which can significantly impact the overall cost of borrowing.
• Budget wisely: With the HELOC, your monthly payments will significantly increase when you go from the interest-only draw period to the principal-and-interest repayment period. Use our Missouri HELOC payment calculator to estimate your future payments so you can budget for the long term.
• Monitor interest rates: Since most HELOCs have a variable interest rate (which is tied to the U.S. Prime Rate), your interest rate and monthly payments will change over time. It’s a good idea to monitor interest rates and see how rate increases affect your plan for paying down the principal.
• Examine the risks: Because your home serves as collateral, the lender could foreclose on your home if you fail to make payments.
• \ Be on top of your credit report: Lenders look for a credit score of 640 or higher and a debt-to-income (DTI) ratio below 45%. Work on strengthening your overall financial picture, and review your credit report regularly to check for any errors.
Alternatives to HELOCs
A HELOC is an appropriate option for many homeowners depending on their goals and budget. There are also alternatives to consider, such as a home equity loan, a home improvement loan, a personal line of credit, and a cash-out refinance.
Home Equity Loan
With a home equity loan, you receive a one-time lump sum that you borrow against your home equity. This is great when you have a one-time project with a fixed cost. A home equity loan typically has a fixed interest rate, which means consistent and predictable monthly payments over a set term. Using a home equity loan calculator can help you compare the cost of a home equity loan versus a HELOC.
Recommended: What Is a Home Equity Loan?
Home Improvement Loan
A home improvement loan is a personal loan designed for funding home renovations and repairs. Similar to the home equity loan, the home improvement loan is repaid in regular installments with a fixed interest rate. The difference is that the home improvement loan does not use your home as collateral, so the interest rate is usually higher than that of a home equity loan.
Personal Line of Credit
A personal line of credit (PLOC) is an unsecured revolving line of credit similar to a credit card. Like a home improvement loan, your home does not serve as collateral, and therefore the PLOC may have a higher interest rate and a lower credit limit compared to a HELOC.
Cash-Out Refinance
With a cash-out mortgage refinance, the homeowner replaces an existing primary mortgage with a completely new, larger one. You pay off the original debt and take the remaining balance in cash. This consolidates your debt into a single mortgage payment but resets your mortgage term. Using a cash-out refi is most appropriate when current market interest rates are lower than the rate on your existing mortgage, allowing you to access cash while potentially improving the terms of your primary debt.
When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance leaves you with one payment, whereas a HELOC gives you a second payment on top of your original mortgage payment.
The Takeaway
Missouri homeowners can use the Missouri HELOC payment calculator as a starting point to estimate their borrowing power and potential costs. By entering some details, the calculator can help you easily estimate monthly payments so you can make a strategic decision about your home equity.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
What is the difference between a HELOC and a home equity loan?
The primary difference is that a HELOC is a revolving line of credit, typically with a variable interest rate, while a home equity loan offers a fixed interest rate and one-time lump sum with predictable monthly payments.
How much can I borrow with a HELOC?
The exact figure will depend on your personal financial picture, including your credit score, income, and debts. Generally, you can borrow up to 90% of your equity.
What can I use the money for from a HELOC?
HELOC funds can be used for almost any expense, including home repairs, debt consolidation, and educational pursuits.
Is a HELOC interest rate fixed or variable?
Most HELOCs have a variable interest rate, although some lenders offer a fixed-rate option.
Learn more about mortgages:
SoFi Loan Products 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.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi 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.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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Free Mississippi HELOC Payment Calculator
Mississippi HELOC Calculator
By SoFi Editors | Updated January 23, 2026
A home equity line of credit, or HELOC, allows you to access your home’s equity, functioning as a revolving line of credit secured by your property. Much like a credit card, you can draw funds as you need them up to a predetermined limit, repay the balance, and draw again. A Mississippi HELOC calculator is designed to demystify the payment process by estimating your monthly obligations during the different phases of the credit line.
Keep reading for more on home equity lines of credit, how to use the Mississippi HELOC calculator, and alternatives to consider.
- Key Points
- • A HELOC provides a revolving line of credit secured by your home’s equity.
- • HELOCs are structured with two distinct phases: a draw period and a repayment period.
- • Most HELOCs feature a variable interest rate that can change over time.
- • Your home serves as collateral, which underscores the importance of responsible management.
- • A HELOC payment calculator can help you determine if you can comfortably afford a credit line, especially when payments increase during the repayment period.
Calculator Definitions
• HELOC Balance: The HELOC balance is the total amount of principal you currently owe on your line of credit. This represents the portion of your credit line that you have used but have not yet repaid.
• Current Interest Rate: The current interest rate is the rate at which interest accrues on your outstanding balance. For most HELOCs, this rate is variable and can fluctuate over time.
• Draw Period: The draw period is the specific timeframe during which you can access funds from your HELOC. This period typically lasts up to 10 years.
• Repayment Period: The repayment period is the phase that begins after the draw period ends, during which you can no longer withdraw funds. During this period, you make regular payments covering both principal and interest over a term that is typically 10 to 20 years.
• Monthly Interest Payment: The monthly interest payment is the amount required during the draw period, which often covers only the interest that has accrued on your balance. This structure results in lower initial payments compared to the subsequent repayment period.
• Monthly Principal and Interest Payment: This is the payment required during the repayment period. It’s typically higher because it includes a portion of the principal balance in addition to the interest.
How to Use the Mississippi HELOC Calculator
Using a HELOC calculator is an essential step for any Mississippi homeowner considering this financial tool. It allows you to forecast potential payment structures and understand the financial dynamics of a HELOC before you commit. Here’s exactly how to use it:
Step 1: Enter Your Planned or Actual HELOC Balance
Enter the total amount you plan to borrow or the current outstanding balance on your line of credit. This figure is the starting principal for all subsequent estimations of your potential payments.
Step 2: Estimate Your Interest Rate
Input the interest rate associated with your HELOC. This rate is used to calculate the interest portion of your monthly payments during both the draw and repayment periods. Because most HELOCs have variable rates, consider testing higher rates to see how potential market changes could affect your monthly payments.
Step 3: Choose the Length of Your Draw Period
Specify the duration of your draw period, which is typically between five and 10 years. This input determines how long you can access funds and potentially make lower, interest-only payments. A HELOC interest-only calculator can help you see your payments during this phase.
Step 4: Specify Your Repayment Period
Enter the length of your repayment period, which generally ranges from 10 to 20 years. This defines the timeframe over which you will repay the principal balance and any remaining interest after the draw period concludes. A HELOC repayment calculator allows you to see what those payments might be.
Step 5: Review Your Results
The calculator will provide estimated monthly payments for both the draw period and the repayment period. These figures are for planning purposes and can help you budget for the transition between the two phases.
What Is a Home Equity Line of Credit?
A home equity line of credit, or HELOC, is a form of revolving credit that is secured by the equity in your home. It functions much like a credit card: a lender approves you for a specific credit limit, and you can draw funds as needed, repay them, and borrow again throughout a designated timeframe. This flexibility makes it different from financing that provides a single lump sum.
The structure of a HELOC is divided into two distinct phases:
• The Draw Period: This is the initial phase, often lasting 10 years, during which you can access funds from your credit line up to your approved limit. During this time, your required monthly payments may be interest-only, which keeps your initial payments relatively low. You only pay interest on the amount you have actually withdrawn.
• The Repayment Period: Once the draw period ends, you can no longer withdraw funds. You then enter the repayment period, which typically lasts up to 20 years. Your monthly payments will increase significantly during this phase, as they will now include both principal and interest, calculated to pay off the remaining balance over the term.
This two-part structure distinguishes a HELOC from a home equity loan that provides all the funds at once in a single disbursement. The ability to borrow only what you need makes a HELOC a versatile tool for managing large or ongoing expenses. Because a HELOC is secured by your home’s equity, understanding what equity is and how it grows is the first step toward using this tool wisely.
Recommended: What Is a Home Equity Loan?
What Is a HELOC Calculator?
A HELOC calculator is an online tool that helps homeowners estimate the potential costs of a home equity line of credit. By entering details such as the credit limit, interest rate, draw period, and repayment term, it provides an estimate of monthly payments.
These estimates make it easier to understand how borrowing against your home equity could affect your budget. A HELOC calculator is especially useful for comparing scenarios, planning for rate changes, and deciding whether a HELOC fits your financial goals.
Recommended: How to Get Equity Out of Your Home
Home Equity Trends in Mississippi
Home equity represents the portion of your home you truly own — calculated as your property’s current market value minus the remaining balance on your home loan and any other loans secured by the home. As home prices rise and loan balances decline, equity grows, giving homeowners more financial flexibility and potential borrowing power.
From 2020 to 2025, average home equity increased 142% nationwide, adding up to roughly $11.5 trillion in value. In Mississippi, home equity rose 69% during the same period, with the average homeowner holding about $38,540 in equity as of 2025. While equity levels trail national averages, many Mississippi homeowners may still be able to tap into this value for expenses like home improvements, debt consolidation, or other financial goals.
Here’s a look at how equity has risen nationwide between 2020 and 2025.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
The data generated by a HELOC calculator is more than just a set of numbers; it provides actionable insights for effective financial planning. By projecting your potential monthly payments, the calculator helps you prepare a realistic budget and make strategic decisions about your finances.
The estimated payment figures are invaluable for long-term budgeting. Understanding the difference between the lower, interest-only payments during the draw period and the higher principal-and-interest payments during the repayment period allows you to plan ahead.
While the calculator uses a fixed rate for its estimations, it helps you understand the fundamental payment structure of a HELOC. This is important for a product that typically has a variable interest rate. Seeing how payments are structured prepares you to better assess how rate fluctuations could impact your budget during both the draw and repayment periods.
The calculator data also assists in making decisions about how much to borrow. By visualizing the repayment obligations tied to different borrowing amounts, you can determine a balance that comfortably fits within your financial capacity, ensuring you do not overextend yourself.
Tips on HELOCs
Managing a home equity line of credit effectively requires careful financial discipline. Because your home secures the credit line, responsible use is paramount. Below are practical tips for handling a HELOC:
• Shop around: Compare the rates, fees, and terms from multiple lenders, including banks and credit unions. Finding the most favorable terms and lowest fees can save you a significant amount of money over the life of the credit line.
• Manage carefully: Your home is used as collateral, which means the lender can foreclose on your property if you fall behind on payments. Manage the line of credit with care to avoid this risk.
• Plan for repayment: Be prepared for the payment increase when the draw period ends. The transition to principal-and-interest payments can be a substantial shock to a budget if not anticipated.
• Borrow only what’s needed: A key advantage of a HELOC is its flexibility. To keep interest costs down, draw only the funds you need for your project or expense rather than taking the full amount available.
• Understand the terms: Review the agreement carefully for details on fees. These can include annual fees, inactivity fees if the line is not used, closing costs, and early closure penalties if you close the account within a few years.
With these strategies in mind, it is also wise to consider other financial products that may be available.
Alternatives to HELOCs
Evaluating all available financial options is a cornerstone of sound financial planning. While a HELOC offers notable flexibility, other products might be better suited for different financial needs, goals, and risk tolerances. Understanding these alternatives allows you to make a more informed decision.
Home Equity Loan
A home equity loan is a type of second mortgage that provides a single, lump-sum disbursement of cash. This contrasts sharply with a HELOC’s revolving line of credit. It usually comes with a fixed interest rate and a predictable schedule of monthly payments that begin immediately on the full amount. A home equity loan calculator can help you compare the cost of this product to that of a HELOC.
Recommended: Different Types of Home Equity Loans
Home Improvement Loan
A home improvement loan is a type of personal financing designed for renovations. Unlike a HELOC, it is typically an unsecured product, meaning your home does not serve as collateral. Consequently, the interest rate may be higher than that of a secured option like a HELOC.
Personal Line of Credit
A personal line of credit is an unsecured revolving credit account that functions similarly to a HELOC. Because it is not secured by your home, the lender assumes more risk, which generally results in higher interest rates. The primary advantage is that it does not put your home at risk if you are unable to make payments.
Cash-Out Refinance
A cash-out mortgage refinance replaces your existing primary mortgage with a new, larger one, and you receive the difference in cash. When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance alters the terms of your main mortgage, whereas a HELOC does not. A cash-out refinance also results in a single monthly payment rather than two.
The Takeaway
The Mississippi HELOC calculator is a strategic planning tool for homeowners in Mississippi. It provides essential foresight into potential payment obligations, clarifying how monthly payments differ between the draw and repayment phases. This insight is fundamental to budgeting and responsible financial management.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
What is the difference between a HELOC and a home equity loan?
A HELOC provides a revolving line of credit, allowing you to borrow and repay funds as needed up to a set limit, similar to a credit card. In contrast, a home equity loan provides a one-time lump sum of money that you begin repaying immediately in fixed installments. HELOCs typically have a variable interest rate, while home equity loans usually have a fixed rate.
How much can I borrow with a HELOC?
The amount you can borrow depends on your home’s equity — its market value minus your mortgage balance. Lenders typically allow you to access up to 90% of your home’s equity, and homeowners typically must have at least 15% equity to qualify. The final amount approved also depends on other factors, such as your credit score, income, and overall creditworthiness.
Is a HELOC interest rate fixed or variable?
Most HELOCs have a variable interest rate, which means the rate can change over time. This can cause your monthly payments to fluctuate. Some lenders may offer a fixed-rate option, but a variable rate is the most common structure for this type of credit line.
What happens when the draw period ends?
Once the draw period ends, you can no longer withdraw funds from the credit line. The HELOC transitions to the repayment period, and your monthly payments will likely increase. This is because payments will now include both principal and interest on the outstanding balance, rather than just interest.
What is the minimum credit score I need to qualify for a HELOC?
Lender requirements vary, but it may be possible to qualify for a HELOC with a credit score starting around 640. However, many lenders prefer a score of 680 or higher. A stronger credit score generally helps you secure more favorable terms and a lower interest rate.
Learn more about mortgages:
SoFi Loan Products 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.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi 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.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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Free Minnesota HELOC Loan Payment Calculator
Minnesota HELOC Calculator
By SoFi Editors | Updated January 23, 2026
If you’ve been diligently paying off your home loan, you may be thinking about how to harness the equity you’ve built up in your property with a home equity line of credit (HELOC). Understanding how these loans work is the first step toward making an informed decision, and a free Minnesota HELOC calculator can quickly show you how much equity you have and what your monthly payments might be if you were to borrow against it. Take a few minutes to learn how to use this financial tool effectively.
- Key Points
- • A HELOC is a revolving credit line, so borrowers can withdraw, repay, and reborrow funds repeatedly up to a predefined limit.
- • The maximum borrowing capacity is typically based on the homeowner’s equity.
- • A HELOC payment calculator estimates payments at both the draw and repayment phases of the credit line.
- • Interest charges are applied only to the portion of the credit limit that is currently being used.
- • Eligibility is determined based on an evaluation of credit history, examination of an applicant’s debt-to-income ratio, and an appraisal of the home.
Calculator Definitions
• HELOC Balance: The HELOC balance for the purpose of this calculator is the amount a homeowner already owes on their HELOC or the amount a prospective HELOC user is planning to borrow.
• Current Interest Rate: The interest rate is the percentage a lender charges on the outstanding HELOC balance. HELOC rates are typically variable and fluctuate according to parameters set out in the HELOC agreement.
• Draw Period: The HELOC’s initial phase, the draw period, often lasts 10 years. During this time, the homeowner can access funds and is often only required to pay interest on the borrowed amount.
• Repayment Period: Once the draw period concludes, the credit line enters the repayment phase, where the ability to withdraw additional capital ends. During this stage, which may last up to 20 years, the borrower must make monthly payments that cover both a portion of the principal and interest.
• Monthly Interest Payment: This is the amount due each month during the draw period, calculated based on the funds that have been withdrawn (not on the entire credit line). This payment does not reduce the original debt unless the borrower voluntarily contributes funds to pay down the principal.
• Monthly Principal and Interest Payment: This combined payment becomes mandatory upon entering the repayment period. It includes both a portion of the borrowed principal and ongoing interest to ensure the total debt is repaid by the end of the term.
How to Use the Minnesota HELOC Calculator
Follow these steps to use the free HELOC calculator correctly:
Step 1: Enter Your Planned or Actual HELOC Balance
Enter the total amount of money you have already withdrawn or the maximum amount you plan to withdraw from a HELOC.
Step 2: Estimate Your Interest Rate
Type in your current interest rate if you have a HELOC, or if you are thinking about applying for a HELOC, use a rate you’ve been quoted by a lender or seen online. Remember that ultimately, HELOCs have variable rates, so you might want to run the calculator with several different interest rates to get a sense of how payments might rise or fall with rate changes.
Step 3: Choose the Length of the Draw Period
You’ll most likely have a draw period of five or 10 years. Choose the term that seems like the best fit, bearing in mind that when the draw period ends, you’ll start repaying the loan, with interest.
Step 4: Select Your Repayment Period
A longer repayment period, such as 20 years, likely means your monthly installment payments will be lower than they would with a short repayment phase. But a short repayment phase means you’ll likely pay less interest over the life of the HELOC.
Step 5: Review Your Results
Examine the projected payments the HELOC payment calculator shows for both phases, paying close attention to the jump in payment size when you enter the repayment phase. Make sure both payments fit within your budget.
What Is a Home Equity Line of Credit?
Now that you understand calculator definitions and have tried out the calculator, you probably understand a bit about what is a home equity line of credit and how it works. Take a few minutes to make sure you have a handle on all the details.
A HELOC is a second mortgage on your home, assuming you’re still paying off your first home loan. The revolving credit line uses your home equity as collateral, which is why most lenders require an appraisal of the home to qualify a homeowner for this line of credit. The fact that your home secures the HELOC means that lenders are often able to offer a larger credit line at a lower interest rate than they would for an unsecured form of borrowing, such as a home improvement loan. But it also means that you are subject to foreclosure if you don’t repay what you borrow.
To qualify for a HELOC, you’ll need at least 15% equity in your home. (Your equity is the home’s market value minus whatever you still owe on your mortgage.) Your credit score will be important, too: A score of at least 640 is needed with some lenders, and others like to see a score of 680 or better. If you qualify for a HELOC, many lenders will allow you to borrow up to 90% of your equity, and a credit limit of that amount might be set for your HELOC. This doesn’t mean you have to borrow the full amount. That’s the beauty of a line of credit: You can borrow as needed, to the extent you need to, up to your personal limit.
HELOCs are distinguished from other forms of home equity borrowing by their two phases. During the draw period, often up to 10 years, the homeowner can withdraw funds, repay a portion of the balance (or not), and re-access the credit limit as requirements change. This makes the product a good choice when you need to borrow money for projects with uncertain or variable costs, such as medical bills or a series of home improvements. Most lenders only require you to pay interest on whatever HELOC balance you are carrying during the draw phase. A HELOC interest-only calculator can show what your payments might be during this time period.
When the draw phase ends, you enter the repayment phase. Monthly payments often rise noticeably as homeowners begin to repay what they have borrowed, with interest. (A HELOC repayment calculator can show you what these payments might be.) It’s important to prepare for this jump in costs and to examine repayment costs when considering a HELOC.
Recommended: Different Types of Home Equity Loans
Home Equity Trends in Minnesota
If it seems as if many of your friends and neighbors have advice about how to get equity out of your home, it may be because they are already borrowing based on their own healthy home equity levels. The average Minnesota homeowner is sitting on more than $135,000 in home equity, and average equity has increased more than 50% in the past five years, as home values have increased and owners have made mortgage payments. This is part of a larger national trend, as the graphic shows.
A homeowner with $135,000 in equity who is able to access a credit line worth 90% of their equity would be able to borrow $121,500.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
The outputs generated by the HELOC payment calculator can help you plan for the future. Beyond simply identifying a potential monthly payment, you can use the data to do the following:
Create “what-if” scenarios: Homeowners thinking about a HELOC can try putting different HELOC balances, interest rates, or repayment terms into the calculator to see how each will affect their monthly payment. This lets you see what a high or low monthly payment would be based on different interest rates. This is useful given that HELOC interest rates can shift over time.
Evaluate debt consolidation strategies: If you have balances on high-interest credit cards, you can add up the monthly payment amounts on your cards and compare that to the monthly payment you would have if you used a HELOC to pay off all that you owe at once. There’s a good chance your monthly payment with a HELOC would be lower than what you’re currently paying. It has the added benefit of simplifying your life, as you’ll have one payment instead of multiple payments.
Avoid “payment shock”: Looking carefully at the estimated payment amounts due during repayment will prepare you for how payments increase after the draw phase of a HELOC ends. Seeing these numbers early on can help a borrower limit their draws to what is really necessary.
Recommended: HELOC vs. Home Equity Loan
Tips on HELOCs
Effective management of a HELOC requires a disciplined approach, both during the application phase and once you have been approved for a line of credit. Here are some pointers:
• Shop around for a lender: Compare offers from several lenders to pinpoint the best available interest rate from a lender whose terms suit you.
• Manage payments carefully: Stay up to date on your monthly HELOC bills to protect your property.
• Get real about rates: Many lenders offer low introductory rates early in the HELOC relationship. Use the calculator to estimate what will happen to your budget once that period ends and a higher rate takes effect.
• Be disciplined about using the credit line: Some borrowers like to reserve their HELOC for renovations and home repairs. Others just want to consolidate high-interest debt. Whatever your use case, try to avoid using your HELOC like just another credit card. It’s easy to let your balance get out of hand and, unlike with a credit card, your home is on the line.
Alternatives to HELOCs
While a revolving credit line offers high levels of flexibility, it is not the only mechanism for accessing the wealth stored in a home. You’ll want to understand what is a home equity loan. And some borrowers will prefer to have a loan that doesn’t use their residence as collateral.
Home Equity Loan
Like a HELOC, a home equity loan is a second mortgage because it is secured by your home. Unlike a HELOC, the loan comes as a one-time lump sum payment. You’ll begin repaying what you owe immediately, with interest. A home equity loan typically features a fixed interest rate, so payments are predictable. This is an excellent option for individuals who know exactly how much capital is required for a single expense and prefer the stability of unchanging monthly installments. A home equity loan calculator can help you compute payments to determine what you would owe if you went this route.
Home Improvement Loan
This unsecured personal installment loan offers a lump sum of money at a fixed interest rate for a specific term. But unlike a HELOC or home equity loan, a home improvement loan does not involve using your home as collateral. Home improvement loans often have a lower borrowing limit than HELOCs, and may have higher interest rates and shorter repayment terms as well.
Personal Line of Credit
A personal line of credit is a revolving credit account, but it is usually unsecured, meaning it is not backed by your home as collateral. The primary differences from a HELOC are the level of risk and the cost. Because your home is not at risk of foreclosure, a personal line of credit is less risky for the borrower; however, this generally results in a higher interest rate and a lower credit limit compared to a HELOC.
Cash-Out Refinance
A cash-out mortgage refinance involves replacing the existing primary mortgage with a new loan for a larger amount than the current balance. The difference is provided to the homeowner in cash. This can be advantageous if a lower interest rate can be secured for the entire mortgage balance. Note that a refi leaves you with one monthly payment instead of two, an attractive feature for those trying to streamline their finances.
As you consider a cash-out refinance vs. a home equity line of credit remember that with a refinance, you can choose between a fixed or variable interest rate.
The Takeaway
A free HELOC calculator is a helpful resource for any homeowner looking to transform their dormant equity into a functional financial tool. HELOCs offer lower interest rates and are a very flexible way to borrow. A payment calculator can help homeowners understand what their repayment obligations will be during both phases of the HELOC, so they will be well prepared over the lifespan of the credit line.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
Is a HELOC interest rate fixed or variable?
Most HELOCs feature a variable interest rate that fluctuates based on a benchmark index, such as the U.S. prime rate. This means monthly interest costs can shift (up or down) over time as economic conditions change. The HELOC agreement will specify how often the HELOC interest rate can rise and how high.
What happens when the draw period ends?
When the draw period concludes, typically after 10 years, you lose the ability to withdraw additional funds from the credit line. The account then enters the repayment phase, requiring regular monthly payments that cover both the principal balance and the interest. These payments are generally much higher than the interest-only payments required during the draw phase. The repayment period typically lasts between 10 and 20 years until the balance is fully settled.
What is the benefit of having a variable interest rate?
A variable interest rate can be beneficial if market rates decrease, as this lowers your monthly interest costs and the total expense of borrowing. Variable-rate products also often feature lower initial interest rates compared to fixed-rate alternatives, making them more affordable during the early stages of the draw period. However, borrowers must remain prepared for the possibility that rates could increase, which would lead to higher future monthly payment obligations.
Is the interest on a HELOC tax-deductible?
The interest paid on a HELOC may be tax-deductible. You’ll need to itemize on your tax return in order to capture this deduction. A tax advisor can help you confirm your specific eligibility.
Learn more about home equity line of credits:
SoFi Loan Products 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.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi 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.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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