Tennessee Student Loan & Scholarship Information
If you love country music and classic Southern food, Tennessee, with its dozens of colleges and universities, may be the perfect place for you to attend school. Once you’re done studying, you can go road-tripping to Dollywood, Graceland, or the Grand Ole Opry. If the Volunteer State sounds like your dream college destination, you’re probably wondering how to afford it. We can help! Read on for details about Tennessee college scholarships, grants, and student loan forgiveness opportunities.
Average Student Loan Debt in Tennessee
If you’re curious about what the average state of student loans in Tennessee looks like, look no further. According to a 2023 report, 53% of Tennessee college attendees have student loan debt, with an average balance of $26,852.
53%
of Tennessee college
attendees have
student loan debt.
SoFi offers simple student loans that work for you.
Tennessee Student Loans
Federal Student Loans
Federal student loans are provided by the U.S. Department of Education’s Direct Loan Program. If you take out a federal loan, the DOE is your lender. All federal student loans have fixed interest rates — which are generally lower than private loans’ — and carry fees between 1.057% and 4.228% that are deducted from the loan amount before disbursement.
To see which type of loans you may qualify for, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA®) to apply for financial aid for college or grad school. Be aware of your state’s deadline as well as the federal FAFSA deadline.
You should also review the deadlines for each college to which you are applying, as one college may define their deadline as the date you submit your FAFSA form, while another considers it to be the date on which your FAFSA is actually processed. FAFSA will then offer you a financial aid package, dependent on your college, that may include grants, work-study opportunities, and federal student loan options. It is important to note that not every student will qualify to receive federal aid.
Recommended: FAFSA Guide
Direct Subsidized Loans: These are for eligible undergraduate students who demonstrate financial need, and they help cover the costs of higher education at a college or career school. The federal government pays the interest on Direct Subsidized Loans while a student is in school at least half-time. Interest starts accruing on these loans after a six-month grace period once students graduate or if they drop below half-time enrollment.
Direct Unsubsidized Loans: Eligible undergraduate, graduate, and professional students may qualify for these loans. Eligibility is not based on financial need. The interest on these loans begins accruing immediately after funds are disbursed (meaning paid out).
Direct PLUS Loans: These loans are for parents of dependent undergraduate students who need help paying for education expenses not covered by other financial aid. Eligibility for this loan is not based on financial need, but it does require a credit check.
PLUS loans for graduate and professional students are being phased out. Only borrowers who already received these loans before June 30, 2026, can continue to borrow under their current terms through the 2028-29 academic year.
Recommended: Types of Federal Student Loans
Private Student Loans
Private loans are funded by private organizations such as banks, online lenders, credit unions, some schools, and state-based or state-affiliated organizations. A key point to note: Private lenders follow a different set of regulations than federal loans, so their interest rates can vary widely. What’s more, private loans have variable or fixed interest rates that may be higher than federal loan interest rates, which are always fixed.
Private lenders may require you to make payments on your loans while you are still in school. On the other hand, you don’t have to start paying back federal student loans until after you graduate, leave school, or change your enrollment status to less than half-time.
Unlike federal loans which can only be applied for within certain deadlines (once a year, and states have their own deadlines), private loans can be applied for on an as-needed basis. Even if you suspect you may need to take out a private loan, it’s still a smart move to submit your FAFSA before applying. That way, you can see what federal aid you may qualify for first.
If you’ve missed the FAFSA deadline and you’re struggling to pay for school throughout the year, private loans can potentially help you make your education payments. Just keep in mind that you will need enough lead time for your loan to process and for your lender to send money to your school.
Scholarships & Grants
Who doesn’t love a gift? You may sometimes hear grants and scholarships referred to as gift aid. That’s because while grants or scholarships may have certain academic or other requirements to keep them, you usually don’t have to pay them back as you would with a loan. Whether you call that a gift, a windfall, or free money, it’s a huge help when it comes time to pay for higher education.
There are a few instances where you may have to pay back grant money, but typically only if certain requirements aren’t met. Generally, grants are need-based (meaning they are distributed due to your financial need), while scholarships are awarded based on merit (such as academic, athletic, or artistic achievement).
There is no one-size-fits-all grant or scholarship amount or requirements, and both scholarships and grants can come from a variety of entities (including private organizations and federal or state governments).
Some scholarships or grants can be for a small amount that may help you pay for your books or research supplies, but others can cover the entire cost of your education. That means tuition, room and board, and the extras. Which is a very good thing. Who knew parking passes could be so expensive?
Tennessee Scholarships & Grants
As far as gift aid options go, there are some terrific Tennessee college scholarships and grants available to you. Consider looking into some of these to help finance your education.
Tennessee Promise Scholarship
For eligible Tennessee high school seniors who will be attending community or technical colleges, the Tennessee Promise Scholarship helps cover the remaining cost of tuition and fees after all other available gift aid has been subtracted from the total cost of tuition and fees.
Tennessee HOPE Scholarship
This scholarship can assist students who are enrolled at an eligible postsecondary institution in Tennessee and graduated from an eligible Tennessee high school less than sixteen months ago. Awards go up to $2,250 per semester for freshmen and sophomores, and then up to $2,850 a semester for juniors and seniors.
Aspire Award
The Aspire program offers need-based awards of up to $750 per semester to eligible students to help supplement costs not covered by the HOPE scholarship.
General Assembly Merit Scholarship
This merit-based award allows eligible entering freshman to supplement the HOPE Scholarship with funds of up to $500 per semester.
Tennessee Student Assistance Award
Undergraduate students who are residents of Tennessee and have financial need may qualify for this award, which goes up to $4,000 per year. Recipients must attend or be accepted to an eligible postsecondary institution in Tennessee.
Minority Teaching Fellows Program
This is a $5,000 Tennessee scholarship program for minority students pursuing teacher certification at eligible colleges and universities in Tennessee. After graduation, they must teach in a Tennessee public school for the number of years they receive the award.
Tennessee Teaching Scholars Program
Tennessee students who enroll in a teacher education program in a Tennessee college or university are eligible for this $5,000 scholarship. After graduation, they must teach in a Tennessee public school for the number of years they receive the award.
Get low-rate in-school loans that work for you.
Tennessee Student Loan Repayment & Forgiveness Programs
If you’ve taken out student loans to attend a school in Tennessee, it is never too early to start thinking about your repayment plan. And guess what? You have a few repayment options at your disposal.
Under the 2025 domestic policy bill, the standard student loan repayment term is between 10 and 25 years, based on the loan amount. Federal student loan interest rates vary based on what year you receive the loan.
For the 2025-2026 school year, the federal student loan interest rate is 6.39% for Direct Subsidized and Unsubsidized Loans for undergraduates, 7.94% for Direct Unsubsidized Loans for graduate and professional students, and 8.94% for Direct PLUS loans for parents and graduate or professional students.
For private loans, terms and conditions such as interest rates are set by the lender and vary due to many factors. Federal student loans typically offer the lowest interest rates and more flexible repayment options as compared to private student loans.
10-30
Years
New federal student loan repayment terms,
depending on the loan amount,
beginning July 2026.
Federal Student Loan Repayment Options
The U.S. domestic policy bill that was passed in July 2025 eliminates a number of federal repayment plans. Because current borrowers may remain in the plans, we are including them here. But for borrowers taking out their first loans on or after July 1, 2026, there will be only two repayment options: The Standard and an income-driven plan. You can learn more about your repayment options for federal student loans here.
Standard Repayment Plan
This plan will continue to be available in a modified form. Most borrowers were eligible for the original plan, which had a 10-year repayment period. Borrowers often paid less over time than with other plans because the loan term was shorter. (Typically, less interest accrues over shorter loan terms than longer ones if payments are made in full and on-time.) For loans taken out on or after July 1, 2026, the repayment term will range from 10 to 25 years based on the loan amount.
Repayment Assistance Program
This new program is similar to previous income-driven plans, which tied payments to income levels and household size. Payments range from 1% to 10% of adjusted gross income over a term up to 30 years. At that point, any remaining debt will be forgiven. If your monthly payment doesn’t cover the interest owed, the interest will be cancelled.
Graduated Repayment Plan
This plan will be closed to new loans made on or after July 1, 2026. Most borrowers were eligible for this plan, which allowed them to pay their loans off over 10 years. Payments started relatively low, then increased over time (usually every two years). Current borrowers in this plan will continue to make payments according to the plan’s graduated structure.
Extended Repayment Plan
This plan will be closed to new loans made on or after July 1, 2026. To qualify for this plan, you must have had more than $30,000 in outstanding Direct or FFEL loans. Monthly payments on the Extended Repayment Plan were typically lower than under the 10-year Standard Plan or the Graduated Repayment Plan, because borrowers had a longer period to pay them off (and therefore made more interest payments). Current borrowers in this plan will continue to make payments according to the plan’s extended term.
Saving on a Valuable Education (SAVE)
This plan is scheduled to be eliminated by June 30, 2028. Most student borrowers were eligible for this plan. The SAVE Plan lowered payments for almost all borrowers compared to other income-driven plans because payments were based on a smaller portion of your adjusted gross income (AGI). In addition, any remaining balance would be forgiven after 20 years. Current borrowers in this plan may transition into the new Standard Repayment Plan or Repayment Assistance Program (RAP) beginning July 1, 2026.
Income-Based Repayment (IBR)
IBR is available to anyone currently in an income-driven plan that’s scheduled to close. It was designed for borrowers who have a high debt relative to their income. Monthly payments were never higher than the 10-year Standard Plan amount. Generally, however, borrowers paid more over time than under the Standard Plan.
Still not sure which payment plan is right for you?
For more information on repayment plans, check out our Student Loan Repayment Options article to help add some clarity.
Granted, it’s not always easy to pay loans back on time. When it comes to student loan default, 10% to 20% of student loans are typically in default. To help you avoid being among those who default on your student loans, let’s take a look at refinancing options.
Student Loan Refinancing
One option to potentially help accelerate student loan repayment is to refinance your student loans with a private lender. Some private lenders, like SoFi, will let you consolidate and refinance both your federal and private student loans into one loan and a single interest rate. It’s a great way to streamline your bill paying and financial life in general.
Consolidating your loans (aka combining them) under one lender gives you the opportunity to refinance your loan and get a new term and interest rate. If you have an improved financial profile compared to when you took out your original loan, you may be able to lower your interest rate when you refinance, or shorten your term to pay off your loan more quickly.
But it is important to remember that if you refinance federal student loans with a private lender, you will lose access to federal programs such as the income-driven repayment plans mentioned above, as well as student loan forgiveness and forbearance options.
Student Loan Forgiveness
At first glance, student loan forgiveness looks appealing, but it is not easily attainable. That being said, there are state-specific and federal Public Service Loan Forgiveness programs that certain student loan borrowers may be eligible for.
Before you review your options, it’s important to know that the terms forgiveness, cancellation, and discharge essentially mean the same thing when it comes to federal student loans, but are applied in different scenarios. For example, if you are no longer required to make loan payments due to your job, that could fall under forgiveness or cancellation.
Or, if the school you received your loans at closed before you graduated, this situation would generally be called a discharge.
Even if you don’t complete your education, can’t find a job, or are unhappy with the quality of your education, you must repay your loans. But there are circumstances that may lead to federal student loans being forgiven, canceled, or discharged. Here are some of those options:
Public Service Loan Forgiveness (PSLF)
The PSLF Program may forgive the remaining balance on eligible Direct Loans, after 120 qualified monthly payments are made under a repayment plan (and working with a qualifying employer).
Teacher Loan Forgiveness
Those who teach full-time for five complete and consecutive academic years in a low-income school or educational service agency may be eligible for forgiveness of up to $17,500 on select federal loans.
Perkins Loan Cancellation
Cancellation for this specific loan is based on eligible employment or volunteer service and length of service, among other factors.
Total and Permanent Disability Discharge
Qualification may relieve eligible borrowers from repaying a qualifying Direct Loan, a Federal Family Education Loan (FFEL) Program loan, and/or a Federal Perkins Loan or a TEACH Grant service obligation.
Death Discharge
Due to the death of the borrower or of the student on whose behalf a PLUS loan was taken out, federal student loans may be discharged.
Bankruptcy Discharge
Certain eligible borrowers may have federal student loans discharged if they file a separate action during bankruptcy, known as an “adversary proceeding.”
Closed School Discharge
Borrowers who were unable to complete an academic program because their school closed might be eligible for a discharge of Direct Loans, Federal Family Education Loan (FFEL) Program loans, or Federal Perkins Loans.
Tennessee Specific Student Loan Forgiveness Programs
Federal loan forgiveness programs are a logical place to start, but it can be smart to also consider other student loan forgiveness programs. There are forgiveness programs tailored to loan borrowers who live in certain locations, or have an in-demand and service-based vocation.
Tennessee State Loan Repayment Program
This program offers student loan repayment to qualified primary care practitioners who work for two years in a designated Health Professional Shortage Area in Tennessee. The maximum award amount is up to $50,000, depending on funding.
Graduate Nursing Loan Forgiveness Program
Eligible Tennessee residents who are registered nurses can become teachers and administrators in Tennessee nursing education programs to have their student loans completely forgiven. They must agree to work in eligible positions for four years to have the loan forgiven immediately after completing their education program.
SoFi Private Student Loans
In the spirit of transparency, we want you to know that you should exhaust all of your federal grant and loan options before you consider a SoFi private student loan.
We believe that it is in each student’s best interest to look at federal financing options first in order to find the right financial aid package for them.
If you do decide a private student loan is the right fit for your educational needs, we’re happy to help! SoFi’s private student loan application process is easy and fast. We offer flexible payment options and terms, and there are no origination or late fees.
Read more
Current HELOC Rates in Pittsburgh, PA Today
PITTSBURGH HELOC RATES TODAY
Current HELOC rates in
Pittsburgh, PA.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare HELOC rates in Pittsburgh.
Key Points
• HELOC interest rates are often determined by adding a percentage margin to the U.S. prime rate.
• Pittsburgh homeowners can borrow up to 85% of their home equity with a HELOC.
• During the draw period, you pay only interest on the amount of the credit line you use.
• HELOC interest rates are adjustable, meaning they change with the market, impacting your monthly payments.
• HELOCs offer flexibility and potentially lower interest rates, but they also come with the risk of foreclosure if the borrower defaults.
• Online calculators can help you estimate monthly payments and interest costs.
Introduction to HELOC Rates
Welcome to a comprehensive guide on HELOC interest rates in Pittsburgh, Pennsylvania. This resource is designed to help you, as a homeowner, navigate the waters of home equity financing. We’ll explore current interest rates, the factors that influence them, and the tools that are available to help you estimate your potential monthly payments. Whether you’re dreaming of a home renovation, looking to consolidate debt, or have other significant expenses on the horizon, we’re here to empower you to make informed financial decisions and find the best HELOC for your needs.
Without further ado, exactly what is a home equity line of credit?
What’s a HELOC?
A HELOC, or home equity line of credit, is a revolving credit line (similar to a credit card) that is secured by the equity in your home. Your equity can be calculated like this: Take the market value of your home and subtract the amount you still owe on it.
Let’s say your home is valued at $245,000 — the average in Pittsburgh — and your mortgage balance is $175,000: $245,000 – $175,000 = $70,000. Your equity level is 28.5%, well within the qualification zone for a HELOC. You can borrow up to 85% of your equity, if you have at least 15% equity in your home. In this example, you could borrow 85% of $70,000, or $59,500.
A HELOC typically has a draw period and a repayment period.
The Draw Period
The draw period is when you can borrow money in increments, up to your credit limit, repay what you’ve borrowed (or carry a balance), and borrow again. Your lender may furnish you with a dedicated credit card or checks, or you can opt for account transfers. You typically make interest-only payments. Bookmark a HELOC interest-only calculator to determine how much you can afford.
The Repayment Period
The repayment period is when you can no longer borrow and must pay back the principal plus interest. HELOCs have variable interest rates, which rise and fall with the market, so your monthly payment amount varies over the 10 or 20 years of the repayment term. A HELOC monthly payment calculator is handy for predicting what you’ll owe.
How Are HELOC Interest Rates Set?
HELOC interest rates are tied to the U.S. prime rate, which is influenced by the Federal Reserve’s policies. Each lender adds its own margin to the prime rate, which is why HELOC rates vary so much. By having a general understanding of how rates are set, you can better anticipate rate fluctuations and decide the optimal time to apply for a HELOC. You’ll also have a better idea of whether current interest rates are high, low, or somewhere in between.
Your personal credit score, debt-to-income ratio, income, and the amount of equity in your home are also key factors in the rate you receive with different types of home equity loans and HELOCs. We’ll explain how to maximize these factors a little later on.
How Interest Rates Impact HELOC Affordability
Even a small change in interest rate can have a big impact on how much you pay back over the term of the HELOC. For example, a $50,000 HELOC at 8.00% over a 15-year repayment period would have a monthly principal-and-interest payment of $478 and total interest of $36,009. At 9.00%, the monthly payment would go up to $507 — not a dealbreaker for most people. It’s the total interest that’s striking: $41,284, more than $5,200 higher than the lower rate. The longer your repayment term, the more that interest will compound.
Recommended: Home Equity Loan Calculator
HELOC Interest Rate Trends
Keeping an eye on the prime interest rate is a smart move. Over the years, it’s yo-yoed between 3.25% (in 2020) and 8.50% (in 2023). These ups and downs can help you foresee changes in your HELOC rate. By arming yourself with this knowledge, you’ll be better equipped to make informed decisions about when and how to get equity out of your home.
Historical Prime Interest Rate
| 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
Adjustable vs Fixed Interest Rates
HELOCs often come with adjustable interest rates, which are influenced by market shifts. At the outset, these rates may be lower than fixed rates, which is an appealing start. Yet the potential for change means your monthly payments will also vary. If the prime rate goes up, your HELOC rates are likely to follow. This might make planning your finances a bit more of a puzzle, but it could also work in your favor if interest rates take a dip.
Weighing the advantages and disadvantages of adjustable versus fixed rates is key to selecting the most fitting home equity financing for your financial landscape.
Useful Tools & Calculators
Before you apply for a HELOC, you can use our online tools to help you estimate your monthly payment and interest costs. You might also consider using a home equity loan calculator to compare different loan options and determine whether a HELOC vs. home equity loan will better serve your needs.
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.
-
HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
HELOC Interest Only Calculator
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
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
As with any home loan, you need to meet certain criteria for a HELOC. Lenders generally require a minimum credit score in the upper 600s, a debt-to-income ratio below 50%, and at least 15% equity in your home. But different metrics are required to secure the best available interest rate. Additionally, understanding your home’s value and the current market conditions can help you negotiate better terms. By preparing thoroughly and comparing multiple lenders, you can find the HELOC that fits your financial goals.
Improve Your Credit Score
Building your credit score to 700 or above will help you secure the best HELOC rates. How can you boost your credit score? Paying your bills on time, every time, and chipping away at credit card balances can make a big difference. Keep your credit utilization low, and dispute any errors on your credit report. A higher credit score not only increases your chances of getting approved, but it also means you’re more likely to get better terms and conditions.
Calculate Your Debt-to-Income (DTI) Ratio
Your DTI ratio is a simple calculation: your total monthly debt payments divided by your gross monthly income. HELOC lenders generally bestow their best rates to borrowers with a DTI below 36%, but the lower your ratio, the stronger your application. To find your DTI, tally up all your monthly financial commitments — mortgage, car loans, student loans, credit card payments — then divide by your pretax monthly income. A lower DTI can bolster your HELOC application.
Recommended: What Is a Home Equity Loan?
Application Process for a HELOC in Pittsburgh
Many lenders offer the convenience of prequalifying for a HELOC online, which can help you get a sense of the rates available in Pittsburgh and your potential credit limit. Once prequalified, you can move forward with a full application, which entails providing more comprehensive financial and property information.
Step 1: Run the Numbers
First off, check your credit scores and calculate your DTI ratio. Then take a look at your home equity. That’s the difference between what your home is worth and how much you still owe on the mortgage. Making regular mortgage payments is a great way to build equity, but you can also boost it by making home improvements that increase your home’s value. The more equity you have, the better the terms and the more you can borrow with a HELOC.
Step 2: Compare Lenders
When considering HELOC options, be sure to look beyond just the interest rate. Compare qualification requirements, loan minimums and maximums, all associated fees, and the length of both the draw and repayment periods they’re offering. Examining these factors is important. It ensures you’re getting the most favorable terms tailored for your specific financial needs.
Step 3: Submit Your Application
Now get your paperwork in order. You’ll need to gather your identification, income verification, and property information. For income documentation, think recent pay stubs, W-2 forms, and tax returns. If you’re self-employed, a profit-and-loss statement and two years’ tax returns are usually required. Don’t forget to have a homeowners insurance declaration page ready. Once you’re all set, you can submit your HELOC application online, over the phone, or in person.
Step 4: Get an Appraisal
An appraisal is an unbiased, professional evaluation of your home’s worth. The cost generally ranges from $300 to $610. An accurate appraisal is important in determining the maximum amount you can borrow and in meeting the lender’s requirements.
Step 5: Prepare for Closing
Before you can access your HELOC funds, you’ll need to sign all the necessary loan documents and cover any associated fees. Once the official closing of your HELOC is complete, some lenders will have your funds ready within three days. Review the terms and conditions in the loan agreement thoroughly before signing. This way, you can avoid any unexpected surprises and ensure that your HELOC is tailored to your financial needs and expectations.
Closing Costs and Fees
HELOC closing costs are generally more affordable than those associated with home purchases or cash-out refinances. The appraisal fee, which can range from $300 to $610 or more, is often the most significant expense. A title search, if needed, may cost $100 to $450. Additional fees could include application, origination, and administrative costs, as well as annual maintenance fees (up to $250). Some lenders may also charge transaction, inactivity, or early termination fees.
Tax Benefits and Considerations
As a homeowner, you may be eligible to deduct the interest you pay on a HELOC, but only if the loan proceeds are used to substantially improve your primary residence. The current tax law governing this deduction is in effect through 2025. To help you understand the specific and potentially complex tax implications, consult a qualified tax advisor to confirm your eligibility for deductions related to HELOCs.
Alternatives to HELOCs
There are a few alternatives to a HELOC, including a home equity loan, cash-out mortgage refinance, and personal loan. Each option has its own pros and cons.
Home Equity Loan
In contrast to lines of credit, home equity loans deliver a one-time lump sum with a fixed interest rate and a predictable repayment schedule. Typically, you can access up to 85% of your home’s equity with this type of loan. Lenders often look for a credit score of 680 or higher, with many favoring 700 and above. If you need funds right away and prefer a clear-cut repayment plan, a home equity loan could be the right choice for you.
Cash-Out Refinance
A cash-out refinance is a great way to tap into your home’s equity by refinancing your mortgage for more than you currently owe and pocketing the difference. Typically, you need a credit score of 620 or more and a DTI ratio under 43%. You can choose between fixed or variable rates, with the latter potentially granting you more equity access. When weighing a cash-out refinance vs. home equity line of credit, the cash-out option gives you just one monthly payment.
Personal Loan
A personal loan is a versatile, typically unsecured loan that you repay in regular, fixed installments over a period of 2-7 years. The primary advantage of a personal loan is the security it offers your home. Should financial challenges arise, your home is not at risk of foreclosure. Many lenders look for a credit score of 670 or higher. While personal loans are relatively quick to secure, they often come with higher interest rates than HELOCs or home equity loans.
The Takeaway
When considering a HELOC, it’s important to weigh the benefits and risks. HELOCs offer flexibility and potentially lower interest rates, making them suitable for ongoing expenses or variable financial needs. However, they come with the risk of foreclosure if you default. Always compare multiple lenders and understand the terms and conditions before making a decision. For Pittsburgh homeowners, exploring current HELOC rates can help in making an informed choice.
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.
FAQ
Is a HELOC a good idea right now?
The answer to that question depends on your current financial landscape and the goals you’ve set. HELOCs can be a smart move when interest rates are on the decline, as they often offer more favorable terms than other types of loans. They’re particularly handy for sizable, ongoing expenses like home improvements or consolidating debt. But the variable interest rate can make payments unpredictable, and if you default, you could be facing foreclosure. So before you make a decision, take a good look at your financial stability and weigh the potential risks.
Do you need an appraisal for a HELOC?
Yes, an appraisal is typically required to obtain a HELOC. The appraisal helps determine the current market value of your home, which is important in determining the amount of equity you can borrow against. Lenders use this information to establish your credit limit, which cannot exceed 85% of your home equity. The appraisal is part of the application process and may involve a fee, typically ranging from $300 to $600.
What could prevent you from getting a home equity loan?
There are a few things that might stand in your way, like a less-than-stellar credit score, a high debt-to-income (DTI) ratio, or not enough equity in your home. Most lenders want to see a credit score in the upper 600s, a DTI ratio of 50% or less, and at least 20% equity in your home. If your home’s value has dropped or you still owe a lot on your mortgage, you might not meet the requirements. However, you can still take steps to improve your financial situation and get back on track.
How challenging is it to secure a HELOC?
Acquiring a HELOC can be quite manageable if you meet the lender’s criteria. The key is to have at least 15% equity in your home, a credit score in the upper 600s, and a debt-to-income (DTI) ratio below 50%. The application process involves the verification of income, assets, and property details, often including a home appraisal. While this process can be simpler than that of a home equity loan, it’s crucial to shop around for the best HELOC rates and terms to ensure you secure the most favorable deal.
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 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-Q225-386
More HELOC resources.
-
What is a Home Equity Line of Credit
-
Different Types of Home Equity Loans
-
HELOC vs Home Equity Loan: How They Compare
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Current HELOC Rates in Richmond, VA Today
RICHMOND HELOC RATES TODAY
Current HELOC rates in
Richmond, VA.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare HELOC rates in Richmond.
Key Points
• Home equity line of credit rates in Richmond are influenced by the prime rate and by individual borrower qualifications.
• HELOCs offer flexible access to funds, with interest paid only on the funds used.
• Be aware that HELOCs have variable interest rates that affect your monthly payment.
• Home equity is the difference between your home’s value and the outstanding mortgage balance.
• To qualify for a HELOC, you’ll generally need at least 15% equity in your home and a credit score of 640 or better, and to meet other qualifying factors.
Introduction to HELOC Rates
This article will give you a comprehensive understanding of how to get equity out of your home with a home equity line of credit (HELOC) in Richmond, Virginia. We’ll focus on HELOC interest rates, so you can feel confident in the current market and in your knowledge of how to secure the best rates. You’ll learn about the factors that influence HELOC rates, the benefits and risks of HELOCs, and how to compare different lenders. By the end, you’ll be equipped to make informed financial decisions and determine if a HELOC is the right choice for your needs.
What Exactly Is a HELOC?
A home equity line of credit is a revolving credit line that is secured by the equity in your home (the value of your home, less any mortgage balance you owe). To qualify for a HELOC, you typically need 15% equity in your home, though more equity will help you get the best interest rate available. You can typically borrow up to 90% of your equity. HELOCs tend to have lower interest rates than other ways of borrowing because your home is used as collateral — but of course this means that if you don’t make your payments, you could risk foreclosure.
A HELOC has two main phases: a draw period and a repayment period.
The Draw Period
This is the initial 10 years of your HELOC. During this time you can draw money from the credit line, up to whatever ceiling you have, and only pay interest on the amount that you have used. You can repay the principal and then draw again, but most lenders don’t force you to repay at this stage — just to pay interest. A HELOC interest-only calculator is helpful at this time.
The Repayment Period
The repayment period is typically 10 to 20 years. This is when you’ll stop drawing on the credit line and begin to repay the principal plus interest. HELOC interest rates are usually variable, which means your rate can change many times over your repayment period, going up or down. Monthly payments aren’t always the same so a HELOC monthly payment calculator is useful.
Where Do HELOC Interest Rates Originate?
Lenders base HELOC rates on the prime rate, a figure that changes in response to the Federal Reserve’s policies. Each lender then adds its own touch, called a margin, to the prime rate, which is why you’ll find a range of HELOC rates out there. But your individual financial profile, from your credit score to your debt-to-income (DTI) ratio, income, and the equity you’ve built in your home, can also sway the rate you’re offered. For this reason, you’ll want to take the time to get interest rate quotes and terms from multiple lenders so that you can see which one offers you the best deal.
How Interest Rates Impact HELOC Affordability
It’s worth pursuing multiple rate quotes because the interest rate on your HELOC can make a significant difference in how much you pay each month, as well as over the life of the HELOC. 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. Of course, HELOC rates are variable so your actual results may differ. But the lower the starting rate, the better.
HELOC Interest Rate Trends
Many prospective HELOC borrowers wish they could peek around the corner to see if HELOC interest rates will be lower in the future. While there’s no crystal ball, it does pay to have a sense of what past rates have been to understand whether the interest rates in Richmond are high or low from a historical perspective. The prime rate hit a low of 3.25% in 2020 and a high of 8.50% in 2023.
Historical Prime Interest Rate
| 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 often come with variable (also called adjustable) interest rates, which means the rate can change over the life of the HELOC. If the prime rate goes up (or down), your HELOC rate is likely to follow. HELOC agreements usually include controls, such as limits on how frequently the rate can change, and a cap on the maximum rate. Nevertheless, HELOC monthly payments can be somewhat unpredictable, and if you’re a creature that thrives on routine, another method of borrowing might be better for you.
Recommended: Different Types of Home Equity Loans
Helpful Tools & Calculators
Before you apply for a HELOC, online tools can help you estimate your monthly payment and total interest cost. Using calculators can be an important part of your decisionmaking process.
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.
-
HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
HELOC Interest Only Calculator
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
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 secure a favorable HELOC rate, you must meet specific criteria — having 15% equity in your home being just one example. Here are other steps that can help you prepare to apply for a HELOC in Richmond.
Improve Your Credit Score
Keeping your credit score at 700 or above is key to unlocking the best HELOC rates. The good news is, you have the power to get there. Making payments on time and chipping away at credit card balances can make a world of difference. Also check your credit report for inaccuracies and dispute any you find. It’s a smart move to keep old credit accounts open and use them responsibly to maintain a healthy credit history. You can get a HELOC with a score as low as 640, but for great rates, aim for 700.
Calculate Your Debt-to-Income (DTI) Ratio
Your DTI ratio is a matter of simple division: your total monthly debt payments divided by your gross monthly income. Most HELOC lenders prefer a DTI under 50%, but the closer you are to the 36% mark (or below it), the lower the interest rate you could unlock.
Application Process for a HELOC in Richmond
The process of applying for a HELOC in Richmond is fairly simple. You first have the option to prequalify online, which will give you a sense of what starting interest rate a lender might offer you and the size HELOC you could qualify for. It’s a similar process to the one you may have used when you obtained your home loan to buy your property. Once you’ve prequalified and verified that the general rates available will work for you, it’s time to apply.
Step 1. Run the Numbers
Before you take the plunge and apply for a HELOC, it’s wise to check your credit scores and calculate your DTI ratio. Also make sure your home equity is at 15% or more. (Subtract what you owe on your mortgage from your home’s estimated value; divide the answer by your home value and you’ll get a percentage.)
Step 2. Compare Lenders
Compare different lenders to find the best HELOC rate you can get in Richmond. Look at interest rates, qualification requirements, minimums and maximums, fees, and the length of the draw and repayment periods. Each lender may have unique terms and conditions, so it’s important to read the fine print and understand the full scope of what you’d be signing up for.
Step 3: Submit Your Application
You’ll need to gather some paperwork, like your ID, proof of income (pay stubs, W-2, tax filing), and details about the property you’re using as collateral. If you’re self-employed, a lender might ask for a profit-and-loss statement and a couple years’ worth of tax returns. Once you’ve got everything together, you can apply online, over the phone, or in person. Just make sure everything is accurate to keep the process moving along smoothly.
Step 4: Get an Appraisal
A home appraisal is a professional and objective assessment of your home’s value. The cost of this service ranges from $300 to $610, and you’ll want to hear from a lender with appraisal instructions before ordering the evaluation. If your home appraises for more than your mortgage balance, the lender may approve you for a HELOC. This crucial step determines the maximum amount you can borrow and the HELOC rates you may qualify for.
Step 5: Prepare for Closing
Before you can tap into your HELOC, you’ll need to sign documents and take care of any associated fees. Some lenders can get the funds to you within three days of closing. Make sure to review all documents thoroughly and don’t hesitate to ask questions to ensure you’re clear on the terms and conditions of your HELOC.
Closing Costs and Fees
The good news is that HELOC closing costs are generally more affordable than what you’d face with a traditional home purchase or refinance. The appraisal fee is often the most significant expense. Closing costs can include an appraisal fee, title search fee, origination fee, and administrative fees. You might also encounter annual maintenance fees and transaction fees for withdrawals. While some lenders may offer to reduce or waive closing costs, this could mean a higher HELOC interest rate for you.
Tax Benefits and Considerations
As a homeowner, you may be eligible to deduct HELOC interest charges on federal taxes. For 2025, you can do this if you use the HELOC for renovations. But tax rules can change annually, so consult a tax advisor to understand the specific tax implications and to determine if you’re eligible for a deduction. You’ll have to itemize your return to capture this deduction.
Alternatives to HELOCs
If a HELOC doesn’t quite fit your needs, there are other options to consider, such as home equity loans, cash-out refinancing, and personal loans. Take a closer look before you commit to a HELOC.
Home Equity Loan
A home equity loan is a lump-sum loan with a fixed interest rate. Typically, you can borrow up to 85% of your equity with this type of loan which, like a HELOC, uses your home as collateral. A home equity loan calculator can help you figure out how much you might borrow. Lenders generally look for a credit score of 680 or higher, but for the best rates you’ll need 700 and above. When comparing a HELOC vs. a home equity loan, note that the latter has a consistent monthly payment amount over the entire term.
Cash-Out Refinance
A cash-out refinance is a mortgage refinance that lets homeowners get a new home loan for more than they owe on their original mortgage. They then receive the difference in cash. For a cash-out refi, you’ll need a credit score of 620 or more and a DTI ratio under 43%. One cash-out refinance vs. home equity line of credit: A refi leaves you with a single monthly payment instead of two. Because it’s an entirely new mortgage, you can choose the loan term and decide between a fixed or variable rate.
Personal Loan
A personal loan is typically unsecured, so your home wouldn’t be at risk if you cannot make payments. This type of lump-sum loan is repaid in regular, fixed installments over a period of two to seven years, a shorter time horizon than most HELOCs and home equity loans. Many lenders look for a credit score of 610 or higher when considering a personal loan application. While the process is often swift, do note that personal loans may carry higher interest rates than HELOCs or home equity loans.
The Takeaway
When you’re mulling over a HELOC in Richmond, remember to look at the full picture. These lines of credit offer you flexibility (you can borrow in increments) and potentially lower rates than a personal loan, but the stakes are higher: Your home is on the line if you can’t keep up with payments. For hefty expenses like home improvements or consolidating debt, a HELOC could be just the ticket. Just make sure you understand what your payment amounts might be and explore different lenders to get the best possible interest rate.
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.
FAQ
Is a HELOC a wise move at this point?
If you need the flexibility to access funds in increments for significant expenses and are comfortable with variable interest rates, a HELOC could be a smart move — especially if current forecasts are pointing to a possible drop in the prime rate, as they do periodically. But, if you prefer the stability of fixed payments, a home equity loan might be a better fit.
What would the monthly payment on a $100,000 HELOC be?
The monthly payments on a $100,000 HELOC can fluctuate based on the interest rate, the terms of repayment, and how much of the credit line you have actually used. If you borrow the full $100,000 and have an 8.00% rate, you might only pay around $667 per month in interest during the draw period. Once the repayment phase arrives, you would start paying down the principal, and your monthly payment would be over $1,200. HELOCs have variable interest rates so your exact results may vary.
Do you need an appraisal for a HELOC?
You will need a home appraisal to obtain a home equity line of credit. Your best bet is to await your potential lender’s instructions as to exactly how your home should be appraised. An appraisal helps lenders determine your home’s current market value and the amount you can borrow, and plays a role in how lenders set the interest rate you’ll be offered.
Will a HELOC impact your credit score?
Opening a HELOC involves a hard inquiry on your credit report, which can cause a slight, temporary drop in your score. However, managing a HELOC responsibly can have a positive impact on your credit score. (Missing payments, on the other hand, can hurt your credit score.)
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 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-Q225-367
More HELOC resources.
-
What is a Home Equity Line of Credit
-
Different Types of Home Equity Loans
-
HELOC vs Home Equity Loan: How They Compare
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Current HELOC Rates in Wichita, KS Today
WICHITA HELOC RATES TODAY
Current HELOC rates in
Wichita.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare HELOC rates in Wichita.
Key Points
• HELOC rates in Wichita are influenced by the prime rate and individual borrower factors.
• HELOCs are like having a credit card with your home equity as the security.
• A HELOC can be a smart way to finance big expenses like home renovations, debt consolidation, or major purchases.
• The interest rate on a HELOC is adjustable, meaning it can go up or down over time.
• You can deduct the interest you pay on a HELOC if you use the funds to significantly improve your residence.
Introduction to HELOC Rates
This guide to what is a home equity line of credit and how to get the best rates will help homeowners in Wichita, Kansas, navigate borrowing smartly. You’ll learn all about HELOC rates, understand what influences them, and come away empowered to find the best options available. Whether you’re dreaming up a home renovation or need financial flexibility for personal expenses, this is your lesson in how to be a savvy borrower.
What Exactly is a HELOC?
A home equity line of credit (HELOC) is a flexible credit line that allows you to borrow against the equity you have built up in your home by making your regular home loan payments. To qualify, you typically need to have at least 15% equity in your home. You can borrow up to 90% of your equity. Once approved, you can borrow money as you need it. The HELOC has two phases:
The Draw Period
During the HELOC’s draw period (usually 10 years), you can access funds as needed. During this time, you’ll have to pay interest on what you borrow, but most lenders won’t require you to pay down the principal — although you can do so if you wish to draw on the credit line again. A HELOC interest-only calculator can help you see how much you might have to pay in interest.
The Repayment Period
After the draw period ends, the repayment period of 10 to 20 years begins. Monthly payments will increase as you begin to repay the principal plus interest. HELOC interest rates are usually variable, which means the amount you pay each month may go up or down as rates change. A HELOC monthly payment calculator is useful at this stage in your borrowing experience.
Where Do HELOC Interest Rates Originate?
Lenders peg their HELOC rates to the prime rate, which is heavily influenced by the Federal Reserve’s monetary policies. Each lender then adds a margin to the prime rate. Lenders also take into account individual borrower factors like credit score, debt-to-income (DTI) ratio, income, and the amount of equity you have in the home. Because each lender evaluates your qualifications according to its specific formula, you might get different interest rate quotes from different lenders.
How Interest Rates Impact HELOC Affordability
It pays to take the time to seek out and evaluate quotes from multiple lenders because the interest rate on a HELOC can have a big impact on your monthly payment. For example, on a $50,000 HELOC with a 20-year term, a one-percentage-point rate increase from 7.00% to 8.00% during the repayment phase can raise your monthly payment by $30 and increase the total interest paid by almost $7,000. Of course, the HELOC rate is variable, so your exact numbers may differ. But the bottom line is that the more you borrow with a HELOC, the greater the effect of a change in interest rate.
Recommended: What Is a Home Equity Loan?
HELOC Interest Rate Trends
By now you’re probably wondering, what is a good interest rate anyway? This is where looking at the history of the prime rate can provide you with a helpful dose of perspective. Since 2018, the prime rate has fluctuated, from a low of 3.25% in 2020 to a high of 8.50% in 2023. By staying attuned to rate shifts, you may be able to seize the right moment to lock in a HELOC. But even if you need to apply when the prime rate is on the higher side, there are things you can do to present yourself as a good candidate to lenders. More on that below.
Historical Prime Interest Rate
| 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 we’ve seen, HELOCs usually come with variable (also called adjustable) interest rates, which change based on market conditions. Your rate will go up or down with the prime rate, within limits that will be established in the agreement you sign with a lender. There is usually a rate cap as well. So your monthly payments will change over the life of your HELOC.
Helpful Tools & Calculators
Before you take the plunge with a HELOC, consider using online tools to get a sense of what your monthly payments and interest costs might look like. You could try putting the maximum rate you might see into a HELOC payment calculator to see how those monthly payments would affect your budget. Here are three useful calculators for your borrowing journey:
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.
-
HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
HELOC Interest Only Calculator
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
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 secure a competitive HELOC rate, you’ll want to focus on a few key areas. As noted above, you’ll need at least 15% equity in your home. From there, focus on your credit profile and your DTI ratio.
Improve Your Credit Score
You can get a HELOC with a credit score of 640 or more. But a credit score at 700 or above is the key to unlocking the best HELOC rates. The good news is, you have the power to boost your credit score. Paying your debts on time and chipping away at credit card balances can make a world of difference. And here’s a pro tip: Regularly checking your credit report for any errors and getting them fixed can help you maintain a strong score.
Calculate Your Debt-to-Income (DTI) Ratio
Your debt-to-income (DTI) ratio is a simple calculation: Divide your total monthly debt payments by your gross monthly income. When it comes to HELOC applications, lenders typically prefer to see a DTI under 50% — and the lower, the better. Get below 36% if you can. A lower DTI ratio can boost your chances of qualifying for a HELOC and might help you secure a more attractive rate. Reduce your DTI ratio by paying down debt, earning more, or both.
Recommended: HELOCs vs. Home Equity Loans
Application Process for a HELOC in Wichita
Prequalifying online can make the application process for a HELOC in Wichita easy. This preliminary step allows you to view potential HELOC rates and become informed about the terms and conditions before moving forward with a complete application. Prequalification is generally a matter of providing some basic financial details, like your income and credit score, and can give you a good sense of your potential borrowing power. From there, you’ll move to a full application. Follow these steps.
Step 1. Run the Numbers
Before you dive into 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
Consider the available HELOC interest rates in Wichita. Carefully compare qualification requirements, credit minimums and maximums, any associated fees, and the length of both the draw and repayment periods. Keep an eye out for lenders that offer competitive rates and flexible terms. Reading customer reviews and thoroughly checking lender reputations can also help you make a more informed decision.
Step 3: Submit Your Application
You’ll need a valid ID, recent pay stubs and W-2 forms, plus your latest tax return. If you are self-employed, you might need additional years of tax returns. You’ll also need to have your homeowners insurance information handy. You can apply for your HELOC online, by phone, or in person. Doublecheck the information you provide for a smoother screening process.
Step 4: Get an Appraisal
After you submit an application and solidify your choice of lender, 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 an expert assess 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
Before you can tap into your HELOC funds, you’ll need to sign the HELOC agreement and pay any associated fees. Most lenders will make the funds available within about three days of the HELOC closing.
Closing Costs and Fees
HELOC closing costs are generally more affordable than the traditional expenses you’d encounter when buying or refinancing a home. In addition to the appraisal fee, you might see a title search fee, an application fee, an origination fee, and administrative charges. Some lenders may implement an annual maintenance fee (up to $250) and transaction fees for withdrawals. It’s important to weigh these costs when you are considering different offers.
Tax Benefits and Considerations
Here’s a little-known fact: Homeowners may be able to deduct HELOC interest on their federal taxes if the borrowed funds are used for making significant improvements to their primary residence. How this deduction works can change periodically, so keep in touch with a tax advisor. You may need one anyway, as you’ll need to itemize your return to capture this federal deduction.
Alternatives to HELOCs
A HELOC isn’t the only way to get equity out of your home. There are different types of home equity loans or even a personal loan to consider. Here are the details:
Home Equity Loan
A home equity loan delivers a one-time lump-sum payment. You’ll start repaying the loan immediately, with a fixed interest rate for the duration of the loan (anywhere from 10 to 30 years). Typically, you can borrow up to 85% of your home equity. Lenders often look for a credit score of 680 or above, though here again 700 or more will get you better rates. If you need to borrow a specific amount of money and like the idea of consistent monthly payments, this might be the right choice for you. A home equity loan calculator can help you see how much you might be able to borrow.
Cash-Out Refinance
A cash-out mortgage refinance lets you refinance your mortgage for more than you owe and pocket the difference. It’s a solid solution when you need a lump sum, provided the current interest rates are as good or better than the rate you have with your current loan. (Compare costs, including closing costs, directly.) Typically, you need at least a 620 credit score and a DTI ratio under 43%. When considering a cash-out refinance vs. a home equity line of credit, remember that with a refi you can choose between a fixed or variable interest rate. A refinance also leaves you with one monthly payment.
Personal Loan
A personal loan is a versatile, usually unsecured loan that you repay in regular, fixed installments over a term of two to seven years. The key advantage here is that, should financial challenges arise, your home is not in jeopardy of foreclosure. Most lenders will look for a credit score of 610 or higher when considering a personal loan application. While these loans can often be secured quickly, it’s important to note that they often carry higher interest rates than HELOCs or home equity loans.
The Takeaway
When you’re mulling over a HELOC, it’s crucial to consider the perks and the potential pitfalls. On one hand, you’ve got the flexibility of borrowing money as you need it. On the other hand, you are putting your home at risk if you can’t make the payments dictated by a variable interest rate. Before you decide on a HELOC, make sure you look at rates and terms from multiple lenders. Securing a good interest rate is a critical step in the HELOC process.
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.
FAQ
What can you use a HELOC for?
A HELOC can be used for a variety of purposes, including paying for medical bills, home renovations, or education costs. 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 useful for ongoing expenses, but it’s important to have a solid repayment plan in place.
What’s the monthly payment on a $50,000 HELOC?
Your monthly payment on a $50,000 home equity line of credit will change according to the variable rates and terms of HELOC agreement. During the draw period, you might only pay interest, which can be quite manageable. For instance, at a 7.00% interest rate, your monthly interest-only payment would be approximately $292. But remember, once the repayment period kicks in, you’ll be paying both principal and interest, at a variable interest rate, so your monthly expense will increase and will change with time.
What could keep you from getting a home equity loan?
There are a few factors that might disqualify you from getting a home equity loan. These include a low credit score, a high debt-to-income (DTI) ratio, and not enough equity in your home. Most lenders look for a credit score in the upper 600s, a DTI ratio of 50% or less, and a minimum of 20% equity in your home. If you don’t meet these criteria, you might need to work on improving your financial profile or explore other financing sources.
How does a HELOC affect my credit score?
Opening a HELOC can have an impact on your credit score because the lender will do a hard credit inquiry that may cause a temporary dip. But here’s the good news: By making timely payments and managing your HELOC responsibly, you can actually see your score improve.
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 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-Q225-365
More HELOC resources.
-
What is a Home Equity Line of Credit
-
Different Types of Home Equity Loans
-
HELOC vs Home Equity Loan: How They Compare
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Current HELOC Rates in Evansville, IN Today
EVANSVILLE HELOC RATES TODAY
Current HELOC rates in
Evansville.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare HELOC rates in Evansville.
Key Points
• A home equity line of credit (HELOC) offers a revolving line of credit.
• During the first 10 years of a HELOC, borrowers may only need to pay interest charges.
• HELOC interest rates are variable, meaning they change with the market, potentially impacting your monthly payments.
• You’ll need at least 15% home equity and a credit score of 640 or higher to qualify, but more equity and better credit can help you secure lower interest rates.
• Online calculators can help borrowers figure out monthly payments and interest costs.
Introduction to HELOC Rates
Welcome to your comprehensive guide to home equity line of credit (HELOC) interest rates in Evansville, Indiana. Here, we’ll unravel the mystery behind these rates, helping you to understand the factors that sway them. You’ll discover the potential benefits and risks of HELOCs, learn how to secure a competitive rate, and find tools such as a HELOC interest-only calculator to estimate your costs. Whether you’re eyeing a HELOC for home improvements, to pay down higher-interest debt, or for other major expenses, this guide is your go-to for making smart choices.
What Is a HELOC?
The first step in learning how to get equity out of your home is understanding how a HELOC works. This type of borrowing uses the equity in your home as collateral. (Your equity is the difference between your home’s value and what you currently owe on your home loan.) So if you don’t make HELOC payments, you could face foreclosure. To qualify for a HELOC, you generally need at least 15% equity, a credit score of 640 or better, and a debt-to-income (DTI) ratio below 50%. But to get the best rates, you’ll need even better financial metrics (more on that below).
The Draw Period
The initial draw period for a HELOC can last up to 10 years. This stage is an important distinction between a HELOC vs. home equity loan. During the draw period, you only have to pay interest on the amount of the credit line you’ve borrowed. (With a home equity loan, you get a lump sum and start repaying principal plus interest immediately.)
The Repayment Period
After the draw period comes the 10- to 20-year repayment period when you stop borrowing and start repaying what you owe, plus interest. This is when a HELOC monthly payment calculator might be useful, because HELOCs have variable interest rates that can change with market conditions. This means your monthly payment won’t always be the same.
The Origin of HELOC Interest Rates
Lenders usually peg HELOC rates to the prime rate, a figure that responds to Federal Reserve policies. Each lender then adds their own touch, a margin, to the prime rate. But that’s not all. Your individual financial profile, including credit score, income, and the amount of equity you’ve built in your home, also enters the equation. This is why it’s smart to seek out rate quotes from multiple lenders before you make a firm decision about a HELOC.
How Interest Rates Impact HELOC Affordability
The interest rate you get for a HELOC will make a significant difference in what you pay over the lifetime of the credit line. To understand this, take a look at the chart, which shows how different rates and repayment terms impact total interest paid. For example, the difference between a 7.00% and 8.00% rate on a $100,000 HELOC can result in savings of roughly $14,000 over a 20-year repayment term. Because HELOCs have variable interest rates, your numbers won’t match these exactly. But it will give you a sense of the importance of shopping around for the best rate.
| Repayment Amount | Term | Interest Rate | Monthly Payment | Total Interest Paid |
|---|---|---|---|---|
| $100,000 | 20 years | 8.00% | $836 | $100,746 |
| 7.00% | $775 | $86,072 | ||
| 10 years | 8.00% | $1,213 | $45,593 | |
| 7.00% | $1,161 | $39,330 | ||
| $50,000 | 20 years | 8.00% | $418 | $50,373 |
| 7.00% | $388 | $43,036 | ||
| 10 years | 8.00% | $607 | $22,797 | |
| 7.00% | $581 | $19,665 | ||
| $25,000 | 20 years | 8.00% | $209 | $25,186 |
| 7.00% | $194 | $21,518 | ||
| 10 years | 8.00% | $303 | $11,398 | |
| 7.00% | $290 | $9,833 |
HELOC Interest Rate Trends
So what’s a good interest rate on a HELOC in Evansville? Having a sense of the history of the prime rate will help you gain perspective on this question. Since 2018, we’ve seen the prime rate dip to 3.25% in 2020 and peak at 8.50% in 2023. While some borrowers choose to wait for a rate drop before qualifying for a HELOC, if you need to borrow money now, focus on presenting the best possible qualifications to prospective lenders.
Historical Prime Interest Rate
| 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 have variable (also called adjustable) interest rates, which means rates can move up or down over time. If the prime rate goes up, your HELOC rate will likely follow. This can make your monthly payments harder to predict. However, a HELOC agreement usually spells out the allowed variance in rates and details a cap on rates. Knowing how adjustable rates work is important for managing your finances.
Helpful Tools & Calculators
As you’re researching borrowing options, you can use online calculators to estimate payments at various interest rates, based on how much of your credit line you think you might use. Bookmark these handy tools.
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.
-
HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
HELOC Interest Only Calculator
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
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 secure a competitive HELOC rate, you’ll want to ensure your credit score and DTI ratio are in good condition before you apply. Follow these guidelines. And remember, shopping around and comparing offers from different lenders can be the key to finding the best deal.
Improve Your Credit Score
A credit score of 700 or above will help you secure the best interest rates for your HELOC. Making payments on time and keeping credit card balances low can give your credit score a lift. Regularly checking your credit report for inaccuracies and requesting corrections for any discrepancies can also help make you a more attractive borrower.
Calculate Your Debt-to-Income Ratio (DTI)
Your DTI ratio is a simple calculation that shows how much of your monthly income goes toward paying off debts. Divide your total monthly debt payments by your gross monthly income to find this number. HELOC lenders usually require a DTI below 45%, but for the most competitive rates, aim to get your DTI under 36% by paying down debt, increasing your earnings, or both.
Application Process for a HELOC in Evansville
Many lenders offer the option to prequalify for a HELOC online, which can make the application process much more straightforward. This initial step can give you a good idea of the HELOC rates in Evansville you might qualify for. Prequalifying typically only requires basic financial information, and the process can usually be completed quickly. After that, you’ll proceed to the application process.
Step 1. Run the Numbers
Check your credit scores and calculate your DTI ratio as detailed above. Assess your home equity as well, to make sure it’s at least 15%.
Step 2. Compare Lenders
Compare the interest rates and closing costs of different lenders. Also examine their qualification requirements, minimums and maximum credit lines, all associated fees, and the length of both the draw and repayment periods they’re offering. Look for lenders with the most favorable HELOC rates in Evansville and the terms that align with your specific financial goals.
Step 3: Submit Your Application
For an application, you’ll need to round up your ID, proof of income, and details about your property. Collect recent pay stubs, W-2s, and tax returns. If you’re self-employed, a lender might ask for a profit-and-loss statement and a couple years of tax returns. Have your homeowners insurance declaration page handy too. You can apply for a HELOC online, over the phone, or in person. It’s a pretty simple process once you have all your documents in order.
Step 4: Get an Appraisal
An appraisal is a professional, objective analysis of your home’s value in the current market. It will determine whether you get a HELOC and, if so, what your credit line is. Wait for the lender’s instructions about the appraisal, since not all lenders require an in-person appraiser visit. The cost of an appraisal can range from $300 to $610. If your home appraises for more than the balance you owe on your mortgage, you may be approved for a HELOC.
Step 5: Prepare for Closing
Before you can access your HELOC funds, you’ll need to sign your documents and pay any fees. Some lenders make your approved funds available within about three days after you close. To prepare for closing, you’ll want to review your documents carefully and make sure you understand all the terms and conditions. This will help you understand what you’re getting into and how to manage your HELOC responsibly.
Recommended: Different Types of Home Equity Loans
Closing Costs and Fees
HELOC closing costs are generally lower than those for home purchases or refinances. Appraisal fees are typically the largest expense, though a title search can run you $100 to $450. Annual maintenance fees can be as high as $250. Lenders may also charge transaction, inactivity, or early termination fees. You’ll want to look closely at fees before you lock in a lender for your HELOC.
Tax Benefits and Considerations
You may be able to deduct the interest on a HELOC on your federal taxes, if you’re using the money you borrow to make significant improvements on your home. This policy applies in 2025; keep in touch with a tax advisor to understand tax implications for future years and to determine if you qualify for the deduction. You’ll have to itemize your tax return in order to take advantage of this deduction.
Alternatives to HELOCs
If a HELOC doesn’t feel quite right, there are other options to consider. Each of these has its own pros and cons, so take the time to weigh them up and find the perfect fit for your financial needs.
Home Equity Loan
With a home equity loan, you get a one-time lump-sum loan and a fixed interest rate. You can usually borrow up to 85% of your home equity. Lenders often look for a credit score of 680 or higher, with many leaning toward 700, in order for borrowers to qualify. If you’re someone who likes a fixed interest rate and a predictable payment amount, this might be a good fit for you. You can use a home equity loan calclator to see how much you might be able to borrow.
Cash-Out Refinance
A cash-out mortgage refinance lets you refinance for more than you already owe and take the difference in cash. It can be a wise move if the interest rate on a new mortgage would be better than your current rate. Things to consider with a cash-out refinance vs. a home equity line of credit: With a refinance you’d need a credit score of 620 or higher and a DTI ratio under 43%. A refinance also allows you to choose between fixed or variable interest rates.
Personal Loan
A personal loan is typically an unsecured loan that you repay in regular, fixed installments over two to seven years. The key benefit here is that your home is not at risk of foreclosure should you be unable to make your loan payments. Most lenders look for a credit score of 610 or higher when considering a personal loan application. 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 mull over the idea of a HELOC, consider the pros and cons. They’re flexible and useful for ongoing expenses or big projects. But remember, they’re not without risk — missed payments could lead to foreclosure. Always take the time to shop around for the best HELOC rates and terms. It never hurts to get another quote before you make a firm decision.
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.
FAQ
What can you use a HELOC for?
A HELOC is extremely versatile. You can borrow money in increments of any size (up to your credit limit) at any time during the HELOC draw period, which is usually a decade. You might use it to pay for a major renovation or a series of minor upgrades. You could cover college classes or a new car. You could also use it to pay off high-interest debt. Whatever you use the HELOC for, the important thing is to understand how much you will need to pay when it’s time to pay it off.
What’s the monthly payment on a $100,000 HELOC?
The monthly payment on a $100,000 HELOC can vary based on how much you have used of the credit line, the interest rate, and whether you are in the draw or repayment period. During the draw period, you pay only interest. In the repayment period, you will need to pay the principal plus interest. If you used the entire $100,000 credit line and paid it back at 8.00% over 10 years, you would pay $1,213 per month.
Is an appraisal required for a HELOC?
A home appraisal is normally required for a home equity line of credit, as it helps to establish the value of your property and the equity that you have. This figure is important for lenders to determine the maximum credit limit for your HELOC. The standard credit limit is often 90% of your home equity.
How tough is it to get a HELOC?
The process of securing a HELOC is quite manageable, provided you meet the lender’s criteria. Generally, a minimum credit score of 640, a debt-to-income (DTI) ratio below 45%, and at least 15% equity in your home are typically the basic prerequisites, though to get the best interest rates you want a higher credit score, lower DTI, and more equity.
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 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-Q225-364
More HELOC resources.
-
What is a Home Equity Line of Credit
-
Different Types of Home Equity Loans
-
HELOC vs Home Equity Loan: How They Compare
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Stay up to date on the latest business news and stock market happenings.