Free Mississippi HELOC Payment Calculator
Mississippi HELOC Calculator
By SoFi Editors | Updated January 23, 2026
A home equity line of credit, or HELOC, allows you to access your home’s equity, functioning as a revolving line of credit secured by your property. Much like a credit card, you can draw funds as you need them up to a predetermined limit, repay the balance, and draw again. A Mississippi HELOC calculator is designed to demystify the payment process by estimating your monthly obligations during the different phases of the credit line.
Keep reading for more on home equity lines of credit, how to use the Mississippi HELOC calculator, and alternatives to consider.
- Key Points
- • A HELOC provides a revolving line of credit secured by your home’s equity.
- • HELOCs are structured with two distinct phases: a draw period and a repayment period.
- • Most HELOCs feature a variable interest rate that can change over time.
- • Your home serves as collateral, which underscores the importance of responsible management.
- • A HELOC payment calculator can help you determine if you can comfortably afford a credit line, especially when payments increase during the repayment period.
Calculator Definitions
• HELOC Balance: The HELOC balance is the total amount of principal you currently owe on your line of credit. This represents the portion of your credit line that you have used but have not yet repaid.
• Current Interest Rate: The current interest rate is the rate at which interest accrues on your outstanding balance. For most HELOCs, this rate is variable and can fluctuate over time.
• Draw Period: The draw period is the specific timeframe during which you can access funds from your HELOC. This period typically lasts up to 10 years.
• Repayment Period: The repayment period is the phase that begins after the draw period ends, during which you can no longer withdraw funds. During this period, you make regular payments covering both principal and interest over a term that is typically 10 to 20 years.
• Monthly Interest Payment: The monthly interest payment is the amount required during the draw period, which often covers only the interest that has accrued on your balance. This structure results in lower initial payments compared to the subsequent repayment period.
• Monthly Principal and Interest Payment: This is the payment required during the repayment period. It’s typically higher because it includes a portion of the principal balance in addition to the interest.
How to Use the Mississippi HELOC Calculator
Using a HELOC calculator is an essential step for any Mississippi homeowner considering this financial tool. It allows you to forecast potential payment structures and understand the financial dynamics of a HELOC before you commit. Here’s exactly how to use it:
Step 1: Enter Your Planned or Actual HELOC Balance
Enter the total amount you plan to borrow or the current outstanding balance on your line of credit. This figure is the starting principal for all subsequent estimations of your potential payments.
Step 2: Estimate Your Interest Rate
Input the interest rate associated with your HELOC. This rate is used to calculate the interest portion of your monthly payments during both the draw and repayment periods. Because most HELOCs have variable rates, consider testing higher rates to see how potential market changes could affect your monthly payments.
Step 3: Choose the Length of Your Draw Period
Specify the duration of your draw period, which is typically between five and 10 years. This input determines how long you can access funds and potentially make lower, interest-only payments. A HELOC interest-only calculator can help you see your payments during this phase.
Step 4: Specify Your Repayment Period
Enter the length of your repayment period, which generally ranges from 10 to 20 years. This defines the timeframe over which you will repay the principal balance and any remaining interest after the draw period concludes. A HELOC repayment calculator allows you to see what those payments might be.
Step 5: Review Your Results
The calculator will provide estimated monthly payments for both the draw period and the repayment period. These figures are for planning purposes and can help you budget for the transition between the two phases.
What Is a Home Equity Line of Credit?
A home equity line of credit, or HELOC, is a form of revolving credit that is secured by the equity in your home. It functions much like a credit card: a lender approves you for a specific credit limit, and you can draw funds as needed, repay them, and borrow again throughout a designated timeframe. This flexibility makes it different from financing that provides a single lump sum.
The structure of a HELOC is divided into two distinct phases:
• The Draw Period: This is the initial phase, often lasting 10 years, during which you can access funds from your credit line up to your approved limit. During this time, your required monthly payments may be interest-only, which keeps your initial payments relatively low. You only pay interest on the amount you have actually withdrawn.
• The Repayment Period: Once the draw period ends, you can no longer withdraw funds. You then enter the repayment period, which typically lasts up to 20 years. Your monthly payments will increase significantly during this phase, as they will now include both principal and interest, calculated to pay off the remaining balance over the term.
This two-part structure distinguishes a HELOC from a home equity loan that provides all the funds at once in a single disbursement. The ability to borrow only what you need makes a HELOC a versatile tool for managing large or ongoing expenses. Because a HELOC is secured by your home’s equity, understanding what equity is and how it grows is the first step toward using this tool wisely.
Recommended: What Is a Home Equity Loan?
What Is a HELOC Calculator?
A HELOC calculator is an online tool that helps homeowners estimate the potential costs of a home equity line of credit. By entering details such as the credit limit, interest rate, draw period, and repayment term, it provides an estimate of monthly payments.
These estimates make it easier to understand how borrowing against your home equity could affect your budget. A HELOC calculator is especially useful for comparing scenarios, planning for rate changes, and deciding whether a HELOC fits your financial goals.
Recommended: How to Get Equity Out of Your Home
Home Equity Trends in Mississippi
Home equity represents the portion of your home you truly own — calculated as your property’s current market value minus the remaining balance on your home loan and any other loans secured by the home. As home prices rise and loan balances decline, equity grows, giving homeowners more financial flexibility and potential borrowing power.
From 2020 to 2025, average home equity increased 142% nationwide, adding up to roughly $11.5 trillion in value. In Mississippi, home equity rose 69% during the same period, with the average homeowner holding about $38,540 in equity as of 2025. While equity levels trail national averages, many Mississippi homeowners may still be able to tap into this value for expenses like home improvements, debt consolidation, or other financial goals.
Here’s a look at how equity has risen nationwide between 2020 and 2025.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
The data generated by a HELOC calculator is more than just a set of numbers; it provides actionable insights for effective financial planning. By projecting your potential monthly payments, the calculator helps you prepare a realistic budget and make strategic decisions about your finances.
The estimated payment figures are invaluable for long-term budgeting. Understanding the difference between the lower, interest-only payments during the draw period and the higher principal-and-interest payments during the repayment period allows you to plan ahead.
While the calculator uses a fixed rate for its estimations, it helps you understand the fundamental payment structure of a HELOC. This is important for a product that typically has a variable interest rate. Seeing how payments are structured prepares you to better assess how rate fluctuations could impact your budget during both the draw and repayment periods.
The calculator data also assists in making decisions about how much to borrow. By visualizing the repayment obligations tied to different borrowing amounts, you can determine a balance that comfortably fits within your financial capacity, ensuring you do not overextend yourself.
Tips on HELOCs
Managing a home equity line of credit effectively requires careful financial discipline. Because your home secures the credit line, responsible use is paramount. Below are practical tips for handling a HELOC:
• Shop around: Compare the rates, fees, and terms from multiple lenders, including banks and credit unions. Finding the most favorable terms and lowest fees can save you a significant amount of money over the life of the credit line.
• Manage carefully: Your home is used as collateral, which means the lender can foreclose on your property if you fall behind on payments. Manage the line of credit with care to avoid this risk.
• Plan for repayment: Be prepared for the payment increase when the draw period ends. The transition to principal-and-interest payments can be a substantial shock to a budget if not anticipated.
• Borrow only what’s needed: A key advantage of a HELOC is its flexibility. To keep interest costs down, draw only the funds you need for your project or expense rather than taking the full amount available.
• Understand the terms: Review the agreement carefully for details on fees. These can include annual fees, inactivity fees if the line is not used, closing costs, and early closure penalties if you close the account within a few years.
With these strategies in mind, it is also wise to consider other financial products that may be available.
Alternatives to HELOCs
Evaluating all available financial options is a cornerstone of sound financial planning. While a HELOC offers notable flexibility, other products might be better suited for different financial needs, goals, and risk tolerances. Understanding these alternatives allows you to make a more informed decision.
Home Equity Loan
A home equity loan is a type of second mortgage that provides a single, lump-sum disbursement of cash. This contrasts sharply with a HELOC’s revolving line of credit. It usually comes with a fixed interest rate and a predictable schedule of monthly payments that begin immediately on the full amount. A home equity loan calculator can help you compare the cost of this product to that of a HELOC.
Recommended: Different Types of Home Equity Loans
Home Improvement Loan
A home improvement loan is a type of personal financing designed for renovations. Unlike a HELOC, it is typically an unsecured product, meaning your home does not serve as collateral. Consequently, the interest rate may be higher than that of a secured option like a HELOC.
Personal Line of Credit
A personal line of credit is an unsecured revolving credit account that functions similarly to a HELOC. Because it is not secured by your home, the lender assumes more risk, which generally results in higher interest rates. The primary advantage is that it does not put your home at risk if you are unable to make payments.
Cash-Out Refinance
A cash-out mortgage refinance replaces your existing primary mortgage with a new, larger one, and you receive the difference in cash. When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance alters the terms of your main mortgage, whereas a HELOC does not. A cash-out refinance also results in a single monthly payment rather than two.
The Takeaway
The Mississippi HELOC calculator is a strategic planning tool for homeowners in Mississippi. It provides essential foresight into potential payment obligations, clarifying how monthly payments differ between the draw and repayment phases. This insight is fundamental to budgeting and responsible financial management.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
What is the difference between a HELOC and a home equity loan?
A HELOC provides a revolving line of credit, allowing you to borrow and repay funds as needed up to a set limit, similar to a credit card. In contrast, a home equity loan provides a one-time lump sum of money that you begin repaying immediately in fixed installments. HELOCs typically have a variable interest rate, while home equity loans usually have a fixed rate.
How much can I borrow with a HELOC?
The amount you can borrow depends on your home’s equity — its market value minus your mortgage balance. Lenders typically allow you to access up to 90% of your home’s equity, and homeowners typically must have at least 15% equity to qualify. The final amount approved also depends on other factors, such as your credit score, income, and overall creditworthiness.
Is a HELOC interest rate fixed or variable?
Most HELOCs have a variable interest rate, which means the rate can change over time. This can cause your monthly payments to fluctuate. Some lenders may offer a fixed-rate option, but a variable rate is the most common structure for this type of credit line.
What happens when the draw period ends?
Once the draw period ends, you can no longer withdraw funds from the credit line. The HELOC transitions to the repayment period, and your monthly payments will likely increase. This is because payments will now include both principal and interest on the outstanding balance, rather than just interest.
What is the minimum credit score I need to qualify for a HELOC?
Lender requirements vary, but it may be possible to qualify for a HELOC with a credit score starting around 640. However, many lenders prefer a score of 680 or higher. A stronger credit score generally helps you secure more favorable terms and a lower interest rate.
Learn more about mortgages:
SoFi Loan Products Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SOHE-Q425-074
Get prequalified in minutes for a SoFi Home Loan.
Free Minnesota HELOC Loan Payment Calculator
Minnesota HELOC Calculator
By SoFi Editors | Updated January 23, 2026
If you’ve been diligently paying off your home loan, you may be thinking about how to harness the equity you’ve built up in your property with a home equity line of credit (HELOC). Understanding how these loans work is the first step toward making an informed decision, and a free Minnesota HELOC calculator can quickly show you how much equity you have and what your monthly payments might be if you were to borrow against it. Take a few minutes to learn how to use this financial tool effectively.
- Key Points
- • A HELOC is a revolving credit line, so borrowers can withdraw, repay, and reborrow funds repeatedly up to a predefined limit.
- • The maximum borrowing capacity is typically based on the homeowner’s equity.
- • A HELOC payment calculator estimates payments at both the draw and repayment phases of the credit line.
- • Interest charges are applied only to the portion of the credit limit that is currently being used.
- • Eligibility is determined based on an evaluation of credit history, examination of an applicant’s debt-to-income ratio, and an appraisal of the home.
Calculator Definitions
• HELOC Balance: The HELOC balance for the purpose of this calculator is the amount a homeowner already owes on their HELOC or the amount a prospective HELOC user is planning to borrow.
• Current Interest Rate: The interest rate is the percentage a lender charges on the outstanding HELOC balance. HELOC rates are typically variable and fluctuate according to parameters set out in the HELOC agreement.
• Draw Period: The HELOC’s initial phase, the draw period, often lasts 10 years. During this time, the homeowner can access funds and is often only required to pay interest on the borrowed amount.
• Repayment Period: Once the draw period concludes, the credit line enters the repayment phase, where the ability to withdraw additional capital ends. During this stage, which may last up to 20 years, the borrower must make monthly payments that cover both a portion of the principal and interest.
• Monthly Interest Payment: This is the amount due each month during the draw period, calculated based on the funds that have been withdrawn (not on the entire credit line). This payment does not reduce the original debt unless the borrower voluntarily contributes funds to pay down the principal.
• Monthly Principal and Interest Payment: This combined payment becomes mandatory upon entering the repayment period. It includes both a portion of the borrowed principal and ongoing interest to ensure the total debt is repaid by the end of the term.
How to Use the Minnesota HELOC Calculator
Follow these steps to use the free HELOC calculator correctly:
Step 1: Enter Your Planned or Actual HELOC Balance
Enter the total amount of money you have already withdrawn or the maximum amount you plan to withdraw from a HELOC.
Step 2: Estimate Your Interest Rate
Type in your current interest rate if you have a HELOC, or if you are thinking about applying for a HELOC, use a rate you’ve been quoted by a lender or seen online. Remember that ultimately, HELOCs have variable rates, so you might want to run the calculator with several different interest rates to get a sense of how payments might rise or fall with rate changes.
Step 3: Choose the Length of the Draw Period
You’ll most likely have a draw period of five or 10 years. Choose the term that seems like the best fit, bearing in mind that when the draw period ends, you’ll start repaying the loan, with interest.
Step 4: Select Your Repayment Period
A longer repayment period, such as 20 years, likely means your monthly installment payments will be lower than they would with a short repayment phase. But a short repayment phase means you’ll likely pay less interest over the life of the HELOC.
Step 5: Review Your Results
Examine the projected payments the HELOC payment calculator shows for both phases, paying close attention to the jump in payment size when you enter the repayment phase. Make sure both payments fit within your budget.
What Is a Home Equity Line of Credit?
Now that you understand calculator definitions and have tried out the calculator, you probably understand a bit about what is a home equity line of credit and how it works. Take a few minutes to make sure you have a handle on all the details.
A HELOC is a second mortgage on your home, assuming you’re still paying off your first home loan. The revolving credit line uses your home equity as collateral, which is why most lenders require an appraisal of the home to qualify a homeowner for this line of credit. The fact that your home secures the HELOC means that lenders are often able to offer a larger credit line at a lower interest rate than they would for an unsecured form of borrowing, such as a home improvement loan. But it also means that you are subject to foreclosure if you don’t repay what you borrow.
To qualify for a HELOC, you’ll need at least 15% equity in your home. (Your equity is the home’s market value minus whatever you still owe on your mortgage.) Your credit score will be important, too: A score of at least 640 is needed with some lenders, and others like to see a score of 680 or better. If you qualify for a HELOC, many lenders will allow you to borrow up to 90% of your equity, and a credit limit of that amount might be set for your HELOC. This doesn’t mean you have to borrow the full amount. That’s the beauty of a line of credit: You can borrow as needed, to the extent you need to, up to your personal limit.
HELOCs are distinguished from other forms of home equity borrowing by their two phases. During the draw period, often up to 10 years, the homeowner can withdraw funds, repay a portion of the balance (or not), and re-access the credit limit as requirements change. This makes the product a good choice when you need to borrow money for projects with uncertain or variable costs, such as medical bills or a series of home improvements. Most lenders only require you to pay interest on whatever HELOC balance you are carrying during the draw phase. A HELOC interest-only calculator can show what your payments might be during this time period.
When the draw phase ends, you enter the repayment phase. Monthly payments often rise noticeably as homeowners begin to repay what they have borrowed, with interest. (A HELOC repayment calculator can show you what these payments might be.) It’s important to prepare for this jump in costs and to examine repayment costs when considering a HELOC.
Recommended: Different Types of Home Equity Loans
Home Equity Trends in Minnesota
If it seems as if many of your friends and neighbors have advice about how to get equity out of your home, it may be because they are already borrowing based on their own healthy home equity levels. The average Minnesota homeowner is sitting on more than $135,000 in home equity, and average equity has increased more than 50% in the past five years, as home values have increased and owners have made mortgage payments. This is part of a larger national trend, as the graphic shows.
A homeowner with $135,000 in equity who is able to access a credit line worth 90% of their equity would be able to borrow $121,500.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
The outputs generated by the HELOC payment calculator can help you plan for the future. Beyond simply identifying a potential monthly payment, you can use the data to do the following:
Create “what-if” scenarios: Homeowners thinking about a HELOC can try putting different HELOC balances, interest rates, or repayment terms into the calculator to see how each will affect their monthly payment. This lets you see what a high or low monthly payment would be based on different interest rates. This is useful given that HELOC interest rates can shift over time.
Evaluate debt consolidation strategies: If you have balances on high-interest credit cards, you can add up the monthly payment amounts on your cards and compare that to the monthly payment you would have if you used a HELOC to pay off all that you owe at once. There’s a good chance your monthly payment with a HELOC would be lower than what you’re currently paying. It has the added benefit of simplifying your life, as you’ll have one payment instead of multiple payments.
Avoid “payment shock”: Looking carefully at the estimated payment amounts due during repayment will prepare you for how payments increase after the draw phase of a HELOC ends. Seeing these numbers early on can help a borrower limit their draws to what is really necessary.
Recommended: HELOC vs. Home Equity Loan
Tips on HELOCs
Effective management of a HELOC requires a disciplined approach, both during the application phase and once you have been approved for a line of credit. Here are some pointers:
• Shop around for a lender: Compare offers from several lenders to pinpoint the best available interest rate from a lender whose terms suit you.
• Manage payments carefully: Stay up to date on your monthly HELOC bills to protect your property.
• Get real about rates: Many lenders offer low introductory rates early in the HELOC relationship. Use the calculator to estimate what will happen to your budget once that period ends and a higher rate takes effect.
• Be disciplined about using the credit line: Some borrowers like to reserve their HELOC for renovations and home repairs. Others just want to consolidate high-interest debt. Whatever your use case, try to avoid using your HELOC like just another credit card. It’s easy to let your balance get out of hand and, unlike with a credit card, your home is on the line.
Alternatives to HELOCs
While a revolving credit line offers high levels of flexibility, it is not the only mechanism for accessing the wealth stored in a home. You’ll want to understand what is a home equity loan. And some borrowers will prefer to have a loan that doesn’t use their residence as collateral.
Home Equity Loan
Like a HELOC, a home equity loan is a second mortgage because it is secured by your home. Unlike a HELOC, the loan comes as a one-time lump sum payment. You’ll begin repaying what you owe immediately, with interest. A home equity loan typically features a fixed interest rate, so payments are predictable. This is an excellent option for individuals who know exactly how much capital is required for a single expense and prefer the stability of unchanging monthly installments. A home equity loan calculator can help you compute payments to determine what you would owe if you went this route.
Home Improvement Loan
This unsecured personal installment loan offers a lump sum of money at a fixed interest rate for a specific term. But unlike a HELOC or home equity loan, a home improvement loan does not involve using your home as collateral. Home improvement loans often have a lower borrowing limit than HELOCs, and may have higher interest rates and shorter repayment terms as well.
Personal Line of Credit
A personal line of credit is a revolving credit account, but it is usually unsecured, meaning it is not backed by your home as collateral. The primary differences from a HELOC are the level of risk and the cost. Because your home is not at risk of foreclosure, a personal line of credit is less risky for the borrower; however, this generally results in a higher interest rate and a lower credit limit compared to a HELOC.
Cash-Out Refinance
A cash-out mortgage refinance involves replacing the existing primary mortgage with a new loan for a larger amount than the current balance. The difference is provided to the homeowner in cash. This can be advantageous if a lower interest rate can be secured for the entire mortgage balance. Note that a refi leaves you with one monthly payment instead of two, an attractive feature for those trying to streamline their finances.
As you consider a cash-out refinance vs. a home equity line of credit remember that with a refinance, you can choose between a fixed or variable interest rate.
The Takeaway
A free HELOC calculator is a helpful resource for any homeowner looking to transform their dormant equity into a functional financial tool. HELOCs offer lower interest rates and are a very flexible way to borrow. A payment calculator can help homeowners understand what their repayment obligations will be during both phases of the HELOC, so they will be well prepared over the lifespan of the credit line.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
Is a HELOC interest rate fixed or variable?
Most HELOCs feature a variable interest rate that fluctuates based on a benchmark index, such as the U.S. prime rate. This means monthly interest costs can shift (up or down) over time as economic conditions change. The HELOC agreement will specify how often the HELOC interest rate can rise and how high.
What happens when the draw period ends?
When the draw period concludes, typically after 10 years, you lose the ability to withdraw additional funds from the credit line. The account then enters the repayment phase, requiring regular monthly payments that cover both the principal balance and the interest. These payments are generally much higher than the interest-only payments required during the draw phase. The repayment period typically lasts between 10 and 20 years until the balance is fully settled.
What is the benefit of having a variable interest rate?
A variable interest rate can be beneficial if market rates decrease, as this lowers your monthly interest costs and the total expense of borrowing. Variable-rate products also often feature lower initial interest rates compared to fixed-rate alternatives, making them more affordable during the early stages of the draw period. However, borrowers must remain prepared for the possibility that rates could increase, which would lead to higher future monthly payment obligations.
Is the interest on a HELOC tax-deductible?
The interest paid on a HELOC may be tax-deductible. You’ll need to itemize on your tax return in order to capture this deduction. A tax advisor can help you confirm your specific eligibility.
Learn more about home equity line of credits:
SoFi Loan Products Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SOHE-Q425-073
Get prequalified in minutes for a SoFi Home Loan.
Free Michigan HELOC Payment Calculator
Michigan HELOC Calculator
By SoFi Editors | Updated January 22, 2026
For Michigan homeowners, the equity in your home can be a powerful financial tool. If you’re exploring ways to tap into that equity, a home equity line of credit (HELOC) offers flexibility and ongoing access to funds for needs like home improvements, education costs, or debt consolidation.
A Michigan HELOC calculator helps you estimate potential monthly payments, understand how variable interest rates may affect your budget, and compare borrowing scenarios before you commit. Whether you’re planning ahead or already have a HELOC, this free calculator gives you clearer insight into how using your home equity could impact your finances.
- Key Points
- • A home equity line of credit (HELOC) functions as revolving credit, allowing individuals to draw, repay, and re-draw funds during a set window.
- • Most agreements feature a two-phase lifecycle consisting of an initial draw period followed by a repayment period.
- • Interest rates are generally variable and fluctuate based on market benchmarks such as the prime rate.
- • The property serves as collateral for the financing, which places the home at risk of foreclosure if payments are missed.
- • A Michigan HELOC calculator can help you estimate monthly payments during the draw period and repayment period.
Calculator Definitions
• HELOC Balance: This figure represents the total amount of funds currently drawn from the credit line and not yet repaid. It serves as the principal sum upon which interest charges are calculated during the monthly billing cycle.
• Current Interest Rate: The interest rate is the percentage charged by the lender for the use of the credit line, often tied to a benchmark like the prime rate. Because these rates are typically variable, they can rise or fall based on shifts in the broader economy.
• Draw Period: The draw period is the initial timeframe, frequently lasting 10 years, during which a homeowner can actively withdraw funds from the credit line.
• Repayment Period: Once the draw period concludes, the repayment period begins and the ability to withdraw additional funds is terminated. During this phase, the borrower must make regular payments that cover both the remaining principal and the interest over a set duration.
• Monthly Interest Payment: This calculation shows the amount required to cover only the interest charges accrued on the outstanding balance for a single month. It does not reduce the principal balance but reflects the minimum cost of maintaining the financing during the draw phase.
• Monthly Principal and Interest Payment: This value represents the total monthly obligation required during the repayment phase to fully pay down the balance by the end of the term. It combines the cost of interest with a portion of the principal to ensure the debt is eventually cleared.
How to Use the Michigan HELOC Calculator
A Michigan HELOC calculator helps you estimate monthly payments based on your home equity, loan terms, and interest rate. Here’s a step-by-step guide on how to use it:
Step 1: Enter Your Planned or Actual HELOC Balance
Enter the amount you plan to borrow or your current outstanding balance if you already have a HELOC. This figure is the foundation for the calculator’s monthly payment estimates.
Step 2: Estimate Your Interest Rate
Enter the interest rate your lender has offered or use a current market estimate if you’re still shopping for a HELOC. Because most HELOCs have variable rates, consider testing higher rates to see how potential market changes could affect your monthly payments.
Step 3: Choose the Length of Your Draw Period
Select how long you’ll be able to access and borrow from your HELOC, which is typically five to 10 years. This choice affects how long you’ll make interest-only payments and how much flexibility you’ll have before the repayment phase begins. Use a HELOC interest-only calculator to see what payments would be based on your balance.
Step 4: Specify Your Repayment Period
Enter the number of years you’ll have to repay the outstanding balance once the draw period ends, often 10 to 20 years. This selection affects both your monthly payment amount and the total interest you’ll pay over the life of the HELOC. Use a HELOC repayment calculator to see what those payments might be.
Step 5: Review Your Results
Once you’ve entered all the required details, review the calculator’s output to see your estimated monthly payments during both the draw period and repayment period. Use these results to assess affordability, compare scenarios, and decide whether a HELOC fits your financial goals.
Recommended: Different Types of Home Equity Loans
A home equity line of credit, or HELOC, allows homeowners to leverage the equity in their home for various needs. Unlike traditional second mortgages that provide a single lump sum, this product functions as a revolving credit line. This means that as the borrower makes payments toward the outstanding principal, the available credit is replenished, allowing them to use the funds again if needed.
The mechanics of this product are defined by two distinct phases: the draw period and the repayment period. The draw period is usually the first 10 years of the agreement. During this decade, the homeowner has the freedom to withdraw funds up to a set limit.
Once the draw period concludes, the instrument enters the repayment period, which typically spans 10 to 20 years. At this point, the revolving nature of the credit line ends, and no further withdrawals are permitted. The monthly payments shift to include both principal and interest, which can lead to a substantial increase in the amount due each month. Most of these instruments feature variable interest rates.
HELOCs can be a powerful tool for financial growth, but it requires a disciplined approach to management due to the inherent risk of using one’s primary residence as security.
Home Equity Trends in Michigan
From 2020 to 2025, rising home values and steady demand pushed homeowner equity to new highs across the U.S. Nationwide, average home equity increased 142%, representing roughly $11.5 trillion in total value. Michigan followed this broader trend, benefiting from more affordable home prices compared to many coastal markets, as well as consistent buyer interest in both urban and suburban areas.
During this same period, home equity in Michigan increased 116%, leaving the average homeowner with about $96,520 in equity as of 2025. This growth has turned home equity into a meaningful financial resource for many Michigan residents, whether they’re considering renovations, consolidating debt, or building a financial cushion.
Here’s a closer look at how equity has risen nationwide between 2020 and 2025.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
Recommended: How to Get Equity Out of Your Home
How to Use the HELOC Calculator Data to Your Advantage
Understanding the numbers behind a HELOC can help you move from rough estimates to confident financial decisions. By interpreting the calculator’s results carefully, you can plan how and when to borrow, avoid payment surprises, and make sure tapping your home equity supports your long-term goals rather than creating unnecessary strain.
• Test affordability before you borrow: Use the estimated monthly payments to see how a HELOC fits into your current budget during both the draw and repayment periods. This helps you decide whether the credit line is manageable alongside your current home loan and other financial obligations.
• Run “what-if” scenarios: Adjust the interest rate, balance, or repayment term to see how changes could affect your payments. This is especially helpful with variable rates, as it shows how rising rates might impact your cash flow.
• Plan smarter borrowing amounts: The calculator helps you identify a comfortable borrowing range, even if you qualify for a higher credit limit. Knowing your personal ceiling can prevent overborrowing and reduce financial stress later.
Tips on HELOCs
Here are some practical tips to help you use a home equity line of credit wisely and reduce risk while maximizing its flexibility:
• Borrow with a clear purpose: Use your HELOC for planned expenses like home improvements, debt consolidation, or major purchases that support your long-term financial goals, rather than everyday spending.
• Plan for variable interest rates: Because HELOC rates can change over time, budget for higher payments and consider running scenarios with increased rates to avoid surprises.
• Pay down principal early when possible: Making payments toward the principal during the draw period can lower your balance before repayment begins and significantly reduce total interest costs.
• Monitor your balance regularly: Keep track of how much you’ve borrowed and how close you are to your credit limit so you don’t overextend your home equity.
• Compare lenders and terms carefully: Interest rates, fees, draw periods, and repayment terms vary by lender, so shopping around can help you find a HELOC that best fits your budget and financial needs.
Home Equity Loan
A home equity loan is a second mortgage that provides the borrower with a single lump sum of cash at the time of closing. It is a closed-end instrument, meaning once the funds are disbursed, they cannot be re-borrowed as the balance is paid down.
The primary differentiator compared to a line of credit is the interest rate structure. These products almost always feature a fixed interest rate and fixed monthly payments, providing a high level of predictability for the household budget. This makes it a preferred choice for those who have a one-time, set expense and want the security of knowing their payment will never change. While it uses the home as collateral like a HELOC, the lack of variability simplifies long-term budgeting.
A home equity loan calculator can help you compare the cost of this product to that of a HELOC.
Recommended: What Is a Home Equity Loan?
Home Improvement Loan
A home improvement loan is typically an unsecured personal financing product that provides a lump sum for specific property projects. Unlike equity-based instruments, this product does not require the home to be used as collateral, which can be an advantage for those who do not wish to risk their primary residence.
The key differentiator here is the lack of collateral, which usually results in a higher interest rate than secured products. Additionally, the repayment terms are often shorter, meaning monthly payments may be higher, but the debt is cleared much faster. This is an excellent option for homeowners who have not yet built up significant equity but need to fund repairs or upgrades without placing a second lien on their title.
Personal Line of Credit
A personal line of credit functions as a revolving credit account that is not tied to property value. It offers the same flexibility as a HELOC in terms of drawing and repaying funds as needed, but it is typically unsecured.
The main difference lies in the qualification process and the cost. Lenders base the credit limit and interest rate entirely on the individual’s creditworthiness and income rather than property equity. While it offers similar convenience, the interest rates are generally higher because there is no asset backing the credit line. It serves as a useful tool for ongoing expenses like medical treatments or smaller renovations where the homeowner wants to avoid the complexity and appraisal requirements of a second mortgage.
Cash-Out Refinance
A cash-out mortgage refinance involves replacing the existing primary mortgage with an entirely new mortgage for a higher amount than what is currently owed. The difference between the two balances is then paid to the homeowner in cash.
When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance results in a single monthly payment rather than two. It can be a strategic move if current market interest rates are lower than the rate on the original mortgage. However, it requires paying new closing costs on the entire value of the home, which are often higher than the fees associated with a simple line of credit. It is best suited for those looking to access a very large sum of money while potentially improving their overall mortgage terms.
Recommended:HELOC vs. Home Equity Loan
The Takeaway
Using the Michigan HELOC calculator empowers homeowners to make smarter decisions about tapping into their home equity. By previewing monthly payments and comparing repayment scenarios, you can confidently plan renovations, consolidate debt, or manage future borrowing.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
What is the difference between a HELOC and a home equity loan?
A HELOC is a revolving credit line that lets you draw and repay funds as needed, usually with a variable rate. In contrast, a home equity loan provides a lump-sum disbursement with a fixed interest rate and fixed monthly payments. While both use your home as collateral, the credit line offers more flexibility for ongoing expenses, whereas the loan provides predictability for one-time costs.
What can I use the money for from a HELOC?
You can use the funds for almost any purpose, including renovations, debt consolidation, or education costs. Many homeowners use it for value-adding projects like remodeling. However, it is recommended to use the funds for expenses that offer a long-term return, as your home serves as collateral.
Is a HELOC interest rate fixed or variable?
Most of these financing instruments feature a variable interest rate. This means your monthly payments can change over time. Some lenders may offer a fixed-rate option where you can lock in a portion of your balance for added stability. Always check for periodic and lifetime rate caps to understand how high your interest rate could potentially go.
What happens when the draw period ends?
When the draw period ends, you can no longer withdraw funds from the credit line. The instrument enters the repayment period, and your monthly payments will increase because they now include both principal and interest. This phase typically lasts 10 to 20 years.
Learn more about mortgages:
SoFi Loan Products Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SOHE-Q425-072
Get prequalified in minutes for a SoFi Home Loan.
Free Massachusetts HELOC Payment Calculator
Massachusetts HELOC Calculator
By SoFi Editors | Updated January 29, 2026
Residential equity is often a homeowner’s most significant untapped financial resource. A HELOC payment calculator can help Bay State homeowners determine how to get equity out of their home using a home equity line of credit (HELOC). Funds from a HELOC can be used for practically any purpose, from paying down high-interest credit card debt to funding a large-scale home renovation.
This guide will help you use the HELOC payment calculator effectively to determine your ideal HELOC scenario. Along the way, you’ll learn everything there is to managing this line of credit responsibly.
- Key Points
- • A HELOC is a revolving credit line, allowing users to borrow, repay, and re-borrow funds during a prescribed window of time.
- • Most versions of this credit line feature variable interest rates and require only interest payments in the early years.
- • The repayment period, during which borrowers repay all they have borrowed with a HELOC, plus interest, can last up to 20 years.
- • Because a HELOC is secured by the property, it typically carries lower interest rates than unsecured options like credit cards or personal lines of credit.
- • It’s important for borrowers to think strategically about the transition to the repayment phase before making their decision about whether or not to utilize a HELOC.
Calculator Definitions
• HELOC Balance: The balance is the total amount you have drawn from your approved credit limit that has not yet been repaid. If you don’t yet have a HELOC, it is the amount you are thinking you need.
• Current Interest Rate: This is the percentage charged on the funds you have accessed. HELOC rates are usually variable and can change periodically, following a predetermined benchmark rate.
• Draw Period: This first phase of the HELOC, commonly lasting up to 10 years, is the draw period. During this time, you can withdraw funds as needed up to your credit limit. Many lenders only require you to pay interest during this phase.
• Repayment Period: This stage follows the draw period and marks the time when you can no longer access new funds from the credit line. You must make regular payments to pay down both the principal balance and the interest. This phase can last up to 20 years.
• Monthly Interest Payment: This is the minimum amount borrowers are required to pay each month during the draw period. It represents only the cost of borrowing the money you have already withdrawn and does not reduce your total debt.
• Monthly Principal and Interest Payment: The required monthly obligation during the repayment phase is calculated so that the balance is fully repaid by the end of the term. This payment is typically higher than the interest-only phase.
• Total Interest: This total reflects the cumulative cost of accessing your home equity over the entire lifespan of the HELOC. Remember that because HELOC rates are variable, this should be considered a rough estimate. Market rates will determine your total interest cost under real-world conditions.
How to Use the Massachusetts HELOC Calculator
The reliability of any financial forecast depends entirely on the data provided. Follow these steps to use the calculator accurately:
Step 1: Enter Your Planned or Actual HELOC Balance
The current outstanding balance is the primary metric for determining your monthly costs. If you have a HELOC already, enter your balance here. If you are thinking about obtaining a HELOC, enter the amount you think you would be borrowing.
Step 2: Estimate Your Interest Rate
Enter your current interest rate here or, if you are in the market for a HELOC, enter a rate quoted by a prospective lender or a rate you have seen posted online.
Step 3: Choose the Length of the Draw Period
The draw period is the timeframe during which you’ll have the flexibility to access cash for various projects.
Step 4: Select Your Repayment Period
Opting for a shorter repayment period will result in higher monthly payments but lower interest costs over the life of the HELOC. You can experiment with different repayment terms to determine the ideal monthly cost for your budget.
Step 5: Review Your Results
Here you can evaluate whether the projected payments for both the draw and repayment phases fit within your budget. If they do not, you can tinker with the HELOC balance amount or repayment term to identify the right mix that results in a payment you can handle. Remember that these results are estimates and your actual costs may vary somewhat due to the HELOC’s variable interest rate.
What Is a Home Equity Line of Credit?
If using the free HELOC calculator has you interested in applying for a HELOC, it’s a good idea to pause to make sure you understand exactly what a HELOC is and how it works. A HELOC is a revolving credit line secured by the equity in your home. In practice, it functions much like a credit card. You borrow funds as you need them, up to a credit line that is determined by your lender based on the value of your home equity and your overall creditworthiness. Lenders often require a credit score of at least 640, with some requiring a minimum score of 680. Once you qualify, though, many lenders allow borrowers to draw up to 90% of their equity. (Your equity is the appraised value of your home minus whatever you still owe on your home loan.)
The HELOC will have two phases: a draw period and a repayment period. During the draw period, which is often 10 years, you may only be required to pay interest on what you borrow. A HELOC payment calculator or HELOC interest-only calculator can show you what a monthly interest payment would be based on your balance. You can pay down the principal as well, and, if you do so, you have the full use of the credit line again for as long as the draw phase lasts. After the draw period ends you can no longer borrow money and will begin making monthly principal-plus-interest payments. There’s a HELOC repayment calculator at this point to help you see what you might owe. HELOCs have variable interest rates, as noted above, so the amount of your monthly payment can vary over the repayment term, which can be as long as 20 years.
The shift from the draw phase to the repayment phase is where many homeowners face challenges. During the draw period, it is easy to view the credit line as a source of “extra” cash, but doing so can result in debt mounting to the point that repayment time comes as a shock. Furthermore, using your home as collateral means that if you fail to keep current with payments, your property could be at risk of foreclosure. This is why using a HELOC payment calculator to estimate payments before signing on to a HELOC is an important step.
Recommended: What Is a Home Equity Line of Credit?
Home Equity Trends in Massachusetts
If you’re thinking about a HELOC in Massachusetts, you probably aren’t alone. Many of your neighbors are likely also benefitting from the rise in home values and, consequently, a rise in home equity. The average Massachusetts homeowner has seen their equity rise by more than 70% in the past five years, and now has an average home equity of $335,000. Massachusetts’ home equity increase is not as vigorous as that in neighboring New Hampshire or Connecticut, but the state’s high home values nevertheless mean a healthy equity level. The graphic shows that the Bay State is part of a larger national trend. Only one U.S. state, Louisiana, saw a decline in equity between 2020 and 2025.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
Utilizing the data generated by a Massachusetts HELOC calculator can help you make HELOC decisions and manage your HELOC effectively should you acquire a line of credit. Here are some examples of how you can put the calculator to work for you:
Plan your projects: The estimated draw and repayment payment amounts revealed by the calculator can show you how a renovation or large purchase fits into your monthly budget before you commit. If you’re looking at a kitchen renovation bid of, say, $50,000, you can run that number as well as, say, $40,000 to see how cutting $10,000 from your renovation budget would impact your monthly bill.
Explore debt consolidation: Many people use a HELOC to pay off higher-interest debts. If your monthly HELOC payment is less than the combined total of your credit-card payments, a HELOC might be a good fit for you.
Guide lender discussions: Knowing your estimated borrowing limit and payments helps you approach lenders with confidence and realistic expectations.
See long-term costs: Reviewing total interest over the life of the HELOC helps you judge whether an expense is worth the long-term financial impact.
Recommended: What Is a Home Equity Line of Credit?
Tips on HELOCs
HELOCs need to be managed with care so you don’t fall behind on bills. Here are some tips for repaying your HELOC:
• Shop around. Compare interest rates and fees offered by multiple lenders to find your ideal HELOC.
• Consider making principal payments during the draw period to reduce what you will owe when you hit the repayment phase.
• Monitor interest rate trends, as you’ll want a sense of where your HELOC rate is going.
• Avoid using the credit line for everyday expenses; focus instead on uses that provide long-term value or financial stability.
• Set up automated payments or alerts for upcoming payments to maintain a perfect payment history and protect your credit score.
• If you anticipate a significant increase in market rates, inquire with your HELOC lender about whether you have the option of locking in a fixed rate on a portion of your balance.
• Keep a “liquidity cushion” in your savings to cover at least six months of payments in case of an unexpected change in your household income.
Recommended: HELOC vs. Home Equity Loan
Alternatives to HELOCs
While a revolving credit line offers great flexibility, it may not be the right choice for every homeowner. Different types of home equity loans are available to allow you to take advantage of your equity. But you could also consider a loan that doesn’t use your home as collateral. Here are some options:
Home Equity Loan
A home equity loan is often confused with a HELOC, but it functions differently. A HELOC is a revolving credit line, while a home equity loan is an installment loan. A home equity loan provides a lump-sum payment, borrowers typically begin repaying the loan immediately making principal-plus-interest payments that are driven by a fixed interest rate. Many home equity loan borrowers like predictability; the monthly payment amount will never change. The drawback is that you pay interest on the entire amount from day one, even if you don’t spend it all immediately. A home equity loan calculator can give you a sense of what payments might be.
Home Improvement Loan
A home improvement loan is often unsecured, meaning your home won’t be at risk if you fail to repay the loan. Like a home equity loan, a home improvement loan disburses a lump sum upfront. Because it is unsecured, it may have a higher interest rate than a home equity loan or HELOC. These unsecured loans are best suited for smaller, one-time projects where the homeowner wants a quick approval process without a home appraisal or the extensive documentation required for a HELOC or home equity loan.
Personal Line of Credit
A personal line of credit is a revolving credit account that allows you to borrow as needed up to a set limit, similar to a HELOC. The primary difference is that it is typically unsecured. This means the interest rate will likely be noticeably higher, and the amount you can borrow will probably be smaller than what you would get with a HELOC. However, it provides the same flexibility for ongoing expenses and it doesn’t require you to use your property as collateral.
Cash-Out Refinance
A cash-out mortgage refinance involves replacing your primary mortgage with an entirely new, larger mortgage. You would receive the difference between the two in cash. This can be a good move if current interest rates are lower than the rate on your existing mortgage. However, you’ll also have to factor in the closing costs associated with an entirely new loan. Even with a lower rate, these closing costs could make a cash-out refinance a nonstarter. But if the numbers align, another factor when you weigh a cash-out refinance vs. a home equity line of credit is that a refinance leaves you a single monthly payment. And because it’s a new loan, you can choose the term and whether it is a fixed-rate or variable-rate mortgage.
The Takeaway
Massachusetts homeowners have healthy equity levels, on average, and a free HELOC calculator can help you decide if a HELOC is the right borrowing vehicle for your budget and needs. If you are thinking about a HELOC, look closely at the estimated monthly payments, not only during the draw (interest-only) phase, but during the repayment phase. And secure interest rate quotes from multiple lenders to help ensure you get the most competitive rate available to you.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
What is the benefit of having a variable interest rate?
Variable rates often start lower than fixed rates, which can save you money on interest during the initial years of your credit line. And if market interest rates decrease, your monthly payments will also go down. A variable-rate HELOC can be beneficial for homeowners who plan to pay off their balance quickly or who are comfortable with the risk of potential rate increases in exchange for lower initial costs during the draw period.
Are there closing costs or fees for a HELOC?
Fees for HELOCs can vary significantly depending on the lender you choose. Before signing on to a HELOC agreement, examine all fees and check for early closure or inactivity fees, as these can impact the total cost of borrowing.
What is the minimum credit score I need to qualify for a HELOC?
Lenders typically look for a credit score of at least 640, though some require a score of 680 or better. And reaching the 700 mark or above could help you qualify for a lower interest rate on HELOC. To maintain a healthy score, keep current on your debt payments in the months leading up to a HELOC application, and avoid opening new credit accounts or closing old ones.
Is the interest on a HELOC tax-deductible?
HELOC interest is tax deductible, but you would need to itemize on your return in order to capture this deduction. Consult a tax professional regarding your specific tax year and financial circumstances before relying on any deduction in your decisionmaking.
Learn more about home equity line of credits:
SoFi Loan Products Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SOHE-Q425-071
Get prequalified in minutes for a SoFi Home Loan.
Free Maryland HELOC Payment Calculator
Maryland HELOC Calculator
By SoFi Editors | Updated January 29, 2026
A home equity line of credit (HELOC) can be a flexible way for Maryland homeowners to borrow against the equity they’ve built in their homes. Whether you’re planning a renovation, consolidating debt, or covering unexpected expenses, understanding how HELOC payments work is an important first step before tapping into your equity.
The Maryland HELOC calculator helps estimate your potential monthly payments during both the draw and repayment periods based on factors like interest rate, credit limit, and loan term. By running different scenarios, you can better evaluate affordability, plan for future payment changes, and decide whether a HELOC aligns with your financial goals.
- Key Points
- • A HELOC functions as a revolving credit line rather than a single lump-sum disbursement.
- • Homeowners typically can access up to 90% of their home equity, though limits vary by lender.
- • The credit agreement is divided into an initial draw phase and a subsequent repayment phase.
- • Interest is only charged on the specific amount of credit currently in use.
- • The HELOC calculator can help you predict monthly payments during both phases and total interest costs.
Calculator Definitions
• HELOC Balance: This figure represents the specific amount of funds currently accessed and outstanding from the available credit line. It serves as the base amount upon which interest charges are calculated during each billing cycle.
• Current Interest Rate: This percentage applies to the outstanding balance and is often tied to a benchmark index. Because these rates are typically variable, the percentage can increase or decrease over the lifespan of the credit agreement.
• Draw Period: This is the initial phase, often lasting 10 years, during which funds can be actively withdrawn up to the set credit limit. Payments during this time are frequently limited to interest-only installments, providing lower initial costs.
• Repayment Period: Once the draw phase concludes, the credit line enters this phase where no further withdrawals are permitted. Homeowners must begin paying back both the borrowed principal and the accrued interest over a set duration.
• Monthly Interest Payment: This amount covers only the cost of using funds during the draw phase of the agreement. It does not reduce the principal balance unless the homeowner chooses to pay more than the minimum required.
• Monthly Principal and Interest Payment: This total reflects the combined cost of interest and the portion of principal required to retire the debt. These payments begin during the repayment phase and are typically much higher than previous interest-only installments.
How to Use the Maryland HELOC Calculator
To use the Maryland HELOC calculator, follow these steps:
Step 1: Enter the Amount You Plan to Borrow
Begin by entering the total amount you plan to borrow from the credit line. This balance serves as the foundation for the entire calculation and dictates the size of the initial interest charges.
Step 2: Estimate Your Interest Rate
Estimate your interest rate based on current HELOC rates. This is a primary driver of the monthly cost and will likely change over time if the agreement uses a variable structure.
Step 3: Choose the Length of Your Draw Period
Specify the number of years remaining in the phase where funds can still be accessed (typically 10). This selection determines the timeline for when the homeowner must stop borrowing and start the full repayment process.
Step 4: Specify Your Repayment Period
Input the duration allocated for paying back the total balance, which typically spans 10 to 20 years. The length of this phase directly dictates the size of the monthly principal and interest payments.
Step 5: Review Your Results
Analyze the generated payment schedule to understand both current obligations and future requirements. This output allows for the comparison of different scenarios, helping to ensure the chosen strategy aligns with long-term financial goals.
What Is a Home Equity Line of Credit?
A home equity line of credit, or HELOC, is a revolving line of credit that utilizes the equity in a home as collateral. Home equity is the difference between your home’s current market value and the outstanding balance on your home loan and any other loans you might have where your home is used as collateral.
Unlike a traditional fixed-sum financing product, a HELOC works similarly to a credit card, allowing a homeowner to withdraw funds as needed, pay them back, and withdraw them again during the draw period. However, because the home is used as security for the credit line, failure to meet the payment obligations can result in foreclosure.
A HELOC has two main phases: the draw period and the repayment period.
• During the draw period, which often lasts five to 10 years, you can borrow from your available credit line as needed and typically make interest-only or minimal payments on what you use. Use a HELOC interest-only calculator to see what payments would be based on your balance.
• Once the draw period ends, the HELOC enters the repayment period — usually 10 to 20 years — when borrowing stops and you begin repaying both principal and interest through regular monthly payments until the balance is paid off. Use a HELOC repayment calculator to see what those payments might be.
Recommended: What Is a Home Equity Line of Credit?
Home Equity Trends in Maryland
From 2020 to 2025, rising home values significantly boosted homeowner equity across the country. Nationwide, average home equity increased 142%, representing roughly $11.5 trillion in total value. This surge reflects strong housing demand, limited inventory, and years of price appreciation, which together expanded the amount of tappable equity available to many homeowners.
Maryland followed a similar upward trend, though slightly below the national average. During the same period, home equity in Maryland increased 101%, with the average homeowner holding $144,671 in equity as of 2025. This growth has strengthened household balance sheets and may give Maryland homeowners more flexibility to access equity for renovations, debt consolidation, or other financial goals, depending on lender requirements and market conditions.
Here’s a closer look at how equity has risen nationwide between 2020 and 2025.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
The primary advantage of using a calculator is the ability to compare different financial scenarios before committing to a specific withdrawal. Other ways to use the HELOC calculator data to your advantage include:
Test affordability before borrowing: Use the calculator to estimate monthly payments during both the draw and repayment periods, then compare them to your current budget. This helps you confirm whether a HELOC fits comfortably into your cash flow before committing.
Run interest-rate scenarios: Since HELOCs typically have variable rates, adjust the rate upward in the calculator to see how rising rates could affect your payments. This “what-if” planning can help you decide how much to borrow and when to repay more aggressively.
Compare borrowing strategies: Change loan amounts, interest rate, or repayment terms to see how different approaches affect monthly payments. This allows you to choose a strategy that balances flexibility with long-term cost control.
Tips on HELOCs
A home equity line of credit works best when managed with intention and planning. Understanding how HELOCs function — and how your choices affect long-term costs — can help you borrow more confidently and avoid unnecessary risk.
• Borrow only what you need: While you may qualify for a large credit line, drawing only what’s necessary keeps payments manageable and reduces total interest costs over time.
• Plan for variable interest rates: Most HELOCs have variable rates that can rise with market conditions. Build flexibility into your budget so you’re prepared for higher payments in the future.
• Make principal payments early: Paying down the balance during the draw period lowers what you’ll owe later and can significantly reduce interest paid during repayment.
• Use funds for value-driven purposes: HELOCs are best used for investments like home improvements, education, or debt consolidation — not routine spending that doesn’t improve your financial position.
• Understand the repayment transition: Monthly payments often increase once the repayment period begins. Reviewing this shift in advance helps prevent payment shock.
• Compare lenders and terms carefully: Rates, fees, draw periods, and repayment structures vary by lender. Shopping around can help you secure terms that align with your budget and goals.
Alternatives to HELOCs
While a revolving credit line offers high flexibility, it may not be the ideal tool for every financial goal. Homeowners should evaluate other alternatives before committing. Below are four to consider:
Home Equity Loan
A home equity loan is a second mortgage that provides a single lump sum of cash at a fixed interest rate. It is ideal for those who have a specific, one-time expense and prefer the predictability of set monthly payments over the fluctuating costs of a variable credit line. A home equity loan calculator can help you compare the cost of this product to that of a HELOC.
Recommended: What Is a Home Equity Loan?
Home Improvement Loan
A home improvement loan is typically an unsecured financing option, meaning it does not require the home to be used as collateral. This can be a safer alternative for those who prefer not to put their property at risk, though it often comes with higher interest rates, shorter terms, and smaller available amounts than a HELOC.
Personal Line of Credit
Similar to a HELOC, a personal line of credit is revolving, but it is generally unsecured. Approval and interest rates are based primarily on the individual’s creditworthiness and income rather than the value of their home, though this typically results in higher rates and lower credit limits.
Cash-Out Refinance
A cash-out mortgage refinance involves replacing the existing primary mortgage with an entirely new, larger agreement. The homeowner receives the difference in cash, but they risk losing their original low interest rate on the first mortgage by replacing the entire debt at current market rates. When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance allows the homeowner to maintain a single monthly payment rather than managing two separate debts.
Recommended: HELOC vs. Home Equity Loan
The Takeaway
The Maryland HELOC calculator is the first step in responsible equity management. It estimates monthly payments and allows you to see if those payments fit into your monthly budget. To use the calculator, simply enter in the amount you plan to borrow, the interest rate, and the length of your draw and repayment periods. Analyze the results to help you make a smart borrowing decision.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
What is the difference between a HELOC and a home equity loan?
A HELOC is a revolving credit line that allows homeowners to borrow, repay, and reborrow funds as needed during a set draw period. In contrast, a home equity financing product disbursed as a lump sum provides all cash upfront. While HELOCs typically have variable interest rates, fixed-rate home equity products offer predictable monthly payments throughout the term of the agreement.
What can I use the money for from a HELOC?
Funds from a revolving credit line can be used for virtually any purpose. Common uses include major home renovations, consolidating high-interest debt, paying for education expenses, or covering unexpected medical bills. Because the credit line is flexible, it is also frequently used as a financial safety net for ongoing projects where the final costs are not yet determined.
Is a HELOC interest rate fixed or variable?
Most HELOCs feature a variable interest rate that fluctuates based on market rates. This means monthly payments can change over time. However, some lenders offer a fixed-rate option, allowing borrowers to lock in a set interest rate for a portion of their balance to provide more predictable monthly payments and protection against rising market rates.
What is the benefit of having a variable interest rate?
A variable interest rate may initially be lower than the fixed rates offered on other types of financing. If market interest rates decrease, the borrower’s monthly payments and total interest costs could also decline. Some lenders also offer low introductory “teaser” rates for a limited time, which can provide a cost-effective way to access funds for short-term needs at the start of the agreement.
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.
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.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SOHE-Q425-070
Get prequalified in minutes for a SoFi Home Loan.
Stay up to date on the latest business news and stock market happenings.