Current Home Equity Loan Rates in Buffalo, NY Today
BUFFALO HOME EQUITY LOAN RATES TODAY
Current home equity loan
rates in Buffalo, NY.
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 home equity loan rates in Buffalo.
Key Points
• Buffalo home equity loan rates are influenced by multiple factors like the prime rate and the individual’s financial profile.
• Even a small difference in interest rates can mean substantial savings or extra costs over the life of your loan.
• Fixed interest rates offer the stability of knowing your monthly payments won’t fluctuate.
• To improve your chances of getting a better home equity loan rate, you can work on your credit score, debt-to-income ratio, and amount of equity in your home.
• Tools and calculators are available online to help you estimate your costs and payments.
Introduction to Home Equity Loan Rates
What is a home equity loan? It’s a way to use the equity you’ve built up in your home to borrow a lump sum of money, usually at a fixed interest rate. And it can be a fantastic financial resource for many homeowners.
In this article, we’ll dive into home equity loan rates in and near Buffalo, NY, explaining how they’re influenced by economic factors and individual financial profiles. You’ll learn how to calculate your home equity, the requirements to qualify for a loan, and the potential risks and benefits of different types of home equity loans, like home equity lines of credit (HELOCs) and cash-out refinances.
Whether you’re planning a home renovation, consolidating debt, or funding a major purchase, this guide will help you make informed decisions about whether a home equity loan is right for you.
How Do Home Equity Loans Work?
A home equity loan is something like a second mortgage
Here’s how it works: You take out a new mortgage, pay off your existing home loan, and pocket the difference in cash. You then repay the loan, typically in monthly installments over a period of five to 30 years. Because the loan is secured by your home, the interest rates are generally lower than they are for unsecured loans. Most home equity loans have fixed interest rates, which means your payments stay the same each month throughout the life of your loan.
If you’ve been wondering how to get equity out of your home, home equity loans can be a great option, as long as you have enough equity built up. To qualify for a home equity loan, you’ll typically have to have at least 20% equity in your home.
Where Do Home Equity Loan Interest Rates Originate?
The home equity loan interest rates you’re offered have likely been influenced by a mix of economic and personal factors. The Federal Reserve’s policies, including changes to the federal funds rate, have a big impact on lending. Lenders base their rates on the prime rate, which in June 2025 is 7.50%.
A borrower’s credit score and debt-to-income ratio are also important in determining the rate they’ll be offered. The amount of the loan and the repayment term are factors too; generally, longer repayment terms and larger loan amounts mean higher rates because of the increased risk to the lender.
Understanding these factors can help you anticipate rate changes and make informed decisions about the home equity loan rates you’re likely to be offered.
How Interest Rates Impact Affordability
Your interest rate plays a major role in the affordability of your home equity loan. Even a seemingly small rate variation can have a big impact on your wallet over time.
Let’s break it down by looking at the chart below, which shows a $75,000 home equity loan with a 20-year repayment term.
At 8.00% interest, your monthly payment is $627, and you pay $75,559 in total interest over the entire term of the loan. But if your rate is a percentage point lower, at 7.00%, your monthly payment is $581 and your total interest drops to $64,554. That’s $11,005 in extra interest that could be in your pocket with the lower rate.
| Interest Rate | Monthly Payment | Total Interest Paid |
|---|---|---|
| 8.00% | $627 | $75,559 |
| 7.50% | $604 | $70,007 |
| 7.00% | $581 | $64,554 |
Fixed vs Adjustable Interest Rates
Unlike HELOCs, home equity loans usually come with fixed interest rates, which can be helpful when you’re planning your budget. You know exactly what you’ll be paying each month for the entire length of the loan. While fixed rates may often start a bit higher than initial adjustable ones, they can be a solid choice for you if you prefer financial stability.
Adjustable rates, on the other hand, might start at a lower rate, but after the initial period, they can change over time, potentially changing your monthly payments as well.
When you’re deciding between fixed and adjustable rates, think about your financial goals and how comfortable you are with the possibility of variations in your payments.
Home Equity Loan Rate Trends
Predicting the exact movement of interest rates is like trying to guess the weather a year from now. But, by looking at the past, we can see that the prime rate, which is a significant factor in the rates you’ll be offered on a home equity loan, has seen some big swings. As of June 17, 2025, the prime rate is 7.50%. But as you can see in the cart below, it hit a low of 3.25% in 2020 and a high of 8.50% in July, 2023.
Historical Prime Interest Rates
Since 2018, the prime rate has seen its share of ups and downs, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023. Take a look at the history of the prime rate to get a sense of how high or low it may go this year.
Source: TradingView.com
Fluctuations like these in the prime rate have an immediate impact on home equity loan rates in Buffalo. While nobody can predict the future with certainty, understanding past patterns may help you time your application to get a more favorable rate.
Historical Prime Interest Rates
Since 2018, the prime rate has seen its share of ups and downs, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023. Take a look at the history of the prime rate to get a sense of how high or low it may go this year.
| Date | Prime 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 | 5.50% |
| 9/27/2018 | 5.25% |
Source: St. Louis Fed
Taking a longer historical perspective, below, we can see clearly that ups and downs in the prime rate have basically been the norm.
How to Qualify for the Lowest Rates
To qualify for the lowest home equity loan rates, focus on strengthening your credit score, maintaining a healthy debt-to-income ratio, and building enough equity in your home. Lenders may also consider your combined loan-to-value ratio (CLTV), which compares the size of your loan to how much your home is worth. This ratio should ideally be below 80% for the best rates. Even if you haven’t decided yet on a HELOC vs. a home equity loan, the tactics are the same to secure the most competitive interest rates and loan terms.
Maintain Sufficient Home Equity
Here’s the bottom line: You will probably need to have at least 20% equity in your home to be eligible for a home equity loan.
Don’t know how much equity you have? It’s easy to crunch the numbers. Just subtract your mortgage balance from your home’s current value.
For example, let’s say your mortgage balance is $400,000 and your home is now valued at $550,000. That leaves you with $150,000 in equity.
Most lenders allow you to borrow up to 85% or sometimes 90% of your available equity, which means in the example above, you might be able to access up to $135,000. A home equity loan calculator can help you evaluate exactly how large a loan you may be able to access.
Build a Strong Credit Score
To snag the most favorable home equity loan rates, a robust credit score is key. Lenders are often looking for a 680 or higher, but the sweet spot is 700 and up. A higher score demonstrates your history of financial prudence and may therefore open doors to more attractive loan terms.
To work on strengthening your score, make it a habit to pay bills on time, keep credit card balances in check, and steer clear of new debt.
Manage Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is important to qualifying for a home equity loan. Lenders typically favor a DTI below 50%, and 36% or less is ideal.
This ratio is like a financial snapshot, comparing your monthly income to your monthly debt commitments. The lower the ratio, the less debt you’re paying off and the more appealing you are as a borrower.
To enhance your DTI, focus on reducing your debts and, if possible, boosting your income. Not only may this help you secure better home equity loan rates, but it can also fortify your financial foundation.
Obtain Adequate Property Insurance
Property insurance is generally a must-have for securing home equity loans, especially if your home is in an area that tends to experience natural disasters, like floods. This insurance acts as a safety net for both you and your lender, protecting you from loss caused by damage or disasters.
It’s a good idea to make sure your coverage is comprehensive, including protection from floods, fires, and other local risks. Having the right insurance might possibly even sway the terms and rates of your loan in your favor, as lenders tend to look more favorably on borrowers with solid insurance policies.
Tools & Calculators
Online tools like calculators can be enormously useful as you try to make the best financial decision for you.
For starters, a mortgage payment calculator can help you estimate what your monthly payments would be, based on the loan’s amount, interest rate, and repayment term. Using one lets you find out easily that, if you were to borrow $100,000 at 9.00% interest for 20 years, you could expect to pay around $900 per month.
Looking at another example, a loan comparison tool can help you compare different lenders and the home equity loan rates they offer so that you can find the best deal for your financial situation.
Run the numbers on your home equity loan.
-
Home Equity Loan
CalculatorEnter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
-
HELOC Payment
CalculatorPunch 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.
Closing Costs and Fees
The closing costs for home equity loans generally fall between 2% and 5% of the loan amount, so it’s important to factor them in to your calculations.
These fees encompass a variety of expenses, such as appraisals, credit reports, document preparation, loan origination fees, notary fees, and the costs associated with title searches and insurance. Some typical prices:
• Appraisal fee: $300-$500
• Credit report fee: $30-$50 or more
• Document preparation: $100-$500 (may also be billed on an hourly basis if an attorney is involved or be included in the origination fee)
• Loan origination fee: 0.5%-1.0% of the loan amount
• Notary fee: $20-$100
• Title insurance fee: 0.5%-1.0% of the loan amount
• Title search fee: $75-$250 or more
While no-closing-cost home equity loans are an option, they often come with higher interest rates.
Tax Deductibility of Home Equity Loan Interest
There’s yet another benefit of home equity loans to consider.
The interest on your home equity loan may be tax deductible if you’re taking out the loan in order to buy, build, or improve your home. For single filers, interest is deductible on the first $375,000 of loan debt. Spouses filing together can deduct the interest on up to $750,000 of debt. Bear in mind, however, that you’ll need to itemize if you want to claim this deduction.
And also note: This tax break currently runs through 2025. It may be extended beyond that, though, so consult your tax advisor to get the most up-to-date information and advice.
Alternatives to Home Equity Loans
Home equity loans are a common choice of homeowners who need a lump sum, but there are other options to explore that also make use of your home equity to get you cash. Home equity lines of credit (HELOCs) and cash-out refinances are two such alternatives.
A HELOC provides a revolving line of credit with a variable interest rate, making it a flexible option for ongoing expenses.
A cash-out refinance is a type of mortgage refinance that replaces your current mortgage with a new one, allowing you to borrow more than you owe and keep the difference.
Each option has its own requirements and potential risks, so it’s worth comparing them with a home equity loan to see what works best for you.
Home Equity Line of Credit (HELOC)
What is a home equity line of credit? A HELOC is somewhat like a credit card because it allows you to borrow up to a set amount and pay interest only on what you actually borrow. You usually have a “draw period” during which you can take money out and pay only the interest for what you borrow. After that comes a repayment period, during which you pay back the principal and interest. Typically, a HELOC’s interest rate is variable, so it may fluctuate with the market. This means your costs could rise if interest rates go up.
To get a HELOC, you typically need a credit score of 680, but 700 is preferable. You’ll also need a debt-to-income (DTI) ratio of less than 50%, but ideally less than 36%. HELOCs can be especially helpful if you have ongoing expenses and can provide access to up to as much as 90% of your home equity.
If you want to figure out how much the monthly payments for a HELOC would cost, you might consider using a HELOC monthly payment calculator.
And if you’d like to calculate how much interest you’d have to pay during the “draw” period of a HELOC, try a HELOC interest-only calculator.
Cash-Out Refinance
A cash-out refinance is a bit like a reset button for your mortgage. You take out a new mortgage, pay off your existing home loan, and pocket the difference in cash. The amount you can receive is based on your home equity: Most lenders permit borrowing up to 80% of your home’s value.
If you’re contemplating the benefits of a cash-out refinance vs. a home equity line of credit, be aware that the requirements for borrowing are generally different. It’s usually easier to qualify for a cash-out refi than for a home equity loan or a HELOC. Cash-out refinances typically require a minimum credit score of 620 and a DTI ratio of 43% or less. They may have either fixed or variable interest rates, with variable rates sometimes offering more equity access.
And, unlike a home equity loan, a cash-out refi results in a single monthly payment, which can make it easier to manage.
The Takeaway
If you’re considering a home equity loan in Buffalo, NY, it’s important to understand the factors that can influence home equity loan rates. Factors like your credit score, debt-to-income ratio, and property insurance can affect the rates you’re offered. Using tools and calculators can help you estimate costs and payments. You may want to consider alternatives like HELOCs and cash-out refinances, which also let you leverage your home equity and can offer different benefits. Fully understanding your options can help you find the best solution for your financial needs.
SoFi now offers home equity loans. Access up to 85%, or $350,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
Unlock your home’s value with a home equity loan from SoFi.
FAQ
What are the uses of a home equity loan?
A home equity loan can be useful for many purposes. Common ones are major purchases, home improvements, and consolidating high-interest debt. While these loans are flexible, it’s important to make sure you can afford the monthly payments so that you don’t run the risk of losing your home to foreclosure.
What’s the monthly payment on a $50,000 home equity loan?
It’s not just the total loan amount, but also the interest rate and term of the home equity loan that determine how much your monthly payment will be. For example, if your fixed-rate $50,000 loan has a 6.00% rate and a 15-year term, you pay around $422 each month. If the rate were two percentage points higher, at 8.00%, your monthly payment would be $478. A mortgage payment calculator can help you assess what you’d need to pay for different loans with different terms.
What might disqualify you from getting a home equity loan?
Several factors could prevent you from securing a home equity loan. First, lenders usually want you to have a credit score of at least 680, so a lower one could present an obstacle. A high debt-to-income (DTI) ratio, generally more than 50%, might also be a problem. Having less than 20% equity in your home could be another potential issue. Lenders also look at the stability of your home’s value and the adequacy of your property insurance when they’re considering whether to approve you for a home equity loan.
What are the benefits of a home equity loan?
Home equity loans can provide you with a number of benefits, including a lump sum of cash and payments that typically come with a fixed interest rate, which can ensure that your monthly payments remain predictable. These loans can make sense for large, one-time expenses such as home renovations or high-interest debt consolidation. Additionally, home equity loan rates are generally lower than those of unsecured loans, making them a cost-effective option when you need money. However, it’s important to remember that these loans come with the possibility of foreclosure if you don’t make your payments.
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.
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.
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.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
SOHL-Q225-281
More home equity 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 Home Equity Loan Rates in Dallas, TX Today
DALLAS HOME EQUITY LOAN RATES TODAY
Current home equity loan
rates in Dallas, TX.
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 home equity loan rates in Dallas.
Key Points
• Home equity loans use the equity in your home as collateral.
• Rates are influenced by your credit score and debt-to-income ratio, among other factors.
• Fixed rates offer the comfort of consistent monthly payments.
• Compare offers from multiple lenders before signing on for a home equity loan.
• Consider alternative borrowing methods like a home equity line of credit or a cash-out refinance.
Introduction to Home Equity Loan Rates
If you’re considering a home equity loan in Dallas, we’re here to help you understand the factors that can influence home equity loan interest rates and learn how to secure the best deal. We’ll walk you through the current market conditions, the importance of creditworthiness, and the role of your debt-to-income ratio in lenders’ decision-making. We’ll also offer tips on how to qualify for the lowest rates. By the end, you’ll be better equipped to make an informed decision about whether a home equity loan is right for you.
How Do Home Equity Loans Work?
Here’s a simple look at what a home equity loan is: Technically, a home equity loan is a type of second mortgage. Your first mortgage is the home loan you used to purchase the property, but you can place additional loans against the home if you’ve built up enough equity. Home equity loans allow you to borrow a lump sum based on the amount of equity you have in your home. Here’s an example: If your home is worth $500,000 and you still owe $350,000 on your mortgage, you have $150,000 of equity. Most lenders will allow you to borrow up to 85% of your home equity, though some may allow more.
A home equity loan calculator can help you see how much you might be able to borrow and what payments would look like. You begin repaying your home equity loan right after receiving it. These loans are fixed-rate ones, so your payments would be the same each month. If you miss payments, you could face foreclosure.
Recommended: What Is a Home Equity Line of Credit
Where Do Home Equity Loan Interest Rates Come From?
The interest rates on different types of home equity loans are influenced by a variety of economic and personal factors. The Federal Reserve’s monetary policy, including changes to the federal funds rate, can have a big impact on lending. Lenders often base their rates on the prime rate. If the prime rate goes up, home equity loan rates are likely to follow. Your credit score and debt-to-income (DTI) ratio also play a big role in the rate you’ll be offered. We’ll take a closer look at that below.
How Interest Rates Impact Affordability
Interest rates help determine how affordable a home equity loan will be for you. Even a fraction of a percentage point can add up to a lot of interest paid over time. This chart shows how rate and loan term affect the amount you’ll pay each month for home equity loans of different amounts. The longer the term, the lower the monthly payments might be, but the more interest you’ll pay over the life of the loan.
| Loan Amount | Loan Term | Interest Rate | Monthly Payment |
|---|---|---|---|
| $100,000 | 20 years | 8.00% | $836 |
| 7.00% | $775 | ||
| 10 years | 8.00% | $1,213 | |
| 7.00% | $1,161 | ||
| $50,000 | 20 years | 8.00% | $418 |
| 7.00% | $388 | ||
| 10 years | 8.00% | $607 | |
| 7.00% | $581 | ||
| $25,000 | 20 years | 8.00% | $209 |
| 7.00% | $194 | ||
| 10 years | 8.00% | $303 | |
| 7.00% | $290 |
Home Equity Loan Rate Trends
Home equity loan interest rates are, like the weather, always changing. It can be tempting to try to wait for a lower rate, and to watch the prime rate while waiting. The prime rate was as low as 3.25% in 2020 and as high as 8.50% in 2023. Such fluctuations can have a significant impact on the cost of borrowing. But no crystal ball can predict future rate movements. Stay informed about economic indicators, but also be prepared to weigh interest costs against your need to borrow, and to time your loan application based on your personal financial situation.
Source: TradingView.com
| Date | Prime 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 | 5.50% |
| 9/27/2018 | 5.25% |
Source: St. Louis Fed
How to Qualify for the Lowest Rates
You can’t control the prime rate, but there are several steps you can take before filing a loan application to help you qualify for the lowest available rate in the current market.
Maintain Sufficient Home Equity
As noted, you’ll need at least 20% equity in your property to get a home equity loan. Calculating your equity is straightforward: Simply deduct your mortgage balance from your home’s estimated value, as recorded on a real estate site. Then divide the answer by the estimated value to arrive at a percentage. For instance, if your mortgage balance is $400,000 and your home value is estimated at $550,000, your equity is $150,000. Divide $150,000 by $550,000 and you get 27%.
Build a Strong Credit Score
To snag the most competitive home equity loan rates, set your sights on a credit score of 680 or higher. Many lenders favor 700 or more. A robust credit score is a testament to your financial acumen and can open the door to more favorable loan terms. Consistently paying your bills on time and keeping credit card balances in check are tried-and-true methods for giving your score a lift. Scrutinize your credit report for inaccuracies and dispute any you find.
Manage Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is a key factor in determining your eligibility for a home equity loan. Most lenders look for a DTI under 50%, but prefer it to be under 36%. This gives lenders confidence that you can handle the additional debt. To calculate your DTI, divide your total monthly debt payments by your gross monthly income. Lowering your DTI is a smart move and can be done by paying down existing debts or increasing your income.
Obtain Adequate Property Insurance
Property insurance is a must-have, especially if you’re in an area prone to flooding or other disasters. It’s a safety net for both you and the lender, ensuring that if something happens to your property, you’re both protected. Make sure your coverage is up to snuff with current market values and meets all the lender’s specific requirements before filing an application.
Recommended: HELOC vs. Home Equity Loan
Useful Tools & Calculators
Online tools can help you understand the financial repercussions of taking out a home equity loan. Here are three you may find handy at various times during your time as a homeowner.
Run the numbers on your home equity loan.
-
Home Equity Loan
CalculatorEnter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
-
HELOC Payment
CalculatorPunch 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.
Closing Costs and Fees
Closing costs for a home equity loan are typically 2% to 5% of the loan amount. These fees are pretty standard and include things like appraisals, credit reports, and the nitty-gritty of doing a title search, purchasing title insurance, and getting all your documents in order.
Tax Deductibility of Home Equity Loan Interest
Here’s a perk: The interest on your home equity loan might be tax-deductible if you use it to buy, build, or significantly improve your home. Those filing jointly can deduct interest on loans up to $750,000; for single filers, the ceiling is $375,000. Just remember, this is when you itemize deductions instead of taking the standard deduction. The tax rules around home equity loans are set to change at the end of 2025, so consult a tax advisor to ensure you stay on the right side of current policies.
Alternatives to Home Equity Loans
As you consider how to get equity out of your home, there are a couple additional ways you might go about it. Each of these options has its own unique features and requirements, so lets look at them in more detail:
Home Equity Line of Credit (HELOC)
A HELOC provides you with a line of credit, secured by your home, to use when and how you need it. You’ll only pay interest on the portion of the credit line that you actually use. And during the HELOC’s “draw” period, usually 10 years, you likely won’t have to pay down the principal unless you wish to do so. (A HELOC interest-only calculator can help you see what it would be like to just pay interest during this period.)
After the draw period ends comes the repayment period. Then you’ll repay all that you owe, with interest. And here’s a difference between HELOCs and home equity loans: HELOCs tend to have a variable interest rate. So monthly payments can be a bit unpredictable, although putting your balance and a current rate into a HELOC monthly payment calculator will give you a sense of what you might owe.
To qualify for a HELOC, a credit score of 680 is a common benchmark, but as with a home equity loan, 700 is even better. Keep your debt-to-income ratio under 50% — and ideally, under 36%. Most lenders will let you borrow up to 90% of your equity.
Cash-Out Refinance
A cash-out refinance is a mortgage refinance. In this scenario, you take out a new loan that’s larger than your existing one, pocketing the difference to use as you wish. The amount you can cash out is typically up to 80% of your home’s value, and most lenders look for a credit score of 620 or higher and a debt-to-income ratio of 43% or less. The interest rates can be fixed or variable. Generally, it’s easier to qualify for a cash-out refi than a home equity loan or HELOC.
One other distinction in the cash-out refinance vs. home equity line of credit or home equity loan equation: A refinance will leave you with a single monthly payment instead of two payments.
The Takeaway
When you’re ready to take the plunge and obtain a home equity loan, it’s important to set yourself up for success. Take good care of your credit score, understand your DTI ratio (and take steps to right-size it as necessary), and keep an eye on home equity loan rates in Dallas. Request loan estimates from different lenders, and don’t forget to consider other borrowing options like a HELOC and a cash-out refinance.
SoFi now offers home equity loans. Access up to 85%, or $350,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
Unlock your home’s value with a home equity loan from SoFi.
FAQ
What will your monthly payments be on a $50,000 home equity loan?
The monthly payment for a $50,000 home equity loan varies with the interest rate and the term of the loan. At an 8.00% interest rate, for instance, a 20-year loan would have you paying $418 a month. Opt for a 10-year term, and that monthly commitment rises to approximately $607. Consider your budget and goals to pick the term that suits you best.
What’s the monthly payment on a $100,000 HELOC?
The monthly payment on a $100,000 home equity line of credit can vary depending on how much of the credit line you have utilized, whether you are in the HELOC’s draw period (paying interest only) or its repayment period (paying both interest and principal), and what your interest rate is. HELOC interest rates are usually variable, adding to the complexity. Your best strategy is to put your principal balance and interest rate into an online calculator to compute what you owe.
What might prevent you from getting a home equity loan?
There are several factors that can prevent you from getting a home equity loan. Lenders typically require a minimum credit score of 680, a debt-to-income (DTI) ratio of 50% or less, and at least 20% equity in your primary residence. If you don’t meet lenders’ minimum qualifications, you might be denied. Inadequate property insurance can also be a barrier.
What are the benefits of a home equity loan?
Home equity loans come with fixed interest rates and predictable monthly payments. They’re often easier to qualify for than other loans and typically have lower interest rates. This type of loan can provide a substantial lump sum for significant expenses like home improvements, education, or consolidating debt. And here’s a bonus—the interest you pay on a home equity loan used for purchasing, constructing, or renovating a home could be tax-deductible.
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.
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.
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.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
SOHL-Q324-2820
More home equity 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 Home Equity Loan Rates in San Antonio, TX Today
SAN ANTONIO HOME EQUITY LOAN RATES TODAY
Current home equity loan
rates in San Antonio, TX.
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 home equity loan rates in San Antonio.
Key Points
• Home equity loan rates in San Antonio are influenced by a variety of factors, including economic conditions and your creditworthiness.
• If you have a credit score of 700 or higher and a debt-to-income ratio below 36%, you’re in prime position to snag a great rate.
• Fixed rates give you the peace of mind of knowing your monthly payments won’t change.
• The interest on home equity loans may be tax-deductible if you’re using it to significantly improve the property.
• A home equity line of credit or a cash-out refinance are other ways to borrow based on home equity.
Introduction to Home Equity Loan Rates
Home equity loans are a smart way for homeowners to borrow money by tapping into the equity they have built up in their home. But before you take the first steps toward getting equity out of your home, it helps to understand the forces that impact what kind of home equity loan rate you’ll be offered. Here, we’ll break that down, explaining how current home equity loan rates are formed and what you can do to get your best possible rate in today’s market. Let’s start by looking more closely at what a home equity loan is in the first place.
How Do Home Equity Loans Work?
A home equity loan is a loan guaranteed by your home. In fact, it’s a second mortgage (assuming you are still paying off your first home loan). You can get a lump sum of money based on the equity you have in your home. Common uses for a home equity loan include paying for home improvements and debt consolidation. The interest rates are typically lower than those of unsecured loans, but failure to repay can result in foreclosure. And you’ll begin repaying the loan immediately. These loans usually have a fixed interest rate, so monthly payments are the same for the life of the repayment term, which can be anywhere from five to 30 years.
Most lenders require borrowers to have at least 20% equity in their home to qualify. Some lenders may allow you to borrow up to 85% of your equity. A home equity loan calculator can help you get a sense for how much a lender might be willing to loan to you.
Recommended: What Is a Home Equity Line of Credit
Where Do Home Equity Loan Interest Rates Come From?
The interest rates for different types of home equity loans are influenced by economic factors but also by each borrower’s personal profile. The Federal Reserve’s monetary policies have a ripple effect on lending rates. Lenders often adjust their rates according to the prime rate, which is a reflection of the Fed’s stance. Your credit score, debt-to-income (DTI) ratio, and credit history play a significant role, with higher credit scores typically translating to lower rates. Additionally, larger loan amounts and longer repayment terms may lead to higher rates due to the increased risk for the lender.
How Interest Rates Impact Affordability
Interest rates play a huge role in how affordable your home equity loan will be over the long haul. A change of a fraction of a percentage point, up or down, can make a big difference in your monthly payments and the total you’ll pay in interest over the life of the loan. To get a sense of what that looks like, check out this chart showing different loan amounts, rates, and terms. (The longer the loan term, the lower your monthly payments — but the more interest you’ll pay over the life of the loan.)
| Loan Amount | Loan Term | Interest Rate | Monthly Payment |
|---|---|---|---|
| $100,000 | 20 years | 8.00% | $836 |
| 7.00% | $775 | ||
| 10 years | 8.00% | $1,213 | |
| 7.00% | $1,161 | ||
| $50,000 | 20 years | 8.00% | $418 |
| 7.00% | $388 | ||
| 10 years | 8.00% | $607 | |
| 7.00% | $581 | ||
| $25,000 | 20 years | 8.00% | $209 |
| 7.00% | $194 | ||
| 10 years | 8.00% | $303 | |
| 7.00% | $290 |
Home Equity Loan Rate Trends
Given that the prime rate underpins home equity loan rates, you’ll probably be paying close attention to the rate as you think about applying for a loan. Predicting the movement of interest rates is no easy feat, given the many economic variables at play, and the prime rate has seen quite a bit of fluctuation, as you can see from the graphic. Some borrowers will be tempted to try to time their application to coincide with a favorable prime rate. But if you aren’t able to wait out the market, remember that there are other things you can do to get the best available rate.
Source: TradingView.com
| Date | Prime 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 | 5.50% |
| 9/27/2018 | 5.25% |
Source: St. Louis Fed
How to Qualify for the Lowest Rates
To secure the most competitive home equity loan rates, take these steps to polish your financial profile before you file your first application:
Maintain Sufficient Home Equity
To qualify for a home equity loan, homeowners are advised to have a minimum of 20% equity in their home. Calculating your home equity is a simple matter of subtracting your current mortgage balance from the appraised value of your home (use an online estimate from a real estate web site).
For instance, if your mortgage balance is $400,000 and your home is valued at $550,000, your home equity would be $150,000. Divide your equity by your home value to arrive at your percentage of equity (in this case, 27%). The more equity you have, the more confident a lender will feel about your financial stability — and the more favorable your loan terms will likely be.
Build a Strong Credit Score
When it comes to home equity loans, a credit score of 680 is often the starting point, but the higher, the better. Those with a history of timely payments, low credit balances, and a diverse credit portfolio are more likely to secure a favorable loan rate and terms. Focusing on your credit score before you apply for a home equity loan is a strategic move that can lead to long-term savings.
Manage Debt-to-Income Ratio
Your DTI ratio is a key number that lenders look at when you’re applying for a home equity loan. (To compute it, total your monthly debts — car payment, student loan, credit card payment, etc. — and divide by your gross monthly income.) Most lenders look for a DTI ratio that’s below 50%, but the lower the better. A DTI ratio below 36% is considered ideal. If your ratio is higher than you’d like, you may want to consider paying down some existing debt or finding ways to increase your income before applying for a home equity loan.
Obtain Adequate Property Insurance
Property insurance is a must-have for home equity loans, particularly in flood-prone areas. This insurance safeguards both you and the lender in the event of property damage. Before the loan is disbursed, lenders may ask for proof of insurance.
Recommended: HELOC vs. Home Equity Loan
Useful Tools & Calculators
Our online tools and calculators can help you understand the financial implications of taking out a home equity loan. Here are three you may find handy at various times during your experience as a homeowner.
Run the numbers on your home equity loan.
-
Home Equity Loan
CalculatorEnter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
-
HELOC Payment
CalculatorPunch 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.
Closing Costs and Fees
When it comes to home equity loans, you’re looking at closing costs that typically range from 2-5% of the loan amount. The costs will likely include appraisal, credit report, document preparation, origination, notary, title search, and title insurance fees. There are “no-closing-cost” home equity loans available, but they often have higher interest rates.
Tax Deductibility of Home Equity Loan Interest
Here’s a tax tip you might appreciate: The interest on your home equity loan could be tax-deductible if you’re using it to buy, build, or significantly improve your home. For those of you filing jointly, you can deduct interest on up to $750,000 of qualified home equity loans, and for single filers, up to $375,000. To claim this deduction, you’ll want to itemize your deductions on your tax returns so it could be a good idea to check in with a tax advisor.
Alternatives to Home Equity Loans
Homeowners have a few options when it comes to tapping their home equity — a home equity loan isn’t the only solution. Here are two other options you might want to consider:
Home Equity Line of Credit (HELOC)
A HELOC provides you with a line of credit, secured by your home, to use when and how you need it. You’ll only pay interest on the portion of the credit line that you actually use. And during the HELOC’s “draw” period, usually 10 years, you likely won’t have to pay down the principal unless you wish to do so. (A HELOC interest-only calculator can help you see what it would be like to just pay interest during this period.)
After the draw period ends comes the repayment period. Then you’ll repay all that you owe, with interest. And here’s a difference between HELOCs and home equity loans: HELOCs tend to have a variable interest rate. So monthly payments can be a bit unpredictable, although putting your balance and a current rate into a HELOC monthly payment calculator will give you a sense of what you might owe.
To qualify for a HELOC, a credit score of 680 is a common benchmark, but aiming for 700 is even better. Keep your debt-to-income ratio under 50% — and ideally, under 36%. Most lenders will let you borrow up to 90% of your equity.
Cash-Out Refinance
A cash-out refinance is a mortgage refinance that replaces your existing mortgage with a larger one, giving you the difference in cash to use however you please. The amount you can borrow depends on the equity you have in your home. Most lenders allow you to borrow up to 80% of your home’s value. You’ll need a credit score of 620 or higher and a debt-to-income ratio of 43% or less to qualify. You can choose between a fixed or adjustable interest rate. As you think about a cash-out refinance vs. a home equity line of credit or home equity loan, one difference is that a cash-out refi will leave you with one monthly payment instead of two.
The Takeaway
When considering a home equity loan in San Antonio, it’s important to build a strong credit score, manage your DTI ratio, and obtain adequate property insurance. Utilize an online calculator to estimate monthly payments so that you can think about how that might fit into your budget. By obtaining quotes from multiple lenders and carefully evaluating rates and terms, you can secure the most favorable home equity loan rates in San Antonio.
SoFi now offers home equity loans. Access up to 85%, or $350,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
Unlock your home’s value with a home equity loan from SoFi.
FAQ
What’s the monthly payment on a $100,000 HELOC?
The monthly payment on a $100,000 home equity line of credit can vary greatly depending on how much of the credit line you have drawn, whether you are in the HELOC’s draw period (paying interest only) or its repayment period (paying both interest and principal), and what your interest rate is. Your best bet is to put your principal balance and interest rate into an online calculator to compute what you might owe.
What would your monthly payment be on a $30,000 home equity loan?
The payment on a $30,000 home equity loan is determined by the interest rate and term. For example, at a 7.00% interest rate over 15 years, the monthly payment would be approximately $270. This fixed payment covers both principal and interest.
What might prevent you from getting a home equity loan?
There are a few key factors that could prevent you from securing a home equity loan. Lenders often look for a minimum credit score of 680, a debt-to-income ratio of 50% or less, and at least 20% equity in your primary residence. In addition, insufficient property insurance, particularly in flood zones, could also be a disqualifying factor.
What are the benefits of a home equity loan?
Home equity loans come with fixed interest rates and predictable monthly payments. They’re perfect for those big, one-time expenses like home improvements, education costs, or consolidating debt. Given that your home is used as collateral, you’ll often get a lower interest rate with a home equity loan than you would with a personal loan. Tax policy can change from year to year, but through 2025, if you use a home equity loan to significantly improve your home, some or all of the interest could be deductible.
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.
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.
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.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
SOHL-Q324-276
More home equity 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 Home Equity Loan Rates in Wilmington, NC Today
WILMINGTON HOME EQUITY LOAN RATES TODAY
Current home equity loan
rates in Wilmington, NC.
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 home equity loan rates in Wilmington.
Key Points
• The rates for home equity loans in Wilmington are tied to the Federal Reserve’s policies, your credit standing, and the competitive market.
• Comparing rates from a few different lenders can help you get the best deal and terms.
• The best rates are typically reserved for those with a strong credit score (680+) and a debt-to-income ratio below 36%.
• Even a small variance in rates can translate to substantial savings or expenses over the loan’s lifetime.
• Home equity loans often come with fixed interest rates, which can provide you with a sense of stability and predictability.
Introduction to Home Equity Loan Rates
The rates you secure for a home equity loan are crucially important to your finances. This guide will walk you through what is a home equity loan and explain current home equity loan rates in Wilmington, North Carolina, and the factors that influence them. We’ll also cover the application process, the importance of maintaining a healthy amount of home equity, and the many ways you can use a home equity loan. Whether you’re planning a major home renovation or need funds for other expenses, understanding home equity loan rates can help you make a more informed financial decision.
How Do Home Equity Loans Work?
A home equity loan is technically a second mortgage (assuming you are still paying off your original home loan). It allows homeowners to get equity out of their home without selling the property. The loan is typically issued in a lump sum, which you can use however you wish. You begin repaying it immediately, in fixed monthly installments, over a period that can range from five to 30 years. Since the loan is secured by your home, the interest rate is often lower than that of unsecured loans. To qualify, you generally need to have at least 20% equity in your home; some lenders may allow you to borrow up to 85% of your home’s value.
How Are Home Equity Loan Interest Rates Determined?
Interest rates for different types of home equity loans are the result of a complex interplay between economic conditions and your personal financial situation. The Federal Reserve’s decisions regarding the federal funds rate plays a significant role. Lenders typically peg their rates to the prime rate, but from there, they also adjust the rate they offer individual borrowers based on the person’s credit score and debt-to-income (DTI) ratio. Generally, higher credit scores and lower DTIs lead to more favorable rates. The loan amount and repayment term can also affect rates.
How Interest Rates Impact Affordability
It’s worth doing everything in your power to qualify for the lowest possible rate, because even a tiny change in the rate can mean saving money or incurring extra costs. Take a look at how different interest rates would affect the cost of a $75,000 loan over 20 years, below. (A home equity loan calculator can help you determine your home equity and maximum loan amount.)
| Interest Rate | Monthly Payment | Total Interest Paid |
|---|---|---|
| 8.00% | $627 | $75,559 |
| 7.50% | $604 | $70,007 |
| 7.00% | $581 | $64,554 |
Home Equity Loan Rate Trends
The trends in home equity loan rates can be a bit like the weather — unpredictable. The prime rate, a key benchmark for home equity loan rates, has seen some significant ups and downs. For example, it was as low as 3.25% in 2020 and as high as 8.50% in 2023. These changes have a direct impact on the rate you qualify for. If you have the flexibility to wait for a lower rate, keeping an eye on economic conditions and the prime rate can help you time your application to the rate that feels right for you.
Source: TradingView.com
| Date | Prime 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 | 5.50% |
| 9/27/2018 | 5.25% |
Source: St. Louis Fed
How to Qualify for the Lowest Rates
To secure the most attractive home equity loan rates, you’ll want to put your best financial foot forward. That means taking the following steps before you file your first application.
Maintain Sufficient Home Equity
To be eligible for a home equity loan, homeowners are required to have at least 20% equity in their homes. Calculating your home equity is simple: Find your home’s estimated value on a real estate site. Subtract your mortgage balance from it, then divide the product by the estimated value to get a percentage. For instance, if your mortgage balance is $400,000 and your home is valued at $550,000, your home equity would be $150,000 and your percentage equity would be 27%. This equity serves as collateral, and a higher percentage of equity can lead to more favorable loan terms.
Build a Strong Credit Score
Lenders often look for a solid 680 credit score or higher, with many preferring 700. A higher score paints a picture of financial prudence and can open doors to more favorable terms and lower interest rates. Improving your credit score is within reach. Focus on timely payments, keeping credit card balances in check, and sidestepping new debt. Regularly check your credit report to catch and correct any errors, and you’ll be on your way to rates that make you smile.
Manage Debt-to-Income Ratio
Your debt-to-income (DTI) ratio plays a significant role in your eligibility for a home equity loan. Most lenders look for a DTI ratio under 50%, with an ideal target of 36% or lower. To determine your ratio, add up your monthly debts and divide by your gross monthly income. To keep your DTI in check, you might consider paying down current debts, finding ways to increase your income, or a combination of both. Additionally, it’s wise to avoid taking on new debt while you’re in the process of applying for a home equity loan.
Obtain Adequate Property Insurance
Property insurance is a must-have for home equity lenders. They need to know that the property securing the loan is adequately protected. Having the right insurance can save you from unexpected costs and headaches. Make sure your insurance meets the lender’s requirements to prevent any hiccups in the loan process.
Useful Tools & Calculators
Online financial tools can help you get a handle on home equity loan rates. It’s like having a personal assistant who can break down all the numbers for you. Many of these tools are available online for free. These are a few of our favorites:
Run the numbers on your home equity loan.
-
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.
Closing Costs and Fees
When it comes to closing costs for home equity loans, you’re looking at a typical range of 2% to 5% of the loan amount. These costs encompass a variety of fees, from appraisal to title insurance. Also included in your costs: a title search, document preparation, and attorneys’ fees.
Keep in mind that “no-closing-cost” loans may have higher interest rates. It’s a good idea to compare costs across lenders to find the most cost-effective option.
Tax Deductibility of Home Equity Loan Interest
The interest you pay on a home equity loan used to buy, build, or improve your home may be tax deductible. Those filing jointly can deduct interest on loans up to $750,000; for single filers, it’s loans of up to $375,000. Just remember, in order to take advantage of this deduction, you would need to itemize deductions instead of taking the standard deduction. The tax rules around home equity loans are set to change at the end of 2025, so consult a tax advisor if you’re thinking about this deduction.
Alternatives to Home Equity Loans
In addition to home equity loans, you might want to consider home equity lines of credit (HELOCs) or a special kind of mortgage refinance that gives you cash back. A HELOC works like a credit card, allowing you to borrow up to a certain limit for the term of the loan. During the draw period, you only pay interest on the amount you borrow. Cash-out refinances replace your current mortgage with a new one that’s larger than what you owe. You can take the difference in cash. HELOCs and cash-out refinances have different requirements and benefits.
Home Equity Line of Credit (HELOC)
A home equity loan is often confused with a home equity line of credit (HELOC), but they are different. A HELOC is a bit like having a credit card with your home equity as the spending limit. It’s more flexible than a lump-sum loan, as you only pay interest on the part of the credit line that you use. You have an initial “draw” period (often 10 years) in which you only pay interest. A HELOC interest-only calculator can show you what payments might look like during that time.
Only after the draw period ends do you start to repay the principal. (That’s when a HELOC repayment calculator comes in handy.) HELOCS tend to have a variable interest rate, which means your costs can go up if rates go up. To qualify, you’re generally looking at a credit score of 680 or higher (though 700 is the sweet spot) and a debt-to-income ratio below 50% (aim for less than 36%). Here’s a quick look at a HELOC vs. a home equity loan:
| HELOC | Home Equity Loan | |
|---|---|---|
| Type | Revolving line of credit | Installment loan |
| Interest Rate | Usually variable-rate | Usually fixed-rate |
| Repayment | Repay only what you borrow plus interest; you may have the option to make interest-only payments during the draw period. | Starts immediately at a set monthly payment |
| Disbursement | Charge only the amount you need | Lump sum |
Cash-Out Refinance
A cash-out refinance is a way to replace your current mortgage with a new, larger one, and take the difference in cash. You can typically borrow up to 80% of your home’s value, although the exact limit will depend on your lender. You’ll need a minimum credit score of 620 and a debt-to-income ratio of 43% or less. When you consider a cash-out refinance vs. a home equity line of credit or home equity loan, an important distinction is that a refinance will leave you with one monthly payment, not two. Cash-out refinance loans can have either fixed or variable rates. They can also be easier to qualify for than home equity loans or HELOCs.
The Takeaway
If you’re considering a home equity loan in Wilmington, it’s important to understand the factors that can influence interest rates. A high credit score, a low debt-to-income ratio, and solid property insurance coverage can all help you secure better rates. Online financial tools can help you estimate your costs and make more informed decisions. HELOCs and cash-out refinances also let you tap into home equity, so it’s important to compare your options to find the best fit for your finances. Getting rate estimates from multiple lenders is a smart way to shop.
SoFi now offers home equity loans. Access up to 85%, or $350,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
Unlock your home’s value with a home equity loan from SoFi.
FAQ
What can you use a home equity loan for?
A home equity loan can be used for large purchases, home renovations, and consolidating higher-interest debt. The flexibility of these loans makes them a popular choice for homeowners. However, it’s important to use the funds responsibly and consider the long-term financial effects. Always compare home equity loan rates and terms from multiple lenders to ensure you’re getting the best deal for your needs.
What would your monthly payments look like on a $50,000 home equity loan?
The monthly payment for a $50,000 home equity loan varies with the interest rate and the term of the loan. At an 8.00% interest rate, for instance, a 10-year loan would have a $607 monthly payment. Choose a 20-year term, and that monthly amount drops to about $418. Consider your budget and goals to pick the term that suits you best.
What could disqualify you from getting a home equity loan?
There are a few things that might disqualify you from securing a home equity loan, such as not having adequate equity in your home, or having a less-than-ideal credit score or a high debt-to-income ratio. Lenders typically look for at least 20% equity in your home and a credit score of 680 or higher. A debt-to-income ratio over 50% is certainly a red flag, and the closer your DTI ratio is to 36%, the better. A history of late payments or a recent foreclosure could also work against you.
What are the benefits of a home equity loan?
Home equity loans have several advantages, like a fixed interest rate and monthly payments you can count on. They’re perfect for big-ticket items such as home improvements, debt consolidation, or a major purchase. With your home as collateral, you’ll often obtain a lower interest rate than you would with an unsecured loan, and this can translate to significant savings over time. Plus, if you’re using the loan for qualifying home improvements, you might be able to deduct the interest on your taxes.
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.
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.
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.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
SOHL-Q324-272
More home equity 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 Home Equity Loan Rates in Asheville, NC Today
ASHEVILLE HOME EQUITY LOAN RATES TODAY
Current home equity loan
rates in Asheville, NC.
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 home equity loan rates in Asheville.
Key Points
• Home equity loan rates are influenced by the borrower’s credit score, debt-to-income ratio, and market conditions.
• It’s a smart move to shop around and compare offers from different lenders to snag the best rates.
• Even a small variance in interest rate can translate to significant savings or added expenses over time.
• Home equity loans typically have lower interest rates than unsecured loans, making them a cost-effective solution for larger expenses.
• The interest on home equity loans is often tax-deductible if you use it for home improvements.
Introduction to Home Equity Loan Rates
Home equity loans can be a smart financial move for homeowners in need of a lump sum of cash. In this guide, we’ll cover the current home equity loan rates in Asheville, North Carolina, and how you can secure the best deal. We’ll also discuss the factors that influence rates, including your credit score, debt-to-income ratio, and the state of the market. Finally, we’ll look into the benefits and risks of home equity loans and provide some tips for getting the best rate. By the end of this guide, you’ll have a clear understanding of whether a home equity loan is right for you and how to get the best rate possible.
How Do Home Equity Loans Work?
What is a home equity loan? It’s essentially a second mortgage that allows you to borrow a lump sum based on the equity you have in your home (the value of your home minus how much you owe on your home loan). Lenders typically let you borrow up to 85% of your equity. These loans usually come with fixed interest rates and predictable monthly payments. They can be a great way to finance large expenses, like home renovations or debt consolidation, and often have lower interest rates than unsecured loans.
How Are Home Equity Loan Interest Rates Determined?
Home equity loan interest rates are influenced by a variety of factors, including economic conditions and your own financial profile. Lenders add a margin to the prime rate to determine the interest rate you’ll be charged. If the prime rate is, say 7.50%, and the lender’s margin is 2%, your home equity loan rate would be 9.50%. Your credit score and debt-to-income (DTI) ratio help lenders determine the margin, and ultimately the home equity loan interest rate.
How Interest Rates Impact Affordability
Your interest rate is a big deal when it comes to the cost of your home equity loan. Even a fraction of a percentage point can add up to significant savings or added expenses over the life of your loan. For instance, a $100,000 home equity loan with a 15-year repayment term might mean a monthly payment of $985 at an 8.50% interest rate, with a total interest cost of $77,253. But bump that rate to 9.50%, and you’re looking at a $1,044 monthly payment and $87,960 in total interest. That’s a $10,700 difference! Understanding how these rates play out in the long run can empower you to make a savvy choice between different types of home equity loans.
Home Equity Loan Rate Trends
Interest rates for home equity loans and HELOCs naturally fluctuate, as does the prime rate on which they’re based. The prime was a mere 3.25% in 2020 before rising to 8.50% in 2023. These shifts can send ripples through the home equity loan market in Asheville. It’s wise to keep your finger on the pulse of these trends and try to time your application to catch a wave of favorable economic conditions. Shopping around for offers from different lenders can help you snag the best rate out there.
Source: TradingView.com
| Date | Prime 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 | 5.50% |
| 9/27/2018 | 5.25% |
Source: St. Louis Fed
How to Qualify for the Lowest Rates
To secure the most attractive home equity loan rates, you’ll need to demonstrate your financial fitness. Here’s your To Do list:
Maintain Sufficient Home Equity
You need to have at least 20% equity in your home to qualify for a home equity loan. To calculate your home equity, simply subtract your mortgage balance from your current home value. For example, if your mortgage balance is $400,000 and your home is worth $550,000, you have $150,000 in home equity. Divide your equity amount by your home value to calculate your equity stake: in this example, 27%. It’s important to maintain a healthy amount of home equity to secure the best home equity loan rates and to provide a cushion in case of unexpected financial needs.
Build a Strong Credit Score
To secure the lowest home equity loan rates, you’ll need a credit score of 680 or higher. But lenders are really impressed by a 700 or above, as it lowers their risk. So how do you get there? Keep making those payments on time, maintain low credit card balances, and steer clear of new credit inquiries. By showing you’ve got a solid track record with your finances, you’ll be in a better position to negotiate terms and rates that work for you.
Manage Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is a critical piece of the home equity loan puzzle. Lenders generally prefer to see a DTI under 50%, with 36% or less being the sweet spot. Keeping your DTI in check is a two-pronged approach: Whittle down your existing debt, and aim for a steady income. A lower DTI can open the door to more favorable loan rates and a larger borrowing capacity. Tackling high-interest credit card balances can help you present a more attractive financial picture to potential lenders.
Obtain Adequate Property Insurance
Property insurance is a must-have for most home equity loans, especially in areas susceptible to natural disasters. The right coverage safeguards both you and the lender in the event of home damage. Make sure your policy covers your home’s full value, and consider additional protections such as flood or earthquake insurance if needed. Lenders might ask for proof of insurance before sealing the deal. By getting the right insurance, you can sidestep potential hiccups and ensure a seamless application for your home equity loan.
Tools & Calculators
Utilizing our suite of tools and calculators is a smart move. They can help you get a handle on your borrowing potential and the monthly payments you might expect with a home equity loan. Our home equity loan calculator can show you how much you can borrow against your equity.
Run the numbers on your home equity loan.
-
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.
Closing Costs and Fees
When it comes to home equity loans, you’re looking at typical closing costs of 2% to 5% of the loan amount. These can include a range of fees, from appraisal and credit report to document preparation, origination, notary, title search, and title insurance. Lender costs can vary, so it’s smart to shop around and compare offers to snag the best deal. Keep in mind that while some lenders may offer “no-closing-cost loans,” they often come with higher rates.
Tax Deductibility of Home Equity Loan Interest
The interest you pay on a home equity loan could be tax-deductible. If you use the loan for substantial home improvements, purchasing, or building a home, you might be in luck. As of 2025, couples filing jointly can potentially deduct interest on up to $750,000 of qualified home equity loans, and single filers up to $375,000. To claim this deduction, you’ll need to itemize your deductions on your tax return. The tax benefits could make a home equity loan even more appealing. But as always, it’s a good idea to chat with a tax advisor to see how this applies to your unique financial situation and to stay on top of current tax laws.
Alternatives to Home Equity Loans
While a home equity loan is a popular choice, there are other ways to get equity out of your home. A home equity line of credit (HELOC) and a cash-out refinance are two alternatives. Each option has its own benefits and drawbacks, so it’s important to compare all your options to find the best fit for your needs.
Home Equity Line of Credit (HELOC)
What is a home equity line of credit? Imagine a credit card that’s backed by your home’s equity, allowing you to borrow up to a predetermined limit. HELOCs often feature variable interest rates, which can be both a pro and a con, as they fluctuate with the market. To qualify, you’re generally looking at a credit score of 680 or above (though 700 is preferred) and a debt-to-income ratio below 50% (but ideally below 36%).
HELOCs are a great option for those who need to borrow over an extended period, such as for home improvements. A HELOC interest-only calculator can help you estimate your minimum payment during the initial draw period, while a HELOC repayment calculator can show you what will come due after the draw period comes to a close.
Recommended: HELOC vs a Home Equity Loan
Cash-Out Refinance
A cash-out refinance is a type of mortgage refinance, but a bit more involved. It’s when you take out a new mortgage that’s larger than your existing one, and pocket the difference in cash. This can be a great way to tap into a significant portion of your home’s equity, potentially up to 80% of its value. To qualify, you’ll need a minimum credit score of 620 and a debt-to-income ratio of 43% or less. Interest rates can be fixed or variable, with variable rates often offering more equity access. And here’s a perk: unlike a home equity loan, a cash-out refi means just one monthly payment to keep track of, which can simplify your finances.
Recommended: Cash-Out Refinance vs Home Equity Line of Credit
The Takeaway
So, when you’re pondering a home equity loan in Asheville, remember the importance of a robust credit score, a modest debt-to-income ratio, and the need for comprehensive property insurance. These elements can sway the rates you’re offered and the overall cost of your loan. Leverage the tools and calculators at your disposal to estimate monthly payments, and compare offers from various lenders. Keep an eye out for closing costs and fees, and don’t forget to consider the tax implications of home equity loan interest.
And remember, there are alternatives like HELOCs and cash-out refinances to explore. It’s always a good idea to have a chat with a financial advisor to ensure you’re making the most informed decision.
SoFi now offers home equity loans. Access up to 85%, or $350,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
Unlock your home’s value with a home equity loan from SoFi.
FAQ
What can you use a home equity loan for?
A home equity loan is a versatile financial tool. It can be used for a variety of purposes, including large purchases, home renovations, and consolidating high-interest debt. The lump-sum payment and fixed interest rate make it a predictable and manageable financial tool.
What would the monthly payment be on a $50,000 home equity loan?
The monthly payment on a $50,000 home equity loan is contingent on the interest rate and repayment term you opt for. Let’s break it down. At an 8.00% interest rate across 15 years, you’re looking at approximately $478 per month. But if you extend the term to 20 years, your monthly payment would drop to $418. Then increase the interest rate to 8.50% (again with a 20-year term), and your payment rises to $434. These figures underscore the significance of securing a competitive interest rate and selecting a term that not only keeps your payments manageable but also minimizes the total interest paid.
What would my monthly payment be on a $100,000 HELOC?
A $100,000 Home Equity Line of Credit (HELOC) typically has a variable interest rate, which can fluctuate based on market conditions. During the draw period, which often lasts 10 years, you may only pay interest on the amount you draw. For instance, at a 5% interest rate, the monthly interest-only payment would be about $417. Once the draw period ends, the repayment period begins, and you’ll pay both principal and interest. The exact monthly payment will depend on the remaining balance and the interest rate at that time.
What is the payment on a $25,000 home equity loan?
The payment on a $25,000 home equity loan can vary based on the home equity loan rates and the term of the loan. For example, with a 7% interest rate and a 10-year term, the monthly payment would be approximately $286. However, if the interest rate is 8% and the term is extended to 20 years, the monthly payment would be about $188. These figures illustrate how the interest rate and term length can impact your monthly financial commitments. It’s important to compare different lenders’ offers to find the most affordable option that meets your needs.
What would the monthly payment be on a $30,000 home equity loan?
The payment on a $30,000 home equity loan can vary depending on the rates and terms you secure. For instance, with a 10-year term at an 8.00% interest rate, you’re looking at approximately $364 per month. But if you opt for a 20-year term, again at an 8.00% rate, your monthly payment could be around $251, but you’d pay more in interest over the life of the loan. Choosing a term that suits your financial goals and budget is key. An online home equity loan calculator can be a handy tool for getting a ballpark figure and planning ahead.
What could disqualify you from getting a home equity loan?
There are a few things that can disqualify you from getting a home equity loan. If you don’t have enough equity in your home, have a low credit score, or have a high debt-to-income (DTI) ratio, you might not be eligible. Most lenders require at least 20% equity in your home and a credit score of 680 or higher. A DTI ratio above 43% can also be a red flag. In addition, not having adequate property insurance or a history of missed payments can impact your eligibility. To improve your chances, work on building your credit, paying down debt, and maintaining a stable income.
What are the benefits of a home equity loan?
Home equity loans come with a host of advantages, such as fixed interest rates and regular monthly payments, which are great for planning your finances. They generally offer lower interest rates than unsecured loans, making them a smart choice for substantial expenses like home upgrades or consolidating debt. And the interest you pay might be tax-deductible if you use the funds for significant home improvements. Just remember to shop around and compare rates and terms from different lenders to get the best deal — and make sure you fully grasp the potential risks.
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.
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.
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.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
SOHL-Q324-271
More home equity 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.