Free Vermont HELOC Payment Calculator
Vermont HELOC Calculator
By SoFi Editors | Updated January 23, 2026
Vermont homeowners are enjoying high levels of equity, and many are thinking about how to get equity out of their home with a home equity line of credit (HELOC). A free HELOC calculator can be a useful tool as you explore a HELOC, as well as once you have one.
It allows you to estimate monthly payments during the two phases of the line of credit. This guide will show you how to use the calculator to maximum benefit. Along the way, you’ll also learn the ins and outs of HELOCs, as well as alternatives to a HELOC if this type of borrowing isn’t the right fit for you.
- Key Points
- • A home equity line of credit provides a revolving account where funds can be accessed, repaid, and accessed again.
- • A HELOC calculator allows users to compute monthly payment amounts during the HELOC’s two phases, draw and repayment.
- • The HELOC is secured by the homeowner’s property, which serves as collateral for the credit line.
- • The draw period often lasts ten years and many arrangements allow for interest-only payments during this time.
- • Full repayment of both the principal balance and the interest is mandatory during the final repayment phase.
Calculator Definitions
• HELOC Balance: This figure represents the total amount borrowed against the HELOC credit limit and not yet repaid. If you don’t yet have a HELOC, the balance would be the amount you plan to borrow.
• Current Interest Rate: This is the percentage rate applied to the used portion of the credit line to compute monthly payments. A HELOC interest rate can fluctuate with market forces. The current rate for calculator purposes would be the one quoted by a lender if you don’t yet have a HELOC.
• Draw Period: The draw period is the primary phase of the HELOC. It may last five to 10 years. During this time the homeowner has access to the credit line and typically isn’t required to repay what they owe, only to pay interest.
• Repayment Period: At the end of the draw period this phase begins. It may last 10 to 20 years. During this time, monthly payments are required to repay the principal plus interest. The longer the repayment term, the lower monthly payments will likely be.
• Monthly Interest Payment: This is an estimate of the cost incurred for using the funds during the draw phase, when only interest payments are necessary.
• Monthly Principal and Interest Payment: This is an estimate of the total amount due each month once the repayment phase begins, covering both a portion of the borrowed amount and the interest costs.
How to Use the Vermont HELOC Calculator
Follow these steps to use the calculator. By adjusting variables such as the repayment term or the HELOC balance, the homeowner can see how different scenarios affect payment numbers.
Step 1: Enter Your Planned or Actual HELOC Balance
To begin, enter your current outstanding balance if you have a HELOC, or type in an estimate of the amount you wish to borrow with a HELOC. For example, if you might use the HELOC to consolidate debt, enter the total amount you owe on your credit cards and any personal loans.
Step 2: Estimate Your Interest Rate
Identify the current percentage charge listed on your account document or put in the interest rate quoted by a prospective lender.
Step 3: Choose the Length of the Draw Period
Select the duration of the HELOC’s first phase, during which you can actively withdraw funds and may only need to pay interest on what you borrow. The maximum draw period would be 10 years.
Step 4: Select Your Repayment Period
Enter the number of years (typically 10 to 20) that you want to have to pay back the borrowed funds, plus interest. The longer this time period the less monthly payments will be, but the more interest you will likely pay over the life of the HELOC.
Step 5: Review Your Results
Carefully examine the estimated monthly payment amounts during the draw and repayment phase.
What Is a Home Equity Line of Credit?
A home equity line of credit allows homeowners to borrow funds as needed, up to a credit line. A HELOC is secured by the value of your property. Unlike traditional installment products — such as a home loan or a personal loan — which provide a lump sum, this product functions more like a credit card with a very high credit limit. It allows you to borrow, repay what you owe, and then borrow again as long as you are in the draw phase.
The “revolving” nature of the credit line is its most distinct advantage. For a homeowner in Vermont facing a multi-stage project, such as a major renovation, this flexibility can be useful. You do not have to pay interest on the full credit limit from the outset; you only pay for the funds you have actually withdrawn. A HELOC interest-only calculator can give you the payment info for that first phase only.
Once the draw period ends, the product enters the repayment period, which could last up to 20 years. At this point, you can no longer withdraw any more money. The lender then calculates a new monthly payment that includes both the interest and the principal. Vermont homeowners can use a HELOC repayment calculator to prepare for this transition, to ensure the new, larger payment fits their budget.
Because your home serves as the collateral, a HELOC is a second mortgage. This allows lenders to offer lower interest rates than you would typically find with unsecured credit cards or a personal line of credit. But it also means that the stakes are high. If a homeowner is unable to maintain the payment schedule, the lender may foreclose.
Recommended: HELOC vs. Home Equity Loan
Home Equity Trends in Vermont
The climate is especially good for homeowners in Vermont, where home equity lending is concerned, thanks to a significant increase in equity over the five years ending in 2025. Average home equity has increased by 75% as of 2025, and the average owner is now sitting on more than $223,000 in equity. HELOC borrowers with a good credit history are often allowed to borrow up to 90% of their equity, which for the Vermont average owner would be $200,000.
As you can see from the graphic, the increase in Vermont is part of a larger U.S. trend in equity increases. Louisiana is the only U.S. state to experience a decline in average equity between 2020 and 2025.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
The data generated by a HELOC calculator is helpful in budgeting. But before you draw a single dollar from the credit line, it’s helpful to think about how you might use the numbers generated by the calculator. Here are some ideas:
Try out different scenarios: Try putting in different HELOC balance numbers or repayment terms and use the estimated monthly payment numbers you generate to make decisions based on these scenarios. Maybe you’re choosing between two contractors with different costs for a kitchen job. Put both estimates in as the HELOC balance and see if the difference in the monthly payment is a factor in your decisionmaking.
Get inspired to pay down the principal: You likely won’t be required to pay down the principal in the draw phase, but you can use the calculator to see what monthly payments might be on different balance amounts and let that inspire you to chip away at the principal before you enter the repayment phase. Trimming $10,000 from your $50,000 HELOC balance, for example, might help you feel more comfortable heading into repayment.
Compute high-interest estimates: HELOCs have a variable interest rate, as we have noted. The HELOC agreement will spell out how often your rate can change and by how much. Use that information to determine how high the rate might conceivably go in the repayment phase. Put that number into the calculator to see if you can handle it.
Recommended: Different Types of Home Equity Loans
Tips on HELOCs
Managing HELOCs requires a proactive approach to personal finance. Here are some things you can do to help ensure a good experience:
• Shop around: Lenders can offer different interest rates and have different fees and policies. Before you decide on a lender, compare options from multiple institutions, including banks, credit unions, and online lenders. Use the HELOC payment calculator to run the numbers on each option.
• Make a repayment plan: It can be easy to fall into the habit of using the HELOC for short-term wants or lifestyle purchases, but this is a risky practice. Before you draw funds, have a clear plan for how you will repay what you borrow.
• Understand the fees: Be aware of the full cost of the loan. Some HELOCs have closing costs or annual maintenance fees, inactivity fees might be triggered if you don’t use the line of credit, and there could be early termination penalties if you close the account within a certain timeframe.
• Prepare for the repayment period: One of the biggest financial shocks for HELOC borrowers is the transition from the draw period to the repayment period. If you have been making interest-only payments, your monthly debt will increase significantly when principal payments are added. Plan for this.
Recommended: What is a Home Equity Loan
Alternatives to HELOCs
While a home equity line of credit is a versatile tool, it is not the ideal fit for every financial situation. Whether you’re feeling iffy about a HELOC or just want to cover all your bases, consider these other options:
Home Equity Loan
A home equity loan, like a HELOC, is a second mortgage, with your home securing the loan. The key difference is that this product provides a lump sum of cash all at once and you immediately begin repaying the loan with monthly principal-plus-interest payments. Home equity loans usually have a fixed interest rate, making it a predictable choice for those who want to avoid the fluctuations of a variable rate. A home equity loan calculator can help you estimate the payments.
Home Improvement Loan
A home improvement loan is usually unsecured, meaning your house is not at stake. Because of this, however, interest rates are usually higher than they would be on a HELOC or home equity loan. However, the approval process is often faster as you won’t need a home appraisal. Home improvement loans are generally lump-sum loans repaid, with interest, over a term of between three and 10 years. This is a good fit for those with smaller projects who don’t want to use their home as collateral and like the idea of predictable monthly payments.
Personal Line of Credit
A personal line of credit functions similarly to a HELOC in that the user can borrow and repay funds as needed. The key difference is that this credit line is usually unsecured. This means the credit limits are often lower, and the borrowing costs may be higher. This product is best for those who need ongoing access to smaller amounts of cash and have strong credit history but do not want to involve their home equity in the transaction. If you are thinking about selling your home fairly soon, for example, a personal line of credit could be a good fit.
Cash-Out Refinance
This type of mortgage refinance involves replacing the primary mortgage with a completely new, larger mortgage. The homeowner receives the difference between the two in cash. Monthly loan payments, including principal and interest, begin immediately. Because it’s a completely new loan, you can choose a fixed or variable interest rate. Borrowing money in this way can help you secure a lower overall interest rate because the loan is secured by your home. But if current interest rates are higher than the rate on your original home loan, this might not be a cost-efficient strategy.
When you compare a cash-out refinance vs. a home equity line of credit, note that a refinance delivers a lump-sum loan, while a HELOC allows you to borrow funds as needed and only pay interest on the amount you currently owe.
The Takeaway
Using a free HELOC calculator can help you understand the costs of borrowing and make important decisions regarding the amount you might borrow and the length of your repayment term. You’ll quickly see the impact a HELOC could have on your monthly budget. If a HELOC feels like the right step for you, you can use the calculator to assess the interest rates offered by different lenders.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
How much can I borrow with a HELOC?
Lenders may allow you to access up to 90% percent of your home equity with a HELOC. They often have an internal maximum as well — an amount they will not exceed regardless of the homeowner’s equity amount.
What can I use the money for from a HELOC?
Money from a HELOC can be used for any purpose. Borrowers might pay off high-cost debt, make property renovations, or cover medical expenses. Some homeowners like to have the credit line as a safety net in case an unexpected expense crops up. Because the debt is secured by your residence, it’s key to watch your mounting debt number and use a HELOC payment calculator to plan for the repayment phase.
What happens when the draw period ends?
When the draw period on a HELOC finishes, you stop withdrawing funds. You enter the repayment phase, where you must make regular monthly payments covering both the principal and the borrowing cost, often over 20 years.
What is the benefit of having a variable interest rate?
A variable interest rate may start below the rate on a fixed-rate borrowing option. And if market conditions cause benchmark rates to decrease, your monthly carry cost for the balance may even go down, providing potential savings.
Learn more about home equity line of credits:
SoFi Loan Products Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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Free Utah HELOC Payment Calculator
Utah HELOC Calculator
By SoFi Editors | Updated January 23, 2026
A Utah HELOC calculator helps homeowners estimate how much equity they may be able to borrow and what their potential payments could look like. By entering basic details like your HELOC balance, interest rate, and lengths of your draw and repayment periods, you can quickly see what your monthly payments will be.
Keep reading to learn exactly how to use the Utah HELOC calculator, home equity trends in Utah, alternatives to HELOCs, and more.
- Key Points
- • A home equity line of credit is a form of secured financing that utilizes the residence of the borrower as collateral for the funds.
- • Financing of this type generally occurs in two distinct phases: an initial window for accessing funds and a final window for full repayment.
- • During the draw period, borrowers are often only required to make payments on the interest of the funds they have used.
- • The repayment period marks the phase where the borrower must pay back both the original amount used and the associated costs over a set timeframe.
- • To use the Utah HELOC calculator, you’ll enter in the HELOC balance, interest rate, length of the draw period, and length of the repayment period.
Calculator Definitions
• HELOC Balance: This figure represents the total amount of funds a homeowner has currently withdrawn and is actively using from their approved credit limit.
• Current Interest Rate: This value refers to the variable percentage cost applied to the funds a borrower has chosen to access from their credit line.
• Draw Period: The draw period is the initial window of time, frequently lasting 10 years, during which a homeowner is permitted to withdraw funds from their credit line.
• Repayment Period: This phase begins once the window for accessing funds closes, marking the time when the borrower must pay back the used funds along with the cost of that credit.
• Monthly Interest Payment: This is the smallest amount a borrower must pay during the initial phase, calculated solely on the amount of credit they have accessed.
• Monthly Principal and Interest Payment: This figure combines the repayment of the used funds and the ongoing cost of the credit into one required payment during the final phase of the agreement.
The Utah HELOC calculator estimates monthly payments during both the draw period and the repayment period. Here’s a step-by-step guide on how to use it:
Step 1: Enter Your Planned or Actual HELOC Balance
Users should consult their most recent statement to find the current balance. Entering this number allows the tool to determine how much of the credit line is already in use and how that balance will translate into future monthly obligations. If you don’t currently have a HELOC, you can enter in the amount you plan to borrow.
Step 2: Estimate Your Interest Rate
Use the current rate from your lender or an average HELOC rate as a starting point. It’s also smart to test higher rates to see how future rate increases could affect your budget, since most HELOCs have variable interest rates.
Step 3: Choose the Length of Your Draw Period
The user must indicate how many years remain to access the funds. Choosing this duration correctly changes the timeline of the financing and helps the user see when the payment structure will shift. Most standard agreements provide a 10-year window, but some variations exist depending on the specific lender terms.
Step 4: Specify Your Repayment Period
This selection defines the length of time the homeowner has to pay back the full amount used, typically 10-20 years. This timeframe is the basis for the schedule of payments for both the used funds and the cost of the credit. A longer repayment period may lower monthly payments but will increase the total cost of borrowing over the life of the agreement.
Step 5: Review Your Results
Once all data is entered, the user should examine the projected monthly obligations. This step allows a beginner to determine if future payments will fit within a household budget and helps prevent surprises when the repayment phase begins.
What Is a Home Equity Line of Credit?
A home equity line of credit serves as a resource for property owners who wish to access the equity built within their homes. For those living in areas like Utah, home equity represents the portion of the property value owned outright. It is calculated by taking the current market value of the house and subtracting any remaining home loans. This equity acts as security, allowing the homeowner to open a revolving line of credit.
Unlike a home equity loan that provides a single disbursement, a HELOC provides ongoing access to funds. It functions similarly to a credit card because it is revolving. A borrower is approved for a maximum limit and can withdraw money as needed, pay it back, and then withdraw it again.
There are two primary phases to this financial product: the draw period and the repayment period.
• The draw period typically lasts about 10 years. During this time, the homeowner has the flexibility to use the funds for various needs, such as home additions, education costs, or medical expenses. In many cases, the required monthly payments during this window are limited to the interest on the amount used. Use a HELOC interest-only calculator to see what payments would be based on your balance. Once the draw period ends, the repayment period begins.
• The repayment period often lasts up to 20 years. During repayment, the borrower can no longer access funds and must make monthly payments that cover both the principal balance and the interest. Use a HELOC repayment calculator to see what those payments might be.
What Is a HELOC Calculator?
A HELOC calculator is a digital tool that lets homeowners project monthly payments for a home equity line of credit using details like the loan amount, interest rate, and repayment timeline. It helps borrowers understand potential costs and decide whether a HELOC fits their budget before moving forward.
Recommended: How to Get Equity Out of Your Home
Home Equity Trends in Utah
Home equity has grown significantly over the past several years, driven by rising home values and strong demand across the housing market. From 2020 to 2025, average home equity increased 142% nationwide, adding roughly $11.5 trillion in value. This surge has strengthened household balance sheets and expanded homeowners’ access to equity-based financing options such as HELOCs and home equity loans.
Utah has followed this upward trend, though at a more moderate pace than the national average. Over the same period, Utah homeowners experienced a 67% increase in home equity, with the average homeowner holding about $224,566 in equity as of 2025. The five cities in Utah that saw the highest appreciation over the past five years were Payson, Woodland Hills, Spanish Fork, Mapleton, and Elk Ridge.
This growth reflects the state’s strong population growth, resilient housing market, and long-term appreciation, positioning many Utah homeowners with substantial financial flexibility.
Here’s a look at how equity has risen nationwide between 2020 and 2025.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
A HELOC calculator can do more than estimate monthly payments — it can help you make smarter borrowing decisions before you apply. By adjusting key inputs and reviewing different scenarios, you can use the data to understand affordability, prepare for rate changes, and choose terms that align with your financial goals.
• Test multiple interest rates: Model higher rates to see how payment increases could affect your budget over time.
• Compare draw and repayment periods: Evaluate how different timelines impact monthly payments depending on the period you’re in.
• Set borrowing limits: Identify a comfortable balance that meets your needs without overextending your finances.
• Plan for future cash flow: Use payment estimates to ensure your income can support the loan during repayment.
• Strengthen lender discussions: Arrive prepared with clear numbers when comparing HELOC offers or negotiating terms.
Tips on HELOCs
A home equity line of credit can be a flexible financing tool, but it works best when used strategically. Understanding how HELOCs function and what to watch for can help you borrow confidently and avoid costly surprises.
• Know how variable rates work: Most HELOCs have variable interest rates, so payments can rise if market rates increase.
• Borrow only what you need: Drawing smaller amounts helps keep interest costs and monthly payments manageable.
• Understand the draw and repayment periods: Payments may be interest-only at first, then increase once repayment begins.
• Plan for rate changes: Build room into your budget in case interest rates climb over time.
• Compare lenders carefully: Review rates, fees, and terms to find a HELOC that fits your financial goals.
Alternatives to HELOCs
A HELOC is just one tool in a broad set of financial products. Depending on specific goals, other options may be more suitable. Choosing the right product depends on whether a person needs a lump sum of cash or a revolving line of credit, and whether they are willing to use their home as collateral. Alternatives to a HELOC include:
Home Equity Loan
A home equity loan is sometimes called a “second mortgage.” It provides the borrower with a lump sum of cash all at once. The repayment schedule is fixed, meaning the monthly payments remain the same throughout the life of the loan. This predictability is helpful for those who have a specific, one-time expense and want a stable budget. Unlike a HELOC, there is no draw period; the borrower begins paying back both principal and interest immediately.
A home equity loan calculator can help you compare the cost of this product to that of a HELOC.
Recommended: Different Types of Home Equity Loans
Home Improvement Loan
A home improvement loan is often a personal financing option used for specific renovation projects. Unlike a HELOC, these are frequently unsecured, meaning the home is not used as collateral. This reduces the risk to the property but often results in a higher interest cost for the borrower compared to secured options. These are ideal for homeowners who do not have sufficient equity or who prefer not to place a second lien on their residence.
Personal Line of Credit
A personal line of credit is an unsecured revolving credit option. Like a HELOC, it allows for flexible spending and repayment. However, because it does not use the home as security, the interest costs are typically higher and the borrowing limits are usually lower, often capped around $50,000.
Cash-Out Refinance
In a cash-out mortgage refinance, the homeowner replaces the primary mortgage with a new, larger one. The difference between the old mortgage and the new one is given to the homeowner in cash.
When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance results in a single monthly payment rather than two. It can be a strategic move if current market interest rates are lower than the rate on the original mortgage. However, it requires paying new closing costs on the entire value of the home, which are often higher than the fees associated with a simple line of credit.
The Takeaway
A Utah HELOC calculator helps you better understand how borrowing against your home equity may affect your monthly budget and long-term finances. By testing different rates, balances, and repayment scenarios, you can make more informed decisions, plan for potential rate changes, and choose a HELOC that aligns with your financial goals.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
What is the difference between a HELOC and a home equity loan?
A HELOC is a revolving line of credit where funds can be borrowed and repaid as needed during a draw period. A home equity loan is a second mortgage that provides a single lump sum of cash up front. HELOCs usually feature variable costs, while home equity loans typically have fixed repayment schedules and stable monthly payments from the start.
How much can I borrow with a HELOC?
Most lenders allow a borrower to access up to 90% of the equity in the home. The specific limit depends on credit history, income, and the amount of equity built in the property. Lenders typically require the homeowner to have at least 15% equity to qualify, though.
What can I use the money for from a HELOC?
Funds from a HELOC are highly flexible and can be used for almost any purpose. Common uses include major home renovations, medical bills, education expenses, or consolidating high-interest debt from sources like credit cards.
What happens when the draw period ends?
When the draw period ends, the ability to withdraw funds from the credit line is terminated. The borrower enters the repayment phase, making regular monthly payments that cover both the principal balance and the cost of the credit. This phase typically lasts 10 to 20 years until the debt is fully satisfied.
Are there closing costs or fees for a HELOC?
Yes, HELOCs can have closing costs similar to a mortgage, often ranging from 2% to 5% of the credit limit. Some lenders may waive these fees if the line remains open for a set period. Borrowers should also be aware of potential annual maintenance or inactivity fees.
Learn more about home equity line of credits:
SoFi Loan Products Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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Free Texas HELOC Loan Payment Calculator
Texas HELOC Calculator
By SoFi Editors | Updated January 29, 2026
Texas homeowners who have built up a nice amount of equity in their home may find it useful to use a Texas HELOC calculator to explore the costs of borrowing with a home equity line of credit (HELOC). A HELOC can convert accumulated equity value into a flexible financial resource.
But it’s important to be prepared for the two phases of a HELOC, draw and repayment. This guide will help you use the calculator for best results, and along the way it will ensure that you understand what is a home equity line of credit and how it works before you start borrowing.
- Key Points
- • A home equity line of credit is a revolving credit line, allowing borrowers to withdraw, repay, and re-access funds as needed during a specified timeframe.
- • Texas borrowers can typically access up to 90% of their equity with a HELOC.
- • A HELOC payment calculator can show you estimates of monthly payments during the first and second phases of a HELOC.
- • During the initial phase, many lenders allow for monthly payments that cover only the interest costs associated with the amount actually withdrawn.
- • This financing product is secured by the borrower’s home, meaning the property is subject to foreclosure in the event of default.
Calculator Definitions
• HELOC Balance: If you’re thinking about borrowing with a HELOC, the balance is the amount you think you would like to borrow. If you already have a HELOC, the balance is the amount of your credit line you have used.
• Current Interest Rate: A HELOC lender charges borrowers interest, expressed as a percentage of the borrowed amount. If you have a HELOC, your current rate can be found in your account statement. If you are thinking about getting a HELOC, it’s a good idea to obtain rates from multiple lenders.
• Draw Period: The draw period is the initial timeframe, commonly five to 10 years, during which the borrower can access funds up to their established credit limit. In this stage, the monthly payment is often limited to the interest costs and no repayment of the principal is required.
• Repayment Period: This phase begins once the draw period concludes. HELOC users will stop borrowing funds and begin making regular payments that cover both principal and interest.
• Monthly Interest Payment: This is the amount due each month during the draw period.
• Monthly Principal and Interest Payment: During the repayment period, the principal and interest will both be included in the homeowner’s monthly payments.
How to Use the Texas HELOC Calculator
Using a free HELOC calculator is easy. Follow these steps for best results:
Step 1: Enter Your Planned or Actual HELOC Balance
Record the amount you have withdrawn from your HELOC or the total amount of the credit line you intend to utilize, keeping in mind you may not need to use the full credit line.
Step 2: Estimate Your Interest Rate
Identify the rate currently associated with the HELOC, or use a projected rate if you are interested in how costs may change as the HELOC’s rate adjusts.
Step 3: Choose the Length of the Draw Period
Input the number of years you want to have access to the credit line (10 years is standard). The repayment phase begins when the draw period ends.
Step 4: Select Your Repayment Period
Select the number of years you would like to have to pay back the principal, which could be up to 20 years. A longer timeframe will result in lower monthly payments but will likely increase the total interest costs over the life of the HELOC.
Step 5: Review Your Results
Carefully analyze the payment estimates for both the draw and repayment phases. This allows you to determine if the projected monthly obligations align with your household budget and larger financial objectives.
What Is a Home Equity Line of Credit?
If experimenting with the calculator piques your interest in a HELOC it’s a good idea to take a step back to make sure you fully understand what a HELOC is before diving into the application process.
HELOCs have two phases. The draw phase, as noted above, can be up to 10 years and during this time you likely won’t have to repay any of what you borrow — you can just pay interest. A HELOC interest-only calculator can show you what you might owe, or just use this HELOC calculator which will estimate monthly payments at both phases.
The second HELOC stage is the repayment period, which usually lasts for 10 or 20 years. Once this phase starts, the line of credit is closed to further withdrawals, and the borrower must begin paying down the principal along with interest. HELOCs have variable interest rates, so you can expect your rate to change periodically. It might rise or fall. A HELOC repayment calculator can show you what monthly payments would be at various rates at this stage.
It’s important to understand that a HELOC is technically a second mortgage (assuming you haven’t finished paying off your first home loan). Because your property is at stake if you fail to make payments on the HELOC, borrowing in this way requires a disciplined approach to use and repayment of the credit line.
Lenders look at your credit history when they decide whether or not to qualify you for a HELOC. In addition to having 15% equity in your home, you’ll need a credit score of at least 640. Some lenders prefer 680.
Recommended: Different Types of Home Equity Loans
Home Equity Trends in Texas
If you’re thinking about how to get equity out of your home in Texas, you are likely not alone. The average Texas homeowner has seen moderately strong equity growth over the past five years and is now sitting on more than $63,000 in equity. If a lender allowed borrowing at 90% of this equity, the average homeowner could have a credit line of $56,000. This equity growth is part of a larger national trend, as shown in the graphic.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use HELOC Calculator Data to Your Advantage
Employing the data from a Texas HELOC calculator involves more than simply asking yourself, “Can I afford these monthly payments?” There are other ways to use the data:
You can create “what-if” scenarios: Homeowners considering a HELOC can input different HELOC balances, interest rates, or repayment terms to see how each of these things will affect their monthly payment. This lets you see what a high or low monthly payment would be based on different interest rates. This is useful given that HELOC interest rates can shift over time.
You can consider debt-consolidation strategies: If you’re carrying balances on high-interest credit cards, you can add up the monthly payment amounts on your cards and compare that to the monthly payment you would have if you used a HELOC to pay off all that you owe at once. There’s a good chance your monthly payment with a HELOC would be lower than the sum of what you’re currently paying. And it would be one payment instead of multiple payments.
You can get motivated to make extra payments: Thinking about how payments will increase during the repayment phase can help prompt borrowers to pay down some of their HELOC balance during the draw phase so that they enter repayment with a smaller amount due.
Tips on HELOCs
As you’ve probably deduced by now, having a HELOC is a little more complicated than getting a personal loan or using a credit card. But used with care, it can be a very cost-efficient way to borrow large sums. Smart HELOC users know these expert tips:
• Cultivate good credit. As noted above, you’ll need a score of at least 640 — and possibly 680 — to obtain a HELOC. But the lowest interest rates generally go to those with a score of 700 or better. To nudge your score in the right direction, make all payments on time. Avoid closing old credit accounts or opening new ones in the months before you apply for a HELOC. And don’t max out all your credit cards.
• Shop around. Compare interest rate offers and HELOC terms from multiple lenders to find your best offer. Look for a competitive interest rate and low fees, as well as a repayment term and monthly payments that fit your budget. (Use the free HELOC calculator to compute monthly payments for each rate.)
• Set some ground rules. Once you have a HELOC it can be tempting to use it to pay for every little thing, particularly since the monthly payments can be fairly low during the draw phase. But little charges do add up, and you can enter the repayment phase with a large monthly bill. Determine some limits for yourself so that you only use the HELOC for certain types of expenses, particularly if you’ve had trouble managing credit in the past.
Recommended: HELOC vs. Home Equity Loan
Alternatives to HELOCs
While a revolving line of credit offers significant flexibility, other financing may be more appropriate depending on whether a borrower requires a lump sum or prefers to avoid using their real estate as collateral. As you’re examining the options, start by understanding what is a home equity loan.
Home Equity Loan
Often confused with a HELOC, a home equity loan, like a HELOC, involves using your home as collateral. It is critically different in three ways: The funds are disbursed all at once, the interest rate is typically fixed, and repayment of both principal and interest begins immediately. This makes it a better choice for those who know the exact cost of a project upfront and prefer the stability of a fixed monthly payment amount. If you want to test the waters and see what payments might be like with this option, use a home equity loan calculator.
Home Improvement Loan
A home improvement loan is a type of personal loan and is typically unsecured. It provides a lump sum of cash. Unlike a HELOC, it features a fixed interest rate and a predictable schedule of equal monthly payments. In that way, it is more similar to a home equity loan. But because a home improvement loan is unsecured, the interest rate is generally higher than that of a HELOC or home equity loan.
Personal Line of Credit
A personal line of credit allows borrowers to access funds as needed, like a HELOC does, but without using the home as collateral. While opting for a personal line of credit protects the home from the risk of foreclosure, the interest rates are generally higher, and the credit limits are typically lower because the lender has no physical asset to secure the debt.
Cash-Out Refinance
A cash-out mortgage refinance involves replacing your existing primary mortgage with an entirely new, larger mortgage. You would receive the difference between the new mortgage and the old balance in cash. This is attractive, but a refinance is likely a smart move only if current market interest rates are lower than the rate on your original mortgage. A refi would also involve new closing costs, typically 2% to 5% of the loan amount.
As you consider a cash-out refinance vs. home equity line of credit, it’s important to realize that a refi consolidates your debt into a single monthly payment.
The Takeaway
A Texas HELOC calculator can allow residents sitting on a comfortable amount of home equity to enter the borrowing process with a clear understanding of their potential limits and future obligations. By illustrating the costs associated with the draw and repayment phases, calculators help homeowners anticipate the long-term impact of leveraging their property. If the costs seem manageable, the next step is to seek out prospective lenders and learn more about interest rates.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
How much can I borrow with a HELOC?
The amount you can borrow depends on the equity in your home. Lenders may allow you to borrow up to 90% of your equity. (Your equity is your home’s estimated value minus your outstanding mortgage balance.) The final credit limit is also influenced by factors such as your credit score, income, and overall debt.
What can I use the money for from a HELOC?
Funds from a HELOC can be used for just about any purpose. Common uses include home renovations, debt consolidation, funding education, or covering major unexpected costs like medical bills. Some homeowners use HELOC funds to invest in a business, but this is a decision that requires careful consideration. Not all businesses ventures are profitable and if the investment doesn’t pay off and you can’t make your HELOC payments, you risk losing your home.
Is a HELOC interest rate fixed or variable?
Most HELOCs feature a variable rate that fluctuates based on a benchmark index like the prime rate. This means that your monthly borrowing costs can change over time as economic conditions shift. The HELOC agreement will spell out how often the rate can change and by how much.
Is the interest on a HELOC tax-deductible?
The costs associated with this financing may be tax-deductible if you itemize. Consult a tax professional for specific guidance as tax rules can change from year to year.
Learn more about home equity line of credits:
SoFi Loan Products Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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Free Tennessee HELOC Payment Calculator
Tennessee HELOC Calculator
By SoFi Editors | Updated January 23, 2026
A home equity line of credit (HELOC) can be a flexible way for Tennessee homeowners to tap into the equity they’ve built in their homes. A Tennessee HELOC calculator estimates monthly payments during both the draw period and repayment period. The calculator allows you to explore different borrowing scenarios and make more informed decisions about using your home equity responsibly.
Keep reading to learn exactly how to use the Tennessee HELOC calculator, home equity trends in Tennessee, and alternatives to explore.
- Key Points
- • A home equity line of credit provides a revolving credit limit based on the portion of the home value owned outright.
- • Lenders typically allow homeowners to access up to 90% of their equity, depending on creditworthiness and debt-to-income ratios.
- • The financing structure consists of an initial draw period, often lasting 10 years, followed by a structured repayment phase of up to 20 years.
- • Interest is typically charged only on the specific amount withdrawn from the credit line rather than the entire approved limit.
- • A HELOC calculator estimates monthly payments, allowing you to see if a HELOC fits within your budget before speaking with a lender.
Calculator Definitions
• HELOC Balance: This represents the specific amount of money a homeowner has currently withdrawn and spent from the available credit limit.
• Current Interest Rate: This is the variable percentage charged on the borrowed balance, which moves in response to broader economic shifts.
• Draw Period: This is the initial phase, typically 10 years, where funds are accessible and borrowers often make interest-only payments.
• Repayment Period: This is the subsequent phase, typically lasting 20 years, where the balance must be paid back with interest and the ability to withdraw funds ceases.
• Monthly Interest Payment: This is the cost of borrowing the current balance during the draw phase, excluding any payments toward the principal.
• Monthly Principal and Interest Payment: This is the combined amount required once the repayment phase begins, ensuring the debt is settled by the end of the term.
How to Use the Tennessee HELOC Calculator
The Tennessee HELOC calculator estimates monthly payments during the draw period and repayment period. Here’s a step-by-step guide on how to use it:
Step 1: Enter Your Planned or Actual HELOC Balance
The foundation of every projection starts with the current or projected balance. For those already utilizing a credit line, this represents the active debt accruing interest. For those in the planning stages, this input represents the anticipated cost of a project or need.
Step 2: Estimate Your Interest Rate
Enter the current rate provided by the lender or the current average of HELOCs. It’s also important to run models using rates that are two or three percentage points higher. This acts as a stress test for the household budget, since most HELOCs come with variable rates that may increase over time.
Step 3: Choose the Length of Your Draw Period
Defining the duration of the draw period helps in understanding the window of time available for accessing capital. This phase is usually 10 years, but some agreements may vary.
Step 4: Specify Your Repayment Period
The repayment period, often spanning 20 years, determines the pace at which the principal balance and interest must be retired. A longer term may lower the monthly requirement but will increase the total interest paid over the life of the product.
Step 5: Review Your Results
The final step involves a comprehensive analysis of the generated projections. A homeowner should evaluate the monthly principal and interest payment to ensure it remains manageable within their future budget.
What Is a Home Equity Line of Credit?
A home equity line of credit functions as a revolving credit tool that is secured by the homeowner’s primary residence. Equity is defined as the difference between the current market value of the property and the outstanding balance of any existing home loan or liens.
This product is distinct from lump-sum financing options, such as home equity loans, because it provides ongoing access to capital rather than a single payout. As the principal balance is paid down, the available credit is replenished, allowing the homeowner to use the funds repeatedly during the draw period.
The structure of this financing is divided into two distinct phases: the draw period and the repayment period.
• During the draw period, the borrower has the freedom to withdraw funds as needed, up to the approved limit. In many cases, the monthly requirement is restricted to interest-only payments, which can keep costs low while a project is underway. Use a HELOC interest-only calculator to see what payments would be based on your balance.
• Once the draw period concludes, the product enters the repayment phase. At this point, the ability to withdraw additional funds is terminated, and the borrower must begin paying back both the principal and the interest. This phase often lasts between 10 and 20 years. Because the payments now include principal, the monthly obligation can increase significantly. Use a HELOC repayment calculator to see what those payments might be.
What Is a HELOC Calculator?
A HELOC calculator is an online tool that helps homeowners estimate potential payments for a home equity line of credit based on factors like balance, interest rate, draw period, and repayment term. It provides a clearer picture of affordability and long-term borrowing costs before applying.
Recommended: How to Get Equity Out of Your Home
Home Equity Trends in Tennessee
The landscape of home equity in Tennessee has been shaped by steady property value growth and shifting market conditions. In Middle Tennessee, specifically in growing counties where demand remains high, property appraisals have seen consistent increases. This growth directly translates into higher levels of equity for local homeowners.
From 2020 to 2025, average home equity increased 142% nationwide, adding up to roughly $11.5 trillion in value. In Tennessee, homeowners saw a 105% increase in equity over the same period, with the average homeowner holding approximately $112,723 in equity as of 2025. This growth reflects rising home values and a strong housing market in the state. Knoxville and Chattanooga are the top two cities in Tennessee that have seen the most growth since 2019.
Here’s a look at how equity has risen nationwide between 2020 and 2025.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
A HELOC calculator gives you insight into how borrowing against your home equity could affect your finances over time. By analyzing the results carefully, you can make more strategic decisions about how much to borrow, when to access funds, and how to manage repayment without putting unnecessary strain on your budget.
• Set realistic borrowing limits: Use the calculator to determine a comfortable payment range rather than borrowing the maximum amount offered. This helps prevent overleveraging your home and keeps monthly obligations manageable.
• Test interest rate sensitivity: Adjust the interest rate upward to see how future market changes could impact your payments. This prepares you for potential rate increases and helps you decide whether a HELOC fits your risk tolerance.
• Plan cash flow during both phases: Review payment estimates for the draw and repayment periods separately. Understanding how payments may change later allows you to plan ahead for higher monthly costs.
• Compare financing options: Use calculator results to compare a HELOC with a home equity loan or personal loan. Seeing differences in payments and total interest can clarify which option best suits your needs.
Tips on HELOCs
Proactive management is a necessary factor in successfully utilizing a credit line. Because this product is secured by your home, the stakes are high, and a disciplined approach to borrowing and repayment is required to protect your property. Below are some tips to keep in mind:
• Shop around. Compare options from multiple lenders to find your best offer. Look for a competitive interest rate and low fees, as well as a repayment term and monthly payments that fit your budget.
• Consider making principal payments during the draw period even if they are not required. This reduces the balance you will have to pay back later and saves on total interest.
• Stay informed with rates. Since rates are variable, staying informed helps you anticipate when your monthly payment might increase.
• Maintain a healthy credit score to ensure you can qualify for the best refinancing options or rate locks if they are offered by your lender.
• Keep a clear record of how the funds are used. If the funds are used to build or substantially improve the home that secures the credit line, the interest paid may be tax-deductible.
• Avoid using the credit line for small, everyday purchases. Treat it as a strategic tool for major expenses or wealth-building opportunities.
• Be aware of fees. Check for any annual fees, inactivity fees, or early closure fees in your agreement to avoid unexpected costs.
Recommended: ***What Is a Home Equity Line of Credit?
Alternatives to HELOCs
Exploring multiple financing paths is a sound strategic move because every homeowner has a different financial profile and different goals. While a revolving credit line offers high flexibility, other products might provide more stability or better suit a specific type of project. Here are four other options to consider:
Home Equity Loan
A home equity loan is a second mortgage that provides a fixed-rate, lump-sum payout. Unlike a revolving line, you receive all the funds at once and begin repaying the principal and interest immediately. This is a strong option for individuals who have a specific, one-time expense and prefer the security of consistent monthly payments that never change over the life of the financing. A home equity loan calculator can help you compare the cost of this product to that of a HELOC.
Recommended: Different Types of Home Equity Loans
Home Improvement Loan
A home improvement loan is typically an unsecured financing option, meaning it does not require your home to be used as collateral. This can be an attractive choice for specific projects where the homeowner wants to avoid the risk of foreclosure associated with secured products. These often come with fixed interest rates and a set repayment term, providing predictability for a specific renovation budget. While the interest rates may be higher than equity-based products, the lack of a lien on the property reduces the overall risk to the home.
Personal Line of Credit
A personal line of credit is a revolving option that is not tied to the home. Much like a HELOC, it allows for flexible withdrawals, and interest is only charged on the amount used. However, because it is unsecured, the interest rates are generally higher, and the credit limits may be lower than those available through equity-based products.
Cash-Out Refinance
A cash-out mortgage refinance involves replacing your primary mortgage with a completely new one for a higher amount than what you currently owe. The difference is paid out to you in cash. This can be beneficial if current market interest rates are lower than the rate on your existing mortgage, as it allows you to consolidate your debt into a single monthly payment. However, it requires paying new closing costs and resets the timeline of your primary mortgage.
Recommended: Cash-Out Refinance vs Home Equity Line of Credit
The Takeaway
Success with a home equity line of credit in Tennessee depends on having a clear repayment plan and the foresight to handle market fluctuations. The data provided by a HELOC calculator acts as a guide, helping you decide when to borrow and how to pay back the funds most efficiently. You can see if this fits within your budget before committing to the line of credit.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
What is the difference between a HELOC and a home equity loan?
A HELOC is a revolving credit line with a variable interest rate that allows you to withdraw and repay funds multiple times. In contrast, a home equity loan provides a single lump sum of cash with a fixed interest rate and set monthly payments from the start. Both are secured by your property, but the HELOC offers more flexibility while the home equity loan offers more predictability.
How much can I borrow with a HELOC?
Lenders typically allow you to borrow up to 90% of the equity in your home. To qualify, though, you need to have at least 15% equity.
What can I use the money for from a HELOC?
Funds from a credit line are flexible and can be used for a wide range of needs. Common uses include major home renovations, consolidating high-interest credit card debt, paying for education, or covering significant medical expenses.
What happens when the draw period ends?
When the draw period ends, you can no longer withdraw money from the credit line. You enter the repayment period, during which you must pay back the borrowed principal plus interest over a set number of years, usually 10 to 20. This phase typically results in a significant increase in your monthly payment because you are no longer making interest-only payments and must now settle the full balance.
What is the minimum credit score I need to qualify for a HELOC?
Most financial institutions require a credit score of at least 640 to qualify for a credit line (some require 680). However, to access the most competitive interest rates and higher credit limits, lenders typically prefer a score of 700 or higher. Lenders also evaluate your debt-to-income ratio and employment history to ensure you have the financial capacity to manage the additional monthly obligations.
Learn more about home equity line of credits:
SoFi Loan Products Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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Free South Dakota HELOC Payment Calculator
South Dakota HELOC Calculator
By SoFi Editors | Updated January 23, 2026
Tapping into your home’s equity is a significant financial step that needs careful planning. Before you apply for a home equity line of credit, use the South Dakota calculator to see your estimated monthly payments. This guide offers basic information including definitions, housing trends, tips, financing alternatives, and clear step-by-step instructions on how to use the calculator. Use this knowledge to make a confident decision on whether a HELOC is right for your budget and goals.
- Key Points
- • A home equity line of credit (HELOC) is a revolving line of credit that allows you to use your home as collateral to secure funds toward a major project or expense.
- • There are two payment periods to be aware of: the draw period and repayment period.
- • Most HELOCs feature variable interest rates, meaning your monthly payments can change over time based on broader economic conditions.
- • To qualify, lenders generally require that homeowners have a minimum of 15% equity in their home.
- • Qualified borrowers may be able to access up to 90% of their home equity.
Calculator Definitions
• HELOC Balance: This term represents the total amount of money a borrower has currently withdrawn from their available credit line, or the amount a homeowner plans to borrow.
• Current Interest Rate: This is the rate at which interest accumulates on your outstanding HELOC balance.
• Draw Period: This is the specific time frame—often between 5 and 10 years—during which you can access funds from your HELOC, up to your approved credit limit.
• Repayment Period: This is the second phase—often 20 years—when the homeowner must pay back the full balance through combined principal and interest payments.
• Monthly Interest Payment: This is the monthly cost of borrowing funds based on the outstanding balance and the current variable interest rate. It does not contribute to reducing the original amount used.
• Monthly Principal and Interest Payment: This is the amount you’ll be required to pay monthly during the repayment period. Use the South Dakota HELOC payment calculator to get estimates since your exact payment amount will be based on current rates.
How to Use the South Dakota HELOC Calculator
Follow these easy instructions to use the South Dakota HELOC payment calculator most effectively.
Step 1: Enter Your Planned or Actual HELOC Balance
Start with the total amount you plan to borrow from the line of credit.
Step 2: Estimate Your Interest Rate
Now, enter your desired annual interest rate. The rate can be from a prospective lender or an estimate based on your research.
Step 3: Choose the Length of the Draw Period
The draw period timeframe is typically five to 10 years.
Step 4: Select Your Repayment Period
The repayment period timeframe is typically 10 to 20 years.
Step 5: Review Your Results
Analyze the results by looking closely at the potential monthly payments during both the draw and repayment periods.
Now that you are familiar with how to use the South Dakota calculator, let’s explore what is a home equity line of credit.
What Is a Home Equity Line of Credit?
A home equity line of credit, known as a HELOC, is a revolving line of credit that is secured by the equity in your home. Because your home serves as collateral, lenders typically offer more competitive interest rates compared to unsecured options like credit cards or personal loans. This also means that you risk foreclosure if you fail to make payments.
As you learn how a HELOC works, keep in mind that your home equity is the difference between your home’s current market value and the outstanding balance on your home loan and any other loans you might have where your home is used as collateral. The interest rate is usually variable (unlike a standard home equity loan, which usually offers a fixed interest rate) so it’s helpful to keep an eye on market movements and trends, like the U.S. Prime Rate.
There are two phases to the HELOC. First is the draw period, which is typically five to 10 years. This is when you can withdraw funds as needed, up to your approved credit limit. You are often required to make payments only on the interest that accrues on your outstanding balance. Our HELOC interest-only calculator can help you assess what your payment amounts for the draw period may be.
Then you begin the repayment period, usually 10 to 20 years, when your required monthly payments will increase significantly to cover both the principal balance and the interest. During this phase, you can use a HELOC repayment calculator to help you out.
If you are a South Dakota homeowner who has built up equity in your property, then you will want to use these tools to help you understand how to get equity out of your home.
Recommended: HELOC vs. Home Equity Loan
Home Equity Trends in South Dakota
With a HELOC, and with some of the different types of home equity loans, the amount of equity a homeowner possesses is the key to borrowing power. The housing market plays a role in influencing your home equity so it’s helpful to keep an eye on housing trends.
Thanks to a nationwide surge in home equity since 2020 (see chart), homeowners across the U.S., including those in South Dakota, have benefited from rising home prices. During that period, South Dakota saw a 99% increase in equity. In fact, the average South Dakota homeowner has around $156,000 in home equity.
Since lenders typically require that a homeowner maintain at least 15% equity to qualify for a HELOC, and you can borrow up to 90% of equity, many homeowners find themselves sitting on a substantial amount of tappable equity.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
The South Dakota HELOC payment calculator allows you to experiment with different loan scenarios, budget effectively, and prepare for productive conversations with lenders. Follow these steps to get the most out of the calculator:
• Explore the estimates: One of the key functions of the South Dakota payment calculator is its ability to model scenarios. Since HELOC rates can shift over time, experiment with different HELOC balances, interest rates, or repayment terms to see how each of these figures affects the monthly payment.
• Evaluate debt consolidation: If you’re managing high-interest credit card debt, you can add up the monthly payment amounts on your cards and compare that to the monthly payment you would have if you used a HELOC to pay off all that you owe at once. There’s a good chance your monthly payment with a HELOC would be lower than the sum of what you’re currently paying. And it would be one payment instead of multiple payments.
• Approach lender conversations more confidently: Use the South Dakota calculator ahead of time to run estimates and gain a clear understanding of your borrowing capacity. That way you can enter lender negotiations with more realistic expectations.
Tips on HELOCs
Here are some tips that apply to HELOCs:
- Strengthen your credit score: Lenders typically require a credit score of at least 640.
- Shop around with different lenders: Don’t commit right away. Instead, compare annual fees, inactivity fees, and prepayment penalties from a variety of lenders.
- Prepare and plan a budget: With the transition between the two HELOC phases (the draw period and repayment period), you’ll see your monthly payments increase from interest-only to principal-and-interest.
- Consider the risks: A HELOC uses your home as collateral. This means that the lender could foreclose on your home if you fail to make payments.
Alternatives to HELOCs
Even if you are confident that a HELOC is appropriate for your budget and goals, it’s a good idea to be aware of alternatives before making a final decision. Here are some options:
Home Equity Loan
For a single, fixed-cost project, a home equity loan is a good choice because it provides the homeowner with a one-time, lump-sum disbursement secured by their home’s equity. The home equity loan typically has a fixed interest rate, which makes for consistent and predictable monthly payments. Use a home equity loan calculator to compare the cost of a home equity loan versus a HELOC.
Recommended: What Is a Home Equity Loan?
Home Improvement Loan
A home improvement loan is a personal loan designed to be used for renovations and repairs. It is similar to a home equity loan with fixed installments and predictable payments, but it is unsecured (it does not use your home as collateral), which typically results in a higher interest rate.
Personal Line of Credit
A personal line of credit (PLOC) is a revolving line of credit that is not secured by collateral. It functions similarly to a HELOC in that you can draw and repay funds as needed. Because it is unsecured, the PLOC holds less risk (because your home isn’t on the line) but usually means a higher interest rate. To qualify, a lender will look at your financial picture including your credit score and income; your home equity doesn’t play a role.
Cash-Out Refinance
When a homeowner takes out a cash-out mortgage refinance, they replace their primary mortgage with a new, larger mortgage. This process pays off the original mortgage debt, and the homeowner receives the remaining balance as cash. This move can be beneficial if current interest rates are significantly lower than the rate on the primary mortgage.
As you consider a cash-out refinance vs. home equity line of credit or home equity loan, a key difference is that the refinance consolidates all home debt into a single payment.
The Takeaway
South Dakota homeowners can use the HELOC payment calculator as a strategic first step when considering tapping into their home equity. Our online tool provides monthly payment estimates, giving the homeowner a clear idea of their borrowing power. Run scenarios with different borrowed amounts, interest rates, and repayment terms to find the right mix for your budget and goals.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
How much can I borrow with a HELOC?
Lenders typically allow you to borrow up to 90% of your equity. The exact amount you can borrow will depend on the equity in your home. (Your equity is equal to your home’s estimated value minus your outstanding mortgage balance.)
What can I use the money for from a HELOC?
Homeowners can put HELOC funds toward almost any purpose, including home renovations, debt consolidation, or educational expenses.
Is the interest on a HELOC tax-deductible?
The interest on a HELOC may be tax-deductible. Always consult a professional tax advisor.
What is the minimum credit score I need to qualify for a HELOC?
You will need to show a 640 credit score or higher. Some lenders require at least a 680 credit score. You may be able to land more favorable terms and interest rates by having a credit score in the 700s.
Learn more about home equity line of credits:
SoFi Loan Products Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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