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Sep
06
2025

Current HELOC Rates in Chicago, IL Today

By | mortgage | Comments Off on Current HELOC Rates in Chicago, IL Today

CHICAGO HELOC RATES TODAY

Current HELOC rates in

Chicago, IL.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare HELOC rates in Chicago.

Key Points

•  A home equity line of credit, known by the acronym HELOC, is a revolving line of credit secured by your home equity, that you can draw on as you need it.

•  A HELOC can be useful for managing a large or ongoing expense, including a home remodel or college tuition, or for paying off higher-interest debt.

•  The rates lenders advertise for HELOCs are tied to the prime rate, as well as to individual borrowers’ credit scores and scenarios.

•  HELOCs tend to have variable rates, which means that monthly payments can fluctuate over the life of the line of credit.

•  It’s important to understand the risks: If you default on a HELOC, it can lead to foreclosure on your home.

Introduction to HELOC Rates

You’ve found our comprehensive guide to home equity line of credit (HELOC) interest rates in Chicago, Illinois, which can help you make well-informed financial decisions about how to get equity out of your home, whether you are thinking about borrowing funds for a home renovation or paying for another significant expense. The following information will cover factors that influence interest rates on HELOCs, and the benefits and risks of opening one. We will also equip you with an understanding of current market conditions, and tell you how you can find and qualify for the best available interest rates.

What Is a HELOC?

Before you begin making decisions about borrowing, you’ll want to understand just what a home equity line of credit is. A HELOC is a credit line that a homeowner can set up to draw on their home equity. It will let you borrow against your accrued equity as needed, up to a limit set by your lender. With a HELOC, you must pay interest on the money you pull out, along with repaying the principal. Your home is the collateral securing your credit line. This, of course, means that if you don’t repay what you borrow, you could face foreclosure.

What is your home equity? It’s the difference between your home’s value and your mortgage balance. To qualify for a HELOC, you typically need to have at least 15% equity, and you can generally borrow up to 90% of the equity you’ve accrued. HELOC interest rates are variable, which means they often start out lower than rates on unsecured loans.

As a borrower, your HELOC would have two main phases:

The Draw Period

During the initial draw period (usually 10 years) of your HELOC, you can access funds by drawing on an as-need basis. During this time, you’ll likely only pay interest on what you pull out. Most lenders will not require you to pay down the principal, although you can if you wish to pay off the credit line and draw on it again. A HELOC interest-only calculator can be useful during the draw period, as it will tell you the monthly interest you’ll pay on withdrawals.

The Repayment Period

After the draw period ends, your 10- to 20-year repayment period will begin. Monthly payments will increase at this point, because you’ll begin to repay the principal along with the interest. Since HELOC interest rates tend to be variable, the amount you pay monthly may go up or down as time passes and rates change. A HELOC monthly payment calculator can help you compute what you might need to budget for payments.

Where Do HELOC Interest Rates Come From?

Lenders derive interest rates for HELOCs and different types of home equity loans from the prime rate — a figure that moves up or down with the Federal Reserve’s economic maneuvers. Lenders also tack on a margin, and that is why rates can vary widely in the marketplace. The national average interest rate for a HELOC in early September 2025 was 8.10%, but rates have historically ranged from 6.63% to 15.65%.

Getting rate quotes from multiple lenders is a smart thing to do before you apply for a HELOC. Your individual financial profile, including your credit score, level of debt, and the amount of equity you’ve built up in your home, will influence the interest rate you’ll be offered. A higher credit score and more equity are likely to tip the scales in your favor.

How Interest Rates Impact HELOC Affordability

You will need to invest time and energy to effectively shop around to get the best HELOC interest rate. But that should make a big difference in the end in terms of what you’ll end up paying. Even a small reduction in interest rate, if you can find one, will mean you pay less interest over the life of the HELOC. For example, if you were to withdraw $50,000 from a HELOC during your 10-year draw period, the difference in the interest you’d pay monthly based on an 8.50% versus a 9.50% rate is $42 per month (your monthly payment would be $354 or $396, respectively).

If you repay principal plus interest on that $50,000 during a 20-year repayment period, monthly payments at the lower interest rate would be $620. At the higher rate, they would be $647. That may not seem like such a large difference, but think about this: Over the full repayment term, the lower interest rate could save you more than $3,000. Remember, HELOCs have variable interest rates, so the real numbers could end up crunching somewhat differently.

Check out this chart comparing HELOCs at different credit line amounts, terms, and interest rates.

Repayment Amount Term Interest Rate Monthly Payment Total Interest Paid
$100,000 20 years 8.00% $836 $100,746
7.00% $775 $86,072
10 years 8.00% $1,213 $45,593
7.00% $1,161 $39,330
$50,000 20 years 8.00% $418 $50,373
7.00% $388 $43,036
10 years 8.00% $607 $22,797
7.00% $581 $19,665
$25,000 20 years 8.00% $209 $25,186
7.00% $194 $21,518
10 years 8.00% $303 $11,398
7.00% $290 $9,833

HELOC Interest Rate Trends

While it’s not a sole predictor when you’re looking at HELOC rates, the prime interest rate can be a helpful gauge when you’re doing rate research. The prime rate has bounced up and down since 2018, for example — it hit a low of 3.25% back in 2020 and a high of 8.50% in 2023. Knowledge of this history will give you perspective on current rates lenders are offering in Chicago.

Date U.S. Rate
9/19/2024 8.00%
7/27/2023 8.50%
5/4/2023 8.25%
3/23/2023 8.00%
2/2/2023 7.75%
12/15/2022 7.50%
11/3/2022 7.00%
9/22/2022 6.25%
7/28/2022 5.50%
6/16/2022 4.75%
5/5/2022 4.00%
3/17/2022 3.50%
3/16/2020 3.25%
3/4/2020 4.25%
10/31/2019 4.75%
9/19/2019 5.00%
8/1/2019 5.25%
12/20/2018 5.5%
9/27/2018 5.25%

Source: U.S. Federal Reserve


Variable vs. Fixed Interest Rates

We know that HELOCs most often come with variable rates, also known as adjustable rates. These rates tend to go up or down over time, based on market conditions. They move at intervals and may be limited by caps that the HELOC agreement should spell out. But overall, the interest amount you pay may change along with the market, and you’ll want to be aware that your HELOC will be subject to possible interest rate changes before you sign up. You may prefer a steady monthly payment, and if that’s the case, a home equity loan might be preferable for you. Keep reading for an explanation of how those work.

Helpful Tools and Calculators

If you’re thinking about jumping on a HELOC offer, it’s a good idea to first estimate what costs it will involve. Online tools can help you do this. Here are a few particularly useful ones.

Run the numbers on your HELOC.

Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.

How to Qualify for a Competitive HELOC Rate

If you want to secure a desirable HELOC rate, start by taking a look at your personal numbers. Most important here will be your credit score, your debt-to-income (DTI) ratio, and your level of home equity. Lenders expect you to have at least 15% equity in your home, and it can’t hurt to have more. Here are some tips to help you ensure your finances pass muster before you submit your application.

Improve Your Credit Score

Maintaining a credit score of 700 or above is a key to unlocking the very best HELOC rates. You can ratchet your number higher by paying your bills on time and chipping away at any credit card balances you’ve been accumulating. Review your credit reports regularly for inaccuracies. By disputing and removing errors, you can be sure your score reflects your real financial stability.

Calculate Your Debt-to-Income Ratio (DTI)

Knowing your debt-to-income ratio requires only a simple calculation: Divide your total monthly payments (debts you’re paying off) by your gross monthly income. Most HELOC lenders want you to have a DTI under 50% to qualify. If you want to be eligible for the best HELOC interest rates in the Chicago area, you’ll do better to get your DTI below 36%. Paying down debt (or growing your earnings) are the surest ways to a better DTI.

Application Process for a HELOC in Chicago

If you’d like a quick snapshot of the HELOC rates available in Chicago, along with an estimate of the amount you could qualify for, you can prequalify online. After investigating lenders and rates available to you locally, you can decide if you want to move on to the full application. It will require detailed financial information and property specifics. Here is a step-by-step for the process:

Step 1: Run the Numbers

Before you start working on your HELOC application, it’s advisable to take a very close look at your financial profile. Check your credit score, not at just one but at all three major credit bureaus. You’ll likely need at least a 640 credit score to qualify. Calculate your DTI ratio and your home equity, and understand that the latter will grow as long as you make regular payments on your home loan and take efforts to increase your home’s value (think: curb appeal).

Once again, you can figure out your unofficial home equity percentage by subtracting your outstanding mortgage balance from your home’s estimated value and dividing the answer by that home value number. A formal appraisal may shift that approximate percentage a bit. You definitely need at least 15% equity to proceed.

Step 2: Compare Lenders

Want to find the best HELOC lenders in Chicago? Start by seeing which ones offer the most competitive rates and terms. Look at each institution’s interest rates and qualification criteria, the minimum and maximum amounts they will let you borrow, fees, and their draw and repayment period timespans. HELOC terms vary a lot among lenders, so don’t rush past the fine print.

Step 3: Submit Your Application

Gather the necessary documentation, which will include government-issued ID, recent pay stubs, W-2 forms, and your most recent tax return. If you’re self-employed, a lender may ask you for both a profit-and-loss statement and your tax returns from the last two years. Paperwork related to your property will include the declaration page from your homeowners insurance policy. You can most likely submit your HELOC application online, over the phone, or in person.

Step 4: Get an Appraisal

A home appraisal is a professional, objective analysis to determine your home’s value. It typically costs around $300 to $600 to get one. If your property appraises for $425,000, for example, and that’s more than your mortgage’s current balance, a lender will have more incentive to approve you for a HELOC. That makes this an important step that can help you determine how much equity you can potentially access. It will also influence your HELOC agreement’s terms. Remember, prospective lenders will tell you what kind of appraisal you require, so wait for instructions after you submit the application.

Step 5: Prepare for Closing

Once you’re approved for your HELOC, but before you can access funds from your credit line, you’ll have to sign your agreement and pay your closing costs. Some lenders will make the funds available to you immediately after your closing; others may require you to wait a few days before you can draw on your credit line.

Closing Costs and Fees

A HELOC typically involves lower closing costs than a home mortgage loan or a cash-out refi. The greatest expense tends to be the fee for the appraisal, but other line items include a title search, and application, origination, and administrative fees. Some lenders charge annual maintenance fees that can be up to $250 per year. Lenders sometimes offer to reduce or waive closing costs, but keep in mind that it’s often in exchange for a higher interest rate.

Recommended: HELOC vs. Home Equity Loan

Tax Benefits and Considerations

At this point, homeowners may tax-deduct HELOC interest if the funds they borrow go towards making significant improvements on the primary residence. This policy may change, however, so talk to a tax advisor, be sure deductions apply to your specific circumstances, and keep your invoices and receipts.

Alternatives to HELOCs

You can get equity out of your home with financial tools other than a HELOC, including a home equity loan or a cash-out refinance. Before you decide on a HELOC, you’ll want to consider all of your options — another popular choice is a personal loan.

Home Equity Loan

What is a home equity loan? It’s an option that gives the borrower a lump-sum loan at a fixed interest rate. You can typically use it to borrow up to 85% of your accrued home equity. Home equity lenders look for a credit score of 680 or higher, generally, and many would like your score to be 700 or above if you want their best rate.

If you have a specific need for a defined amount of money and you prefer fixed monthly payments that are predictable over the life of the loan, this might be an attractive option. A home equity loan calculator can help you predict the maximum loan amount you’ll qualify for.

Cash-Out Refinance

This is another option that will let you borrow more than you currently owe on your mortgage, and then collect the extra funds in cash. A cash-out mortgage refinance with a fixed or variable rate is likely open to you if your credit score is 620 or more and your DTI ratio is under 43%.

What is the actual difference between a cash-out refinance vs. home equity line of credit? The refinance option will require just one monthly payment, while with a HELOC you’ll have a mortgage payment and a credit line payment monthly.

Personal Loan

One up-front advantage of a personal loan is that you don’t risk foreclosure if you find yourself unable to make payments, since this option is typically unsecured. Borrowers repay these loans in regular, fixed installments over two- to seven-year periods. Lenders look for borrowers’ credit scores to be 610 or higher for these loans. They are pretty speedy to get — another advantage. But personal loans almost always carry higher interest rates than those on HELOCs.


The Takeaway

If you’re considering applying for a HELOC in Chicago, start by weighing both the potential benefits and the possible risks you’ll take on by activating one. A HELOC offers financial flexibility, It can come with more attractive interest rates than other options, making it a well-suited borrowing choice to manage a large, ongoing expense. But it also brings the risk of foreclosure on your home should you default. Always realistically assess your financial situation before taking out a line of credit. You’ll need a credit score of at least 640 to qualify, and you should look at multiple lenders’ rates if you think a HELOC is the right pick for you.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.

View your rate


FAQ

Is a HELOC a wise move at this point?

A HELOC could be a good move for you if you’re looking for flexibility to access funds in increments for big expenses, and you feel comfortable signing up for a loan with a variable interest rate — especially if a prime rate drop is in the forecast. But if set payments better suit you, the stability of a home equity loan with a fixed interest rate might be a better choice.

What would the monthly payment on a $100,000 HELOC?

It will depend on your interest rate, repayment terms, and what portion of the credit line you use upfront. The payment on a $100,000 HELOC, if you need to borrow the full amount and you have an 8.00% rate, might be around $667 per month in interest during the draw period. During the repayment phase, your monthly payment would rise to more than $1,200 because you’d start paying down the principal, too. HELOCs’ variable interest rates mean your payments will vary.

Do you need an appraisal to get a HELOC?

Yes, you will need a home appraisal if you want to open a home equity line of credit. You’ll want to wait for your potential lender for instruction, so you know how your home should be appraised in order to meet their terms. This appraisal is necessary to help the lender determine your home’s market value right now, a number that will impact the amount you will be approved to borrow.

Will a HELOC have an impact on your credit score?

Opening a HELOC will involve a hard inquiry on your credit report, and yes, that can cause a slight, temporary dip in your credit score. But if you manage the HELOC responsibly, it can build your credit score down the line. (Missing payments, on the other hand, will definitely make you less creditworthy.)

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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.


¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.


†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.


SOHL-Q225-392

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Sep
06
2025

Current HELOC Rates in Tucson, AZ Today

By | mortgage | Comments Off on Current HELOC Rates in Tucson, AZ Today

TUCSON HELOC RATES TODAY

Current HELOC rates in

Tucson, AZ.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare HELOC rates in Tucson.

Key Points

•   The home equity line of credit (HELOC) interest rates offered by lenders in Tucson are influenced by the prime rate and overall economic conditions, with the borrower’s financial profile also playing a role.

•   HELOCs offer a flexible way to pull equity from your home; you only pay interest on the funds you use via the credit line.

•   Generally, a HELOC has a variable interest rate. This can lead to unpredictability, since your rate, and future monthly payments, can go up or down.

•   You’ll generally need to have at least 15% equity in your home and a credit score of 640 or better to qualify for a HELOC, and you’ll have to meet other qualifying factors as well.

•   If you default on your HELOC, a foreclosure on your home is a possible consequence.

Introduction to HELOC Rates

This guide to HELOC interest rates brings together all the information you need if you are a homeowner wanting to know how to get equity out of your home in Tucson, Arizona.

If you have been working to pay down your home loan month-to-month and accumulating significant equity in your residence, you may be wondering if a home equity line of credit is the key to paying for an update to your living space, investing in your child’s (or your) educational goals, or consolidating higher-interest debt. Our guide will help you find resources and equip you to make well-informed choices, filling you in on the factors that sway home equity loan rates, these financial tools’ advantages and potential pitfalls, and the secrets to finding favorable lenders and terms for your HELOC.

Just what is a home equity line of credit, anyway? Read on to find out exactly what a HELOC is, what it can do for you, and how to determine if it is the right choice for you.

What Is a HELOC?

A HELOC is a revolving credit line that will allow you to tap into equity you’ve built in your home. Because it is a line of credit, you can use a HELOC to borrow the money you need in increments — up to a maximum amount your lender sets, but only as you need the cash.

You will typically need to have accumulated 15% or more equity to qualify, and you should be able to borrow up to 90% of the equity you’ve got. As a homeowner, you will want to have a repayment plan. Missing HELOC payments will put your home at risk for foreclosure.

A HELOC has two phases:

The Draw Period

In the initial draw period, often lasting 10 years, you’ll be able to access HELOC funds in increments, as you have a need for them. During this phase, you will have to pay interest on the money you borrow to your lender, but most likely you’ll be able to wait till later to start paying down the principal. You will need to do that if you max out the credit line and want to draw on it again. A HELOC interest-only calculator is a useful tool to help you compute just what you’ll have to pay during this phase.

The Repayment Period

When you reach the end of the draw period, a repayment period of 10 to 20 years will begin. More than likely, your monthly payments will increase now. This is because you’ll start paying off not only the interest accruing on the credit you’ve used, but the principal, too. HELOC interest rates tend to be variable, or adjustable, and that means that your rate may change, and your monthly payment amount could rise or fall along with it. During this phase, a HELOC monthly payment calculator can help you predict how interest rate fluctuations might influence the payments you’ll have to make each month.

How Do Lenders Determine HELOC Interest Rates?

Lenders tend to set HELOC interest rates, along with those for different types of home equity loans, by looking at the prime rate. This key interest rate is at least somewhat influenced by the Federal Reserve and its policies. Lenders may add their own margins to the prime rate when determining the interest rates they’ll offer, and they always consider a borrower’s credit score, debt-to-income (DTI) ratio, income, and accrued home equity. That is why lenders offer unique, varying rates. It’s also why it’s a smart idea to look for quotes from multiple lenders before you take out a HELOC.

How Interest Rates Impact HELOC Affordability

What can appear to be a small difference between two lenders’ HELOC rates can make a big difference in the cost of your home equity line of credit in the long run. Your rate on a $50,000 HELOC with a term of 20 years, for example, may differ from another borrower’s by one insignificant-seeming percentage point, from 7.00% to 8.00%. If you got the higher rate, your monthly payment would be about $30 more than if you had the lower one — and the total interest you’d pay over the HELOC’s life would be nearly $7,000 more.

Keep in mind, the more you borrow with a HELOC, the greater effect you will see from even a slight interest rate increase or decrease. Even a fraction of a percentage point can affect the big picture, so you need to keep an eye on what comes after the decimal point.

Check out this chart comparing HELOCs at different credit limits, terms and interest rates.

Repayment Amount Term Interest Rate Monthly Payment Total Interest Paid
$100,000 20 years 8.00% $836 $100,746
7.00% $775 $86,072
10 years 8.00% $1,213 $45,593
7.00% $1,161 $39,330
$50,000 20 years 8.00% $418 $50,373
7.00% $388 $43,036
10 years 8.00% $607 $22,797
7.00% $581 $19,665
$25,000 20 years 8.00% $209 $25,186
7.00% $194 $21,518
10 years 8.00% $303 $11,398
7.00% $290 $9,833

HELOC Interest Rate Trends

If you can keep an eye on the prime interest rate, it will benefit you, since this fluctuating number may successfully clue you in on the direction HELOC rates will be heading. The prime rate has seen significant ups and downs since 2018 — it hit a 3.25% low in 2020 and a high of 8.50% in 2023.

If you can understand this key rate’s historical patterns, you’ll gain a helpful perspective in considering lenders’ rates. Many borrowers try to time their HELOC applications to coincide with a rate dip, but it’s difficult to do, and other, possibly more effective strategies are out there to help you increase the chances you’ll get the best rate available. Let’s discuss those below.

Date U.S. Rate
9/19/2024 8.00%
7/27/2023 8.50%
5/4/2023 8.25%
3/23/2023 8.00%
2/2/2023 7.75%
12/15/2022 7.50%
11/3/2022 7.00%
9/22/2022 6.25%
7/28/2022 5.50%
6/16/2022 4.75%
5/5/2022 4.00%
3/17/2022 3.50%
3/16/2020 3.25%
3/4/2020 4.25%
10/31/2019 4.75%
9/19/2019 5.00%
8/1/2019 5.25%
12/20/2018 5.5%
9/27/2018 5.25%

Source: U.S. Federal Reserve


Adjustable vs. Fixed Interest Rates

If you decide to move forward with a HELOC, you’ll want to look at lender offers for starting rates, but also for specifics like how often a rate may change, and if it will likely be capped at some point. A HELOC might be just the right choice for you, if you can handle a bit of financial uncertainty from time to time.

Helpful Tools and Calculators

Before obtaining a HELOC, you will want to check out online tools and try using them to estimate your costs. Here are some useful ones to try out if you think you want to borrow against your home equity.

Run the numbers on your HELOC.

Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.

How Can a Homeowner Qualify for a Competitive HELOC Rate?

Trying to grab the best HELOC rate out there? Your credit score, debt-to-income (DTI) ratio, and level of home equity will be important factors in the equation. Lenders will typically look for you to have built up at least 15% equity in your home — although more will be even better. Follow these tips and you can ensure your finances are up to par before starting your application.

Improve Your Credit Score

Keep your credit score at 700 or better. This is key to unlocking the top HELOC rates. You can slowly but surely nudge your number up by paying your bills on time and paying down, or off, your credit card balances. Be sure to review your credit report, too — you may discover inaccuracies. If you dispute and resolve errors, you can ensure that your score truly reflects your level of financial responsibility.

Calculate Your Debt-to-Income Ratio (DTI)

Completing a simple equation will give you your DTI ratio: Divide your total monthly debt payments by your gross monthly income. Most HELOC lenders want to see a DTI under 50%. But if you want to qualify for Tucson’s best interest rates on HELOCs, you’ll want to try to get yours down below 36%. Try to pay down debt you’re carrying, or increase your earnings — either way, you’ll enhance your financial profile.

Applying for a HELOC in Tucson

By making the effort to get prequalified online, you’ll get a preview of the HELOC rates available to you in Tucson, plus an estimated credit line amount you may qualify for. You can scope out the various lenders and rates before moving on to complete the full application, which requires a lot more financial details and specific property information.

Step 1: Run the Numbers

Before you apply for a HELOC, take a detailed look at your finances. Go over your credit scores from all three major credit bureaus. Crunch the numbers to find your debt-to-income (DTI) ratio. Next, calculate your home equity level — and keep in mind that it will grow as you make your monthly mortgage payments, improve your property, or enjoy home values going up in the area where you live. To find out about how much equity you have, take your outstanding mortgage balance and subtract it from your home’s estimated value, then divide the answer by that estimated home value figure. The percentage you’ll arrive at is that magic number. As we’ve noted, you’ll need 15% equity or more if you want to move forward on a HELOC.

Step 2: Compare Lenders

To find Tucson’s best HELOC lenders, and the right match for you, compare them closely. You want to determine which offer the best interest rates and terms, not only by looking at advertised rates, but by reading the qualification requirements, the minimum and maximum amounts you may borrow, the draw and repayment periods, and various fees, all of which will probably vary among lenders. Spending some time shopping around can reveal a lot. And reading the fine print regarding terms and other details is an important step before committing.

Step 3: Submit Your Application

You’ll need to gather your paperwork, including a government-issued ID, stubs from recent paychecks, W-2 forms, and copies of your last tax return. Lenders may ask to see a profit-and-loss statement, in addition to two years’ of tax returns, if you are self-employed. In addition, you’ll need to provide property documentation, including a homeowners insurance declaration page. You can often submit a HELOC application online, by phone, or in person.

Step 4: Get an Appraisal

What is an appraisal? It’s the analysis of an objective professional that documents your home’s value. A home appraisal typically costs between $300 and $600. You’ll need the appraisal result to exceed your current mortgage balance in order to be approved by a HELOC lender — an important step that helps determine how much equity you can potentially access. Lenders also use appraisal results when they determine your HELOC agreement’s specific terms.

Step 5: Prepare to Close

Once you’ve attained approval, but before you’ll be able to access HELOC funds, you will need to sign your HELOC agreement. You’ll also have to settle your line of credit’s closing costs. Ask about all fees; you should know every cost involved before closing on your HELOC. Some lenders make funds available right after closing, but with others there may be a wait.

Closing Costs and Fees

HELOCs usually involve lower closing costs than home mortgage loans or cash-out refis. The biggest expense tends to be for the appraisal. You may be required to pay for that appraisal, plus a title search, an origination fee, and other administrative fees. Some lenders charge annual maintenance fees that could be up to $250 per year. Note: A lender might offer to reduce or waive closing costs, but that can be in exchange for a higher interest rate (not necessarily a good deal, even if it makes closing easier).

Recommended: HELOC vs. Home Equity Loan

Tax Benefits and Considerations

Homeowners are allowed by the IRS to deduct HELOC interest, currently in cases where they use the funds borrowed to make significant improvements on their primary residence. This policy could change, though. Talk to a tax advisor to be sure deductions apply to your circumstances, and save every invoice and receipt.

HELOC Alternatives

You have options other than a HELOC for getting equity out of your home. These include a home equity loan or a cash-out refinancing, in addition to a personal loan. All the choices have plusses and minuses, depending on your situation. Before you decide on a HELOC, consider every option.

Home Equity Loan

What is a home equity loan? It offers a borrower a loan at a fixed interest rate, and in the form of a lump sum. You can typically use a home equity loan to borrow up to 85% of the home equity you’ve accrued. Lenders tend to look for a credit score of 680 or higher, and many would like your score to top 700 if you want their best rate.

This is a great option if you have a specific need for a defined amount of money, and if you prefer a fixed monthly payment that stays the same over the life of the loan. You can use a home equity loan calculator to determine the maximum loan amount you should qualify for.

Cash-Out Refinance

Another option is a cash-out mortgage refinance, which will let you borrow more than you currently owe on your mortgage and collect the extra funds in cash. If your credit score is 620 or above and your DTI ratio is less than 43%, this option should be open to you. You choose between a fixed or variable rate.

What’s the actual difference between a cash-out refinance vs. home equity line of credit? The refinance option requires only one monthly payment, while with a HELOC you’ll have two: one for your mortgage, and one for the credit line.

Personal Loan

If you choose this option, you won’t risk foreclosure if you find yourself unable to make a payment. A personal loan is typically unsecured, so your home doesn’t serve as collateral. Borrowers typically repay personal loans in fixed installments over a term of two to seven years. Lenders will probably look for your credit score to be 610 or higher with this pick, which is relatively speedy to secure, but also tends to carry a higher interest rate than a HELOC.


The Takeaway

If you’re considering a HELOC in Tucson, weigh both the potential benefits and the possible risks you’ll be taking on. HELOCs offer financial flexibility and may carry more attractive interest rates than other options, making them an attractive borrowing choice if you’re managing large, ongoing expenses. But they come with risks, too — especially the one of losing your home should you default. Realistically assess your financial situation before you take out a loan. You’ll likely need a credit score of 640 or up to qualify. Look at multiple lenders’ rates if you think a HELOC is right for you.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.

View your rate


FAQ

Is a HELOC a wise move at this point?

If you want flexibility to access funds in increments for big expenses, and you feel comfortable with the idea of a variable interest rate, a HELOC could be a good move for you — especially if you are seeing forecasts of a drop for the prime rate. But if the stability of fixed payments feels like a better fit for you, a home equity loan might be your better choice.

What would the monthly payment be on a $100,000 HELOC?

It would depend on the interest rate, repayment terms, and how much of the credit line you use upfront, but if you borrow the full $100,000 and have an 8.00% rate, the payment on a $100,000 HELOC would be around $667 each month, for interest in the draw period. During the repayment phase, the payment would go up, since you’d start paying down the principal. It would rise to more than $1,200. And since HELOCs have variable interest rates, a shifting rate could impact your payment, too.

Do you need an appraisal to get a HELOC?

Yes, you do. You will need a home appraisal to obtain a home equity line of credit, but your best bet is to wait for instructions from your potential lender — you want your home to be appraised in accordance with that institution’s terms. An appraisal helps a lender determine your home’s current market value, and will influence the amount the lender will approve you to borrow.

Will a HELOC impact your credit score?

When you open a HELOC, it will involve a hard inquiry on your credit report. This can cause a slight, temporary credit score dip. But when you manage your HELOC responsibly, it can also positively impact your credit score down the line. (Missing payments, on the other hand, will make you appear less creditworthy in the future.)

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.


¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.


†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOHL-Q225-400

Browse other Arizona home guides.

Browse HELOC rates by state guides.

More HELOC resources.

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Read more
Sep
06
2025

Current HELOC Rates in Boston, MA Today

By | mortgage | Comments Off on Current HELOC Rates in Boston, MA Today

BOSTON HELOC RATES TODAY

Current HELOC rates in

Boston, MA.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare HELOC rates in Boston.

Key Point

•   Home equity line of credit rates in Boston are influenced by the prime rate and market conditions.

•   HELOCs offer a revolving line of credit, with interest charged only on the amount you actually use.

•   To secure the best rates, a credit score of 700 or higher and a debt-to-income ratio under 36% are goals to aim for.

•   You can use your HELOC for a variety of purposes, from home improvements to debt consolidation to major expenses.

•   Understanding the draw and repayment periods is important for managing HELOC payments effectively.

Introduction to HELOC Rates

Welcome to your comprehensive guide home equity line of credit rates in Boston. Whether you’re a seasoned borrower or just starting out on this journey, this guide is designed to help you understand the current market conditions and how to qualify for the best rates. You’ll learn about the factors that influence HELOC rates, the benefits and risks of HELOCs, and how to use online tools to estimate monthly payments. Whether you’re planning a renovation or need funds for other financial goals, this guide will equip you with the knowledge to make informed decisions about accessing your home equity.

What Exactly Is a HELOC?

A HELOC is a financial tool that leverages your home equity as collateral. Your equity is the difference between the current value of your home and the balance of your home loan. To qualify, homeowners typically need to have at least 15% equity. With a HELOC, you can borrow up to 90% of that equity, although it’s important to note that if you fail to repay what you owe, the lender could foreclose on your home. This credit line has two phases, with a different payment structure in each phase:

The Draw Period

This phase can last up to 10 years and is an important distinction between a HELOC vs. a home equity loan. During the draw period, you only have to pay interest on the amount of the credit line you’ve borrowed. (With a home equity loan, you get a lump sum and start repaying principal plus interest immediately.) A HELOC interest-only calculator lets you see what you might owe.

The Repayment Period

After the draw period comes the 10- to 20-year repayment period when you stop borrowing and start repaying what you owe, plus interest. This is when a HELOC monthly payment calculator might be useful, because HELOCs have variable interest rates that can change with market conditions. This means your monthly payment won’t always be the same.

The Origin of HELOC Interest Rates

Lenders set HELOC rates based on the prime rate, which is influenced by Federal Reserve policies. Each lender adds a margin to the prime rate to determine the final HELOC rate. The margin can vary from one lender to the next, which is why rates can differ — and why it’s so important to shop around and get rate quotes from multiple lenders. Lenders also consider factors such as your credit score, debt-to-income ratio (DTI), income, and the amount of equity in your home when they determine the rate you’ll be offered.

How Interest Rates Impact HELOC Affordability

The interest rate on your HELOC plays a major role in its affordability. Even a small difference in the rate can have a big impact on how much interest you’ll pay, so it makes sense to try to get the lowest possible rate from the outset of your HELOC. Let’s say you borrowed $100,000 with a HELOC and entered your 20-year repayment phase with an interest rate of 7.00%. You would pay a total of $86,072 in interest if the rate held steady. But if you instead had a rate of 8.00%, you would pay $100,746 — more than $14,000 in additional interest charges. HELOCs’ variable rates mean your exact results may differ, but a lower interest rate is generally a better one.

HELOC Interest Rate Trends

While no one can tell you with certainty where interest rates are headed, keeping an eye on the prime interest rate can offer a glimpse into the future of HELOC rates in Boston. The prime rate hit a low of 3.25% in 2020 and a recent high of 8.50% in 2023. Having a sense of this range and the history of the rate can give you a sense of where variable rates might go as well and hint at whether the rates you’re currently seeing are relatively low or high.

Date U.S. Rate
9/19/2024 8.00%
7/27/2023 8.50%
5/4/2023 8.25%
3/23/2023 8.00%
2/2/2023 7.75%
12/15/2022 7.50%
11/3/2022 7.00%
9/22/2022 6.25%
7/28/2022 5.50%
6/16/2022 4.75%
5/5/2022 4.00%
3/17/2022 3.50%
3/16/2020 3.25%
3/4/2020 4.25%
10/31/2019 4.75%
9/19/2019 5.00%
8/1/2019 5.25%
12/20/2018 5.5%
9/27/2018 5.25%

Source: U.S. Federal Reserve


Variable vs. Fixed Interest Rates

HELOCs usually come with adjustable (also called variable) interest rates, which means they can change over the life of the loan. This can lead to some uncertainty about what your monthly payment amounts might be. The agreement you sign with a lender will spell out how often the rate can change and put some restrictions around how much it can change. If you can get comfortable with this variability, a HELOC can be a smart way to borrow, especially when you don’t know exactly how much money you will need.

Helpful Tools and Calculators

Before you apply for a HELOC, it’s wise to take advantage of online tools to see what monthly payments and interest costs might look like. Here are three useful calculators for home owners interested in borrowing against their equity.

Run the numbers on your HELOC.

Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.

How to Qualify for a Competitive HELOC Rate

To secure a favorable HELOC rate, first make sure you have at least 15% equity in your home — and ideally more. Subtract your mortgage balance from your home’s estimated value, then divide the answer by the home value to get your equity percentage. Then move on to sharpening your credit score and DTI ratio.

Improve Your Credit Score

Keeping your credit score at 700 or above is a smart move if you’re aiming for the best HELOC rates. You have the power to boost your score by making timely payments and chipping away at credit card balances. It’s also wise to review your credit report for any errors and dispute them to set the record straight. And here’s a pro tip: Don’t be too quick to close those old credit accounts — they can actually work in your favor.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is a simple concept: It’s the sum of your monthly debt payments divided by your gross monthly income. Most HELOC lenders prefer a DTI under 50%, but for the most attractive HELOC rates, you’ll want to nudge your rate below 36%. You can do this by paying down debts, increasing your income, or both.

Application Process for a HELOC in Boston

Many lenders offer the convenience of prequalification for a HELOC online, making the process a breeze. This preliminary step can provide you with a glimpse of the HELOC rates in Boston that you might be eligible for, as well as the amount of equity you can tap into. Once you’ve decided that you want to proceed to a full application, you can follow these steps:

Step 1: Run the Numbers

Check that your equity level, credit score, and DTI ratio meet the minimums a lender will look for. That’s 15% equity, a credit score of at least 640, and a DTI of 50% or less.

Step 2: Compare Lenders

Compare different lenders to find the best HELOC rate you can get in Boston. Don’t just examine interest rates. Narrow the field based on rates, but also scrutinize qualification requirements, minimums and maximums, fees, and the length of the draw and repayment periods. Each lender has unique terms and conditions, so read the fine print to understand the full scope of what you’d be signing up for.

Step 3: Submit Your Application

You’ll need to gather your ID, proof of income (pay stubs, W-2, tax documents), and insurance policy information for the property you’re using as collateral. If you’re self-employed, a lender might ask for a profit-and-loss statement and a couple years’ worth of tax returns. Once you’ve got everything together, you can apply online, over the phone, or in person.

Step 4: Get an Appraisal

After you submit an application and solidify your choice of lender, you’ll likely need an appraisal. Work with the lender to ensure you get the appraisal and documentation the lender requires. If your home is appraised for more than what you owe — to the point that you hit that 15% equity target — you’ll have cleared a bar necessary for a HELOC.

Step 5: Prepare for Closing

If you’re approved for a HELOC, you’ll need to sign the HELOC documents and pay any associated fees. Most lenders will make the funds available within three business days of the HELOC closing. Before you sign on the dotted line, be sure you understand all the terms and conditions. This is an important step to avoid any surprises and to make sure you’re prepared to use your HELOC.

Closing Costs and Fees

The good news is, HELOC closing costs are generally less than what you’d face with a home purchase or a refinance. The most significant expense is often the appraisal, which can run from $300 to $600. A title search might set you back $100 to $450, with additional costs for application, loan origination, and administrative fees. Some lenders may also charge annual maintenance fees, which could reach $250, as well as transaction, inactivity, or early termination fees.

Tax Benefits and Considerations

Homeowners can deduct HELOC interest on their 2025 federal taxes if the borrowed funds are used to improve the home used as collateral. You’ll have to itemize on your return to claim this deduction, and you may want to talk to a tax advisor to make sure you qualify for this deduction, and to keep tabs on how tax policies change in 2026 and beyond.

Recommended: Different Types of Home Equity Lending

Alternatives to HELOCs

There are other ways besides a HELOC to get equity out of your home, and it’s worth considering these before you sign on to a line of credit. You might also consider a personal loan for your needs. Here’s a look at how they differ:

Home Equity Loan

With a home equity loan, you get a one-time lump-sum loan and start repaying it immediately at a fixed interest rate. You can usually borrow up to 85% of your equity. Lenders often look for a credit score of 680, with many preferring 700-plus, in order for borrowers to qualify. If you’re someone who likes a fixed interest rate and a predictable payment amount, this might be a good fit for you. You can use a home equity loan calculator to see how much you might borrow.

Cash-Out Refinance

A cash-out mortgage refinance lets you refinance for more than you already owe and take the difference in cash. It can be a wise move if the interest rate on a new mortgage would be better than your current rate. Things to consider with a cash-out refinance vs. a home equity line of credit: With a refinance you’d need a credit score of 620 or higher and a DTI ratio under 43%. A refinance also allows you to select a fixed or variable interest rate.

Personal Loan

A personal loan is typically an unsecured loan that you repay in regular, fixed installments over two to seven years. The key advantage is that your home is not at risk of foreclosure should you be unable to make your loan payments. Most lenders look for a credit score of 610 or higher when considering a personal loan application. While these loans are relatively quick to secure, the interest rates may be higher compared to HELOCs or home equity loans.


The Takeaway

When you’re considering a HELOC, there’s the sobering thought of your home being at stake if you can’t repay what you borrow. However, HELOCs tend to have lower interest rates than unsecured loans. And if you have a history of borrowing responsibly, a line of credit is a smart way to solve your cash needs because you’ll only pay interest on the funds you borrow. Just make sure you scout around and compare offers from multiple lenders to obtain the most favorable rate and terms.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.

View your rate


FAQ

Is a HELOC a good idea?

As with any financial decision, you have to consider your individual circumstances and aspirations. If you need to borrow a large sum of money but you don’t need it all at once, and if you are sure you can meet the monthly payments required to repay what you borrow, a HELOC is a good way to finance a big project such as a renovation or educational expense. Interest rates on HELOCs tend to be lower than the rates on personal loans.

What’s the monthly payment on a $100,000 HELOC?

The monthly payment on a $100,000 HELOC can vary greatly depending on the interest rate and the repayment period. During the draw period, you may only need to pay interest on the amount you’ve borrowed, which isn’t necessarily going to be the full $100,000. If you did use the entire credit line of $100,000, your interest rate for repayment would likely be a variable one. But at an average of 8.00% and a repayment term of 20 years, you would pay $836 per month.

Do you need an appraisal for a HELOC?

Most homeowners will need an appraisal in order to qualify for a HELOC. The appraisal helps determine the current market value of your home, which is important for calculating how much credit you can access as well as the interest rate you’ll receive. Appraisal fees are often the most significant expense in the closing costs for a HELOC, but clearing the appraisal stage means you’re in the homestretch of the HELOC process.

How does a HELOC affect your credit score?

Opening a HELOC can cause a slight dip in your credit score due to the necessary hard credit inquiry by a prospective lender. But use your HELOC responsibly — make timely payments and keep balances in check — and you may actually see an improvement in your score. On the flip side, missing payments or maxing out your HELOC can be detrimental.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.


¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.


†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.


SOHL-Q225-399

Browse other Massachusetts home guides.

Browse HELOC rates by state guides.

More HELOC resources.

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Read more
Sep
06
2025

Current HELOC Rates in Knoxville, TN Today

By | mortgage | Comments Off on Current HELOC Rates in Knoxville, TN Today

KNOXVILLE HELOC RATES TODAY

Current HELOC rates in

Knoxville, TN.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


View your rate

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare HELOC rates in Knoxville.

Key Points

•   Home equity line of credit interest rates in Knoxville are different from lender to lender, so it pays to shop around.

•   HELOCs work like a credit card, with a revolving line of credit.

•   Interest is charged on the amount you borrow, not based on the full credit line.

•   HELOCs have variable interest rates, and knowing what influences HELOC rates can help you anticipate rate changes.

•   Securing a competitive HELOC rate is crucial for keeping costs down.

Introduction to HELOC Rates

This article is a great place to start your research on home equity line of credit (HELOC) rates in Knoxville, Tennessee. We’ll help you understand what a home equity line of credit is, how interest rates are determined, and how to qualify for the best rates. We’ll also cover the benefits and risks of HELOCs, and how to compare different lenders. By the end, you’ll be better equipped to decide if a HELOC is the right financial tool for your needs, and to qualify for the best rates.

What Exactly Is a HELOC?

A HELOC is a flexible financial tool that lets you leverage your home equity (the difference between your home’s value and whatever you still owe on your home loan) to borrow money. Typically, you’ll need to have at least 15% equity in your home to qualify. With a HELOC, you can access up to 90% of your equity. It’s like having a credit card with a “draw period” (often 10 years) where you can access funds and only pay interest, followed by a “repayment period” (10-20 years) where you pay back both the principal and interest.

The Draw Period

This phase can last a decade and is an important distinction between a HELOC vs. a home equity loan. During the draw period, you need only pay interest on the amount you actually borrow. (With a home equity loan, you get a lump sum and start repaying principal plus interest immediately.) A HELOC interest-only calculator lets you see what you might owe.

The Repayment Period

After the draw period comes the 10- to 20-year repayment period when you stop borrowing and start repaying what you owe, with interest. This is when a HELOC monthly payment calculator might be helpful, because HELOCs have variable interest rates that can change with market conditions. This means your monthly payment can be somewhat hard to predict.

Recommended: Different Types of Home Equity Lending

Where Do HELOC Interest Rates Come From?

HELOC interest rates are tied to the prime rate, which is influenced by the Federal Reserve. Each lender adds a margin to the prime rate, resulting in different HELOC rates. This is why it’s so important to shop around and compare rate offers from different lenders. Lenders also consider individual financial metrics, such as credit score, debt-to-income (DTI) ratio, and the amount of equity you have in your home. A higher credit score, lower DTI ratio, and more equity can lead to more favorable HELOC rates.

How Interest Rates Impact HELOC Affordability

Even a percentage point change in your HELOC rate can make a difference in your monthly payments and the total interest you’ll pay over the life of the credit line. For example, if you entered the repayment period owing $100,000 on your HELOC at an 8.00% interest rate, you would pay $1,213 each month. If you had an interest rate of 7.00%, however, you would pay $1,161. The difference may not seem so significant, but it adds up to roughly $6,000 in extra interest over a 10-year period. This is why it pays to seek out the lowest rate.

HELOC Interest Rate Trends

As you start thinking about how to get equity out of your home, you’ll likely begin to watch the prime rate closely. Its movements can hint at what is to come in the lending market. The rate hit a recent low of 3.25% in 2020 and a high of 8.50% in 2023. By looking at this historical data, you can get a sense of the potential ups and downs of HELOC rates, and put the rates you’re seeing in the current market into perspective.

Date U.S. Rate
9/19/2024 8.00%
7/27/2023 8.50%
5/4/2023 8.25%
3/23/2023 8.00%
2/2/2023 7.75%
12/15/2022 7.50%
11/3/2022 7.00%
9/22/2022 6.25%
7/28/2022 5.50%
6/16/2022 4.75%
5/5/2022 4.00%
3/17/2022 3.50%
3/16/2020 3.25%
3/4/2020 4.25%
10/31/2019 4.75%
9/19/2019 5.00%
8/1/2019 5.25%
12/20/2018 5.5%
9/27/2018 5.25%

Source: U.S. Federal Reserve


Variable vs. Fixed Interest Rates

HELOCs typically come with variable (also called adjustable) interest rates that are influenced by market conditions. This means your monthly payment amounts may vary. You won’t be surprised by these changes if you’ve read your HELOC agreement. The agreement will spell out how frequently the rate can change and by how much. As long as you feel you can live comfortably with these variations, a HELOC could be a good choice for you.

Helpful Tools & Calculators

Before you take the leap and apply for a HELOC, why not use our online tools to get a sense of what your monthly payments and interest costs might look like? A few minutes with a calculator can give you some valuable insights to help you make a more informed financial decision.

Run the numbers on your HELOC.

Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.

How to Qualify for a Competitive HELOC Rate

To qualify for a competitive HELOC rate, you’ll want to put your best financial foot forward. Here are two things you can do in the months leading up to your application to better your chances of a great rate.

Improve Your Credit Score

A credit score of 700 or higher is your golden ticket to better HELOC rates. The secret? Timely payments on all your debts and keeping credit card balances in check. Also be sure to give your credit report a once-over, disputing any errors to give your score that extra nudge in the right direction. And avoid closing old credit accounts or opening new ones in the months leading up to your HELOC application.

Calculate Your Debt-to-Income (DTI) Ratio

Your DTI ratio is a simple concept: the sum of your monthly debt payments divided by your gross monthly income. HELOC lenders typically prefer a DTI under 50%, but the lower, the better, and for the best rates, you’ll want a DTI ratio below 36%. How to get there? Reduce your credit card balances and other debts, increase your income, or do both.

Application Process for a HELOC in Knoxville

Many lenders today offer the convenience of prequalifying for a HELOC online, which can significantly streamline the application process. This preliminary step will give you a clear picture of the rates and terms available in Knoxville before you commit to a full application. If you decide to proceed, follow these steps:

Step 1: Run the Numbers

Check that your equity level, credit score, and DTI ratio meet the minimums a lender will look for. That’s 15% equity, a credit score of at least 640, and a DTI of 50% or less. To compute your equity level, subtract what you owe on your mortgage from your home’s estimated value. Then divide the answer by the home value to get a percentage of equity. If it’s at least 15%, move to the next step.

Step 2: Compare Lenders

Compare different lenders to find the best HELOC rate you can get in Knoxville. Don’t just look at interest rates. Narrow the field based on rates, but also look closely at qualification requirements, minimums and maximums, fees, and the length of the draw and repayment periods. Each lender has unique terms and conditions, so read the fine print to understand the full picture of what you’d be signing up for.

Step 3: Submit Your Application

You’ll need to pull together your ID, proof of income (pay stubs, W-2, tax documents), and insurance policy information for the property you’re using as collateral. If you’re self-employed, a lender might ask for a profit-and-loss statement and a couple years’ worth of tax returns. Once you’ve got everything close at hand, you can apply online, over the phone, or in person. Doublecheck the accuracy of the info to keep the process moving along smoothly.

Step 4: Get an Appraisal

After you solidify your choice of lender and submit a complete application, you’ll likely need an appraisal. Work with the lender to ensure you get the appraisal and documentation the lender requires.

Step 5: Prepare for Closing

If you’re approved for a HELOC, you’ll need to sign the HELOC documents and take care of any associated fees. Most lenders will make the funds available within three business days of the closing. Before you sign on the dotted line, be sure you understand all the terms and conditions.

Closing Costs and Fees

The good news is that HELOC closing costs are generally lower than those for a home purchase or a cash-out refinance. The most expensive part of the process is usually the home appraisal, which can range from $300 to $600. You may also have to pay for a title search, which can cost $100 to $450, as well as application, origination, and administrative fees. Some lenders charge an annual maintenance fee, which can be up to $250.

Tax Benefits and Considerations

Here’s some more good news: You can deduct HELOC interest on your 2025 federal return if the funds are used to significantly improve your primary residence. And guess what? A tax advisor can confirm your eligibility for deductions related to the HELOC and who will keep tabs on how tax rules may change in 2026 and beyond. Understanding these potential benefits can help you make a more informed decision about leveraging your home equity.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

There are other ways to tap into your home’s equity besides a HELOC, and there’s also a personal loan, which allows you to borrow without using your home as collateral. Cover your bases by making sure you understand how these options differ from a HELOC before you seal the deal.

Home Equity Loan

A home equity loan is often confused for a HELOC, but the two are different. With a home equity loan, you get a fixed sum of money and start repaying it, with interest, immediately. Because the interest rate is fixed, your payment will be the same each month. You can usually borrow up to 85% of your home’s value, minus what you owe, and you’ll need a credit score of at least 680 and a DTI ratio under 50%. Home equity loans are a good option when you need a large sum all at once. A home equity loan calculator can tell you how much you might be able to borrow.

Cash-Out Refinance

A cash-out mortgage refinance lets you refinance your mortgage for more than you currently owe. You then pocket the difference. This is a great option if you need a large amount of money at once, as long as the current interest rates are an improvement on your original rate. Typically, you’ll need a credit score of 620 or higher and a debt-to-income ratio under 43% for this option. When comparing a cash-out refinance vs. a home equity line of credit, note that the former allows you to choose between fixed or variable rates.

Personal Loan

A personal loan is a versatile, typically unsecured loan that you repay in regular, fixed installments over a period of two to seven years, which is shorter than the typical repayment term for a HELOC or home equity loan. The key advantage here is the safety of your home; because your property doesn’t serve as collateral, your home isn’t on the line if you can’t make your payments. Lenders usually look for a credit score of 610 or higher for this type of loan. While the interest rates may be a bit higher than HELOCs or home equity loans, the approval process is often more swift.


The Takeaway

If you’re mulling over a HELOC, take a moment to consider the advantages and potential pitfalls. They do offer flexible borrowing and possibly lower interest rates in Knoxville when compared to personal loans. But a HELOC comes with the risk of foreclosure if you fail to make your payments. So, before you leap, compare rates from different lenders, take stock of your financial well-being, and explore alternatives like cash-out refinancing or personal loans to find the perfect fit for your financial needs.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.

View your rate


FAQ

What can a HELOC be used for?

A HELOC can be a smart choice for a variety of needs, including home renovations, education expenses, and debt consolidation. They are particularly useful for expenses that are spread out over time, such as educational costs or ongoing home improvements. With a HELOC, homeowners can access funds as needed vs. taking (and immediately making payments on) a large lump sum.

What would the monthly payments be on a $50,000 HELOC?

Your monthly payment on a $50,000 HELOC will vary according to the rates and terms of your agreement. During the draw period, you might only need to pay interest, which can be quite manageable. For instance, at a 7.00% interest rate, your monthly interest-only payment would be approximately $292. But keep in mind, once the repayment period kicks in, you’ll be paying both principal and interest, so your monthly expense will increase. Because HELOCs have variable repayment terms and interest rates, it’s not possible to nail down the precise amount you’ll pay each month.

How tough is it to get a HELOC?

The process of securing a HELOC is quite manageable. You’ll need to make sure you meet the minimum qualifications. Most lenders are looking for you to have at least 15% equity in your home. You’ll also need a credit score of at least 640 and a debt-to-income (DTI) ratio under 50%.

Will a HELOC impact my credit score?

Opening a HELOC may result in a slight dip in your credit score due to the necessary hard credit inquiry by a prospective lender. But use your HELOC responsibly — make payments promptly and keep balances in check — and you may actually see an improvement in your score. On the flip side, missing payments or maxing out your HELOC can be bad news for your score.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.


¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.


†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.


SOHL-Q225-401

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Browse HELOC rates by state guides.

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Sep
06
2025

Current HELOC Rates in Appleton, WI Today

By | mortgage | Comments Off on Current HELOC Rates in Appleton, WI Today

APPLETON HELOC RATES TODAY

Current HELOC rates in

Appleton, WA.



Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.


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Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Compare HELOC rates in MIlwaukee.

Key Points

•   Interest rates for a home equity line of credit are influenced by the prime rate and your financial profile.

•   Homeowners can borrow up to 90% of their home equity.

•   HELOCs are known for their flexibility and can often offer lower interest rates than unsecured loans.

•   It’s important to understand the risks of variable interest rates and potential foreclosure.

•   Online calculators can help you estimate your monthly payments and interest costs.

•   Qualifying for a HELOC requires a good credit score and sufficient home equity, among other factors.

Introduction to HELOC Rates

Welcome to our guide on home equity line of credit (HELOC) rates in Appleton, Wisconsin. Whether you’re considering a home renovation or need funds for other expenses, this resource is designed to help you understand how to access your home equity. We’ll walk you through the factors that influence HELOC rates, the benefits and potential risks of these financial tools, and how to compare different lenders to find the best terms. Armed with this knowledge, you’ll be better equipped to make sound financial decisions.

What Is a HELOC?

A HELOC is a financial tool that leverages your home equity as collateral. (Your equity is the value of your home minus whatever you still owe on your home loan.) To qualify, you typically need to have 15% equity, and you can borrow up to 90% of it. Of course, when your home is used as collateral, you risk foreclosure if you don’t make timely payments. So it’s important to understand the two phases of a HELOC and how payments work in each.

The Draw Period

This is the first decade of your HELOC. During this time you can draw money from the credit line, up to whatever ceiling you have, and only pay interest on the amount that you have used. You can repay the principal and then draw again, but most lenders don’t require you to repay at this stage — just to cover the interest. A HELOC interest-only calculator is helpful at this time.

The Repayment Period

The repayment period is typically 10 to 20 years. This is when you’ll stop drawing on the credit line and begin to repay the principal plus interest. HELOC interest rates are usually variable, which means your rate can change many times over your repayment period, going up or down. Monthly payments aren’t always the same, so a HELOC monthly payment calculator is useful.

Recommended: HELOC vs. Home Equity Loan

Where Do HELOC Interest Rates Originate?

Lenders peg their HELOC rates to the prime rate, a figure heavily influenced by the Federal Reserve’s policies. Each lender then adds a margin to the prime rate, which is why you’ll find a range of HELOC rates when you shop around (and shop around you should). Your specific interest rate is also influenced by individual factors such as your credit score, debt-to-income (DTI) ratio, and the amount of equity you have in your home.

How Interest Rates Impact HELOC Affordability

It’s worth taking the time to look around for the lowest available HELOC interest rate because even a single-percentage-point increase in interest can equal a noticeable increase in your interest costs. HELOCs’ variable rates makes it hard to pinpoint the exact amount any specific HELOC will cost, but if you borrowed $50,000 with a HELOC that had a 20-year repayment term, you would have the following monthly payment amounts at 7.00%, 8.00%, and 9.00% interest: $388, $418, and $450, respectively. Your total interest paid would be $43,036, $50,373, and $57,967, respectively.

HELOC Interest Rate Trends

You’ll probably find yourself keeping a close eye on the prime rate as you start to explore HELOCs, because its ups and downs can offer a peek at where HELOC rates are heading. Since 2018, the prime rate has hit a low of 3.25% in 2020 and a high of 8.50% in 2023. Having some familiarity with this historical data can help you assess whether current rates are on the higher or lower side. You may not be able to wait to borrow until the rate hits a lot akin to 2020’s, but you can polish your personal finances so that you qualify for the best available rate from a prospective lender.

Date U.S. Rate
9/19/2024 8.00%
7/27/2023 8.50%
5/4/2023 8.25%
3/23/2023 8.00%
2/2/2023 7.75%
12/15/2022 7.50%
11/3/2022 7.00%
9/22/2022 6.25%
7/28/2022 5.50%
6/16/2022 4.75%
5/5/2022 4.00%
3/17/2022 3.50%
3/16/2020 3.25%
3/4/2020 4.25%
10/31/2019 4.75%
9/19/2019 5.00%
8/1/2019 5.25%
12/20/2018 5.5%
9/27/2018 5.25%

Source: U.S. Federal Reserve


Variable vs. Fixed Interest Rates

HELOCs often come with adjustable (also called variable) interest rates, which can change over the life of the credit line. These rates may start lower than fixed rates, which can make your initial borrowing costs more affordable. But because rates can go up or down, your monthly payment amounts won’t be consistent. If you opt for a HELOC, the lender will specify in your HELOC agreement how often the rate can change and by how much — so while you might see some variation in costs, it won’t be entirely unpredictable.

Helpful Tools and Calculators

One way to assess your comfort level with a HELOC’s variable interest rates is to use an online calculator to compute what your monthly payment might be depending on how much you borrow and whether you are in the draw (interest-only) or repayment phase. Check out these useful tools and play around with the numbers.

Run the numbers on your HELOC.

Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.

How to Qualify for a Competitive HELOC Rate

To secure the best HELOC interest rate, it’s all about the numbers. There are some baseline qualifications you would need to meet to obtain a HELOC: 15% equity, a credit score of at least 640, and a DTI ratio below 50%. But to get the most competitive rates, you’ll want to take these steps:

Improve Your Credit Score

For the best possible HELOC rate, aim to keep your credit score at 700 or higher. You can get there by making payments on time and reducing your credit card balances. It’s also a good idea to check your credit report for errors and challenge any you find. Avoid closing longstanding credit accounts or opening new accounts in the months leading up to your HELOC application.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is simply your monthly debts divided by your gross monthly income. To tally your debts, add up your credit card payments, car loans, student loans, plus your existing mortgage. Then divide by your gross monthly income. For the most favorable HELOC terms, you want a DTI ratio under 36%. To reach this goal, try to reduce your debts, increase your income, or both.

Application Process for a HELOC in Appleton

Some lenders offer a convenient online prequalification process for a HELOC, and prequalifying with multiple lenders can help you get a sense of what rate you might qualify for (never fear: It won’t affect your credit score). If you decide to proceed with the full application, follow these steps for the smoothest experience:

Step 1: Run the Numbers

Your first move? Make sure you have 15% equity (at minimum). Subtract your mortgage balance from your home’s estimated value. Then divide the answer by the home value to get a percentage of equity. If it’s over 15%, you’re in a good place. Also make sure your credit score is at least 640 and evaluate your DTI ratio to ensure it’s under 50%.

Step 2: Compare Lenders

Evaluate interest rates you’re seeing in Appleton. But don’t just consider the interest number. Carefully compare lenders’ qualification requirements, credit line minimums and maximums, fees, and the length of the draw and repayment periods. Keep an eye out for lenders that offer competitive rates and flexible terms. Reading customer reviews and thoroughly checking lender reputations can also help you make a more informed decision.

Step 3: Submit Your Application

Get your paperwork together, from personal identification to proof of income and your property insurance declaration page. For income verification, you’ll need your latest pay stubs, W-2 forms, and tax returns. If you’re self-employed, a lender might ask for a profit-and-loss statement and two years’ worth of tax returns. Once you have everything together, you can submit your application online, over the phone, or in person.

Step 4: Get an Appraisal

A home appraisal is a professional’s evaluation of your home’s worth and is a key part of the HELOC process. It determines the maximum credit you can access and gives the lender peace of mind that your property is a solid collateral. The lender you’ve applied to will share information about appraisal requirements, so wait for these instructions.

Step 5: Prepare for Closing

Before you can access your HELOC funds, you’ll need to sign some documents and take care of fees. Lenders often make the funds available to you within three days of the HELOC closing. Be sure to review all the terms and conditions to make sure they fit with your financial plans. Closing costs can include things like appraisal fees, title search fees, and loan origination fees. Be ready to pay these costs to complete your HELOC and start using your funds.

Recommended: Different Types of Home Equity Lending

Closing Costs and Fees

Happily, HELOC closing costs are generally lower than those for a home purchase or refinance. The most significant cost is often the appraisal, which can run from $300 to $600. You may also need to pay for a title search, which can cost between $100 and $450. Other fees can include application, origination, and administrative costs. Down the line, some lenders also charge an annual maintenance fee, which can be as high as $250.

Tax Benefits and Considerations

As a homeowner, you may be eligible to deduct HELOC interest on your 2025 federal taxes if the borrowed funds are used to significantly improve your primary residence. To determine your eligibility for a HELOC interest deduction in 2025 and as tax rules change in future years, consult a tax advisor. You’ll need to itemize deductions to capture this savings.

Alternatives to HELOCs

There are other ways to get equity out of your home besides a HELOC, and a personal loan is another option if putting your home on the line makes you squeamish. Check out these alternatives:

Home Equity Loan

With a home equity loan, you get a one-time lump-sum loan and a fixed interest rate to keep things simple. You can usually borrow up to 85% of your home equity. Lenders often look for a credit score of 680 or higher, with many leaning toward 700, in order for borrowers to qualify. If you’re someone who likes the predictability of a fixed interest rate and a set payment schedule, this might be just the thing for you. A big difference between a HELOC vs. a home equity loan is that with a home equity loan, you get the money all at once and begin repaying it immediately.

Cash-Out Refinance

A cash-out mortgage refinance lets you refinance for more than you currently owe and take the difference in cash. It’s a good option, so long as the interest costs of a new mortgage are better than what you’d have with your existing mortgage. Things to think about with a cash-out refinance vs. a home equity line of credit: With a refi you’d need a credit score of 620 or higher and a debt-to-income ratio under 43%. A refinance also allows you to choose between fixed or variable interest rates and leaves you with one monthly payment vs two.

Personal Loan

A personal loan is a versatile, typically unsecured loan that you repay in regular, fixed installments over a period of two to seven years. The key benefit here is that your home is not at risk of foreclosure should you encounter financial challenges and be unable to make your loan payments. Most lenders look for a credit score of 610 or better when evaluating a personal loan application. While these loans are relatively quick to secure, the interest rates may be higher compared to HELOCs or home equity loans.


The Takeaway

The flexibility of borrowing with a HELOC makes it an attractive choice for major expenses, but the possibility of losing your home if you default is a serious consideration. Before you apply, make sure you have a stable income, a solid credit score, and a clear plan, both for how you might use the funds and — more important — how you will repay what you borrow. Shop around for the best rates by seeking out quotes from a wide range of lenders.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.

View your rate


FAQ

Is a HELOC a wise move at this time?

Whether a HELOC is a good idea for you right now depends on your financial goals and current HELOC rates. If you need to borrow money for larger, ongoing expenses, such as a series of home renovation projects or educational expenses, and you feel you are someone who can successfully manage the changing payment amounts associated with the two phases and variable interest rates of a HELOC, it could be a cost-efficient way to borrow money.

Do you need an appraisal for a HELOC?

You typically need a home appraisal to secure a HELOC. The appraisal determines your home’s current market value, which is essential for calculating the amount of equity you can access. The appraisal fee is usually $300 to $600, and it’s a crucial step in the application process.

What could prevent you from getting a home equity loan?

There are a few key factors that might temporarily bar you from securing a home equity loan, such as a less-than-ideal credit score, a high debt-to-income (DTI) ratio, or not enough equity built up in your home. Typically, lenders look for a minimum credit score of 680, a DTI ratio under 50%, and at least 15% equity.

Will a HELOC impact your credit score?

Opening a HELOC may cause a temporary dip in your credit score due to the hard inquiry. But here’s the good news: By managing a HELOC wisely, you can actually boost your score. Making payments on time is a surefire way to see it rise, while missed payments can drag it down.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.


¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.


†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.


SOHL-Q225-402

Browse other Wisconsin home guides.

Browse HELOC rates by state guides.

More HELOC resources.

Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.

Read more
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Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 696891. (www.nmlsconsumeraccess.org)

✝︎ To check the rates and terms you 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.

INVESTMENTS: NOT FDIC INSURED • HAVE NO GUARANTEE • MAY LOSE VALUE. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. The SoFi Wealth platform is operated and maintained by SoFi Wealth LLC, an SEC Registered Investment Advisor. Brokerage services are provided to clients of SoFi Wealth LLC by SoFi Securities LLC, an affiliated broker-dealer registered with the Securities and Exchange Commission and a member of FINRA /SIPC . Clearing and custody of all securities are provided by APEX Clearing Corporation. For more information, please see SoFi Wealth LLC’s Form ADV Part 2 by clicking here for SoFi's Wealth Form ADV Part 2 A&B or by visiting www.adviserinfo.sec.gov .
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