Compare HELOC rates in Plano.

Introduction to HELOC Rates

Our guide to home equity line of credit rates in Plano, Texas, lays out the factors that impact interest rates, and offers insider tips on how you can qualify for the lowest available rate. We’ll also cover the benefits and risks of HELOCs, current interest rate trends, and tools you can use to estimate your monthly payments and interest costs. By the end of this guide, you’ll be better equipped to decide if a HELOC is the best way for you to borrow.

What Exactly Is a HELOC?

A HELOC is a revolving credit line that uses your home as collateral. This means that in the event that you don’t repay what you borrow, the lender could foreclose on your home. In practice, using a HELOC is a lot like using a credit card. You borrow when you need funds, and you make monthly payments on the amount of the credit line that you have actually used.

To qualify, you’ll need to have at least 15% equity in your home. Your equity is the market value of your home minus whatever you still owe on your home loan. Some homeowners may be able to borrow up to 90% of their equity. The draw period and repayment period are the two phases of a HELOC, and it’s important to understand how payments will differ in each.

Recommended: Different Types of Home Equity Lending

Where Do HELOC Interest Rates Come From?

HELOC interest rates are a product of the prime rate, which is under the sway of Federal Reserve policies. Each lender tacks on a margin to the prime rate, resulting in a range of HELOC rates. This is why it’s so important to seek out rates from multiple lenders before you decide on a lending partner for your HELOC. It’s especially true because lenders also take into account individual borrower factors such as credit score, debt-to-income (DTI) ratio, and the amount of equity in the home.

How Interest Rates Impact HELOC Affordability

The interest rate on your HELOC can make a big difference in how much it costs you. Even a small difference in the interest rate can mean a lot more interest paid over the life of the loan. For example, on a $50,000 HELOC with a 20-year term, a one-percentage-point rate increase from 7.00% to 8.00% during the repayment phase can raise your monthly payment by $30 and increase the total interest paid by almost $7,000. Your exact numbers will differ due to the HELOC’s variable interest rate. But the bottom line is that you want to start your HELOC with the lowest available rate.

HELOC Interest Rate Trends

You’ll likely begin keeping an eye on the prime rate as you think about how to get equity out of your home. Having a sense of the prime rate’s history can give you some perspective on whether current rates are relatively high or low. Over the years, we’ve seen the prime rate dip to an unusually low 3.25% in 2020 and rise to 8.50% in 2023. Where the rate goes, your HELOC interest rate will likely follow.

Variable vs. Fixed Interest Rates

As we’ve noted, HELOCs usually come with adjustable (also called variable) interest rates, which means your rate can go up or down based on market conditions. If you can get comfortable with the possibility of rate increases, you can probably handle a HELOC. One thing to note: Your HELOC agreement would spell out how often your rate can change, and by how much. So there are some guardrails around the rate changes. If you’re someone who can’t rest comfortably without predictability and stable payments, a fixed-rate loan such as a home-equity loan might be more up your alley.

Helpful Tools and Calculators

Before you apply for a HELOC, you can use online calculators to see how much you can expect to pay each month based on the amount you borrow and your current interest rates. You can also learn how much interest you might pay over the life of the HELOC. Here are three useful calculators.

How to Qualify for a Competitive HELOC Rate

To secure a competitive HELOC rate, you’ll need to have at least 15% equity in your home. Take a few minutes to make sure you’ve hit that benchmark. Subtract what you still owe on your mortgage from your home’s estimated value. Then divide the answer by the home value and you’ll have a percentage. You can move on to the next steps: working on your credit score and DTI ratio.

Improve Your Credit Score

You can get a HELOC with a credit score of 640, but to ensure you’re in a prime position to secure the best available HELOC rates, aim for 700 or higher. Making payments on time and chipping away at credit card balances can give your credit score a lift. Setting up automatic payments is a good idea. Also keep an eye on your credit report so you can fix any errors that crop up. 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 comparison: your monthly debt payments divided by your gross monthly income. For HELOC lenders, a DTI under 50% is the general target, but the lower, the better, and the best interest rates go to those with a DTI ratio of 36% or less. To improve your DTI, focus on paying down debts, increasing your earnings, or both.

Application Process for a HELOC in Plano

For those considering a HELOC in Plano, the application process can be streamlined by prequalifying online. Taking this initial step is helpful because it allows you to understand the current HELOC rates available in Plano and to see what rate and terms you might qualify for. Once prequalified, you can then gather all of the necessary documentation required to formally submit your application, following these steps:

Closing Costs and Fees

The good news is that HELOC closing costs are typically more budget-friendly than what you’d face with a home purchase or refinance. The appraisal fee is often the most significant expense. You might also encounter an application fee, origination fee, and administrative costs. Some lenders may have annual maintenance fees, transaction fees for withdrawals, inactivity fees, or early termination fees. Some lenders are willing to reduce or even waive some of these costs, though this could mean a slightly higher HELOC interest rate, which could cancel out any savings.

Tax Benefits and Considerations

Here’s a nice counterbalance to those fees: Homeowners are eligible to deduct HELOC interest from federal taxes if the funds borrowed are used to significantly improve the primary residence. To make sure you’re getting the most out of your HELOC (and for help itemizing and capturing that deduction), it’s a great idea to chat with a tax advisor. Keep your eyes open for potential changes in how HELOC interest is handled on taxes in 2026 and beyond.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

If a HELOC doesn’t feel like the right fit, there are other options to consider. Home equity loans, cash-out refinancing, and personal loans all have their own requirements and benefits.

The Takeaway

As you mull over the idea of a HELOC, remember to consider the benefits and potential drawbacks. The flexibility and lower initial costs are attractive, but don’t forget about the variable interest rates and the risk of losing your home if payments are missed. Homeowners in Plano should take the time to compare HELOC offers from different lenders, looking at factors like credit line limits and fees as well as the interest rate. Ensure your financial health is in order, gather the necessary documentation, and be ready for a home appraisal before you apply.

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

Compare HELOC rates in Bay Area.

Introduction to HELOC Rates

If you live in or around San Francisco and you’re thinking about making the most of your borrowing power with a home equity line of credit (HELOC), you’ve come to the right place. This comprehensive guide to HELOC rates in the Bay Area will help you navigate the often murky waters of the current lending market and secure a HELOC that’s right for you. We’ll delve into the factors that influence HELOC rates, the benefits and potential pitfalls of the HELOC, and how to compare different lenders to find the best fit for your financial goals.

What Is a HELOC?

A HELOC is a revolving credit line that uses your home’s equity (the value of your home less the amount you owe on your home loan) as collateral. Most lenders require 15% equity in your home. You can typically borrow up to 90% of your equity. During the draw period (usually 5-10 years), you can access funds, make interest-only payments, and re-borrow as you repay the principal.

Recommended: Different Types of Home Equity Lending

The Origin of HELOC Interest Rates

HELOC interest rates are tied to the prime rate, which is affected by the Federal Reserve’s decisions. Each lender then adds a margin to the prime rate, leading to the variation in HELOC rates. When determining the final rate for a borrower, lenders consider factors such as credit score, debt-to-income (DTI) ratio,and the amount of equity in the home. This is why it’s so important to seek out rates from multiple lenders before deciding which lender to go with for your HELOC.

How Interest Rates Impact HELOC Affordability

The interest rate on your HELOC can make a big difference in how much you pay each month. Even a small difference in the interest rate can mean a lot of extra interest over the life of the loan. Let’s say you have a HELOC with a $100,000 credit limit, and you borrow the entire amount during the draw period. If you entered the repayment phase with an interest rate of 8.00%, you would pay $1,213 per month. But if you had an interest rate of 7.00%, you would pay $1,161 per month. The difference may not seem enormous, but over a 10-year repayment period, you would incur roughly $6,000 in extra interest at the higher rate.

HELOC Interest Rate Trends

As you’re exploring how to get equity out of your home in the Bay Area, keeping an eye on the prime interest rate can be a smart move. And knowing a bit about the rate’s history can help you set realistic expectations for your own interest rate. The prime rate hit an unusually low 3.25% in 2020 and a recent peak of 8.50% in 2023. Some borrowers wait until HELOC rates dip to file their application. But if you need to borrow now, you can instead focus on presenting yourself to lenders as a good risk. We’ll share details on that below.

Variable vs Fixed Interest Rates

HELOCs usually come with variable (also called adjustable) interest rates, which can change with the market. They often begin lower than fixed rates, which can be a plus initially. But keep in mind that your monthly payments could go up or down. How much your rate can change, and how often, would be governed by your HELOC agreement, so it’s not entirely unpredictable. But before you go forward with a HELOC, you’ll want to run some numbers to determine if you can afford to make your payments at a higher rate.

Helpful Tools & Calculators

Before you apply for a HELOC, online tools can help you estimate your monthly payment and interest costs, during both the interest-only (draw) phase and the repayment phase. Playing around with different amounts borrowed and different interest rates can help you see what your monthly costs might look like.

How to Qualify for a Competitive HELOC Rate

To land a top-notch HELOC rate, your credit score and DTI ratio are key. Take a few steps to make sure they are strong before you get serious about a HELOC application.

Improve Your Credit Score

To be a contender for the best HELOC rates, you’ll want a credit score of 700 or more, though you can get a HELOC with a score of 640. The key is making payments on time and chipping away at balances. Also give your credit report a once-over and dispute any errors. Keeping old credit accounts open and using them wisely can also work wonders on your score.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is a simple formula: your total monthly debt payments divided by your gross monthly income. When it comes to HELOCs, a DTI under 50% is the general target, but the lower, the better, and you’re aiming to be under 36%. You can reduce your DTI ratio by cutting your debts, increasing your income, or both.

Application Process for a HELOC in Bay Area

Closing Costs and Fees

HELOC closing costs are generally less than those associated with buying a home or refinancing. The appraisal fee is often the most significant expense. A title search and insurance may also be required, which can cost between $100 and $450. Other fees may include application, origination, and administrative costs. Additionally, some lenders may charge a maintenance fee of up to $250 per year.

Tax Benefits and Considerations

HELOCs have closing costs, but they also have a potential tax benefit: In the 2025 tax year, homeowners can deduct HELOC interest if the money borrowed is used to significantly improve the primary residence. It’s always a smart move to chat with a tax pro to confirm your eligibility. A tax advisor may also be able to give you a heads up about how tax policy may change in 2026 and beyond.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

If you’re at all unsure about a HELOC, or just want to explore all your options, consider that there are other ways besides a HELOC to borrow. Take a closer look at a home equity loan, a cash-out refinance, and — an option that doesn’t put your home at risk — a personal loan.

The Takeaway

As you mull over the idea of a HELOC, it’s crucial to consider the pros and cons. These lines of credit are wonderfully versatile, whether you’re dreaming of a home makeover, need to tackle personal expenses, or want to pay down higher-interest debts. But remember, your home is on the line if you fall behind on payments. The good news is, with a little planning and some nurturing of your credit score and DTI ratio, a good HELOC rate can be yours in the Bay Area. So, roll up your sleeves, shop around, and compare rates to find the best fit for your financial goals.

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

Compare HELOC rates in Tulsa.

Introduction to HELOC Rates

Welcome to your comprehensive guide to home equity line of credit (HELOC) rates in Tulsa, Oklahoma. Whether you’re considering a home equity line of credit to spruce up your living space, cover education expenses, or for another financial need, this guide is designed to help you navigate the current market conditions. You’ll discover how to qualify for the most favorable rates, the factors that influence what rate you might be offered, and how to weigh the benefits and potential pitfalls of a HELOC.

What Exactly Is a HELOC?

A HELOC is a revolving credit line that uses your home’s equity (the value of your home less the amount you owe on your home loan) as collateral. With at least 15% equity in your home, you may be able to borrow up to 90% of your equity. Of course, the fact that your home is collateral means that if you do not make your payments on the HELOC, the lender you borrow from could foreclose. But if you are good at managing your finances, a HELOC can be a useful way to obtain cash for large expenses, and HELOC interest rates tend to be lower than those for personal loans. HELOCs typically have two periods: a draw period and a repayment period.

Recommended: HELOC vs. Home Equity Loan

Where Do HELOC Interest Rates Originate?

HELOC interest rates are tied to the prime rate, which is influenced by the Federal Reserve’s monetary policies. Lenders tack on a margin to the prime rate, which is why you’ll see different HELOC rates from different lenders — and why it’s so important to seek out rates from multiple lenders as you explore your HELOC options. Your credit score, debt-to-income (DTI) ratio, and the amount of equity in your home also play a role in the rate you’ll be offered.

How Interest Rates Impact HELOC Affordability

The interest rate on your HELOC can make a big difference in how much you pay over the life of the loan. Even a small difference in your HELOC rate can result in large extra interest payments. On a $50,000 HELOC with a 20-year term, a one-percentage-point rate increase from 7.00% to 8.00% during the repayment phase can raise your monthly payment by $30 and increase the total interest paid by almost $7,000. Of course, the HELOC rate is variable, so your numbers may differ. But the bottom line is that the more you borrow with a HELOC, the greater the effect of a change in interest rate.

HELOC Interest Rate Trends

As you explore how to get equity out of your home, you’ll probably begin to keep an eye on the prime rate. The rate has seen its share of ups and downs since 2018, falling to a low of 3.25% in 2020 and peaking at 8.50% in 2023. By understanding this historical fluctuation, you can better assess where current HELOC rates fall on the spectrum.

Variable vs. Fixed Interest Rates

HELOCs typically have adjustable interest rates, also called variable rates, which means the amount of interest you pay can change based on the market. It’s not entirely the Wild West: The frequency with which your rate can change and the amount that it can change is governed by the HELOC agreement a borrower signs with a lender. Before you sign on to a HELOC, try putting the low and high range of interest rates you might encounter into a HELOC calculator to see how much interest you might need to pay. If you feel that you can handle the amounts and keep up with payments, then you can probably handle a HELOC.

Helpful Tools and Calculators

As noted above, before you apply for a HELOC you can use online tools to compute estimates of your payments, either with interest only or with the principal added. Here are a few calculators you’ll probably find useful.

How to Qualify for a Competitive HELOC Rate

To get the best available HELOC rate, you’ll want to first make sure you have 15% equity in your home, and ideally more. To check your equity level, subtract whatever you still owe on your mortgage from your home’s estimated value; divide the answer by your home value and you’ll have a percentage of equity. If you clear the 15% bar, take on the next two to-dos.

Improve Your Credit Score

A credit score of 700 or higher is the sweet spot for securing the best HELOC rates, though you can get a HELOC with a score of 640 or more. Making payments on time and reducing credit card balances are two of the most effective ways to improve your score. You should also check your credit report for errors and dispute any inaccuracies you find. Avoid closing old credit accounts or opening new ones before applying for a HELOC.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is a simple calculation: Tally up your monthly debt payments (think mortgage, car loans, credit cards) and divide that by your gross monthly income. The magic number for many HELOC lenders is a DTI below 50%, but for the best interest rates, you’ll want to be below 36%. A lower DTI could be your golden ticket to a HELOC with terms that’ll make you smile.

Recommended: Different Types of Home Equity Lending

Application Process for a HELOC in Tulsa

Many lenders offer the convenience of online prequalification for a HELOC, which can be a real time-saver. By providing some basic financial information, you could get a sense of the rates and the amount you might be eligible for, often in just minutes. If you decide to proceed with the full application, these are the steps:

Closing Costs and Fees

HELOC closing costs are generally more affordable than those for home purchases or cash-out refinancing. The appraisal is often the most significant expense, though a title search, if required, can cost $100 to $450. Other fees may include application, origination, and administrative fees. Maintenance fees (up to $250/year) may apply. Some lenders charge transaction, inactivity, or early termination fees. Many lenders, however, are willing to reduce or even waive closing costs, although they may charge slightly higher interest rates.

Tax Benefits and Considerations

Here’s a tip: You can deduct HELOC interest charges if you use the HELOC to significantly improve your primary residence. These tax guidelines are in place through 2025. For the nitty-gritty on your specific situation, it’s always a good idea to chat with a tax advisor. They can help you confirm your eligibility for HELOC-related deductions and ensure you’re making the most of your tax benefits.

Alternatives to HELOCs

There are other ways to tap into your home equity, such as a home equity loan, cash-out refinancing, or personal loans. Each has its own set of advantages and considerations.

The Takeaway

When you’re mulling over a HELOC, it’s a smart move to consider the pros and cons. A line of credit offers you a flexible way to access funds and often comes with competitive interest rates. But the risk of losing your home is there if you can’t keep up with the payments. Use a HELOC calculator to run the numbers to ensure you can afford to borrow money. And seek out rates from multiple lenders to make sure you borrow at the lowest possible cost.

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

Compare HELOC rates in Honolulu.

Introduction to HELOC Rates

This guide will help you understand how home equity line of credit (HELOC) interest rates work in Honolulu, HI, and how you can use a HELOC to your advantage. We’ll cover what a home equity line of credit is and how it works, what impacts interest rates, and how to compare different offers. Whether you’re looking to make home improvements, consolidate debt, or pay for education, this guide will help you make an informed decision about tapping into your home equity.

What Exactly Is a HELOC?

A HELOC is a revolving credit line that’s secured by your home equity, which is essentially your home’s value minus your outstanding mortgage balance. To qualify, most lenders will look for you to have at least 15% equity in your home, and you can typically borrow up to 90% of that equity.

A HELOC has two main phases: the draw period and a repayment period. You’ll need to keep up with your monthly payments during both periods; otherwise the lender could foreclose on your home. So let’s look at those phases in detail.

Recommended: Different Types of Home Equity Lending

The Origin of HELOC Interest Rates

Lenders base HELOC rates on the prime rate, which is driven by the actions of the Federal Reserve. Each lender then adds its own margin to the rate, which accounts for the difference in interest rate offers you’ll see in the HELOC marketplace. When you’re looking to secure a HELOC, lenders also take into account your credit score, debt-to-income (DTI) ratio, and the amount of equity you have in your home. We’ll explain how to prepare for that below.

How Interest Rates Impact HELOC Affordability

The interest rate on your home loan was important when you obtained your mortgage, and it’s no different with a HELOC. The rate you obtain can make a big difference in the affordability of your monthly payments and the total amount of interest you’ll pay over the long haul.

If you borrowed $50,000 and repaid it over 20 years, a one-percentage-point rate increase from 7.00% to 8.00% would increase the total interest paid over the life of the HELOC by almost $7,000. The more you borrow, the more you feel the pinch of a higher rate. It’s worth spending the time on a thorough search of the market to find the lender that offers you the best combination of a low interest rate and convenient terms.

HELOC Interest Rate Trends

As you start to explore HELOCs, you’ll probably begin to keep a closer eye on the prime rate. It’s helpful to have some sense of the history of the rate, because it can put current rate offers into perspective. Since 2018, the prime rate has seen its ups and downs, hitting a low of 3.25% in 2020 and a high of 8.50% in 2023.

Variable vs. Fixed Interest Rates

One thing that distinguishes a HELOC is that this type of borrowing often comes with a variable interest rate, which means your costs can change over time. This might feel wildly unpredictable, but in fact the changes will be spelled out in your HELOC agreement. You’ll know from the get-go how often your rate may change and how widely it could range. There is a rate cap, which is comforting. Nevertheless, determining whether your budget can handle potential rate swings is a critical part of the HELOC decision-making process.

Helpful Tools and Calculators

Before you apply for a HELOC, you can use online tools to estimate your monthly payment and interest costs. Here are three useful calculators to explore as you make up your mind about a HELOC.

How to Qualify for a Competitive HELOC Rate

To snag a top-tier HELOC rate, you’ve got to meet some standard criteria. Lenders generally look for HELOC borrowers to have at least 15% equity in their home. To check your number, subtract what you owe on your home loan from your home’s estimated value. Then divide the answer by your home value and you’ll get a percentage of equity. Next step? Move on to the to-dos below.

Improve Your Credit Score

To be in the best position to secure a low HELOC rate, you should aim for a credit score of 700 or higher. Making timely payments and reducing your credit card balances can have a significant impact on your credit score. It’s a good idea to check your credit report for errors and dispute any you find. Keeping old credit accounts open and using them responsibly can also help you maintain a healthy credit history, which can make you a more attractive candidate for a competitive HELOC rate.

Calculate Your Debt-to-Income Ratio (DTI)

Your DTI ratio is a simple formula: your total monthly debt payments divided by your gross monthly income. Most HELOC lenders prefer a DTI under 50%, but naturally, the lower the better, and the goal for a great rate is to be under 36%. To calculate yours, tally up your monthly financial commitments — from your car payment to your credit card bills—and divide by your gross monthly income. A lower DTI can work in your favor, boosting your chances of HELOC approval and a more attractive rate.

Application Process for a HELOC in Honolulu

Some lenders offer the convenience of prequalification for a HELOC online. This first step can give you a glimpse of the HELOC rates in Honolulu you might be eligible for and the credit amount you could access. Once you’re prequalified, you can move on to the full application, following these steps.

Closing Costs and Fees

HELOC closing costs are generally lower than what you’d face with a home purchase or refinance. Your biggest expense is likely to be the appraisal, which can run anywhere from $300 to $600. A title search, if required, might cost you $100 to $450. You could also face application, loan origination, and administrative fees, along with annual maintenance fees that could go as high as $250.

Tax Benefits and Considerations

Some good news: You can deduct HELOC interest on your 2025 taxes if the funds are used to improve your primary residence. To make sure you’re on the right track (and for help itemizing your return if you’re no expert), it’s a good idea to consult with a tax advisor. An advisor can also help you keep tabs on how this tax rule may change in years to come.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

There are other ways to get equity out of your home, including home equity loans and cash-out refinancing. If you’re at all unsure about whether a HELOC is the right move, it’s worth exploring all your options. Here are the details:

The Takeaway

If you’re considering a HELOC, it’s important to weigh the benefits and potential risks. On the plus side, HELOCs offer a revolving line of credit, which means you can borrow and repay funds as needed, with interest charged only on the amount of the credit line you actually use. This can be a cost-effective solution for large expenses, especially with competitive HELOC rates. But be mindful of the variable interest rate and the potential risk of foreclosure if payments are missed. Always take the time to assess your financial situation and explore interest rates from multiple lenders before making a decision.

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

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

View your rate