Jan

2026

Free Alaska Home Equity Loan Calculator

By Dana Paltao | mortgage | Comments Off

Alaska Home Equity Loan Calculator

Q: How is a home equity loan different from a home equity line of credit (HELOC)?

A home equity loan provides a single lump sum of money at a fixed interest rate, which is repaid with predictable monthly payments. In contrast, a HELOC is a revolving line of credit with a variable interest rate, allowing you to borrow funds as needed up to a predetermined limit.

Q: How much can I borrow with a home equity loan?

The amount you can borrow depends on your home's equity, your credit history, and your income and debt levels. While lenders commonly allow borrowing up to 85% of your available equity, this is not a universal standard. An Arizona home equity loan calculator can help you estimate borrowing costs based on your needs.

Q: What can I use home equity loan money for?

You can use home equity loan funds for any purpose. Common uses include home renovations, debt consolidation, funding education, and covering other large, one-time purchases. There are generally no restrictions imposed by lenders on how the funds can be used.

Q: Is the interest rate on a home equity loan fixed or variable?

Home equity loans typically come with a fixed interest rate. This means the rate remains the same for the entire duration of the loan, which results in consistent and predictable monthly payments.

Q: What are the typical loan terms for a home equity loan?

Repayment terms for home equity loans are flexible, generally ranging from five to 30 years. A longer term will result in lower monthly payments but will also mean you pay more in total interest over the life of the loan.

Q: What are the qualification requirements for a home equity loan?

Primary requirements for a home equity loan include having sufficient home equity (typically 15% to 20%), a good credit score (often 680 or higher), a steady income, and a debt-to-income (DTI) ratio that is acceptable to the lender (often below 50%).

Q: Are there closing costs or fees with home equity loans?

Home equity loans do typically have closing costs, which can range from 2% to 5% of the total loan amount. Some lenders may offer loans with no closing costs, but this could result in a higher interest rate on the loan.

Q: Does a home equity loan replace my first mortgage?

A home equity loan does not replace your first mortgage. It is a separate loan, often called a "second mortgage," which means you will have two monthly payments: one for your original mortgage and one for the new home equity loan.

By SoFi Editors | Updated December 11, 2025

An Alaska home equity loan allows homeowners to borrow against the value they have built in their property. For those considering this option, an Alaska home equity loan calculator offers a way to explore potential borrowing scenarios without making a formal commitment.

This guide will walk you through how to use the Alaska home equity loan calculator, home equity trends in Alaska, alternatives to home equity loans, and more

Key Points
• A home equity loan provides funds as a single, lump-sum payment based on the equity you have in your home.
• Home equity loans typically have a fixed interest rate, which leads to predictable monthly payments over the loan’s life.
• The loan is secured by the equity in the borrower’s home, which acts as collateral.
• Repayment terms for home equity loans generally range from five to 30 years.
• The loan is considered a second mortgage, separate from the primary home loan.

Calculator Definitions

• Home Value: This is the current estimated market value of your property, not the original purchase price. It helps determine how much equity you have available to borrow.

• Desired Loan Amount: This is the total sum of money you wish to borrow from the lender. It represents the principal amount that you will repay, with interest, over the chosen loan term.

• Current Mortgage Balance: This is the total outstanding amount you still owe on your primary home loan. Lenders subtract this figure from your home’s current market value to help calculate your available equity.

• Home Equity Loan Repayment Term: This refers to the length of time over which you will repay the home equity loan. Lenders typically offer repayment terms ranging from five to 30 years.

• Interest Rate: This is the cost of borrowing the money, expressed as a rate. For most home equity loans, this rate is fixed for the entire duration of the loan, ensuring your payment amount will not change.

• Maximum Loan Amount: This is the highest estimated amount a lender might offer based on the information you provide. This figure is an estimate; the final approved amount depends on a full application, a professional appraisal, and the underwriting process.

• Estimated Monthly Payment: This is the calculated amount you would pay each month to the lender. This payment includes portions of both the principal and interest, which ensures the loan is fully paid off at the end of the term.

• Available Equity Amount: This represents the portion of your home’s value that you own outright. Your available equity is calculated by subtracting your outstanding mortgage balance from your home’s current market value and is the basis from which a loan amount is determined.

Now that these terms are clear, you are ready to use the calculator effectively.

How to Use the Alaska Home Equity Loan Calculator

An Alaska home equity loan calculator provides estimates for potential loan options. The following steps will guide you on how to input your information correctly to generate an estimate for your financial planning.

Step 1: Enter Your Home Value

Begin by inputting the current estimated market value of your home. For the most accurate calculation, it’s best to use a realistic figure based on recent sales of comparable properties in your neighborhood or a recent professional appraisal.

Step 2: Input Your Desired Loan Amount

Enter the specific lump-sum amount you wish to borrow. It is important to be realistic about your financial needs, whether you are planning a major renovation, consolidating debt, or covering another significant expense. This amount will be the principal of your loan.

Step 3: Enter Your Current Mortgage Balance

Provide the remaining balance on your primary mortgage. The calculator uses this figure to determine your current equity stake in the property, which in turn establishes the foundation for how much you may be able to borrow.

Step 4: Select a Home Equity Loan Repayment Term

Select a repayment term from the available options, which typically range from five to 30 years. A longer term often results in lower monthly payments, which can be easier on a budget, but a shorter term generally means you will pay less in total interest over the life of the loan.

Step 5: Estimate Your Interest Rate

Enter an estimated interest rate for the loan. The actual rate you receive will depend on several factors, including your credit history and overall financial profile. You can experiment with different rates in the calculator to see how this variable affects your estimated monthly payment.

Step 6: Review Your Results

After entering all the required information, the calculator will provide estimates for your monthly payment and the maximum potential loan amount. It’s important to remember that these figures are for planning purposes only and do not constitute an offer of credit from a lender.

These estimates provide a solid starting point, but to fully appreciate them, it’s essential to understand the fundamentals of the loan itself.

What Is a Home Equity Loan?

A home equity loan is a financial tool that enables homeowners to leverage the ownership stake they have in their property to secure funds for various needs. It converts illiquid home equity into accessible cash, but it comes with significant responsibilities and risks that borrowers must understand.

If you’re pondering what a home equity loan is, it’s a type of second mortgage that allows you to borrow against the equity you have built in your home. It has several characteristics, including:

• Lump-sum payment: The loan provides funds in a single, upfront payment, which is ideal for large, one-time expenses with a known cost. This differs from a home equity line of credit, which is a revolving line of credit.

• Fixed interest rate: Home equity loans typically have a fixed interest rate, which means the rate does not change over the life of the loan. This ensures that monthly payments are predictable and consistent, making budgeting easier.

• Fixed repayment term: The loan is repaid over a period determined at its outset, usually between five and 30 years, with monthly payments beginning immediately and covering both principal and interest.

• Secured loan: Because a home equity loan is secured by your house, these loans typically offer lower rates than unsecured personal loans or credit cards.

Recommended: HELOC vs. Home Equity Loan

Home Equity Trends in Alaska

As home values have risen across the U.S. over the last five years, so have homeowners’ equity levels. In fact, equity levels have doubled since 2020, a collective increase of $5.7 trillion. About half of homeowners with a mortgage are considered “equity rich,” which means their mortgage balance is less than half of the home’s value.

Homeowners in Alaska have averaged a 17% increase in home equity between 2020 and 2025, with the average owner’s equity topping $106,000 at last count.

Current home equity loan rates by state.

Compare current home interest rates by state and find a home equity loan rate that suits your financial goals.

Select a state to view current rates:

How to Use the Home Equity Loan Calculator Data to Your Advantage

An Alaska home equity loan calculator is useful for financial planning, helping you assess whether a home equity loan fits your budget and long-term goals.

The estimated monthly payment is arguably the most critical piece of data the calculator provides. You can integrate this estimated payment into your household budget to see if you can comfortably manage the additional monthly obligation alongside your existing expenses, including your primary mortgage.

The maximum loan amount estimate shows the upper limit of what you can borrow, which is especially useful for homeowners planning major projects. It helps set a realistic budget with contractors, establishes a firm project ceiling, and reduces the risk of cost overruns you can’t afford to finance.

And finally, the calculator allows you to run different scenarios. For example, comparing the results for a 15-year term versus a 30-year term will show you how a longer term can lower your monthly payment, but a shorter term will result in paying significantly less total interest over the life of the loan. This comparison empowers you to choose the structure that best balances your immediate budgetary needs with your long-term financial health.

Seeing how these variables interact in practical situations can further clarify their importance.

Home Equity Loan Scenarios

Home equity loans can be used for nearly anything. Their structure — a one-time lump sum with a fixed interest rate — makes them ideal for certain types of large, planned expenses. The following scenarios explore common situations where a homeowner might want to consider this type of financing.

Scenario 1: Funding a Major Home Improvement Project

A homeowner planning a complete kitchen renovation with a known cost from a contractor could find a home equity loan to be an excellent fit. The loan provides the full amount needed for the project upfront, allowing them to pay the contractor without delay. The fixed interest rate and predictable monthly payments make it simple for the homeowner to budget for the repayment with certainty over a set period.

Scenario 2: Consolidating High-Interest Debt

Another common situation is an individual who has accumulated debt across multiple high-interest credit cards. A home equity loan can be used to pay off all these balances at once, consolidating them into a single loan. This new loan often has a much lower, fixed interest rate, which simplifies finances into one predictable monthly payment and can save a significant amount of money in interest charges over time.

Scenario 3: Paying for a Child’s Tuition

A family needing to pay for a child’s college tuition for the upcoming academic year also presents a fitting scenario. Since the cost is a known, large expense, the lump sum from a home equity loan can cover it entirely. This allows the family to secure the necessary funding in one transaction, and the structured repayment plan provides a clear path for paying back the education costs over several years.

These examples illustrate the utility of a home equity loan, but securing one requires careful financial preparation.

Tips on Home Equity Loans

Securing a home equity loan involves careful preparation and consideration. By taking proactive measures, applicants can position themselves more favorably to lenders and make choices that align with their financial well-being. The following tips can help guide you through the process.

• Build a strong credit history: Lenders closely review credit scores and reports to assess an applicant’s history of financial responsibility. A strong credit score signals that you are a reliable borrower. Consistently making timely payments on all your debts, including credit cards and other loans, is the most effective way to build and maintain a healthy credit profile.

• Manage existing debt: Lenders evaluate your debt-to-income (DTI) ratio, which compares your total monthly debt payments to your gross monthly income. A lower DTI ratio indicates that you have sufficient income to handle additional debt. Lenders typically look for a DTI ratio below 50% (including the potential new loan), with the most favorable rates often reserved for applicants below 36%.

• Compare offers from multiple lenders: Interest rates, repayment terms, and closing costs can vary significantly from one lender to another. Obtaining and comparing loan estimates from several institutions can lead to substantial savings over the life of the loan.

• Understand the risks: Always remember that a home equity loan uses your home as collateral. This arrangement secures a lower interest rate for you but places your property at risk. If you are unable to make your loan payments for any reason, the lender has the legal right to foreclose on your home.

After considering these tips, it’s also wise to explore financing options beyond a home equity loan.

Alternatives to Home Equity Loans

While there aren’t different types of home equity loans, there are other options for leveraging your home’s value or securing financing for a large expense. Understanding the alternatives can help you determine which product best suits your specific needs and financial situation. Here are four alternatives:

Home Equity Line of Credit (HELOC)

A home equity line of credit, or HELOC, is a revolving line of credit secured by your home. During an initial “draw period,” you can borrow funds as needed up to a predetermined limit. In contrast to a home equity loan’s lump-sum disbursement and fixed interest rate, a HELOC typically has a variable interest rate and offers flexible borrowing, making it suitable for ongoing projects with uncertain costs.

A HELOC interest-only calculator can calculate what your payments might be during the initial period. To determine your principal plus interest amount during the subsequent repayment period, you can use a HELOC repayment calculator.

Home Improvement Loan

A home improvement loan is a type of unsecured personal loan, meaning your home is not used as collateral. This reduces the risk to the borrower, as the property cannot be foreclosed upon for non-payment. Because it is unsecured, the application process is often faster, but this lack of collateral typically results in a higher interest rate and a smaller borrowing limit compared to a home equity loan.

Personal Line of Credit

A personal line of credit is an unsecured, revolving line of credit where you can draw and repay funds as needed up to a set limit. Unlike a HELOC, it is not secured by your home, which reduces risk for the borrower but generally results in a higher interest rate and a lower credit limit.

Cash-Out Refinance

A cash-out refinance is a mortgage refinance that replaces your current mortgage with a new, larger one, and you receive the difference between the old and new loan amounts in cash.

When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance results in a single, new primary mortgage payment, whereas a HELOC or home equity loan results in a second mortgage payment. A cash-out refinance can be an attractive option if you can also secure a lower interest rate in the process.

The Takeaway

A home equity loan offers a way for homeowners to access a large, lump sum of cash at a fixed interest rate. This predictability makes it a reliable financing option for significant, one-time expenses such as major home renovations, debt consolidation, or educational funding.

Using an Alaska home equity loan calculator is a recommended first step. It provides the clarity needed to estimate potential monthly payments and understand borrowing capacity, which helps with financial planning.

SoFi now offers home equity loans. Access up to 85%, or $750,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.

Unlock your home’s value with a home equity loan from SoFi.

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FAQ

How is a home equity loan different from a home equity line of credit (HELOC)?

A home equity loan provides a one-time lump sum of money at a fixed interest rate, which results in predictable monthly payments. In contrast, a HELOC is a revolving line of credit with a typically variable interest rate, allowing you to borrow funds as needed up to a set limit during a draw period.

How much can I borrow with a home equity loan?

The amount you can borrow depends on your home’s market value, mortgage balance, and financial profile. Lenders generally require that you maintain at least 15% equity in your home after the loan is issued. The final approved amount is determined after a full application, professional appraisal, and underwriting process.

What can I use home equity loan money for?

Funds are flexible and can be used for purposes like home improvements, consolidating higher-interest debt, or paying for education. While you can use the money for most things, including vacations or weddings, financial experts often recommend using home equity for purposes that can increase your home’s value or improve your long-term financial position.

Is the interest rate on a home equity loan fixed or variable?

Home equity loans almost always come with a fixed interest rate. This means the rate is locked in and will not change over the entire repayment term of the loan. This feature provides borrowers with consistent and predictable monthly payments, making it easier to budget for the loan.

What are the typical loan terms for a home equity loan?

Repayment terms for home equity loans are generally lengthy, typically ranging from five to 30 years. The term you choose will affect both your monthly payment amount and the total interest you pay over the life of the loan. Shorter terms have higher payments but lower total interest, while longer terms offer the reverse.

What are the qualification requirements for a home equity loan?

To qualify, lenders generally want to see a sufficient ownership stake in your home (20%+ equity), a good credit score (620 and up), a verifiable source of income to support repayment, and a manageable debt-to-income (DTI) ratio (under 50%), which compares your monthly debt payments to your income.

Are there closing costs or fees with home equity loans?

Yes, home equity loans typically involve closing costs, which typically range between 2% and 5% of the loan amount. These fees cover services like an appraisal, credit report, title search, and loan origination. While no-closing-cost options are sometimes available, they generally come with higher interest rates.

Does a home equity loan replace my first mortgage?

No, a home equity loan does not replace your first mortgage. It is a separate, additional loan, often called a “second mortgage,” secured by your property. This means you will have two distinct mortgage payments to make each month: one for your original mortgage and one for the new home equity loan.

Learn more about mortgages:

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

*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.

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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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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.

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Jan

19

2026

Free New York HELOC Loan Payment Calculator

By Dana Paltao | mortgage | Comments Off

New York HELOC Calculator

By SoFi Editors | Updated December 23, 2025

For many homeowners, the equity built up in their property is a significant financial asset. And as you consider how to get equity out of your home, a home equity line of credit (HELOC) is a smart and flexible borrowing option. A HELOC can provide you with ready funds that you can use, when needed, for anything from home repairs to debt consolidation. A HELOC calculator is a helpful resource if you’re thinking about borrowing. This guide will help you use the calculator to model potential borrowing scenarios, estimate monthly payments, and gain a clear picture of what your financial obligations would be before making any commitments. This free HELOC calculator will also be useful once you have a HELOC, helping you to see what your payments might be as you utilize the credit line.

Key Points
• A HELOC provides a revolving line of credit that is secured by the equity in your home, functioning similarly to a credit card.
• HELOCs have two distinct phases: a draw period, during which you can access funds as needed and pay only interest, followed by a repayment period when you’ll repay the borrowed principal plus interest.
• To qualify, homeowners are typically required to have at least 15% equity in their property.
• You can typically borrow up to 90% of your equity.
• HELOCs most often have variable interest rates, which means that your monthly payments can change over time as rates fluctuate.

This calculator is for informational purposes only. The outputs are estimates based solely on information you input. Calculations are not an offer to make a loan or an approval. All SoFi loans are subject to eligibility restrictions and limitations not reflected in this calculator, including a loan applicant’s credit, income, property. SoFi products, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria.

Calculator Definitions

• HELOC Balance: This is the amount of money a homeowner plans to draw with a HELOC or has currently drawn from their credit line.

• Current Interest Rate: The current interest rate is the rate charged on the HELOC’s outstanding balance. “Current” is important here, as HELOC rates are typically variable and can fluctuate over time.

• Draw Period: HELOCs begin with a draw phase of between 5 and 10 years, during which a homeowner is permitted to access funds from their HELOC as needed, up to their credit line limit, and typically needs to pay only interest on the amount borrowed.

• Repayment Period: After the draw period ends, a repayment phase of 10 to 20 years begins. During this time, the homeowner makes monthly payments of the principal plus interest until the borrowed amount is repaid.

• Monthly Interest Payment: During the draw period, a homeowner who uses their credit line will make a monthly interest-only payment based on their current HELOC balance. The amount of the payment will vary based on their balance and their current interest rate.

• Monthly Principal and Interest Payment: In the repayment period, the homeowner will make a monthly payment based on the balance owed and the current interest rate.

• Total Interest: The HELOC calculator renders the sum of all interest payments that will be made over the life of the HELOC, from the beginning of the draw period to the end of the repayment period. Because variable interest rates are unpredictable and HELOC borrowers often add to the amount borrowed over the course of the draw phase, this number is a rough estimate.

How to Use the New York HELOC Calculator

Using a HELOC calculator is simple. Just follow these five steps.

Step 1: Enter the Amount You Plan to Borrow

In this field, enter the total amount you plan to borrow from the line of credit.

Step 2: Select Your Current Interest Rate

Here, you will enter an estimated annual interest rate. Since most HELOCs have variable rates, this input allows you to perform “what-if” analyses, testing higher and lower rates to see how changes might affect your monthly payments.

Step 3: Choose the Length of Your Draw Period

Select the duration of the draw period, which is the time frame you can borrow funds. This period is typically 10 years and often features lower, interest-only payments. This input helps the calculator estimate your interest payments during the initial phase of the HELOC.

Step 4: Specify Your Repayment Period

Next, choose the length of the repayment period, which follows the draw period and typically lasts 10 to 20 years. During this phase, you will pay back both the principal and interest. Your monthly payments will almost certainly increase significantly when you enter this period.

Step 5: Review Your Results

The HELOC payment calculator will generate estimated monthly payments for both an interest-only draw period and the repayment period (principal plus interest). Carefully reviewing these results allows you to assess the affordability of the HELOC at different stages and integrate these potential costs into your long-term financial plan.

Recommended: Different Types of Home Equity Loans

What Is a Home Equity Line of Credit?

Once you’ve experimented with running some numbers in a HELOC payment calculator, it’s a good idea to take a step back to make sure you understand what a home equity line of credit is, exactly. A HELOC allows homeowners to convert the equity built up in their property into funds to use for any purpose.

Unlike traditional loans that provide a single lump sum, a HELOC offers a revolving line of credit, which makes it especially versatile if you’re managing large or ongoing expenses. It’s important to understand that, because your home is collateral for the credit line, failing to make your payments could not only damage your credit score — it could place you at risk of foreclosure.

As we’ve seen above, the life cycle of a HELOC is divided into two phases:

• The draw period: This is the initial phase, often lasting 10 years, during which you can withdraw funds as needed, up to your approved credit limit. During this time, many lenders require you to pay interest only on what you’ve borrowed, which keeps initial monthly costs low. Some borrowers use and repay HELOC funds repeatedly during the draw period, while others carry a balance and pay interest. A HELOC interest-only calculator can show you what payments would be based on your balance.

• The repayment period: Once the draw period ends, you can no longer borrow money. For the next 10 to 20 years, you will make regular payments that cover both the outstanding principal balance and the accrued interest. A HELOC repayment calculator can show you what those payments might be.

Crucially, most HELOCs feature a variable interest rate, meaning the rate can rise or fall over time based on broader economic conditions. This flexibility is a key aspect of the product, but it also introduces an element of unpredictability in long-term payment amounts.

Recommended: HELOC vs. Home Equity Loan

Home Equity Trends in New York

The amount of equity a homeowner possesses is the single most important factor in their ability to secure a HELOC. Home equity is the difference between your home’s current market value and the outstanding balance on your home loan and any other loans you might have where your home is used as collateral. In recent years, rising home prices have caused a substantial increase in home equity for many current homeowners.

To establish your equity level, a lender will likely require an appraisal of your home before approving you for a HELOC. But to quickly see how much equity you might have, you can find your home’s estimated value on a real estate site. Subtract any loan balance(s) from that value number, and you’ll have a rough idea of your dollar value. Divide that value by the home’s estimated value to arrive at an equity percentage. If your equity is above 15%, you likely have adequate equity to obtain a home equity line of credit.

In New York, the average homeowner has seen their equity amount increase by more than 70% over the five years ending in 2025. The average home equity of an owner in New York is now more than $200,000. Here’s a look at how equity has risen nationwide between 2020 and 2025.

Current HELOC rates by state.

Compare current home interest rates by state and find a HELOC rate that suits your financial goals.

Select a state to view current rates:

How to Use the HELOC Calculator Data to Your Advantage

The output from a HELOC payment calculator can help you plan your next money move and manage debt responsibly. Here are three key ways to use the calculator’s results:

• Budgeting and affordability: The estimated monthly payments for both the draw and repayment phases are important metrics. Will these figures fit in your household budget? If so, a HELOC is a manageable commitment.

• Scenario planning: A key advantage of the calculator is the ability to model different scenarios. By adjusting the amount borrowed, you can understand at what point the payments become untenable based on your budget. You might qualify for a larger credit line, but you should go into a HELOC with a sense of what your comfortable spending ceiling should be.

• Long-term cost awareness: The “total Interest” figure provides a sobering look at the long-term cost of borrowing. This number helps you visualize the full financial impact of the HELOC over its entire life, encouraging more responsible use of your credit line. It is important to remember that the results generated by a HELOC calculator are estimates based on the inputs you provide. The variable interest rate could make the long-term costs higher — or lower.

Tips on HELOCs

A HELOC is a useful financial tool, but its flexibility demands some discipline. Otherwise you could find yourself owing an oversized amount in the repayment phase. These tips will help you maximize its benefits, and avoid potential financial pitfalls.

Compare lenders: Don’t settle for the first HELOC offer you receive. Shop around and compare interest rates, fees, draw periods, and repayment terms from multiple lenders to find the most favorable option for your situation. Use the HELOC calculator to see how the rates you’re being offered would affect your payments.

Manage use responsibly: Avoid using your HELOC as a long-term solution for short-term wants. Before you borrow, have a clear plan in place for what is and isn’t a suitable use of your credit line, and set a limit on how much of the credit line you might use to ensure you can manage payments without financial stress.

Plan for the repayment period: The transition from the draw period (with interest-only payments) to the repayment period (with principal and interest payments) can cause a significant jump in your monthly obligation. Budget for this increase from the very beginning to avoid “payment shock.”

Consider principal payments: Even if only interest payments are required during the draw period, making additional payments toward the principal can significantly reduce your total balance. This will lower the amount of interest you pay over the life of the loan and lead to a more manageable payment during the repayment period.

Monitor interest rates: If you have a variable-rate HELOC, stay aware of market interest rate trends. Anticipating potential increases in your rate can help you adjust your budget accordingly or make a decision to pay down the principal to lower your payment amount.

Alternatives to HELOCs

While a HELOC offers exceptional flexibility, it is not the right solution for every financial need. The best choice depends on your individual circumstances, risk tolerance, and goals. It’s a good idea to at least be aware of all your options.

Home Equity Loan

A home equity loan is another way to borrow money that uses your home as collateral. But what is a home equity loan and how is it different from a HELOC? Home equity loans provide you with a lump sum all at once. So they are especially good for projects where you know the overall cost up front. You immediately begin repaying the loan with monthly principal-plus-interest payments. The loan usually comes with a fixed interest rate and predictable monthly payments over a set term. For many borrowers, this predictability is a key determining factor as they think about a HELOC vs. a home equity loan. A home equity loan calculator can help you see what your monthly payments might be.

Home Improvement Loan

This unsecured personal installment loan provides a lump sum of money at a fixed interest rate for a specific term. But unlike a HELOC or home equity loan, a home improvement loan does not require using your home as collateral. Home improvement loans often have a lower borrowing limit than HELOCs, and may have higher interest rates and shorter repayment terms as well.

Personal Line of Credit

A personal line of credit is a revolving credit account, but it is typically unsecured, meaning it is not backed by your home as collateral. The primary differences from a HELOC are the level of risk and the cost. Because your home is not at risk of foreclosure, a personal line of credit is less risky for the borrower; however, this generally results in a higher interest rate and a lower credit limit compared to a HELOC.

Cash-Out Refinance

A cash-out mortgage refinance replaces your existing mortgage with a new, larger one, allowing you to pocket the difference between the two loan amounts in cash. As you consider a cash-out refinance vs. a home equity line of credit, think about this: A refi results in a single, new primary mortgage as opposed to a separate, second line of credit. This can be an attractive option if you can also secure a lower interest rate on your new, larger mortgage. And some borrowers like to have one monthly payment instead of two.

A HELOC, however, allows you to borrow incrementally and pay interest only during the early years. A cash-out refi will mean you have to start making a new and often larger mortgage payment immediately after receiving the funds.

The Takeaway

A free HELOC calculator is an essential resource as you’re thinking about how to borrow against your home equity. Using the calculator provides a clear estimate of the potential costs associated with borrowing, and running scenarios involving different borrowed amounts, interest rates, and repayment terms can help borrowers find the right mix for their comfort level.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.

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

View your rate

FAQ

What is the difference between a HELOC and a home equity loan?

A HELOC is a revolving line of credit with a variable interest rate. It allows you to borrow and repay funds (or pay only interest) during a draw period, before repaying the principal plus interest during a repayment phase. In contrast, a home equity loan provides a single lump sum of money upfront at a fixed interest rate. The loan repayment begins immediately and payments are made in predictable, equal monthly installments.

How much can I borrow with a HELOC?

Lenders typically allow homeowners to borrow up to 90% of their home equity. The final approved amount will depend on factors such as your equity level, your credit score, debts, and income.

What can I use the money for from a HELOC?

Funds from a HELOC can be used for any purpose. Common uses include home renovations, consolidating high-interest debt, paying for educational or medical expenses, or covering other major expenses.

Is a HELOC interest rate fixed or variable?

The vast majority of HELOCs have a variable interest rate, meaning the rate can change over time based on changes in a benchmark index like the U.S. Prime Rate. While some lenders may offer a fixed-rate option, it is much less common.

What happens when the HELOC draw period ends?

When the draw period of a home equity line of credit ends, you can no longer borrow funds from the credit line. The loan then enters the repayment period, during which you must begin making regular payments that cover both the principal balance and the accrued interest. These payments are typically higher than the interest-only payments made during the draw period.

What is the benefit of having a variable interest rate?

While a variable rate carries the risk of increasing, it can also decrease if market rates fall, which would lower your monthly payment. Additionally, lenders sometimes offer a low introductory or “teaser” rate for a short period, which can be significantly lower than available fixed rates at that time.

Are there closing costs or fees for a HELOC?

Yes, HELOCs can come with fees, which may include an application fee, appraisal fee, closing costs, and sometimes an annual fee. Some HELOCs have inactivity fees, charged to homeowners who don’t use their credit line over a certain time period. However, the market is competitive, and some lenders may offer to reduce or waive some fees to attract borrowers.

What is the minimum credit score I need to qualify for a HELOC?

While specific requirements vary by lender, a credit score of at least 640 (and for some lenders, 680), is the minimum needed to qualify for a HELOC. A higher credit score, particularly 700 or above, will typically result in a lower interest rate and more favorable loan terms.

Is the interest on a HELOC tax-deductible?

Interest paid on a HELOC may be tax-deductible, although you would likely need to itemize your tax return in order to claim this deduction. It’s best to consult a qualified tax advisor for guidance on your specific situation.

Learn more about mortgages:

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

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

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

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

^²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOHE-Q425-082

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Jan

19

2026

Free Nebraska HELOC Loan Payment Calculator

By Dana Paltao | mortgage | Comments Off

Nebraska HELOC Calculator

By SoFi Editors | Updated January 13, 2026

Tapping into your home equity is a significant financial step that needs careful planning. Our free Nebraska HELOC payment calculator helps you estimate the cost of borrowing. Before you apply for a home equity line of credit, use the Nebraska calculator to see your estimated monthly payments in the draw and repayment periods. This guide offers clear, step-by-step instructions on how to use the calculator so you can make a confident decision on whether a HELOC is right for your budget and goals.

Key Points
• A home equity line of credit (HELOC) is a revolving line of credit that allows you to use your home as collateral to secure funds for a major project or expense.
• There are two payment periods to be aware of: the draw period and repayment period.
• Most HELOCs feature a variable interest rate, meaning your monthly payments can change over time based on broader economic conditions.
• To qualify, lenders generally require that homeowners have a minimum of 15% equity in their home.
• Qualified borrowers may be able to access up to 90% of their home equity.

Calculator Definitions

• HELOC Balance: This term represents the total amount of money a borrower has currently withdrawn from their available credit line, or the amount a homeowner plans to borrow.

• Current Interest Rate: This is the rate at which interest accumulates on your outstanding HELOC balance.

• Draw Period: This is the specific time frame—often between 5 and 10 years—during which you can access funds from your HELOC, up to your approved credit limit.

• Repayment Period: This is the second phase—often 20 years—when the homeowner must pay back the full balance through combined principal and interest payments.

• Monthly Interest Payment: This is the monthly cost of borrowing funds based on the outstanding balance and the current variable interest rate. It does not contribute to reducing the original amount used.

• Monthly Principal and Interest Payment: This is the amount you’ll be required to pay monthly during the repayment period. Use the Nebraska HELOC payment calculator to get an estimate; your exact payment amount will be based on current rates.

How to Use the Nebraska HELOC Calculator

Follow these easy instructions to use the Nebraska HELOC payment calculator most effectively.

Step 1: Enter Your Planned or Actual HELOC Balance

Start with the total amount you plan to borrow from the line of credit.

Step 2: Estimate Your Interest Rate

Now, enter your desired annual interest rate. The rate can be from a prospective lender or an estimate based on your research.

Step 3: Choose the Length of the Draw Period

The draw period time frame is typically five to 10 years.

Step 4: Select Your Repayment Period

The repayment period timeframe is typically 10 to 20 years.

Step 5: Review Your Results

Analyze the results by looking closely at the potential monthly payments during both the draw and repayment periods.

Now that you are familiar with how to use the Nebraska calculator, let’s explore what is a home equity line of credit.

What Is a Home Equity Line of Credit?

A home equity line of credit, known as a HELOC, is a revolving line of credit that is secured by the equity in your home. Because your home serves as collateral, lenders typically offer more competitive interest rates compared to unsecured options like credit cards and personal loans. This also means that you risk foreclosure if you fail to make payments.

As you learn how a HELOC works, keep in mind that your home equity is the difference between your home’s current market value and the outstanding balance on your home loan and any other loans you might have where your home is used as collateral. The interest rate is usually variable (unlike a standard home equity loan, which usually offers a fixed interest rate) so it’s helpful to keep an eye on market movements and trends, like the U.S. Prime Rate.

There are two phases to the HELOC. First is the draw period, which is typically 5 to 10 years. This is when you can withdraw funds as needed, up to your approved credit limit. You are often required to make payments only on the interest that accrues on your outstanding balance. Our HELOC interest-only calculator can help you assess what your payment amounts for the draw period may be.

Then you begin the repayment period, usually 10 to 20 years, when your required monthly payments will increase significantly to cover both the principal balance and the interest. During this phase, you can use a HELOC repayment calculator to help you out.

If you are a Nebraska homeowner who has built up equity in your property, then you will want to use these tools to help you understand how to get equity out of your home.

Recommended: HELOC vs. Home Equity Loan

Home Equity Trends in Nebraska

With a HELOC, as with different types of home equity loans, the amount of equity a homeowner possesses is the key to your borrowing power.

Since 2020, increasing home prices has led to a surge in home equity for existing homeowners (see chart). Nebraska home equity has increased by 104% over the past five years, with the average home equity level more than $96,000.

Lenders typically require that a homeowner maintain at least 15% equity to qualify for a HELOC, and you can borrow up to 90% of equity. For a home valued at $400,000, with a mortgage balance of $300,000, a homeowner would have $100,000 in total equity, and $90,000 in tappable equity.

Current HELOC rates by state.

Compare current home interest rates by state and find a HELOC rate that suits your financial goals.

Select a state to view current rates:

How to Use HELOC Calculator Data to Your Advantage

The Nebraska HELOC payment calculator allows you to experiment with different loan scenarios, budget effectively, and prepare for productive conversations with lenders. Follow these steps to get the most out of the calculator:

• Explore the estimates: One of the key functions of the Nebraska payment calculator is its ability to model scenarios. Since HELOC interest rates shift over time, experiment with different HELOC balances, interest rates, and repayment terms to see how each of these figures affects the monthly payment.

• Evaluate debt consolidation: If you’re managing high-interest credit card debt, you can add up the monthly payment amounts on your cards and compare that to the monthly payment you would have if you used a HELOC to pay off all that you owe at once. There’s a good chance your monthly payment with a HELOC would be lower than the sum of what you’re currently paying. And it would be one simple payment instead of multiple.

• Approach lender conversations more confidently: Use the Nebraska calculator ahead of time to run estimates and gain a clear understanding of your borrowing capacity. That way you can enter lender negotiations with more realistic expectations.

Tips on HELOCs

Here are some tips to act on before you apply for a HELOC:

Strengthen your credit score: Lenders typically require a credit score of at least 640, but reserve the best rates and terms for scores of 700+.
Shop around with different lenders: Don’t commit right away. Instead, compare annual fees, inactivity fees, and prepayment penalties from a variety of lenders.
Prepare a budget: With the transition between the two HELOC phases (the draw period and repayment period), you’ll see your monthly payments increase from interest-only to principal-and-interest.
Consider the risks: A HELOC uses your home as collateral. This means that the lender could foreclose on your home if you fail to make payments.

Alternatives to HELOCs

Even if you are confident that a HELOC is appropriate for your budget and goals, it’s a good idea to be aware of alternatives before making a final decision. Here are some options:

Home Equity Loan

For a single, fixed-cost project, a home equity loan may be a good choice because it provides the homeowner with a one-time, lump-sum disbursement secured by their home equity. The home equity loan typically has a fixed interest rate, which makes for consistent and predictable monthly payments. Use a home equity loan calculator to compare the cost of a home equity loan versus a HELOC.

Recommended: What Is a Home Equity Loan?

Home Improvement Loan

A home improvement loan is a personal loan designed to be used for renovations and repairs. It is similar to a home equity loan in that it is disbursed in a lump sum and repaid with fixed payments. But it is unsecured (it does not use your home as collateral), which typically results in a higher interest rate.

Personal Line of Credit

A personal line of credit (PLOC) is a revolving line of credit that is not secured by collateral. It functions similarly to a HELOC in that you can draw and repay funds as needed. Because it is unsecured, the PLOC holds less risk (because your home isn’t on the line) but usually means a higher interest rate. To qualify, a lender will look at your total financial picture, including your credit score and income. Your home equity doesn’t play a role.

Cash-Out Refinance

When a homeowner undertakes a cash-out mortgage refinance, they replace their primary mortgage with a new, larger mortgage. This process pays off the original mortgage debt, and the homeowner receives the remaining balance as cash. This move can be beneficial if current interest rates are significantly lower than the rate on the primary mortgage.

As you consider a cash-out refinance vs. home equity line of credit or home equity loan, a key difference is that the refinance consolidates all home debt into a single payment.

The Takeaway

Nebraska homeowners can use the HELOC payment calculator as a strategic first step when considering tapping into their home equity. Our online tool provides monthly payment estimates, giving the homeowner a clear idea of their borrowing power. Run scenarios with different borrowed amounts, interest rates, and repayment terms to find the right mix for your budget and goals.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.

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

View your rate

FAQ

How much can I borrow with a HELOC?

Lenders typically allow you to borrow up to 90% of your equity. The exact amount you can borrow will depend on the equity in your home. (Your equity is equal to your home’s estimated value minus your outstanding mortgage balance.)

What can I use the money for from a HELOC?

Homeowners can put HELOC funds toward almost any purpose, including home renovations, debt consolidation, and medical expenses.

Is the interest on a HELOC tax-deductible?

The interest on a HELOC may be tax-deductible. Always consult a professional tax advisor.

What is the minimum credit score I need to qualify for a HELOC?

You will need to show a 640 credit score or higher to qualify for a HELOC. Some lenders require a 680 credit score. You may be able to land more favorable terms and interest rates by having a credit score in the 700s.

Learn more about mortgages:

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

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

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

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

^²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOHE-Q425-077

Browse other home guides.

Get prequalified in minutes for a SoFi Home Loan.

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Jan

19

2026

Free Montana HELOC Payment Calculator

By Dana Paltao | Uncategorized | Comments Off

Montana HELOC Calculator

By SoFi Editors | Updated January 8, 2026

Using your home equity is a major financial decision that requires careful planning. A Montana HELOC payment calculator can help homeowners figure out their borrowing costs. Before applying for a home equity line of credit, use our calculator to estimate your monthly payments and total interest costs. This guide offers a wealth of information to get you started on your HELOC journey: definitions, steps to use the calculator, tips, and alternatives. You’ll come away with the knowledge to confidently decide if a HELOC fits your financial goals.

Key Points
• A home equity line of credit (HELOC) is a revolving line of credit that allows you to use your home as collateral to secure funds.
• During the draw period (typically 10 years) you can withdraw and use funds up to a predetermined limit.
• The repayment period (20 years) requires the repayment of principal and interest.
• Lenders generally require that you have a minimum of 15% equity in the home, and homeowners can typically borrow up to 90% of their equity.

Calculator Definitions

• HELOC Balance: This is the amount of money a homeowner plans to draw with a HELOC or has currently drawn from their credit line.

• Current Interest Rate: This is the percentage the lender charges for the use of funds. Because it is usually variable, this rate can shift based on broader economic conditions.

• Draw Period: The draw period is the specific time frame, often lasting between 5 and 10 years, during which you can access funds from your HELOC up to your approved credit limit.

• Repayment Period: The repayment phase begins after the draw period. It is usually 10 to 20 years.

• Monthly Interest Payment: This refers to the minimum payment required during the draw period. Some HELOCs allow for interest-only payments during this phase, which cover the interest accrued on the borrowed amount but do not reduce the principal balance.

• Monthly Principal and Interest Payment: This is the standard payment made during the repayment period. It includes a portion of the principal balance and the accrued interest, and is designed to pay off the line of credit over the specified term.

How to Use the Montana HELOC Calculator

The Montana HELOC payment calculator is easy to use.

Step 1: Enter Your Planned or Actual HELOC Balance

Enter the total amount you plan to borrow from the line of credit.

Step 2: Estimate Your Interest Rate

Input the annual interest rate for your line of credit.

Step 3: Choose the Length of the Draw Period

Select the duration of the draw period (typically 10 years).

Step 4: Select Your Repayment Period

Now enter the repayment period (typically 10 to 20 years).

Step 5: Review Your Results

Review the outputs, which show you the potential monthly payments during the draw and repayment periods.

Now that you are familiar with how to use the Montana calculator, let’s explore what is a home equity line of credit.

What Is a Home Equity Line of Credit?

A home equity line of credit, commonly known as a HELOC, offers homeowners a revolving credit line that is secured by the equity in your home. If you are a Montana homeowner who has built up equity in your property, then you will want to understand how to get equity out of your home.

First, your home equity is the difference between your home’s current market value and the outstanding balance on your home loan and any other loans you might have where your home is used as collateral.

A HELOC has a draw period, usually 5 to 10 years and a repayment period, usually 10 to 20 years. During the draw period you can withdraw funds as needed, up to your approved credit limit. You are often required to make payments only on the interest that accrues on your outstanding balance. Use a HELOC interest-only calculator to help you figure out payment amounts for the draw period.

For the repayment period, you can no longer withdraw funds, and your required monthly payments will increase significantly to cover both the principal balance and the interest. The HELOC repayment calculator is a helpful tool for budgeting for this phase.

Variable interest rates are typical for a HELOC (unlike a standard home equity loan, which usually offers a fixed interest rate).

The biggest risk is that your home serves as collateral. If you fail to make payments, the lender could initiate foreclosure. On the other hand, because the HELOC is secured, lenders sometimes offer more competitive interest rates (compared to an unsecured option like a credit card).

Having a thorough understanding of a HELOC and how it works will help you use the Montana HELOC calculator to its potential.

Recommended: HELOC vs. Home Equity Loan

Home Equity Trends in Montana

With a HELOC, as with different types of home equity loans, the amount of equity a homeowner possesses is the key to borrowing power. As you assess the equity built up in your home, it’s helpful to monitor national and local housing trends. Since 2020, increasing home prices have led to a surge in tappable equity for homeowners (see chart below). In Montana, home equity increased by 137% from 2020 to 2025, with average home equity in the range of $216,000.

Current HELOC rates by state.

Compare current home interest rates by state and find a HELOC rate that suits your financial goals.

Select a state to view current rates:

How to Use the HELOC Calculator Data to Your Advantage

To get the most out of the Montana HELOC payment calculator, use the data to your advantage:

• Estimate monthly payments: As you prepare for a large-scale project, figure the estimated monthly payments for both the draw and repayment periods so you have no surprises.

• Budget within your means: Assess what you can afford by reviewing potential payments against your existing debt balances.

• Experiment with variables: The main feature of the Montana payment calculator is its ability to model different scenarios. Adjust the amount borrowed, for example, to see at what point the payments become untenable based on your budget.

• Prepare for lender discussions: Arrive at lender meetings armed with your estimated borrowing limit so your expectations are realistic.

Tips on HELOCs

HELOCs offer financial flexibility, but also come with risk. Use the following tips to help you approach applying for a HELOC wisely:

• Check different lenders: Shop around with lenders and compare annual fees, inactivity fees, and prepayment penalties, as these impact the overall cost of borrowing.

• Budget wisely: Prepare for the significant increase in monthly payments when transitioning from the interest-only draw period to the principal-and-interest repayment period.

• Weigh the risks: A HELOC is secured by your home. The lender could foreclose if you fail to make payments.

• Maintain your credit: Lenders typically require a credit score of 640 or higher.

Alternatives to HELOCs

A HELOC is one of many options for accessing home equity and securing major financing. Since the right choice depends on your financial situation, goals, and preferred repayment structure, review these alternatives before making a decision.

Home Equity Loan

Have a one-time project with a fixed cost? A home equity loan gives you a lump sum that you begin repaying immediately. The interest rate is typically fixed, which makes for consistent and predictable monthly payments. Refer to a home equity loan calculator to compare the cost of a home equity loan versus a HELOC.

Recommended: What Is a Home Equity Loan?

Home Improvement Loan

A home improvement loan is a personal loan for renovations and repairs. It is similar to a home equity loan in that it has predictable fixed payments. However, it is unsecured (does not use your home as collateral), which typically results in a higher interest rate.

Personal Line of Credit

A personal line of credit (PLOC) is an unsecured revolving line of credit, similar to a credit card. Because it does not use your home as collateral, a PLOC may have a higher interest rate and a lower credit limit compared to a HELOC.

Cash-Out Refinance

A cash-out mortgage refinance replaces a homeowner’s existing primary mortgage with a single, new loan for a larger amount. This process pays off the original mortgage debt, and the homeowner receives the remaining balance as cash. While this tool consolidates your debt into one new mortgage payment, it also resets your mortgage term. A cash-out refi is generally best when current market interest rates are lower than your existing mortgage rate, allowing you to access cash and potentially improve the terms of your primary debt.

If you are comparing a cash-out refinance vs. home equity line of credit, a cash-out refi leaves you with one payment. The HELOC gives you a second payment on top of your original mortgage payment.

The Takeaway

Montana homeowners can use the HELOC payment calculator to quickly estimate their borrowing power and projected monthly costs during the draw and repayment periods. Use the HELOC payment calculator to run scenarios with different borrowed amounts, interest rates, and repayment terms so you can find the right mix for your budget and goals.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.

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

View your rate

FAQ

What happens when the draw period ends?

When the draw period ends, you enter the repayment period, typically lasting 10 to 20 years. You can no longer borrow from your credit line, and you must begin making regular monthly payments covering both principal and interest.

What is the benefit of having a variable interest rate?

The main benefit of a variable interest rate is that it may go down as market rates fall. However, this means your monthly payments could also increase, if benchmark rates rise.

Are there closing costs or fees for a HELOC?

Yes, HELOCs can have closing costs, typically ranging from 2% to 5% of the credit limit. Some lenders offer to reduce or waive the fees.

What is the minimum credit score I need to qualify for a HELOC?

Homeowners need to have a 640 credit score or higher (some lenders look for a 680 minimum). Having a credit score of 700 or higher is even more attractive, resulting in a lower interest rate and more favorable terms.

Learn more about mortgages:

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

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

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

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

^²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOHE-Q425-076

Browse other home guides.

Get prequalified in minutes for a SoFi Home Loan.

View your rate

Learn more

SoFi Blog

Tips and news—for your financial moves.

Free Arizona Home Equity Loan Calculator

Arizona Home Equity Loan Calculator

Calculator Definitions

How to Use the Arizona Home Equity Loan Calculator

Step 1: Enter Your Home Value

Step 2: Input Your Desired Loan Amount

Step 3: Input Your Current Mortgage Balance

Step 4: Select a Home Equity Loan Repayment Term

Step 5: Estimate Your Interest Rate

Step 6: Review Your Results

What Is a Home Equity Loan?

Home Equity Trends in Arizona

Current home equity loan rates by state.

How to Use Home Equity Loan Calculator Data to Your Advantage

Validate Your Budget

Try Out Different Scenarios

Set Realistic Expectations

Home Equity Loan Scenarios

Tips on Home Equity Loans

Alternatives to Home Equity Loans

Home Equity Line of Credit (HELOC)

Home Improvement Loan

Personal Line of Credit

Cash-Out Refinance

The Takeaway

FAQ

How is a home equity loan different from a home equity line of credit (HELOC)?

How much can I borrow with a home equity loan?

What can I use home equity loan money for?

Is the interest rate on a home equity loan fixed or variable?

What are the typical loan terms for a home equity loan?

What are the qualification requirements for a home equity loan?

Are there closing costs or fees with home equity loans?

Does a home equity loan replace my first mortgage?

Get prequalified in minutes for a SoFi Home Loan.

Free Alaska Home Equity Loan Calculator

Alaska Home Equity Loan Calculator

Calculator Definitions

How to Use the Alaska Home Equity Loan Calculator

Step 1: Enter Your Home Value

Step 2: Input Your Desired Loan Amount

Step 3: Enter Your Current Mortgage Balance

Step 4: Select a Home Equity Loan Repayment Term

Step 5: Estimate Your Interest Rate

Step 6: Review Your Results

What Is a Home Equity Loan?

Home Equity Trends in Alaska

Current home equity loan rates by state.

How to Use the Home Equity Loan Calculator Data to Your Advantage

Home Equity Loan Scenarios

Scenario 1: Funding a Major Home Improvement Project

Scenario 2: Consolidating High-Interest Debt

Scenario 3: Paying for a Child’s Tuition

Tips on Home Equity Loans

Alternatives to Home Equity Loans

Home Equity Line of Credit (HELOC)

Home Improvement Loan

Personal Line of Credit

Cash-Out Refinance

The Takeaway

FAQ

How is a home equity loan different from a home equity line of credit (HELOC)?

How much can I borrow with a home equity loan?

What can I use home equity loan money for?

Is the interest rate on a home equity loan fixed or variable?

What are the typical loan terms for a home equity loan?

What are the qualification requirements for a home equity loan?

Are there closing costs or fees with home equity loans?

Does a home equity loan replace my first mortgage?

Get prequalified in minutes for a SoFi Home Loan.

Free New York HELOC Loan Payment Calculator

New York HELOC Calculator

Calculator Definitions

How to Use the New York HELOC Calculator

Step 1: Enter the Amount You Plan to Borrow

Step 2: Select Your Current Interest Rate

Step 3: Choose the Length of Your Draw Period

Step 4: Specify Your Repayment Period

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