Texas HELOC Calculator

By SoFi Editors | Updated January 29, 2026

Texas homeowners who have built up a nice amount of equity in their home may find it useful to use a Texas HELOC calculator to explore the costs of borrowing with a home equity line of credit (HELOC). A HELOC can convert accumulated equity value into a flexible financial resource.

But it’s important to be prepared for the two phases of a HELOC, draw and repayment. This guide will help you use the calculator for best results, and along the way it will ensure that you understand what is a home equity line of credit and how it works before you start borrowing.


  • Key Points
  • •  A home equity line of credit is a revolving credit line, allowing borrowers to withdraw, repay, and re-access funds as needed during a specified timeframe.
  • •  Texas borrowers can typically access up to 90% of their equity with a HELOC.
  • •  A HELOC payment calculator can show you estimates of monthly payments during the first and second phases of a HELOC.
  • •  During the initial phase, many lenders allow for monthly payments that cover only the interest costs associated with the amount actually withdrawn.
  • •  This financing product is secured by the borrower’s home, meaning the property is subject to foreclosure in the event of default.



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: If you’re thinking about borrowing with a HELOC, the balance is the amount you think you would like to borrow. If you already have a HELOC, the balance is the amount of your credit line you have used.

•   Current Interest Rate: A HELOC lender charges borrowers interest, expressed as a percentage of the borrowed amount. If you have a HELOC, your current rate can be found in your account statement. If you are thinking about getting a HELOC, it’s a good idea to obtain rates from multiple lenders.

•   Draw Period: The draw period is the initial timeframe, commonly five to 10 years, during which the borrower can access funds up to their established credit limit. In this stage, the monthly payment is often limited to the interest costs and no repayment of the principal is required.

•   Repayment Period: This phase begins once the draw period concludes. HELOC users will stop borrowing funds and begin making regular payments that cover both principal and interest.

•   Monthly Interest Payment: This is the amount due each month during the draw period.

•   Monthly Principal and Interest Payment: During the repayment period, the principal and interest will both be included in the homeowner’s monthly payments.

How to Use the Texas HELOC Calculator

Using a free HELOC calculator is easy. Follow these steps for best results:

Step 1: Enter Your Planned or Actual HELOC Balance

Record the amount you have withdrawn from your HELOC or the total amount of the credit line you intend to utilize, keeping in mind you may not need to use the full credit line.

Step 2: Estimate Your Interest Rate

Identify the rate currently associated with the HELOC, or use a projected rate if you are interested in how costs may change as the HELOC’s rate adjusts.

Step 3: Choose the Length of the Draw Period

Input the number of years you want to have access to the credit line (10 years is standard). The repayment phase begins when the draw period ends.

Step 4: Select Your Repayment Period

Select the number of years you would like to have to pay back the principal, which could be up to 20 years. A longer timeframe will result in lower monthly payments but will likely increase the total interest costs over the life of the HELOC.

Step 5: Review Your Results

Carefully analyze the payment estimates for both the draw and repayment phases. This allows you to determine if the projected monthly obligations align with your household budget and larger financial objectives.

What Is a Home Equity Line of Credit?

If experimenting with the calculator piques your interest in a HELOC it’s a good idea to take a step back to make sure you fully understand what a HELOC is before diving into the application process.

HELOCs have two phases. The draw phase, as noted above, can be up to 10 years and during this time you likely won’t have to repay any of what you borrow — you can just pay interest. A HELOC interest-only calculator can show you what you might owe, or just use this HELOC calculator which will estimate monthly payments at both phases.

The second HELOC stage is the repayment period, which usually lasts for 10 or 20 years. Once this phase starts, the line of credit is closed to further withdrawals, and the borrower must begin paying down the principal along with interest. HELOCs have variable interest rates, so you can expect your rate to change periodically. It might rise or fall. A HELOC repayment calculator can show you what monthly payments would be at various rates at this stage.

It’s important to understand that a HELOC is technically a second mortgage (assuming you haven’t finished paying off your first home loan). Because your property is at stake if you fail to make payments on the HELOC, borrowing in this way requires a disciplined approach to use and repayment of the credit line.

Lenders look at your credit history when they decide whether or not to qualify you for a HELOC. In addition to having 15% equity in your home, you’ll need a credit score of at least 640. Some lenders prefer 680.

Recommended: Different Types of Home Equity Loans

If you’re thinking about how to get equity out of your home in Texas, you are likely not alone. The average Texas homeowner has seen moderately strong equity growth over the past five years and is now sitting on more than $63,000 in equity. If a lender allowed borrowing at 90% of this equity, the average homeowner could have a credit line of $56,000. This equity growth is part of a larger national trend, as shown in the graphic.

How to Use HELOC Calculator Data to Your Advantage

Employing the data from a Texas HELOC calculator involves more than simply asking yourself, “Can I afford these monthly payments?” There are other ways to use the data:

You can create “what-if” scenarios: Homeowners considering a HELOC can input different HELOC balances, interest rates, or repayment terms to see how each of these things will affect their monthly payment. This lets you see what a high or low monthly payment would be based on different interest rates. This is useful given that HELOC interest rates can shift over time.

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

You can get motivated to make extra payments: Thinking about how payments will increase during the repayment phase can help prompt borrowers to pay down some of their HELOC balance during the draw phase so that they enter repayment with a smaller amount due.

Tips on HELOCs

As you’ve probably deduced by now, having a HELOC is a little more complicated than getting a personal loan or using a credit card. But used with care, it can be a very cost-efficient way to borrow large sums. Smart HELOC users know these expert tips:

•  Cultivate good credit. As noted above, you’ll need a score of at least 640 — and possibly 680 — to obtain a HELOC. But the lowest interest rates generally go to those with a score of 700 or better. To nudge your score in the right direction, make all payments on time. Avoid closing old credit accounts or opening new ones in the months before you apply for a HELOC. And don’t max out all your credit cards.

•  Shop around. Compare interest rate offers and HELOC terms from multiple lenders to find your best offer. Look for a competitive interest rate and low fees, as well as a repayment term and monthly payments that fit your budget. (Use the free HELOC calculator to compute monthly payments for each rate.)

•  Set some ground rules. Once you have a HELOC it can be tempting to use it to pay for every little thing, particularly since the monthly payments can be fairly low during the draw phase. But little charges do add up, and you can enter the repayment phase with a large monthly bill. Determine some limits for yourself so that you only use the HELOC for certain types of expenses, particularly if you’ve had trouble managing credit in the past.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

While a revolving line of credit offers significant flexibility, other financing may be more appropriate depending on whether a borrower requires a lump sum or prefers to avoid using their real estate as collateral. As you’re examining the options, start by understanding what is a home equity loan.

Home Equity Loan

Often confused with a HELOC, a home equity loan, like a HELOC, involves using your home as collateral. It is critically different in three ways: The funds are disbursed all at once, the interest rate is typically fixed, and repayment of both principal and interest begins immediately. This makes it a better choice for those who know the exact cost of a project upfront and prefer the stability of a fixed monthly payment amount. If you want to test the waters and see what payments might be like with this option, use a home equity loan calculator.

Home Improvement Loan

A home improvement loan is a type of personal loan and is typically unsecured. It provides a lump sum of cash. Unlike a HELOC, it features a fixed interest rate and a predictable schedule of equal monthly payments. In that way, it is more similar to a home equity loan. But because a home improvement loan is unsecured, the interest rate is generally higher than that of a HELOC or home equity loan.

Personal Line of Credit

A personal line of credit allows borrowers to access funds as needed, like a HELOC does, but without using the home as collateral. While opting for a personal line of credit protects the home from the risk of foreclosure, the interest rates are generally higher, and the credit limits are typically lower because the lender has no physical asset to secure the debt.

Cash-Out Refinance

A cash-out mortgage refinance involves replacing your existing primary mortgage with an entirely new, larger mortgage. You would receive the difference between the new mortgage and the old balance in cash. This is attractive, but a refinance is likely a smart move only if current market interest rates are lower than the rate on your original mortgage. A refi would also involve new closing costs, typically 2% to 5% of the loan amount.

As you consider a cash-out refinance vs. home equity line of credit, it’s important to realize that a refi consolidates your debt into a single monthly payment.

The Takeaway

A Texas HELOC calculator can allow residents sitting on a comfortable amount of home equity to enter the borrowing process with a clear understanding of their potential limits and future obligations. By illustrating the costs associated with the draw and repayment phases, calculators help homeowners anticipate the long-term impact of leveraging their property. If the costs seem manageable, the next step is to seek out prospective lenders and learn more about interest rates.

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



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


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FAQ

How much can I borrow with a HELOC?

The amount you can borrow depends on the equity in your home. Lenders may allow you to borrow up to 90% of your equity. (Your equity is your home’s estimated value minus your outstanding mortgage balance.) The final credit limit is also influenced by factors such as your credit score, income, and overall debt.

What can I use the money for from a HELOC?

Funds from a HELOC can be used for just about any purpose. Common uses include home renovations, debt consolidation, funding education, or covering major unexpected costs like medical bills. Some homeowners use HELOC funds to invest in a business, but this is a decision that requires careful consideration. Not all businesses ventures are profitable and if the investment doesn’t pay off and you can’t make your HELOC payments, you risk losing your home.

Is a HELOC interest rate fixed or variable?

Most HELOCs feature a variable rate that fluctuates based on a benchmark index like the prime rate. This means that your monthly borrowing costs can change over time as economic conditions shift. The HELOC agreement will spell out how often the rate can change and by how much.

Is the interest on a HELOC tax-deductible?

The costs associated with this financing may be tax-deductible if you itemize. Consult a tax professional for specific guidance as tax rules can change from year to year.

Learn more about home equity line of credits: