Utah Home Equity Loan Calculator

By SoFi Editors | Updated December 18, 2025

A home equity loan is a useful financial tool that allows homeowners to borrow against the value they have built in their property by making regular mortgage payments. This type of loan can provide a substantial lump sum of cash to fund major home renovation projects, consolidate debt, or cover other large expenses. For homeowners considering this option, a home equity loan calculator can help you explore potential borrowing capacity and estimate monthly payments. The following guide provides key details to help you use the calculator and navigate this financial decision.

  • Key Points
  • •  A home equity loan is secured by the borrower’s residence, which serves as collateral.
  • •  Home equity loans typically feature a fixed interest rate, which results in consistent monthly payments for the duration of the loan.
  • •  A home equity loan calculator can be used to run scenarios and explore how different interest rates and loan terms affect payment amounts.
  • •  The repayment period for a home equity loan generally ranges from five to 30 years.
  • •  Interest paid on the loan may be tax-deductible.

Calculator Definitions

•  Home Value: Home value is the property’s current estimated market value, not the original purchase price. Find an estimate on a real estate site.

•  Desired Loan Amount: This is the specific sum of money you wish to borrow. Known as the loan principal, it will be repaid over the loan term.

•  Current Mortgage Balance: The current mortgage balance is the total outstanding amount owed on your existing primary mortgage and any other existing home loans that you have.

•  Home Equity Loan Repayment Term: The home equity loan repayment term is the period over which the loan will be fully repaid. These terms typically range from five to 30 years.

•  Interest Rate: The interest rate is the cost of borrowing the money, expressed as a percentage. For home equity loans, this rate is typically fixed for the loan term.

•  Maximum Loan Amount: The maximum loan amount is the highest estimated sum a lender might offer based on your available equity. You do not have to borrow the full amount offered.

•  Estimated Monthly Payment: The estimated monthly payment is the projected amount due each month to repay the loan. This payment includes both principal and interest. The calculator gives you a payment amount for your maximum loan and your desired loan amount.

•  Available Equity Amount/Percentage: The home equity calculator shows the portion of the home’s value that you own outright in dollars. The calculator also shows it as a percentage of the home value.

How to Use the Utah Home Equity Loan Calculator

A Utah home equity loan calculator should be viewed as a no-commitment diagnostic tool. It allows homeowners to stress-test their household budget against various loan scenarios. Use it by following these six easy steps.

Step 1: Enter Your Home Value

Input the current estimated market value of your home. This value is the cornerstone of the entire calculation and the basis for all subsequent estimates of your borrowing capacity.

Step 2: Input Your Desired Loan Amount

Enter the specific amount of money you need for your project or financial goal.

Step 3: Enter Your Current Mortgage Balance

Provide the outstanding balance of your current mortgage and any other loans secured by the property. This figure is essential for the calculator to determine the amount of equity you have.

Step 4: Select a Home Equity Loan Repayment Term

Select a repayment period. Shorter terms often work for borrowers doing a debt consolidation, where the objective is to eliminate debt quickly. Longer terms may be better suited for home improvement projects, where a lower monthly payment is amortized over the project’s lifetime.

Step 5: Estimate Your Interest Rate

Enter an estimated interest rate to receive a more personalized payment estimate. Remember that this is only an estimate; the actual interest rate you are offered will be determined by a lender based on your credit history and financial profile.

Step 6: Review Your Results

The home equity payment calculator will provide key outputs, such as your estimated monthly payment and maximum loan amount. You can adjust the inputs to find a loan amount, term, and interest rate that meet your needs.

What Is a Home Equity Loan?

If you’ve tested out the calculator and are thinking a home equity loan might be right for you, you’ll want to make sure you understand what a home equity loan is before you dive in. A home equity loan is, technically speaking, a second mortgage. Homeowners borrow against the equity they have built in their property. That equity — the home’s market value minus the outstanding mortgage balance — serves as the collateral. This is why home equity loans often have more favorable interest rates than unsecured debt like personal loans or credit cards.

The mechanics of a home equity loan are simple: Funds are disbursed in a single lump sum. Borrowers immediately begin making monthly payments that include both principal and interest. This continues for the entire loan term, from five to 30 years. A key feature of these loans is that they almost always come with a fixed interest rate, so monthly payments are predictable. Keeping on top of these payments is key. If you don’t repay what you have borrowed, with interest, the lender could foreclose on your home.

Recommended: What Is a Home Equity Line of Credit?

Utah homeowners who are contemplating a home equity loan because they are sitting on a nice level of equity in their home are part of a national trend. Home equity levels have risen across the country over the last five years. The average Utah owner has 67% more equity than in 2020, thanks in part to escalating home values in the state. The median sale price in the fall of 2020 in Utah was $432,600, according to Redfin. In the fall of 2025, the number was $578,500. Here’s a look at how equity has risen nationally in billions of dollars. The home equity calculator will show you an estimate of how much equity you, personally, are sitting on.

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

The output from a home equity loan calculator is more than just numbers. Used wisely the information can help you assess affordability, compare different loan structures, and align borrowing decisions with your financial goals.

By analyzing the Estimated Monthly Payment provided by the home equity loan payment calculator, you can determine how a new loan payment would fit into your existing budget. This is a smart move to prevent overextending yourself.

The Maximum Loan Amount gives you the lowdown on how to get equity out of your home and how much equity you might harness. This estimate will be useful if you are planning large-scale projects, such as a major renovation.

Finally, using the calculator to model different loan terms — for example, comparing a 10-year repayment term to a 20-year one — shows you how much the loan term affects the payments. Remember that lower monthly payments generally mean higher interest costs over the life of the loan.

Home Equity Loan Scenarios

Imaginary examples can help clarify the use case for a home equity loan. Check out these sample scenarios.

Scenario 1: Funding a Major Home Improvement Project

Imagine a homeowner in Utah who wants to undertake a major kitchen remodel with a cost of $50,000. They have sufficient equity in their home and a stable income. By taking out a fixed-rate home equity loan for this amount, they receive the full $50,000 in a lump sum. This allows them to pay their contractor and purchase materials without worrying about depleting their emergency fund or maxing out a credit card (or both). Because the loan has a fixed interest rate and a set repayment term, their monthly payment is predictable.

Scenario 2: Consolidating High-Interest Debt

Consider another homeowner who has $25,000 in high-interest debt piled up across several credit cards. The variable interest rates make the monthly payments unpredictable and costly. The homeowner secures a $25,000 home equity loan and pays off all their cards at once. Now they have one monthly payment instead of three, and it’s at a lower, fixed interest rate — so the payment amount is steady and predictable. As long as the homeowner doesn’t acquire new high-interest debt now that their card balances are cleared, this should be a successful debt consolidation.

Tips on Home Equity Loans

Approaching a home equity loan requires careful planning. These tips can help you navigate the process:

•  Build a strong credit history. Lenders view a strong credit score as an indicator of financial responsibility. Lenders typically favor credit scores of at least 680 or higher for home equity loan applicants, with many preferring 700 or more.

•  Manage your debt-to-income ratio. Your debt-to-income (DTI) ratio, which is your total monthly debt payments divided by your gross monthly income, will be scrutinized. Lenders typically look for a DTI ratio below 50% for a home equity loan, and ideally below 36%. Reducing existing debts before applying for a home equity loan can lower your DTI ratio.

•  Understand the risks. Only borrow if you are sure you can repay the loan. You don’t want to risk foreclosure.

•  Shop around. Seek out offers from multiple financial institutions and use the home equity loan payment calculator to compare the costs of their interest rates. Don’t forget to look at fees as well.

•  Borrow only what you need. Once you learn your borrowing power, it can be tempting to borrow more than necessary. Avoid taking on extra debt. One sobering thought: If your home’s market value declines, you could end up owing more than the property is worth, a situation known as being “underwater.

Alternatives to Home Equity Loans

While there aren’t really different types of home equity loans, there are other ways to use home equity funds, as well as ways to borrow that don’t involve using your home as collateral.

Home Equity Line of Credit (HELOC)

A home equity line of credit (HELOC) is a revolving credit line secured by your home. A HELOC is structured with a “draw period,” typically lasting up to 10 years, where you can borrow funds and may only be required to pay interest, though only on the amount you’ve borrowed. This is followed by a “repayment period,” often up to 20 years, where you repay both principal and interest.

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.

HELOCs are often a good fit for homeowners who need flexibility for ongoing projects with uncertain costs or timelines.

Home Improvement Loan

A home improvement loan is a type of unsecured personal loan, meaning it does not use your home as collateral. Its features are:

•  It’s an unsecured loan, so there is no risk of foreclosure.

•  The application and funding process is often faster than for a home equity loan.

•  Interest rates are typically higher than for secured loans.

•  Loan amounts may be smaller than what is available through a home equity loan.

This is a smart choice for those with less home equity or for individuals who prefer not to secure a loan with their property.

Personal Line of Credit

A personal line of credit is an unsecured, revolving line of credit. It is similar to a HELOC, but it is not secured by your home equity. This means no risk of foreclosure for you as the borrower, but it may lead to higher interest rates and lower credit limits compared to a HELOC.

Cash-Out Refinance

A cash-out mortgage refinance replaces your current mortgage with a new, larger loan. The mechanics are straightforward: the new loan pays off your original mortgage, and you receive the difference between the two 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 with its own terms and interest rate. This choice may be beneficial if you can secure a lower interest rate on your refinance than what you currently have.

The Takeaway

One advantage of a home equity loan is the consistency of its fixed interest rate and consistent monthly payment. And a home equity loan calculator can help you quickly arrive at the combination of loan amount, payment term, and interest rate that delivers your optimal monthly bill. Always seek out rates from multiple lenders so you’ll have options. Then use the calculator to see which one best delivers a payment you can live with.

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 much can I borrow with a home equity loan?

How much you can borrow with a home equity loan depends on your home’s equity, your credit history, and your income. Lenders typically allow homeowners to borrow 85% of their available equity, requiring a protective cushion of equity to remain in the home. This means you generally cannot borrow the full amount of your equity.

What can I use home equity loan money for?

Funds from a home equity loan can be used for a wide range of purposes, including home renovations, debt consolidation, or funding other major purchases. While the use is flexible, it is important to remember that the loan is secured by your home.

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

A home equity loan almost always comes with a fixed interest rate. It’s set when the loan is originated and will not change over the repayment term. This consistency makes it easier to budget for the loan repayment over many years.

Are there closing costs or fees with home equity loans?

Home equity loans typically have closing costs, which can range from two to five percent of the total loan amount. Some lenders may offer loans with no closing costs, but this could result in a higher interest rate, so it is important to compare all terms of the loan offer.

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