Virginia Home Equity Loan Calculator

By SoFi Editors | Updated December 18, 2025

For Virginia homeowners, the equity built up in a property represents a significant financial asset. A home equity loan allows you to borrow against this value, providing access to funds for major expenses like renovations, debt consolidation, or educational costs.

A Virginia home equity loan calculator can serve as an invaluable first step in your financial planning. By using a calculator, you can estimate potential loan amounts, project monthly payments, and compare different scenarios before engaging with lenders.

This guide will cover what a home equity loan is, how to use a home equity loan calculator, and other important considerations to help you make an informed financial decision.

  • Key Points
  • •   A Virginia home equity loan calculator is a useful tool for estimating monthly payments and maximum borrowing power.
  • •   A home equity loan is a type of second mortgage that allows you to borrow against the equity you have in your home.
  • •   Home equity loan funds are received as a lump-sum amount, and the interest rate is typically fixed.
  • •   A borrower’s credit score and debt-to-income ratio are primary factors that influence home equity loan offers.
  • •   The repayment term for a home equity loan generally ranges from five to 30 years.

Calculator Definitions

•   Home Value: This is your property’s current market value, not the original price you paid for it. A realistic valuation will give a more accurate calculation.

•   Desired Loan Amount: This is the specific amount of money you intend to borrow to meet your financial needs. It’s wise to base this figure on actual costs for a project or expense.

•   Current Mortgage Balance: This figure represents the total outstanding amount you owe on your primary home loan. It should also include the balance on all loans or credit lines you have that are secured by your home.

•   Home Equity Loan Repayment Term: This is the length of time over which the loan is to be repaid. These terms typically range from five to 30 years.

•   Interest Rate: This is the rate charged by the lender on the borrowed funds. The interest rate is a primary factor in determining the total cost of the loan over time.

•   Maximum Loan Amount: This is the estimated highest amount a homeowner might be eligible to borrow. This figure is based on your available home equity and overall financial standing.

•   Estimated Monthly Payment: This is the projected, consistent payment that will be due each month. It covers the repayment of both the loan principal and the accrued interest.

•   Available Equity Amount: This represents the difference between your home’s estimated market value and your outstanding mortgage balance, forming the basis of your borrowing capacity.

How to Use the Virginia Home Equity Loan Calculator

Using a Virginia home equity loan calculator allows you to explore possibilities and understand potential costs before formally applying with a lender. Here’s a step-by-step going on how to use it:

Step 1: Enter Your Home Value

Input your home’s current market value. For the most realistic result, base this estimate on recent sales of comparable homes in your neighborhood, rather than using your original purchase price.

Step 2: Input Your Desired Loan Amount

Enter the amount of money you wish to borrow. This should be based on your actual financial needs, whether for a specific home improvement project, debt consolidation, or another major expense.

Step 3: Type in Your Current Mortgage Balance

Provide the total outstanding balance on your primary mortgage and any other loans secured by your home. This allows the calculator to determine the amount of equity you have available to borrow against.

Step 4: Select a Home Equity Loan Repayment Term

Choose a repayment term, noting that options generally range from five to 30 years. This decision involves a significant trade-off: longer terms result in lower monthly payments but higher total interest costs, while shorter terms have higher payments but lower total interest.

Step 5: Estimate Your Interest Rate

Enter an estimated interest rate. The actual rate you qualify for will depend on several factors, most notably your credit history and score. Generally, a higher credit score will secure a more favorable, lower interest rate from lenders.

Step 6: Review Your Results

The calculator will provide you with an estimated monthly payment and a potential maximum loan amount. Use this information to assess whether the monthly payment fits comfortably within your household budget and to understand your borrowing capacity.

What Is a Home Equity Loan?

A home equity loan is a type of second mortgage that allows you to borrow against the equity you have built in your home. The loan is provided as a single, lump-sum payment, which you receive upfront after closing. This structure makes it particularly well-suited for large, one-time expenses where the total cost is known in advance.

Characteristics of a home equity loan include:

•  Collateral: Your home is used as collateral to secure the loan.

•  Fixed interest rate: These loans typically have a fixed interest rate, meaning your rate will not change over the loan’s term.

•  Predictable payments: Repayment consists of fixed monthly installments that cover both principal and interest, making budgeting straightforward and predictable.

•  Set term: The loan is repaid over a predetermined period, generally ranging from five to 30 years.

“Home equity” itself is defined as the difference between your home’s current market value and the total outstanding balance of your mortgage.

Recommended: What Is a Home Equity Loan and How Does It Work?

As home values have risen over the last five years, so have homeowner equity levels. In fact, equity levels have doubled since 2020, a collective increase of $5.7 trillion (see chart below). About half of homeowners with a mortgage are considered “equity rich,” which means their mortgage balance is less than 50% of the home’s value.

In Virginia, equity levels increased 186% over the same period. The average home equity in 2025 per homeowner is $121,500. This could be why there is so much interest around how to get equity out of your home.

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

The output from a home equity loan calculator is more than just a set of numbers; it is actionable data that you can use for strategic financial planning. Here’s how homeowners can leverage the calculator’s estimates for practical purposes:

•  Budgeting: Use the estimated monthly payment to see if a new loan can fit comfortably within your existing household budget. This check helps determine affordability and avoid future financial strain.

•  Scenario comparison: Run the numbers for different loan terms. For example, compare a 15-year term to a 30-year term to see how it affects both the monthly payment and the total interest you would pay over time. This analysis helps you find the right balance between short-term affordability and long-term cost.

•  Defining a realistic loan amount: The calculator can show you the maximum amount you might be able to borrow. Use this information not as a target, but as a ceiling to help you define a responsible borrowing limit that aligns with your financial goals without creating unnecessary debt.

•  Informing lender discussions: When you approach lenders, you will already have a clear understanding of what loan amount and payment schedule works for you. This allows for a more productive conversation and helps you effectively compare the official offers you receive.

Home Equity Loan Scenarios

Applying these concepts to hypothetical scenarios clarifies how a home equity loan can be used to meet common financial goals. Take a look at the following three situations in which a home equity loan may come in handy:

Scenario 1: Funding a Major Home Renovation

A homeowner in Virginia wants to complete a major kitchen and bathroom remodel. They have received firm quotes from contractors and know the project will cost $50,000. Because the cost is fixed and they need the funds upfront to pay the contractor, a home equity loan is a suitable choice. Its lump-sum disbursement and fixed-rate structure provide the certainty needed for a project with a set budget.

Scenario 2: Consolidating High-Interest Debt

Another homeowner has accumulated debt across multiple credit cards, each with a high, variable interest rate. A home equity loan’s single, lump-sum payment allows them to pay off all credit card balances at once. They are left with one manageable monthly payment at a much lower, fixed interest rate.

Tips on Home Equity Loans

Prospective borrowers can improve their chances of qualifying for favorable terms and ensure the loan serves their financial goals effectively by following these tips:

•  Strengthen your financial health: Lenders look for evidence of financial responsibility. Before applying, focus on maintaining a strong credit score and a well-managed debt-to-income (DTI) ratio. A higher score and lower DTI often lead to better interest rates and loan terms.

•  Meet the equity requirement: Lenders typically require homeowners to have at least 20% equity in their home to qualify. You can calculate your equity by subtracting your current mortgage balance from your home’s estimated market value.

•  Shop around and compare offers: Obtain quotes from multiple lenders, including banks and credit unions, to compare interest rates, fees, and terms. This simple step can lead to significant savings over the life of the loan.

•  Understand the risks: A home equity loan uses your home as collateral. This means that if you fail to make your payments as agreed, the lender has the right to foreclose on your property.

•  Borrow only what you need: While you may be approved for a large loan amount, it is wise to borrow only what is necessary to meet your financial goal. Avoiding unnecessary debt will keep your monthly payments lower and reduce your overall financial risk.

Alternatives to Home Equity Loans

While there aren’t technically different types of home equity loans, there are different ways to borrow against your home equity. It is important for every homeowner to evaluate all available options for tapping into their home equity. Four alternative options include:

Home Equity Line of Credit (HELOC)

A home equity line of credit, or HELOC, is a revolving line of credit secured by your home, operating much like a credit card. It features a variable interest rate and is structured with two distinct phases: a “draw period,” during which you can access funds as needed up to your credit limit, followed by a “repayment period,” where you pay back the 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.

A HELOC is best suited for: Ongoing projects with uncertain costs, such as a phased home renovation, or for homeowners who want the flexibility to borrow and repay funds over time without reapplying for a new loan.

Recommended: What Is a Home Equity Line of Credit?

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 homeowner, as the property cannot be foreclosed upon for non-payment. The application and funding process is typically faster than for a home equity loan. However, because they are unsecured, these loans may come with higher interest rates and shorter repayment terms.

A home improvement loan is best suited for: Smaller projects, urgent repairs, or for homeowners who have not yet built significant equity or are unwilling to place their home at risk.

Personal Line of Credit

Similar to a HELOC, a personal line of credit is another unsecured, revolving credit option. The difference is that it is not secured by the home, which eliminates the risk of foreclosure, though interest rates may be higher than those for a secured line of credit.

A personal line of credit is best suited for: Those that need flexible access to a smaller amount of cash and do not want to use your home as collateral.

Cash-Out Refinance

A cash-out mortgage refinance replaces your existing primary mortgage with a new, larger one. The difference between the new loan balance and your old mortgage balance is given to you as a single, lump-sum payment of cash. The end result is a single, consolidated monthly mortgage payment.

When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance results in a single mortgage payment, whereas a home equity line of credit (or home equity loan) is a payment separate from your primary mortgage.

A cash-out refinance is best suited for: Homeowners who need a large sum of money and, at the same time, can secure a more favorable interest rate or a better term on their primary mortgage.

Recommended:HELOC vs. Home Equity Loan

The Takeaway

A Virginia home equity loan calculator empowers homeowners to estimate their borrowing potential, project monthly payments, and assess affordability before making any commitments. The decision to borrow against your home is significant. Virginia homeowners should carefully weigh the immediate benefits of accessing cash against the profound responsibility of placing their most valuable asset as collateral.

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 cash with a fixed interest rate and consistent monthly payments. In contrast, a HELOC is a revolving line of credit with a variable interest rate, allowing you to borrow and repay funds as needed during a specified draw period. The loan is ideal for a single, large expense, while a HELOC is better for ongoing or uncertain costs.

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

Home equity loans typically come with a fixed interest rate. This is a key feature that provides predictability and stability for borrowers. A fixed rate ensures that your monthly payment amount will remain the same for the entire life of the loan, making it easier to budget for repayment.

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

Repayment terms for home equity loans are generally lengthy, offering flexibility to fit different budgets. These terms can range anywhere from five to 30 years. A longer term will result in a lower monthly payment, while a shorter term will lead to less interest paid over the life of the loan.

What are the qualification requirements for a home equity loan?

To qualify, lenders primarily look for sufficient home equity (typically at least 20%), a good credit score (often 620 or higher), and a manageable debt-to-income (DTI) ratio (below 50%). You will also need to provide proof of a steady and verifiable source of income to demonstrate your ability to repay the loan.

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