SoFi

because of the paperwork and possible stress involved, here’s some good news:

The HELOC closing process is typically less complicated than what you’ll go through when you’re getting a primary home mortgage. With a HELOC, the transaction is between just you — as the homeowner and borrower — and your lender. Which can give you more control over the pace and potential problems.

Still, it’s a good idea to have an understanding of how the process works. In this guide, we’ll look at the documents you may need, the costs you can expect, and the steps you can take to prepare for a HELOC closing.

Preparing for HELOC Closing

For most borrowers, getting a HELOC takes about two to six weeks from application to closing. Here’s a quick summary of how the process generally works:

Completing Your HELOC Application

After you’ve researched how a HELOC works, as well as the terms various lenders are offering, and you’ve chosen who you want to work with, you can complete your application (online or in person). As part of this step, you’ll be asked to provide information about your income, credit, debt payments, and home equity to help determine your eligibility for a HELOC.

Going Through the Underwriting Process

Once you submit your application and any documentation the lender requires, an underwriter — a financial expert who assesses risk for lenders, insurers, or investment companies — will examine your financials. You will likely be required to have a home appraisal performed to assess your home’s current market value, and the underwriter may contact you with follow-up questions or a request for additional documentation. A HELOC monthly payment calculator can show you what your monthly payments would look like based on how much you borrow and your interest rate and repayment term.

Preparing the Lending Agreement

Upon approval, the lender will finalize the terms of your HELOC and prepare your lending agreement, which should include a detailed explanation of your HELOC, including how long you can withdraw money from the account (during the “draw period”), how long you’ll have to pay back the balance you owe (during the “repayment period”), and your interest rate.

Proceeding to Closing and Funding

At your closing, you (and any co-applicants) will be asked to sign your loan documents and pay your closing costs. If your HELOC is secured by your primary residence, you shouldn’t expect to get your money right away. There is a mandatory three-day “right of rescission” waiting period before you can access the funds in your account. (This right, which is also called the three-day cancellation rule, is required by a federal Truth in Lending Act, and gives borrowers an opportunity to change their mind about certain types of home loans. Technically, a HELOC is a second mortgage, assuming you still have a first mortgage.) Once your funds are available, however, you can tap into your HELOC at any time, up to the approved amount.

Recommended: Calculating Home Equity

Required Documents for HELOC Closing

Before and during your HELOC closing, you should be prepared to provide and/or sign several documents. The HELOC requirements may vary depending on the lender, but the requested paperwork could include:

•   Your photo ID (a driver’s license or passport) and Social Security number

•   Proof that you have appropriate homeowner’s coverage on your property

•   An appraisal report that assesses your home’s current market value

•   A property title search and title insurance that ensures there won’t be any problems with liens or other issues

•   A mortgage or deed of trust that secures the loan against your home

•   A loan agreement that outlines your loan terms, such as the interest rate, repayment schedule, and penalties for late payments

•   A Truth in Lending Disclosure Statement that provides additional information about the costs of your loan

•   A closing disclosure that breaks down the fees, charges, and credits related to closing your loan

These documents are in addition to the paperwork you may be asked to provide during the application and underwriting process. Your lender will let you know ahead of time what and who you should have with you when you come to your closing.

Home Appraisal Process

Lenders typically require a home appraisal to get an accurate valuation of a property before approving different types of home equity loans. For a HELOC, this may be accomplished through a full-home appraisal, a drive-by appraisal (assessing only the exterior of the home and its condition), or with automated valuation tools. The type of appraisal you get may depend on how much you’re borrowing and other factors.

The lender typically orders the appraisal and will try to schedule it for a time that’s convenient for you. When it’s completed, the appraiser will provide the lender with a report that includes the home’s value, market comparisons, and other findings. The borrower usually pays for the appraisal at the closing.

Understanding HELOC Closing Costs

HELOC closing costs — the fees associated with getting your line of credit from a lender — are generally lower than the costs to close on a primary mortgage, cash-out refinance, or home equity line of credit. Still, the fees can add up quickly, and you may want to keep them in mind when you’re calculating the total cost of borrowing.

Typical Fees Involved

Some of the expenses you may encounter at closing include:

•   Application and/or origination fee: $15 to $75

•   Credit report fee: $10 to $100

•   Annual fee: $5 to $250

•   Appraisal fee: $300 to $450

•   Filing/notary fees: $20 to $100

•   Title search fee: $100 to $450 (if required)

Negotiating Closing Costs

Most HELOCS have closing costs or fees, but some lenders may offer to cover a few or all of those expenses. Others may give you the option of rolling your fees into the amount you’ll pay monthly. Remember that if you do this, you’ll add to the interest cost of your HELOC.

If you’re concerned about closing costs, you can always do some online comparison shopping to find out how much different lenders are charging. Or if you find a lender with an offer you like, you could ask if certain costs are negotiable.

HELOC Closing Meeting

Your lender will manage the final details of your closing meeting, including arranging the time and location (whether it’s in person or online) and letting you know what to bring. The lender will also ensure that a notary is on hand as you go through and sign the necessary paperwork.

You should have an opportunity to review your HELOC closing documents prior to the signing, but if you have any last-minute questions, you can cover them at this meeting. Any co-applicants should also be there, and you should bring a Power of Attorney document if someone can’t attend.

You probably won’t need to have an attorney at your HELOC closing, but you may want to have an attorney or financial advisor review the terms of your HELOC before you go. This person can also help you understand how HELOCs can affect your taxes.

Post-Closing Considerations

Once your HELOC is funded, you can borrow from it any time during the draw period (which usually lasts 10 years). You may be able to make interest-only or minimum payments during that time, or you may choose to pay something more toward the principal, in order to keep payments more manageable when you enter the repayment period. (Most HELOCs come with a variable interest rate, which means your interest rate — and monthly payments — could rise over time. In the HELOC vs. home equity loan decision-making process, this is one key difference. Home equity loans often have a fixed rate.)

Depending on your lender, you also may have an opportunity to convert all or a portion of your HELOC balance to fixed-rate loan, which can make payments more predictable and easier to budget for.

Recommended: Home Equity Conversion Mortgage vs. HELOC

Common Issues and How to Avoid Them

As with any type of financing, challenges may arise that delay or complicate the process. You may have control over some of them, while others may be out of your hands. Here are some common issues that could come up:

Problems with Documentation

Life gets busy, and the paperwork required for closing on a HELOC can easily get away from you. The lender’s closing checklist can be a useful tool for staying on track. You also can contact the lender before the closing to be sure everything is ready to go.

Unexpected Issues with Credit

A significant change in your financial situation could affect your loan approval, even in the final stages before closing. It can be a good idea to avoid making major purchases or opening a new credit account until your HELOC is a done deal. And be upfront with your lender about anything that might affect your eligibility, so there aren’t any surprises at the closing.

Delays in Getting the Appraisal

Your home appraisal can be a major factor in keeping your HELOC closing on track. Try to schedule the appraisal appointment as soon as possible, and ask if one of the quicker options (such as a drive-by or automated appraisal) is available.

Misunderstandings About Terms

Don’t wait until the last minute to read through your loan agreement. And compare the lender’s closing disclosure to the most recent loan estimate. If you’re unclear about the interest rate, repayment period, or any other details related to how your HELOC works, be sure to ask your lender ASAP.

Arranging Funds for Closing Costs

Verify the exact amount you’ll need for closing costs — and how you’ll be expected to get those funds to your lender (a wire transfer or cashier’s check, for example) — well in advance of the closing.

The Takeaway

A HELOC can offer a convenient and flexible way to tap into your home equity when you need money for renovations, debt consolidation, a rainy day fund, or other purposes. But it can take a few weeks to open this kind of account, and there’s some paperwork involved.
One way to help minimize problems or delays is to prepare in advance for each stage of the application and closing process. Your lender’s closing checklist can be a useful tool to help you stay on track. And it’s important to familiarize yourself with the terms of your HELOC agreement, so you can address any questions or concerns as soon as possible, and get your money without too much stress.

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.

FAQ

How long does the HELOC closing process typically take?

For most borrowers, getting a HELOC takes about two to six weeks from application to closing. If you’re worried about the timeline, you can ask your lender how long it usually takes a HELOC to close and what you can do to speed things up.

Can I back out of a HELOC after signing the closing documents?

Yes. There is a three-day cancellation period for borrowers who use their primary residence to secure a HELOC. If you change your mind during that time, you may be able to back out of the transaction, even if you’ve signed the closing documents.

Do I need an attorney present at my HELOC closing?

You probably won’t need to have an attorney at your HELOC closing. But you may want to have an attorney or financial advisor review the terms of your HELOC before you go to your closing.

---

Photo credit: iStock/andresr

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.

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 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.


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.

^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.

This article is not intended to be legal advice. Please consult an attorney for advice.

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.

SOHL-Q125-075

Read more

Can you pay off a HELOC early? Yes, it’s possible. But depending on your financial institution, there may be fees involved in clearing out what you owe on your home equity line of credit, so it’s important to understand how much you can truly save before you start making extra payments.

HELOC Repayment Structure Explained

A home equity line of credit is broken into two periods: the draw and the repayment period.

Draw period: In this portion of your HELOC, you can make interest-only payments on whatever amount you draw. It usually lasts between five and 10 years, during which time you can pay off some or all of the balance and replenish your available credit. Then you can draw again as needed and only accrue interest on your outstanding principal.

Repayment period: Once the draw period closes, you can’t pull funds from your HELOC anymore. Repayment begins on both principal and interest. Oftentimes, you’ll have a 10 to 20-year term to repay the full balance. The rate usually starts as variable, but you may be able to roll the balance into a fixed-rate home equity loan.

In some cases, however, there’s a balloon payment: Your entire balance, including principal and interest, comes due at one time unless you refinance.

Benefits of Paying Off a HELOC Early

There are some potential benefits to take advantage of when you pay off a HELOC early.

Interest savings: Interest accrues throughout the life of a HELOC and can increase even more over time if you have a variable rate. Paying off a HELOC early could save you money in the long run. (Different types of home equity loans accrue interest in different ways, so make sure you understand how a HELOC, for example, differs from a home equity loan.)

Improved equity position: A HELOC is considered a second mortgage, which means it has precedence in getting paid off right after your original mortgage. Paying off your HELOC means that when you calculate home equity, your equity number will be greater. And it may also smooth the path to a sale of your home. (Some lenders may require you to pay off your HELOC before you can sell your home.)

Financial freedom: Getting rid of your HELOC payment also frees up more of your budget to work toward other financial goals, like retirement savings, or putting money toward a special trip or other large expense.

Recommended: Home Equity Loan Calculator

Potential Drawbacks of Early HELOC Payoff

Can you pay a HELOC off early without any drawbacks? It depends. Here’s what to consider before making a decision.

Prepayment Penalties

Some financial institutions charge a HELOC early payoff penalty if you close your account within a certain timeframe, often within the first five years of repayment. Instead of charging a flat fee, banks usually charge a percentage of your loan balance, usually 2%.

The average HELOC balance in 2023 was $42,139; paying off that balance with a 2% early penalty would cost $843.

But not all lenders charge this fee. If you’re considering a HELOC and may pay it off ahead of schedule, prioritize quotes that don’t include any kind of HELOC early payoff penalty.

Loss of Tax Deduction

In some instances, you may be eligible for HELOC-related tax deductions. Any interest paid on a HELOC or home equity loan between 2018 and 2025 may be tax deductible if the funds are used to buy, build, or substantially improve your home. Additionally, the property must be your main or second home. Paying off your HELOC means losing that deduction, but you can only take this deduction if you itemize (and many people don’t). Consult a tax advisor so you’re not surprised by the numbers when it comes tax time.

Recommended: HECM vs. HELOC

Strategies for Early HELOC Payoff

Now let’s look at how can you pay off a HELOC early. There are a few strategies to choose from.

Lump sum payments: Making large payments on top of your regularly scheduled payments can help you chip away at your balance and interest accrual. However, check into can you pay off a HELOC during the draw period, because some lenders may limit you to interest-only payments during this time. Also, clearly communicate to your lender that the additional payments should be credited to principal only; otherwise the lender may apply the funds to interest.

Accelerated payment schedules: Consistently make extra payments toward your principal to lower your balance at a faster pace over time. Use a HELOC monthly payment calculator to experiment with how your monthly payment would look using different payoff dates.

Refinancing options: It’s possible to refinance your HELOC into another line of credit in order to change the terms, such as the available credit line or draw period. To pay off your balance early, however, you can apply to transfer it into a home equity loan, which could have a fixed interest rate and payoff schedule.

Impact on Your Credit and Financial Profile

You can close a HELOC early without hurting your credit in the short-term because accounts in good standing stay on your credit report for as long as 10 years. Once that period expires, the average age of your credit history may drop, which could temporarily affect your score. Incorporating other types of no-fee credit could help mitigate any future damage, especially if you’re confident you won’t carry a balance.

Evaluating Your Financial Situation Before Early Payoff

Take a look at your entire financial picture before deciding to pay off your HELOC early. Do you have a solid emergency savings account? Are you contributing to your retirement account? If you have other high-interest debt, consider whether you should pay that off as you decide where the HELOC balance falls on your priority list.

Another factor is how long you plan to stay in your house. If you want to move soon, find out if you need to pay off the HELOC in full before listing your home, or if you can repay the balance with the proceeds from the sale.

The Takeaway

Paying off a HELOC early can save you in interest payments over time. However, it’s important to understand the details of your financing agreement to avoid any unwanted prepayment penalty fees. If you’re actively searching for a HELOC, make sure that’s part of your comparison process so you have more control over when you pay off your balance without worrying about extra costs.

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.

FAQ

Can I pay off my HELOC during the draw period?

Most lenders only require interest payments during the draw period, but you can usually make principal payments as well. That will lower the amount of interest being accrued while also replenishing your available credit.

How do I calculate potential savings from early HELOC payoff?

Use a HELOC calculator to find out how much interest you would save by paying off your balance ahead of schedule. If your lender charges an early payment fee, factor that cost into your potential savings to see if it’s worth it.

Will paying off my HELOC early affect my credit score?

As long as your account is in good standing, a HELOC will stay on your credit report for up to 10 years. After that, your average credit account age may drop unless you have other mature accounts to make up for the loss.

---

Photo credit: iStock/Riska

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.

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 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.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.


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.

^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.

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOHL-Q125-074

Read more

A modification to your home equity line of credit (HELOC) is a possible solution when you can’t meet your HELOC payments. The goal is to change your borrowing terms in order to make payments more affordable.

It’s important to weigh all of your options when you can’t afford to pay back your HELOC, since this type of financing is secured by your home. Falling behind on your payments can put your house at risk of foreclosure. By facing the challenge and working with your lender, you may be able to lower your stress level and protect your investment in your home.

Understanding HELOC Modifications

A HELOC modification is when a borrower asks their lender for a change in their payment terms. There are many reasons to consider modifying your HELOC, especially if you experience a major life event that impacts your finances. For instance, the death of a spouse, a medical event, or a job loss are common issues that cause a sudden change in financial capabilities.

There are three types of modifications: changes to your interest rate or loan term, or converting your HELOC to a fixed-rate home equity loan. Just remember that anytime you extend your loan term, you’ll pay more interest over time, even if your monthly payments are lower. (Need a refresher on how HELOCs work? Read up on understanding a home equity line of credit.)

Common HELOC Modification Options

Can you modify a HELOC loan? Yes, but there are a few different ways you can do it.

Interest Rate Adjustments

It’s possible to request a reduction in your interest rate to help lower your overall HELOC payment. If you have a variable rate, you could also request switching to a fixed rate as part of your modification. This keeps your future payments stable so you know exactly how much of your money is going to both principal and interest each month.

The downside, of course, is that requesting an interest rate adjustment doesn’t mean you’ll get approved. Your lender can deny your request and may prefer the next option for a HELOC modification.

Extending the Draw Period

Another way to modify your HELOC is to extend the draw period. This gives you more time to recover from your financial hardship before you have to start the full repayment period when your HELOC payments are likely to jump even higher. Your lender may be more open to this type of modification because you’ll pay more interest over time.

Converting to a Fixed-Rate Loan

Converting to a fixed-rate loan takes away the volatility of variable interest rates. With a variable rate, your payment can change every month, making it hard to predict how much you need to budget for your HELOC payments.

Recommended: HELOCs and Taxes

Eligibility for HELOC Modification

The eligibility requirements for a HELOC modification vary by lender. But there are a few standard qualifications that you’ll likely encounter:

•   Proof of financial hardship

•   Account has been open a for a minimum period of time

•   You’ve already made some payments

•   You haven’t exceeded the lender’s modification limits

Reach out to your lender as soon as possible when you realize you can’t keep up with your HELOC payments, whether you’re in the draw period or the repayment period.

HELOC Modification Process

What happens when you start the HELOC modification process? First, be realistic with your expectations for getting a solution in place. Each lender has its own approval timeline, which can take up to a month.

Before reaching out to your lender, prepare by gathering the following documentation:

•   HELOC loan number

•   Monthly pretax income details

•   Monthly household expenses

•   Details on the reason for your financial hardship

Also note that you may have a trial period before finalizing the HELOC modification. This gives your lender assurance that you can make your new payments. If you pay the new amount on time, then you’ll likely receive a new loan contract after a few months.

Recommended: HECM vs. HELOC

Impact of HELOC Modification on Your Finances

A HELOC modification can hurt your credit score because it will be reported to the credit bureaus. Depending on your credit score, having a loan modification added to your credit report could cause your score to drop between 30 and 100 points. The higher your score, the bigger impact it’s likely to cause.

Another likely drawback is that you won’t be able to tap into your home equity after modifying a HELOC. You also probably won’t have options for increasing your HELOC limit in the future.

Can you increase a HELOC limit while applying for a modification to your existing terms? Again, probably not since the goal is to make your payments more affordable.

Despite these drawbacks, a loan modification is still a better outcome than going through foreclosure, which causes you to lose possession of your home.

Alternatives to HELOC Modification

There are a few options to think about before modifying your HELOC:

•   Refinance: You could get a lower interest rate or extend your overall payments to a longer time frame by doing a cash-out refinance. If you still have equity in your home, you could get a new mortgage at a higher amount, use the cash-out funds to pay off the HELOC, and start making a single mortgage payment with the larger balance. The downside is that it may be difficult to qualify for a cash-out refinance if you’re already experiencing a period of financial hardship. A home equity loan calculator can help you see how much you might be able to borrow against your home.

•   Convert to a home equity loan: Some lenders allow you to convert your HELOC to a home equity loan, especially when you’re in your draw period and nearing the repayment period.

•   Sell your home: If you calculate your home equity and think the value exceeds your mortgage and your HELOC balances, you could consider selling your home. Check with your HELOC lender and make sure you wouldn’t be required to pay off your balance before listing your home. Also make sure you have a sound plan in place for your next move.

The Takeaway

Getting a loan modification for your HELOC comes with some drawbacks, but the biggest benefit is helping you stay in your home. If you’ve experienced a major financial hardship and can no longer afford your HELOC payments, talk to your lender as soon as possible.

You can also explore your options with other lenders. A cash-out refinance or a new home equity loan are other possible solutions. Keep making payments on your current HELOC while you consider your options.

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

FAQ

How often can I modify my HELOC?

Each financial institution has its own schedule of how frequently you can request a HELOC modification. Some limit modifications to once or twice in the past 12 months, or twice in a five-year period.

Will modifying my HELOC affect my credit score?

Yes, lenders report HELOC modifications to the credit bureaus. Expect your credit score to drop between 30 and 100 points once the modification is finalized and reported. Your score will recover over time, but the modification itself will stay listed on your credit report for seven years.

Can I modify a HELOC during the repayment period?

Yes, you can modify your HELOC during the repayment period. You may be able to change your rate from a variable to fixed APR or even convert it to an installment loan.

---

Photo credit: iStock/nensuria

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.

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 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.

^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.

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOHL-Q125-073

Read more

If the terms of your home equity line of credit (HELOC) no longer feel like a good fit, you may be wondering if you can refinance your HELOC with another bank.

The answer is yes, you can. There are several HELOC refinancing options available. And depending on your reasons for refinancing, and the terms other lenders are offering, you might be able to benefit from switching to a different lender.

Read on for a look at what it can take to refinance a HELOC, some pros and cons, and whether it might make sense for you.

HELOC Refinancing Explained

A HELOC is a revolving line of credit that usually comes with a variable interest rate — which can make it seem very much like using a credit card. You can tap into your credit line at any time (up to a preapproved limit). And you can use the money for just about anything you want.

Unlike a credit card, however, a HELOC is secured by the equity in your home. Which means the credit limit for a HELOC will likely be higher than a credit card, and the interest rate will likely be lower. But if you default on your payments, you could be putting your home at risk of foreclosure.

Another significant difference between HELOCs and credit cards is that the life of a HELOC is divided into two phases:

•   With a HELOC, you can only use the money from your credit line for a fixed period of time (usually 5 or 10 years) called the “draw period.” During this time, you can make payments toward your principal and interest, if you like. But typically, HELOC borrowers are only required to make interest payments during the draw period.

•   When the draw period ends, the “repayment period” begins. During this phase, which generally lasts 10 to 20 years, the focus turns to paying back the principal, along with any interest that’s due.

This is where the option to refinance a HELOC might make sense for some borrowers. Depending on how large the account balance has grown over time, your monthly payments could be substantially higher during the repayment period than they were during the draw period — especially if interest rates have gone up over the years. If you can transfer your HELOC to another bank with more competitive terms (a lower interest rate, for example, or a longer loan length), it could help bring those payments down. You also could refinance to a new HELOC so you can continue borrowing against your equity with another draw period.

Eligibility for HELOC Refinancing

When you refinance a HELOC, you’re basically taking out a whole new line of credit or a new loan to replace your current account. And the eligibility requirements lenders want you to meet may be different from those of your original HELOC. With a refinance, you can expect lenders to look at several factors, including:

•   Home equity: Home equity is the value of your home minus the amount you still owe, and to qualify for a HELOC, you typically must have at least 15% to 20% equity in your home. (A home equity loan calculator can help you estimate how much you might be able to borrow.)

•   Debt-to-income (DTI) ratio: Lenders look at your DTI ratio (all monthly debt payments / gross monthly income = DTI) to determine how much of your income goes toward paying your monthly debts. Generally, lenders like to see a DTI ratio that’s no higher than 43% to 50%, but the lower the better.

•   Loan-to-value (LTV) ratio: The amount you’re allowed to borrow can also be affected by your LTV ratio (your mortgage balance / your home’s current value). Having a lower LTV can improve your chances of meeting refinance requirements. Lenders also like to see a low combined loan to value (CLTV) ratio (that’s all the secured loans on your home / the value of your home) to be sure you aren’t taking on too much debt.

•   Credit standing: Having a good credit score and solid credit history can help you qualify for financing and get a better interest rate.

Types of HELOC Refinancing Options

If you’re thinking about refinancing your HELOC, you may have a few different options to consider, including:

Replacing Your Current HELOC with a New HELOC

Refinancing to a new HELOC can allow you to reset your draw period (giving you more time to keep borrowing) and postpone your repayment period. You also may qualify for more favorable terms — a fixed and/or lower interest rate, for example, or a longer loan term with lower monthly payments. It’s important to keep in mind, though, that if you refinance and you don’t pay down your principal, you could end up paying more interest over time. And if you sell your home, you’ll likely have to pay off your HELOC as part of that transaction. You can use a HELOC monthly payment calculator to see how different interest rates will affect your monthly payments.

Paying Off Your HELOC with a Home Equity Loan

There are different types of home equity loans. A basic home equity loan is similar to a HELOC in that it’s secured with the equity in your home. But unlike a HELOC, a home equity loan is paid out as a lump sum and usually has a fixed interest rate. This can make payments more predictable, and easier to plan for. But again, you could end up paying more interest over time than you would with the original HELOC. And if you sell your home, you may need to pay off the home equity loan. These are all considerations as you weigh a new HELOC vs. a home equity loan.

Using a Cash-Out Refinance

With a cash-out refinance, you would replace your original mortgage with a new, larger mortgage, and use the money that’s left over to pay off your HELOC. If you can get a fixed interest rate that’s lower than what you’ve been paying, this strategy might make sense, especially if you can also refinance to a mortgage with a shorter term. And as an extra bonus, you’ll have the convenience of combining two payments into one. But better terms aren’t guaranteed, so it’s a good idea to check out what various lenders are offering.

Modifying Your HELOC with Your Current Lender

If your current lender will work with you to lower your monthly HELOC payments, that may be the most convenient option. If you have a good relationship, you can try asking about extending your repayment term, lowering your interest rate, moving to a fixed rate, or even reducing your principal. Even if you get a positive response, though, you may want to take some time to look at what other lenders are offering and what best suits your needs and goals.

Recommended: HECM vs. HELOC

The HELOC Refinancing Process

The process for refinancing your HELOC is pretty much the same whether you choose a new HELOC, a home equity loan, or some other option. Here are some of the basic steps:

Getting Reacquainted with Your Current HELOC

If it’s been a while since you looked at the terms of your HELOC, take a moment to get reacquainted with the important details — including your current balance, your repayment terms, any fees you might owe, the current interest rate, and what you could end up paying in the future if rates go up.

Comparing Lenders and Offers

Once you’ve reviewed your current HELOC, you can do some comparison shopping to see what other lenders might offer you. Look at interest rates, fees, and other loan terms. And if you can, read reviews to get a feel for what it might be like to work with a particular lender. Keep both your short- and long-term goals in mind as you evaluate various refinancing options.

Applying for Refinancing

Be prepared to provide current mortgage and bank statements, proof of income and employment, a home appraisal, and any other documentation your lender asks for. You can also expect your lender to run a credit check.

Keep in mind that you can only refinance your HELOC if you have adequate equity in your home. If you don’t have at least 15% or 20% in equity, based on the home’s current fair market value, you may not qualify for refinancing.

Costs Associated with HELOC Refinancing

No matter which method you might choose to refinance your HELOC, you can expect to pay closing costs on the new loan. These can include an appraisal fee, loan origination fee, application fee, credit reporting fee, attorney fee, and more. Closing costs vary depending on the type of loan, the loan amount, and the lender. Though closing costs for some loans can be as high as 2% to 5% of the loan amount, with a HELOC, you may be able to pay as little as 1%.

Pros and Cons of Refinancing Your HELOC with Another Bank

If you’re thinking about refinancing your HELOC with a different lender, there are a few pros and cons you may want to consider.

Recommended: HELOCs and Taxes

The Takeaway

If you think you may be able to qualify for a more affordable monthly payment by refinancing into a new HELOC or home equity loan, or by doing a cash-out refinance with your first mortgage, it can make sense to check out the options with other lenders when you are wondering if you can refinance a HELOC with a different bank. It’s easy to hop online and compare what lenders are offering. And that can help you decide if refinancing would help you meet your financial 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.

FAQ

How soon can I refinance my HELOC after opening it?

If you’re hoping to avoid high monthly payments or you want to extend your draw period, it can make sense to refinance your HELOC before you enter the repayment period. But it’s a good idea to review your HELOC agreement to determine if your lender assesses a penalty for closing your HELOC out early.

Will refinancing my HELOC affect my credit score?

Refinancing your HELOC could temporarily affect your credit score. But you can minimize the impact by making your HELOC and other payments on time and by not applying for any other credit accounts for a while.

Can I refinance a HELOC on an investment property?

You may be able to refinance a HELOC on an investment property, but in general, HELOCs are not as common for investment properties as they are for primary residences. Fewer lenders offer them, and the eligibility requirements may be more strict.

---

Photo credit: iStock/Inside Creative House

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.

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 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.

^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.

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOHL-Q125-072

Read more

If you’re thinking about accessing some of the equity in your home, but you’re a little confused about the mix of terms used to describe this type of borrowing, you’re not alone.

Understanding the subtle differences in how these borrowing options work (a home equity loan vs. a second mortgage vs. a HELOC, for example) can be challenging. But the more you know, the more equipped you can be to make the best choice for your needs.

In this guide, we’ll break down what the different terms mean, some of the pros and cons of each type of financing, and factors that might influence which option you choose.

Key Differences Between Second Mortgages and Home Equity Loans

Ready to have the fog lifted a bit? Let’s start by defining the term “second mortgage,” and discuss how it relates to the term “home equity loan.”

A second mortgage is pretty much just what it sounds like: You’re adding a second mortgage loan to your existing primary mortgage, and your home is the collateral for both loans. The first mortgage is secured by your home, and the second mortgage is secured by the equity you’ve managed to build up in that home.

You see where this is going, right? A home equity loan is a type of second mortgage. But — plot twist! — all second mortgages aren’t necessarily home equity loans. Another type of financing you’ve likely heard of, a home equity line of credit (HELOC), is also considered a type of second mortgage. (A third and less common second mortgage: Some homebuyers, including those with FHA loans, may get a second mortgage when they initially buy their home, as a way of helping to make the down payment.)

So there are two basic types of second mortgages: home equity loans and HELOCs. And there are some important differences between these two options.

Loan Structure

•   A second mortgage that is a home equity loan is considered a “closed-end” loan, which means the borrower receives a lump-sum payment upfront and repays that amount over time. When you pay down the balance — even if you pay off the loan early — you can’t re-borrow, or “draw” from the same loan again. If you need more money, you have to take out a new loan. (You can get an idea of how much you might be able to borrow with a home equity loan calculator.)

•   A HELOC, on the other hand, is an “open-end” line of credit. You can take out cash as you need it, up to the credit limit, and as you repay your outstanding balance, the amount of available credit is replenished, much like a credit card. You can borrow against it again and again, if you need to, throughout your draw period (which is typically 10 years). Usually, you’re only required to make minimum or interest-only payments during this time. Then, when the draw period ends, the repayment period begins.

Interest Rates

•   A second mortgage that’s a home equity loan will typically have a fixed interest rate that’s higher than the mortgage rate for your primary home loan but lower than the rate you’d likely get with an unsecured loan, like a personal loan.

•   A HELOC is also secured with your home, so the interest rate will likely be lower than if you used a credit card. But like a credit card, a HELOC often comes with a variable interest rate, which means the rate can change over time. (There may be an initial fixed rate for an introductory period before the variable rate kicks in.) Much in the way that mortgage rates drive costs on a variable-rate mortgage, if interest rates rise during the variable-rate period, so do the costs associated with your HELOC. This can affect the monthly payments and the total interest paid over the life of the line of credit.

Repayment Terms

•   Home equity loans usually have fixed monthly payments that are made over a predetermined loan term that could range from five to 30 years.

•   A HELOC repayment term, which starts after the draw period is over, generally lasts 10 to 20 years. During this time the interest rate may fluctuate, which means monthly payments may be less predictable. If interest rates rise, your payments could be higher than you expected; if they drop, your payments could be lower. (You can use a HELOC repayment calculator to estimate what your payments might be.)

Pros and Cons of Second Mortgages

As with most types of financing, the different types of home equity loans have pros and cons to consider.

Advantages

•   Because the loan or line of credit is secured with your home as collateral, you can expect your interest rate to be lower than the rate for an unsecured loan or line of credit, like a personal loan or credit card.

•   If your second mortgage is a HELOC, you can decide how much to withdraw (up to your credit limit) and when to withdraw it, and you’ll only pay interest on what you’ve borrowed. The money in the account will be there if you need it at any time during the draw period, but you’ll have some flexibility in how you use it.

•   Unlike many other types of loans (auto loans, first mortgages, student loans), you can use the funds from your HELOC or home equity loan for just about anything you want.

•   The interest you pay may be tax deductible, if you use the money for qualifying home improvements. You’ll want to talk to a tax advisor about this deduction.

Disadvantages

•   Securing your second mortgage with your home as collateral can put you at risk of foreclosure if you default on your payments.

•   If your home’s value declines, you could end up owing more than your home is worth. And if you have a HELOC, your lender may decide to freeze or reduce your line of credit.

•   Closing costs for second mortgages are generally lower than for primary mortgages, but you can still expect to pay some fees when you close on your loan or line of credit.

•   You will likely have to repay your home equity loan or HELOC if you sell your home.

Recommended: HELOC Loan Guide

Pros and Cons of Home Equity Loans

Both HELOCS and home equity loans are a type of a second mortgage, and they have some similar traits and some that differ. Here are some pros and cons that are specific to home equity loans.

Advantages

•   Because you get your money upfront with a home equity loan, it can be a useful way to pay for a large one-time expense, such as a home renovation, or for debt consolidation.

•   Home equity loans typically come with a fixed interest rate and a predictable fixed monthly payment, which can make it easier to budget for and plan around.

Disadvantages

•   With a home equity loan, you’ll immediately start paying interest on the full amount of the loan each month, even if you haven’t used the money.

•   If you don’t know exactly how much you’ll need for a home renovation, medical procedure, etc., you could under-borrow, and you might have to get another loan to finish the work. (With a HELOC, you can keep borrowing and repaying for several years without getting additional approvals or filing new paperwork.)

Recommended: Mortgage Preapproval

Choosing Between a HELOC and a Home Equity Loan

Because there are pros and cons to both second mortgage options, it may be difficult to choose between a home equity loan vs. a HELOC. Here are some points to consider:

Assessing Your Financial Needs

How do you plan to use the funds from your second mortgage? As you weigh a HELOC vs. second mortgage in the form of a home equity loan, consider this:

•   If your goal is to make a large one-time purchase, a home equity loan — which comes in a lump-sum payment — may be the better choice.

•   If you like the idea of having more flexibility in how much you borrow and when you borrow it, a line of credit — which you can use and pay back and use again — might be the right option.

Evaluating Interest Rates and Terms

Which terms better suit your purposes (and personality)? When thinking about using a HELOC second mortgage vs. a home equity loan consider this:

•   A home equity loan has a fixed interest rate and a traditional loan structure with more predictable monthly payments.

•   A HELOC usually has a variable interest rate, which can fluctuate over time. During the first years that you have the line of credit, the “draw period,” you may only have to make minimum or interest-only payments. But when you enter the repayment period, if interest rates have increased, your payments may be higher than you anticipated.

Considering Tax Implications

The interest on both a HELOC and a home equity line of credit may be tax deductible, but only if you use the funds “to buy, build, or substantially improve the residence” you used to secure the loan. (Note that this IRS rule expires at the end of 2025. If it isn’t renewed by Congress, the interest from either type of second mortgage may be deductible in the future — with some limitations — regardless of how the homeowner uses the money.)

The Takeaway

Both home equity loans and home equity lines of credit (HELOCs) are a type of second mortgage. And though they share some similarities, there are also some differences that are important to consider when you’re trying to decide which option is better for your needs.
While both home equity loans and HELOCs allow you to tap into your home’s equity if you need money, a HELOC offers the option to draw only what you require and to pay as you go. This can make it an option worth considering if you’re not sure how much money you need upfront for a project or purchase, or if you want to have a backup plan to cover unexpected costs as they come up. It can also keep your costs down in the first years that you have the HELOC.

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.

FAQ

Are interest rates typically higher for second mortgages or home equity loans?

The interest for a second mortgage — whether it is a home equity loan or a HELOC — is typically lower than what you might find with an unsecured loan. The interest rate on any mortgage can depend on several factors, including the borrower’s creditworthiness and loan-to-value ratio, and the prime rate. But second mortgages often have a higher interest rate than primary mortgages.

Can I use funds from a second mortgage or home equity loan for any purpose?

Yes, you can use the money from a second mortgage for just about any purpose.

How does the repayment term differ between a second mortgage and a home equity loan?

A home equity loan is a type of second mortgage. It usually has a fixed repayment schedule for the life of the loan, and repayment begins as soon as you receive the lump-sum loan. Another type of second mortgage, a home equity line of credit (HELOC) has two phases of payments: There is a draw period, during which payments are typically interest-only, and a repayment period when you repay all that you’ve borrowed, plus interest.

What are the risks associated with taking out a second mortgage or home equity loan?

Securing a loan or a line of credit with your home as collateral can put you at risk of foreclosure if you default on your payments. Also, if your home value declines, you could end up owing more than your home is worth.

How does my credit score affect eligibility for a second mortgage or home equity loan?

The higher your credit score, the more likely you are to be approved for a second mortgage. Your credit score also can affect the interest rate and borrowing terms you are offered.

Can I borrow against my home equity if my house is paid off?

Yes. If you have good credit and meet other eligibility requirements, you should be able to use the equity in a paid-off home to get either a HELOC or a home equity loan. (It wouldn’t be referred to as a “second mortgage” in this situation, however.)

---

Photo credit: iStock/VioletaStoimenova

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.

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 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.


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.

^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.
^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.

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.

SOHL-Q125-069

Read more