HELOC rates today are sitting at a new low for the year — below 8.50% APR. Lenders have also reduced home equity line of credit introductory rates, as the prime rate ticked down. Dig deeper: Is now a good time to take out a HELOC? HELOC rates Tuesday, September 30, 2025 According to Bank of America, the largest HELOC lender in the country, today's national average APR on a 10-year draw HELOC is 8.47%. That is a variable rate that kicks in after a six-month introductory APR, which is now 5.99% in most p ...

Core Insights - HELOC rates have decreased recently, with the national average ranging from 7.8% to 9.34% as the prime rate fell to 7.25% [1] - Homeowners have over $34 trillion in home equity, making it the third-largest amount on record, which suggests a significant opportunity for HELOCs [2] - The current mortgage rates are low, leading homeowners to retain their primary mortgages and consider HELOCs as an alternative to accessing home equity [2] HELOC Rates and Terms - The average APR for a 10-year draw HELOC is now 8.47%, with an introductory rate of 5.99% for the first six months in most states [1][4] - Lenders determine HELOC rates based on an index rate plus a margin, often using the prime rate as a benchmark [4] - Rates can vary significantly between lenders, with current rates ranging from 7% to 18% depending on creditworthiness [9] Benefits and Flexibility of HELOCs - A HELOC allows homeowners to access their home equity without giving up their low-rate primary mortgage, providing flexibility in borrowing [6] - Homeowners can draw only what they need from their credit line, avoiding interest on unused amounts [8] - HELOCs can be used for various purposes, including home improvements and personal expenses, making them a versatile financial tool [10] Payment Structure - For a $50,000 HELOC on a $400,000 home, the estimated monthly payment could be around $384 with a variable interest rate of 8.49% [11] - HELOCs typically have a draw period followed by a repayment period, making them more beneficial for short-term borrowing [11]

Core Viewpoint - SoFi's stock has increased over 270% in the past year due to strong financial performance, growth acceleration, a shift to a lower-risk, fee-based business model, and consistent credit performance, indicating that the stock's upward trend may continue [1] Group 1: Financial Performance - SoFi recorded nearly $1 billion in student loan originations in Q2, marking a 35% increase from the previous year, supported by a new refinancing solution [3] - Total home loan originations reached nearly $800 million in Q2, representing over 90% year-over-year growth, driven by the success of the home equity loan product [4] Group 2: Market Environment - The recent interest rate cut and anticipated further reductions create a favorable operating environment for SoFi, potentially boosting its lending division [2] - SoFi is well-positioned to capture renewed demand in its lending products as interest rates trend downward [2] Group 3: Business Strategy - SoFi is transitioning into a more diversified financial services company, focusing on fee-based services to reduce credit risk exposure and create a stable revenue base [5] - The emphasis on fee-based revenue enhances the overall investment case for SoFi, providing a reliable income stream [5]

Financial Data and Key Metrics Changes - The company reported strong quarterly earnings of $14.1 million, resulting in diluted earnings per share of $0.83, representing increases of 92% and 93% respectively over the previous quarter [12] - On a non-GAAP basis, adjusted earnings were $15.2 million or $0.89 per share, with pretax pre-provision net income excluding merger-related costs totaling $26.1 million, an increase of 13% from the prior quarter [4][13] - The tangible common equity ratio expanded to 6.77% at June 30, with a 3% increase in tangible book value during the second quarter, reaching $26.9 per share [5][18] Business Line Data and Key Metrics Changes - The company experienced robust growth in home equity loan balances, with an increase of $16.7 million in the second quarter compared to $18 million for the entire previous year [28] - Non-interest income reached $13.1 million for the second quarter, exceeding guidance provided last quarter [14] - The non-GAAP efficiency ratio improved to 55.5%, the lowest level since 2022, indicating enhanced operational efficiency [13] Market Data and Key Metrics Changes - Average deposits were down 1% on a linked quarter basis due to seasonal trends, but there has been encouraging growth as summer approaches [7] - The loan pipeline was robust at June 30, with a committed loan pipeline of $150 million, representing a 40% increase over the last quarter [18] Company Strategy and Development Direction - The company is focused on unlocking the financial potential of its combined franchise following the acquisition of Northway Financial, particularly in the New Hampshire market [4] - Strategic investments in digital and talent-focused initiatives are expected to drive revenue growth and enhance customer relationships [10] - The company is committed to expanding its treasury management services and modernizing its mobile app to attract a digitally savvy customer base [10][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall health of the loan portfolio, despite one commercial borrower filing for bankruptcy, indicating this is not a broader trend [6] - The company anticipates strong capital generation in the second half of the year, driven by the realization of synergies and sustained revenue growth [18] - Management remains optimistic about the second half of the year, citing positive momentum in commercial volume and the integration of the New Hampshire franchise [50] Other Important Information - The company successfully launched new features in its mobile app, including a digital financial literacy program, which has seen strong customer engagement [10][60] - The company is actively working with other lenders on the bankruptcy case of a borrower, with expectations for resolution later this year [6][22] Q&A Session Summary Question: What type of C&I loan was it, and did the placement on non-accrual impact net interest income? - The loan was characterized as a service company C&I loan, and it did impact net interest income by about one basis point of net interest margin for the quarter [22][23] Question: What are the drivers of the improvement in the loan pipeline and the coupon on new originations? - The company is seeing a broad-based pickup in commercial and home equity loans, with a robust loan pipeline indicating strong demand [28][29] Question: Can you provide guidance on fee income for the next quarter? - The company estimates non-interest income for the third quarter to be in the range of $12 million to $13 million, with some caution due to fair value accounting impacts [41][44] Question: What is the overall exposure to syndicated loans? - The total exposure to the loan in question is $12 million, with a total exposure of around $200 million across five or six other banks [36] Question: Will the company consider a buyback if the stock remains low? - Management indicated that they have a buyback option available and are optimistic about the company's performance in the second half of the year [50]

Are you overwhelmed by credit cards, personal loans, or medical bills? Depending on your financial situation, using a home equity line of credit (HELOC) to pay off debt could be a smart move. However, it’s crucial to understand how paying off or consolidating debt with a HELOC works to decide if it makes sense for you. HELOC: What is it, and how does it work? A HELOC is a line of credit drawn from the equity in your home. It functions like a credit card with a revolving line of credit, unlike a traditio ...

A reverse mortgage is one option for homeowners looking to borrow from their property’s equity. However, unlike other tools for tapping your home equity, these loans are exclusively for seniors (for the most part, eligibility is limited to those age 62 and up). While reverse mortgages come with risks and aren't right for everyone, they can be a handy way to access cash in your twilight years. Reverse mortgages: How do they work? Reverse mortgages are a type of loan designed for older homeowners. They a ...

If you've built up equity in your home and you want to tap it, a home equity loan can be a good solution. Here's Yahoo Finance's picks for the best home equity loan lenders. Home equity loans, some considerations Home equity loans are a mighty money tool for extracting some of your home’s value as cash. Although you can use the cash for any purpose, it’s common to spend the funds on home renovations, paying off high-interest credit card debt, or college tuition. Many financial advisers recommend that ...

Core Viewpoint - Home equity can be accessed through second mortgages or refinancing existing mortgages, each with distinct features and implications for borrowers [1][7]. Group 1: Second Mortgages - A second mortgage allows homeowners to take out an additional loan on their property, which can be in the form of a home equity loan or a home equity line of credit (HELOC) [2][4]. - Home equity loans provide a lump sum with fixed interest rates, while HELOCs offer a credit line with two phases: a draw period and a repayment period [4][5]. - Typically, at least 20% equity in the home is required to qualify for these products, with interest rates generally higher than primary mortgages due to increased lender risk [3][8]. Group 2: Mortgage Refinancing - Mortgage refinancing involves replacing the original mortgage with a new one, which may offer a different interest rate or repayment term [7][8]. - There are two main types of refinancing: rate-and-term and cash-out, with both requiring approximately 20% equity to qualify [8][9]. - Rate-and-term refinancing is used to lower interest rates or change repayment terms, while cash-out refinancing allows borrowing more than the original mortgage balance for other expenses [8][9]. Group 3: Pros and Cons - Second mortgages can provide quick access to funds but come with the challenge of managing two debts and potentially higher interest rates [10][12]. - Refinancing can simplify debt management by consolidating into one mortgage, but it may involve higher closing costs and the risk of losing favorable original mortgage terms [12][15]. - Financial experts suggest evaluating personal circumstances to determine whether refinancing or a second mortgage is more beneficial, especially considering current interest rates [14][16].

The Yahoo view: Guild is a good mortgage lender option with its extensive assortment of loans, including a 1%-down-payment mortgage, loans with non-traditional credit approval, and more. However, Guild Mortgage falls short in customer satisfaction. Guild Mortgage is not one for bells and whistles. Its website is far from exciting. But what Guild lacks in flash, it makes up for in substance. Guild has a massive selection of loan options, whether you're a first-time home buyer or a homeowner with equity to ...

Core Insights - The rise in home prices has led to increased home equity for many homeowners, creating opportunities to borrow through home equity lines of credit (HELOCs) [1] Group 1: Understanding HELOC - A HELOC is a second mortgage that provides a revolving credit line secured by home equity, which is the difference between a home's value and the mortgage balance [2] - Homeowners can withdraw funds as needed up to their credit limit and can repay and re-borrow during the draw period, similar to a credit card [3] Group 2: Draw and Repayment Periods - The draw period typically lasts 10 years, during which interest-only payments are made based on the amount withdrawn, making it advantageous compared to other home equity options [4] - After the draw period, a repayment period of 10 to 20 years begins, requiring full principal and interest payments [5] Group 3: Eligibility and Application Process - To qualify for a HELOC, homeowners generally need at least 15% to 20% equity, a credit score of at least 680, and a debt-to-income ratio of 43% [7] - The application process involves choosing a lender, gathering documentation, and undergoing an appraisal to confirm home value [8] Group 4: Types of HELOCs - Interest-only HELOCs are common, allowing borrowers to pay only interest during the draw period, while fixed-rate HELOCs allow for locking in a fixed rate for part of the balance [12][14] Group 5: Pros and Cons of HELOCs - Pros include access to home equity without affecting the original mortgage, flexibility in borrowing and repayment, and potential tax-deductible interest if used for home improvements [15] - Cons include the risk of foreclosure if payments are missed, variable interest rates leading to fluctuating payments, and the obligation to manage two home loan payments [20][29] Group 6: Alternatives to HELOCs - Alternatives include cash-out refinancing, home equity loans, personal loans, and reverse mortgages, each with different structures and terms [24][25][26]