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Considering a HELOC? Here's how much you can get

Page of paper with HELOC and dollars.
A HELOC could be a good way to access extra money.  Getty Images/iStockphoto

With higher prices at the grocery store and persistent (although slightly cooler) inflation, many Americans are looking for new ways to save and cut debt. For homeowners, this can take the form of refinancing to a lower interest rate or potentially even a shorter loan term. Some older homeowners may want to consider the benefits of a reverse mortgage.

Borrowers with equity in their homes can also pursue a home equity line of credit (HELOC). This type of credit gives homeowners access to the existing equity in their home as a credit to use as they see fit. This is generally favorable to taking out a personal loan or credit card (the latter of which often has higher interest rates).

But how much of a HELOC can you actually get? And is now a good time to get one? We will explore the answers to both of these questions. If you think you could benefit from taking out a HELOC then start exploring your options here now or use the table below to check your eligibility. 

Mobile users click here.

How much money can you get with a HELOC?

The amount of money you can get with a HELOC depends on the guidelines of the specific lender you're using as well as the amount of equity you have in your home at the time of your application. Most lenders will cap a home equity line of credit at 80% of your home's equity although some lenders may go above that figure (although, once it goes above 80% you may pay more in interest).

There are multiple factors that will affect how much you can get via a home equity line of credit. These include but are not limited to:

  • Your credit history: The higher your credit score and the better your credit history the greater the HELOC you'll be able to apply for. 
  • Your home's worth: It may not always be fair but the amount you can get in a HELOC will be greatly determined by your home's worth at the time of application. If the home's value is high during a seller's market then you'll likely be able to get more than you would if you applied when the home market was underperforming.
  • Your mortgage balance: The longer you own your home the less you will owe to the lender and the more equity you'll have in your home. So new owners will have significantly less to access for a HELOC than borrowers who have lived in the home for years, if not decades. 

Not sure how much of a HELOC you should get? You can easily plug in some numbers here or use the table below to find how much you're eligible to receive. 

Mobile users click here.

Who should get a HELOC now?

While everyone's personal financial situation is different, there are some compelling reasons homeowners may want to turn to a HELOC now. Here are two major ones:

  • Can help with inflation: As mentioned above, inflation has hurt the bottom line for millions of Americans. A HELOC can help by providing your own home equity to make ends meet. HELOCs can be used to pay down debt, make home repairs, pay for schooling or do anything else the homeowner needs. And because interest rates are typically lower (think 7% to 8%, approximately), it's often cheaper to use than some other forms of credit.
  • Your home value is still high: "The national median single-family existing-home price increased 4.0% from one year ago to $378,700," the National Association of Realtors noted on February 9. "Approximately nine out of 10 metro markets registered home price gains in the fourth quarter of 2022 despite mortgage rates eclipsing 7%," the Association said. It's simple math: If your home value is high then you'll have more equity to play with than you would have if the real estate market was weaker. So if you need the boost a HELOC can provide - and your home value is up from what it was - then now may be a good time to act.

By plugging in your zip code and a few simple numbers you can find out how much of a HELOC you can get right now. You can also use the table below to easily determine eligibility.

Mobile users click here.

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