$15,000 fixed-rate HELOC

Home Equity Loans

When you want to borrow just enough: Explore the benefits of a $15,000 fixed-rate HELOC

Nov 06, 2024

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Written by

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Reviewed by

Key takeaways:

  • A $15,000 fixed-rate HELOC offers flexibility with security—you can borrow only what you need and enjoy predictable rates that won't change over time.

  • Your borrowing power depends on several factors, including: your available home equity, the lender's loan limit, and their combined loan-to-value (CLTV) ratio requirements.

  • It’s possible to get a HELOC in as little as 10 days when you prepare key documents in advance.

  • Find out if you prequalify. It only takes a few minutes.

Not every home improvement project requires a major renovation budget, and not every debt consolidation plan needs six figures to succeed. A smaller HELOC could be the perfect answer when you’re looking for the best way to reach your next financial goal. 

Your home holds value beyond the memories you create there. Borrowing against your home equity could be a way to unlock opportunities to enhance your life or your property in meaningful ways. Here’s how you could make a $15,000 HELOC work for you.

What to know about a $15,000 fixed-rate HELOC

First, the basics. A HELOC is a line of credit that allows you to borrow against your home equity. Equity is the difference between your home’s value and the balance you owe on your mortgage. 

HELOCs are secured loans. Your home serves as collateral. Collateral lowers the risk for the lender. It’s something valuable that you own and pledge to the lender as a guarantee that you’ll repay the debt. If you don’t repay the debt, you could lose your collateral.  

Homeowners, get help with your high-interest debt

Use the equity in your home to consolidate debt, lower your monthly payments, and reduce your stress.

How does a HELOC work?

If you’re approved for a HELOC, when your loan is finalized, you’ll begin the draw period. This is a few years when you could borrow, repay, and borrow more as often as you like, up to your loan limit. 

You do need to make payments during the draw period. Some lenders allow you to pay interest only. If you do that, the amount you owe won’t go down. With a home equity loan through Achieve, you’ll make a principal and interest payment payment based on the amount you’ve borrowed.

When the draw period ends, you can’t borrow more. You’ll enter the repayment period. Your monthly payment will be calculated to pay off the loan by the end of your repayment period.

How much can you borrow with a HELOC?

The amount you can borrow with a HELOC depends on factors such as how much home equity you have, the lender’s loan limit, and the lender’s CLTV limit.

HELOC lenders look at how much you still owe on your mortgage, if you have one. This number is added to the amount you want to borrow with the HELOC. Then the lender compares the total to your home’s value. 

The result is called the CLTV, or the combined loan-to-value ratio. Each lender decides what maximum CLTV they’ll allow. 

Here’s how it works:

If the lender’s maximum CLTV is 80%, it means you can’t owe more than 80% of your home’s value in loans secured by that home. Let’s say your home is worth $300,000 and you owe $100,000 on the mortgage. Eighty percent of your home’s value is $240,000. That’s how much you could owe without going over the lender’s CLTV limit. 

Subtracting the $100,000 mortgage balance leaves $140,000 that you could potentially borrow with a HELOC if you have enough equity. You have $200,000 in equity (home value minus mortgage balance), so this is a loan you could apply for.

Home value

$300,000

80% CLTV 

$240,000

Your mortgage balance

$100,000

The amount you could borrow

$140,000

This table is for informational purposes only. Individual results vary.

Common uses for a $15,000 fixed-rate HELOC

There are so many ways to use a HELOC for all sorts of scenarios. 

Debt consolidation

You could use a HELOC to consolidate higher interest debt. Debt consolidation means taking a new loan and using it to pay off more than one debt. 

If you have higher-interest debts, like credit cards, a HELOC could help you pay them off more effectively. For one thing, you could reduce multiple monthly payments down to just one. Streamlining your finances could lower your stress and make it easier to manage your money.

Second, you might save on interest. If you qualify for a lower interest rate, you could end up paying less interest overall by the time the debt is paid off. The total amount of interest you pay will depend on how long you take to pay off the debt in addition to the interest rate.

A debt consolidation loan could also give you relief on your monthly budget if the payment is smaller than the total of all the monthly payments you’re making now. 

Finally, if your current debts are on credit cards, they probably have variable interest rates. The interest rate could change, and that makes your payments less predictable. A fixed-rate HELOC comes with an interest rate that won’t change. 

Other uses for a HELOC

The way you use your loan funds only needs to align with what’s important to you. Here are a few other ways you could put a $15,000 HELOC to good use:

  • Make small home repairs, like resurfacing cabinet doors and replacing broken windows

  • Install a home security system

  • Upgrade old or broken appliances

  • Cover unexpected medical expenses or elective procedures

  • Cover moving expenses

  • Pay for a wedding

How to qualify for a $15,000 fixed-rate HELOC

Each lender sets its own criteria to qualify for a HELOC. Here are the basics: 

Steps to apply for a $15,000 fixed-rate HELOC

Here’s how to apply for a HELOC:

  • Gather documents: To help smooth the application process, get all the necessary information before you apply. Some of what you’ll likely need includes proof of your income and employment, your ID, and information about your current home. You may need to provide proof of ownership.

  • Get prequalified and apply: Get prequalified with a lender who performs a soft credit check that doesn’t ding your score. Once you are happy with the loan your lender says you may qualify for, submit a formal application. When you submit an application, the lender will do a hard credit inquiry on your credit file, and that could temporarily affect your credit score.

  • Wait for a decision: It doesn’t take too much time to get a HELOC. That’s because after you submit your application, the lender will thoroughly review it. They’ll verify all of the information in your application and check the value of your home. From application to funding could be as little as 10 days, but it could take a few weeks. Being fully prepared before you apply will help you reduce the time it takes.

What to expect after a $15,000 HELOC is approved 

If your HELOC loan application is approved, your lender will send you paperwork to sign to officially close on the loan. Then, you’ll work with the lender to get the loan funding you need—in this case, $15,000—during the draw period. Use the money however you need.

As you lower your loan balance by making payments, you have the option of borrowing again, up to your loan limit, as long as you’re still in the draw period.

You might decide that you want to pay off your $15,000 HELOC before the end of the repayment period. If so, just make sure the lender doesn’t charge a prepayment penalty. That’s a fee for paying off your loan early. Achieve’s HELOCs have no prepayment penalties.

What's next

  • Check your credit: See where you stand credit-wise by looking at your credit reports. If there are any errors, correct them. If there are factors holding your credit score down, like high credit card balances or a history of late payments, focus on improving in those areas. Raising your credit score could help you get better terms on loans in the future. 

  • Estimate your home equity: Find out what your home is worth on a real estate website and compare it to the amount you still owe. The difference is your home equity. 

  • Ask questions: Ask a knowledgeable mortgage advisor any questions you still have. These folks can help you decide whether a $15,000 home equity loan is right for you.

Author Information

sarah-li-cain.jpg

Written by

Sarah is a contributing writer for Achieve. She is a financial counselor accredited by the Association for Financial Counseling & Planning Education®, and a writer for other Fortune 500 publications.

Jill-Cornfield.jpg

Reviewed by

Jill is a personal finance editor at Achieve. For more than 10 years, she has been writing and editing helpful content on everything that touches a person’s finances, from Medicare to retirement plan rollovers to creating a spending budget.

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Home Equity loans are available through our affiliate Achieve Loans (NMLS ID #1810501), Equal Housing Lender. All loan requests are subject to eligibility requirements, application review, loan amount, loan term, and lender approval. Product terms are subject to change at any time. Offers are a line of credit. Loans are not available to residents of all states and available loan terms/fees may vary by state where offered. Line amounts are between $15,000 and $300,000 and are assigned based on product type, debt-to-income ratio, and combined loan-to-value ratio. Minimum 640 credit score applies for debt consolidation requests, minimum 700 applies for cash out requests. Other terms, conditions and restrictions apply. Fixed rate APRs range from 8.75% - 15.00% and are assigned based on underwriting requirements; offer APRs include a .50% discount for automatic payment enrollment (autopay enrollment is not a condition of loan approval). Example: average HELOC is $57,150 with an APR of 12.75% and estimated monthly payment of $951 for a 15-year loan. 10, 15, 20, and 30-year terms available (20 and 30 year terms only available for cash out requests). All terms have a 5-year draw period with the remaining term being a no draw period. Payments are fully amortized during each period and determined on the outstanding principal balance each month. Closing fees range from $750 to $6,685, depending on line amount and state law requirements and typically include origination (3.5% of line amount) and underwriting ($725) fees if allowed by law. Property must be owner-occupied and combined loan-to-value ratio may not exceed 80%, including the new loan request. Property insurance is required and flood insurance may be required if the subject property is located in a flood zone. You must pledge your home as collateral. Contact Achieve Loans for further details. Monthly savings claim is based on average monthly debt savings from originated loans for 2023. Monthly savings varies based on each loan situation and can be more or less than $800.

Affiliated Business Arrangement Disclosure: Achieve.com (NMLS #138464) and Achieve Loans are both wholly owned subsidiaries of Achieve Company. Because of this relationship, your referral to Achieve Loans may provide Achieve.com a financial or other benefit. Where permitted by applicable state law, Achieve Loans charges: 1) an origination fee of 3.50%, and 2) an underwriting fee of $725. You are NOT required to use Achieve Loans for a home equity line of credit. Please click here for the full Affiliated Business Arrangement disclosure form.

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