Typical Home Equity Line of Credit Rates

The typical home equity line of credit rate varies depending on your credit score and the amount that you are borrowing, relative to your home's loan to value. Average rates as published on bankrate.com show home equity line of credit (HELOC) rates of 4.96 percent for a $50,000 HELOC and 8.49 percent for a $75,000 HELOC. The rates vary also by region and lender providing the HELOC. A sampling of major markets show the following "typical" HELOC rates for a $30,000 loan:

HELOC Rates for $30,000 Loan in Selected Markets

  • Atlanta, 5.64 percent (average rate), 4.25 to 7.49 percent (minimum – maximum rate)
  • Baltimore, 4.77 percent (average rate), 2.75 to 7.74 percent (minimum – maximum rate)
  • Charlotte, 5.68 percent (average rate), 4.25 to 7.37 percent (minimum – maximum rate)
  • Chicago, 5.24 percent (average rate), 4.00 to 7.49 percent (minimum – maximum rate)
  • Denver, 5.95 percent (average rate), 5.00 to 7.35 percent (minimum – maximum rate)

All of these rates for a $30,000 HELOC in the above markets are based on a borrower with a good credit score of between 660 to 749 FICO and a minimum loan to value of 80 percent. Loan to value (LTV) represents the percent of equity in the home relative to the amount of loan outstanding. An LTV of 80 percent means the home has 20 percent equity and 80 percent loan outstanding.

HELOC Rates for $50,000 Loan in Selected Markets

  • Atlanta, 5.37 percent (average rate), 4.25 to 6.62 percent (minimum – maximum rate)
  • Baltimore, 5.31 percent (average rate), 4.00 to 7.74 percent (minimum – maximum rate)
  • Charlotte, 5.53 percent (average rate), 4.25 to 6.74 percent (minimum – maximum rate)
  • Chicago, 5.20 percent (average rate), 4.25 to 6.74 percent (minimum – maximum rate)
  • Denver, 5.95 percent (average rate), 5.00 to 7.25 percent (minimum – maximum rate)

Obtaining a HELOC for Your Home

If you are interested in taking out a HELOC you need to understand what rates are being offered by your lender and the factors that will affect that rate. The biggest factor will be the credit rating. Understanding your FICO score and taking the steps to improve it, as well as finding a lender that offers a rate that is comparable to those listed above is key to obtaining a good HELOC.

Checking Credit Score

The best HELOC interest rates will be impacted by the FICO score that you present to the lender. This may result in a rate that can be much higher or slightly lower than the typical HELOC loan rates that are available and published for different cities and regions of the country. A borrower with a FICO score below 660 will have limited to no options available for a HELOC of any size while borrowers with FICO scores of 750 or higher will have lower interest rates and better scores.

Checking your credit report that you have on file with the 3 major credit reporting bureaus (i.e. Equifax, Experian and TransUnion) will help you determine which HELOC loan rate you will qualify for.

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