HELOC rates in Alaska rose from 4.7% in early 2022 to 9.8% by 2024, stabilizing around 9.7%. If this trend persists, homeowners may encounter higher borrowing costs, suggesting it's wise to secure a rate soon.
HELOC
Best HELOC Rates in Alaska
Updated: November 23, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Alaska with an 80% LTV is 8.6%, compared with 10.2% for a 90% LTV.
HELOC rates vary by city in Alaska. Yakutat has an average APR of 8.5%, whereas Homer's is 9.6%.
Different lenders offer varying rates for the same loan types. Advancial Federal Credit Union's average APR is 7.5%, whereas Northrim Bank's is 10.0%.
Current HELOC Rates in Alaska
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HELOC Rates in Alaska by LTV Ratio
HELOC rates in Alaska vary based on your loan-to-value ratio and line limit. A lower LTV ratio is less risky for lenders, as you have more equity. For instance, an 80% LTV means you've borrowed less compared to a 90% LTV, reducing the risk of default on your HELOC.
The following table lets you filter between different loan amounts, offering a clearer view of what you may qualify for:
Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000
| 8.6% | 10.2% |
HELOC Rates in Alaska by City
HELOC rates in Alaska vary by city due to differences in local housing markets and lender competition. For instance, cities with stable real estate markets might offer lower rates, reducing lender risk.
Use the table below to filter by city and view average APRs for $50K and $100K HELOCs.
Data filtered by:Results filtered by:
City:
City:Anchorage
| $100,000 | 8.9% |
| $50,000 | 8.9% |
HELOC Rates in Alaska by Lender
HELOC interest rates in Alaska vary among lenders due to unique pricing strategies and risk assessments. The table below highlights the five lenders in Alaska offering the lowest average APRs, helping you compare competitive rates.
| Advancial Federal Credit Union | 7.5% |
| First Bank | 8.0% |
| True North Federal Credit Union | 8.0% |
| Credit Union 1 | 8.3% |
| Nuvision Federal Credit Union | 8.3% |
HELOC rates today can vary among lenders even in the same city. Use the table below to filter by city and compare APRs, helping you find the best rate available in your area.
Data filtered by:Results filtered by:
City:
City:Anchorage
| Advancial Federal Credit Union | Credit Union | 7.5% |
| True North Federal Credit Union | Credit Union | 8.0% |
| Nuvision Federal Credit Union | Credit Union | 8.3% |
| Credit Union 1 | Credit Union | 8.3% |
| Global Federal Credit Union | Credit Union | 8.8% |
| Alaska Air Group Federal Credit Union | Credit Union | 9.5% |
| Northrim Bank | Commercial Bank | 10.0% |
COMPARING HELOC RATES IN ALASKA: BANKS VS. CREDIT UNIONS
HELOC rates in Alaska vary between banks and credit unions, with banks typically offering higher rates. For instance, commercial banks in Alaska have an average HELOC rate of 9.4%, compared to the 8.8% average APR offered by credit unions. Credit unions are not-for-profit institutions that often provide slightly lower rates than their commercial counterparts.
When choosing between the two, consider more than just rates. Banks might offer more convenience, while credit unions may provide better customer service and lower fees. It's also important to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Expert Answers About HELOCs
How do HELOC rates compare to other borrowing options like personal loans or home equity loans, and when should a homeowner choose a HELOC over these alternatives?
Credit & Mortgage Expert
Typically, a HELOC will have a lower interest rate than a personal loan from a bank or credit union. However, HELOCs often have a variable rate, so they can go up or down depending on the current Federal Funds rate. Home equity loans are a fixed rate, so when the Fed increases rates or they remain the same, that is a good time to get a home equity loan.
Personal loans are a solid option despite their higher rates because they are unsecured, meaning there is no collateral (like your home). If you come on hard times and can’t repay a personal loan, you are not at risk of losing your home like you are with a HELOC or home equity loan.
HELOC Payment Calculator
HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home's equity. Use our Alaska HELOC payment calculator to determine your monthly payments based on the amount drawn, APR and loan terms. Our calculator also provides a full amortization schedule, showing how much goes toward interest and principal over time. Understanding these details can help you manage your HELOC and plan for future payments.
Alaska HELOC Payoff Calculator
This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.
Credit Line Information
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Repayment Period Payment
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- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
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How to Get the Best HELOC Rates in Alaska
Finding the best HELOC rates in Alaska can help you save thousands over the life of your loan. To secure the most competitive rate, consider these five strategies:
Maintain a strong credit score
The average credit score in Alaska is 722. Improving it can help secure more competitive HELOC rates.
Compare offers from multiple lenders
Settling for the first offer you receive may be costly. By shopping around, you can find competitive rates and even use offers to negotiate better terms.
Reduce your debt-to-income (DTI) ratio
Lenders favor borrowers with lower debt-to-income (DTI) ratios because it shows financial stability. Reducing your debt can make you a more attractive candidate for a lower rate.
Increase your home equity
The more equity you have, the less risk the lender assumes, which can lead to a lower rate. Paying down your mortgage or making home improvements can increase your equity.
Review closing costs and rate caps
Some lenders charge closing costs between 2% and 5%, whereas others don't. Compare rate caps to limit your costs as rates adjust over time.
HELOC Loan Rates vs. Home Equity Loan Rates in Alaska
HELOC interest rates in Alaska average 8.9%, slightly higher than the 8.6% for home equity loans. This difference stems from their rate structures, with HELOCs having variable rates and home equity loans having fixed rates.
- HELOCs are flexible, revolving credit lines with variable interest rates that adjust with market conditions. In rising interest rate environments, HELOC rates may increase, impacting homeowners' long-term finances.
- Home equity loans provide a lump sum at a fixed rate, offering stability throughout the loan term. They are suitable for those who prefer predictable payments and have specific, large expenses.
When deciding between these options, consider your financial goals and risk tolerance. If you value flexibility and can manage potential rate increases, a HELOC might suit you. For those seeking stability and predictable payments, a home equity loan may be the better choice. Assess your home's equity and your financial situation to make an informed decision.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
A cash-out refinance is a HELOC alternative that replaces your existing mortgage with a new, larger loan, providing cash access. Unlike HELOCs or home equity loans, cash-out refinances create a new primary mortgage.
For example, if you have a loan backed by the Federal Housing Administration (FHA) and your home is valued at $300K with a $150K mortgage balance, an FHA cash-out refinance for $200K could provide $50K in cash, with new loan payments based on $200K.
FAQ: Best HELOC Rates in Alaska
What are the current HELOC rates in Alaska and how do they compare to national rates?
The average HELOC rate in Alaska is 8.9%, which is slightly higher than the national average of 8.4%.
What fees are commonly associated with HELOCs in Alaska?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in Alaska compare to home equity loan rates?
Alaska's HELOC rates average 8.9%, while home equity loan rates are slightly lower at 8.6%, especially for those with bad credit.
How do HELOC Rates in Alaska vary between banks and credit unions?
Commercial banks in Alaska offer HELOC rates averaging 9.4%, while credit unions offer lower rates at 8.8%.
What's the best HELOC rate in Anchorage? How does it compare to the current HELOC rate in Alaska?
Anchorage's rates average 8.9%, which is on par with the overall HELOC rate in Alaska.
MoneyGeek examined 12 different banks and credit unions in Alaska using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity line of credit rates.
This data is accurate as of November 15, 2024.
12Lenders Analyzed
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.