HELOC rates in Arizona increased from 4.5% in early 2021 to 9.1% by November 2024 for $50k loans, and from 4.5% to 9% for $100k loans. If this trend continues, homeowners might face higher borrowing costs; consider locking in rates now.
Best HELOC Rates in Arizona (December 2024)
As of December 13, 2024, the best HELOC rate in Arizona is 7.3% from TruGrocer Federal Credit Union in Glendale, lower than the state average of 8.5% and the national average of 8.3%.
Updated: December 21, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Arizona with an 80% LTV is 8.3%, compared with 8.9% for a 90% LTV.
HELOC rates vary by city in Arizona. Anthem has an average APR of 7.7%, whereas Cave Creek's is 9.5%.
Different lenders offer varying rates for the same loan types. TruGrocer Federal Credit Union's average APR is 7.3%, whereas Meadows Bank's is 10.5%.
Current HELOC Rates in Arizona
HELOC Rates in Arizona by LTV Ratio
HELOC rates in Arizona depend on your loan-to-value (LTV) ratio and line limit. A lower LTV ratio indicates more equity and less risk for lenders, often leading to lower rates. For example, with an 80% LTV, you’ve borrowed less against your home’s value compared with a 90% LTV, making you less likely to default on your HELOC.
The following table lets you filter between different loan amounts, offering a clearer view of what you may qualify for:
8.4% | 8.9% |
HELOC Rates in Arizona by City
HELOC rates in Arizona vary by city due to local housing market conditions and lender competition. For instance, cities with robust real estate markets may offer lower rates.
Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.
$100,000 | 8.6% |
$50,000 | 8.6% |
HELOC Rates in Arizona by Lender
HELOC interest rates in Arizona fluctuate across lenders due to varying pricing strategies and risk assessments. The table below highlights the five lenders in Arizona offering the lowest average APRs, helping you compare competitive rates.
TruGrocer Federal Credit Union | 7.3% |
American Airlines Federal Credit Union | 7.7% |
Tradition Capital Bank | 7.8% |
Iowa State Bank | 7.8% |
Vantage West Credit Union | 7.8% |
HELOC rates today can differ among lenders within the same city. Use the table below to filter lenders by city to compare average APRs and find the best rate in your area.
American Airlines Federal Credit Union | Credit Union | 7.7% |
Iowa State Bank | Commercial Bank | 7.8% |
Vantage West Credit Union | Credit Union | 7.8% |
Western Alliance Bank | Commercial Bank | 7.8% |
BOKF | Commercial Bank | 7.9% |
Zions Bancorporation | Commercial Bank | 8.0% |
Western State Bank | Commercial Bank | 8.0% |
Pima Federal Credit Union | Credit Union | 8.0% |
Notre Dame Federal Credit Union Corporation | Credit Union | 8.0% |
Mayo Employees Federal Credit Union | Credit Union | 8.0% |
KS StateBank | Commercial Bank | 8.0% |
OneAZ Credit Union | Credit Union | 8.1% |
Banner Federal Credit Union | Credit Union | 8.3% |
Desert Financial Credit Union | Credit Union | 8.3% |
Busey Bank | Commercial Bank | 8.4% |
UMB Bank | Commercial Bank | 8.5% |
AERO Federal Credit Union | Credit Union | 8.5% |
First National Bank Texas | Commercial Bank | 8.5% |
Mountain America Federal Credit Union | Credit Union | 8.5% |
Arizona Financial Credit Union | Credit Union | 8.8% |
Bankers Trust Company | Commercial Bank | 8.8% |
Southwest Airlines Federal Credit Union | Credit Union | 8.8% |
Umpqua Bank | Commercial Bank | 8.8% |
Global Federal Credit Union | Credit Union | 9.0% |
Copper State Credit Union | Credit Union | 9.0% |
Navy Federal Credit Union | Credit Union | 9.1% |
BMO BANK NATIONAL ASSOCIATION | Commercial Bank | 9.2% |
Credit Union West | Credit Union | 9.3% |
U.S. Bank National Association | Commercial Bank | 9.5% |
Farmers Insurance Group Federal Credit Union | Credit Union | 9.5% |
PNC Bank | Commercial Bank | 9.8% |
Bank of America | Commercial Bank | 10.4% |
Meadows Bank | Commercial Bank | 10.5% |
HELOC rates in Arizona vary between banks and credit unions. Commercial banks usually have higher rates, with the best HELOC rate in Arizona for commercial banks being 8.6%. In comparison, credit unions, which are not-for-profit institutions, offer an average APR of 8.5%.
When choosing between the two, consider more than just rates. Banks may offer more convenience, but credit unions often have better customer service and lower fees. Also check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
What are the common fees or costs associated with HELOCs that borrowers should be aware of, and how do these affect the overall cost of borrowing?
Ramsey Coulter has worked in the mortgage and credit industry for over 10 years. Currently a mortgage loan originator with CMG Home Loans, he specializes in helping first-time homebuyers navigate...
Most banks and credit unions charge little to no fees when getting a HELOC. Typically, you will pay the cost of the appraisal — anywhere from $150 to $450 depending on the type of appraisal done. But closing costs are usually covered by the bank or credit union. This is why it’s best to shop around with at least three different lenders when applying for a HELOC to compare not only the rates but also any costs involved. Getting a rate that is 0.25% lower but having to pay a couple thousand dollars in costs may not make financial sense.
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 Arizona 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.
Arizona 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
Draw Period Payment
$0
Repayment Period Payment
$0
- Graph view
- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
YEAR
How to Get the Best HELOC Rates in Arizona
Finding the best HELOC rates in Arizona 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
Arizona's average credit score is 713. Improving it can help secure better rates. Aim for 720 or higher for more competitive offers.
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 Arizona
HELOC interest rates in Arizona average 8.5%, which is higher than the 7.9% average for home equity loans. This difference arises from the variable rate structure of HELOCs compared to the fixed rates of home equity loans.
- HELOCs provide a revolving credit line with variable rates that can change with the market. In rising interest rate environments, this can increase costs for homeowners over time.
- Home equity loans offer a lump sum at a fixed rate, providing stability and predictability. They're ideal for situations where you need a specific amount of money and prefer consistent payments.
When deciding between these options, consider whether you value the flexibility of a HELOC or the predictability of a home equity loan. Assess your financial goals and how changes in interest rates might impact your budget.
A cash-out refinance is a HELOC alternative that replaces your existing mortgage with a new, larger loan, allowing you to access cash. Unlike HELOCs or home equity loans, cash-out refinances create a new primary mortgage.
For instance, with a Federal Housing Administration (FHA)-backed mortgage, if your home is worth $300K with a $150K balance, an FHA cash-out refinance for $200K offers $50K in cash, but payments are based on $200K.
FAQ: Best HELOC Rates in Arizona
What are the current HELOC rates in Arizona and how do they compare to national rates?
Arizona's HELOC rates are 8.5%, slightly higher than the national average of 8.3%.
What fees are commonly associated with HELOCs in Arizona?
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
How do HELOC rates in Arizona compare to home equity loan rates?
Arizona's HELOC rates average 8.5%, whereas home equity loan rates are lower at 7.9%, making them a potential option for those with bad credit.
How do HELOC Rates in Arizona vary between banks and credit unions?
Banks in Arizona offer HELOC rates averaging 8.6%, while credit unions offer lower rates at 8.5%.
What's the best HELOC rate in Phoenix? How does it compare to the current HELOC rate in Arizona?
Phoenix's rates average 8.5%, which is the same as the overall average for Arizona.
MoneyGeek examined 55 different banks and credit unions in Arizona 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 December 13, 2024.
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.