Best HELOC Rates in Arizona (December 2024)

Key Takeaways

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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.

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HELOC rates vary by city in Arizona. Anthem has an average APR of 7.7%, whereas Cave Creek's is 9.5%.

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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

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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.

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:

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Line Limit:$100,000
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.

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City:Phoenix
$100,0008.6%
$50,0008.6%

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 Union7.3%
American Airlines Federal Credit Union7.7%
Tradition Capital Bank7.8%
Iowa State Bank7.8%
Vantage West Credit Union7.8%

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.

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City:Phoenix
American Airlines Federal Credit UnionCredit Union7.7%
Iowa State BankCommercial Bank7.8%
Vantage West Credit UnionCredit Union7.8%
Western Alliance BankCommercial Bank7.8%
BOKFCommercial Bank7.9%
Zions BancorporationCommercial Bank8.0%
Western State BankCommercial Bank8.0%
Pima Federal Credit UnionCredit Union8.0%
Notre Dame Federal Credit Union CorporationCredit Union8.0%
Mayo Employees Federal Credit UnionCredit Union8.0%
KS StateBankCommercial Bank8.0%
OneAZ Credit UnionCredit Union8.1%
Banner Federal Credit UnionCredit Union8.3%
Desert Financial Credit UnionCredit Union8.3%
Busey BankCommercial Bank8.4%
UMB BankCommercial Bank8.5%
AERO Federal Credit UnionCredit Union8.5%
First National Bank TexasCommercial Bank8.5%
Mountain America Federal Credit UnionCredit Union8.5%
Arizona Financial Credit UnionCredit Union8.8%
Bankers Trust CompanyCommercial Bank8.8%
Southwest Airlines Federal Credit UnionCredit Union8.8%
Umpqua BankCommercial Bank8.8%
Global Federal Credit UnionCredit Union9.0%
Copper State Credit UnionCredit Union9.0%
Navy Federal Credit UnionCredit Union9.1%
BMO BANK NATIONAL ASSOCIATIONCommercial Bank9.2%
Credit Union WestCredit Union9.3%
U.S. Bank National AssociationCommercial Bank9.5%
Farmers Insurance Group Federal Credit UnionCredit Union9.5%
PNC BankCommercial Bank9.8%
Bank of AmericaCommercial Bank10.4%
Meadows BankCommercial Bank10.5%
COMPARING HELOC RATES IN ARIZONA: BANKS VS. CREDIT UNIONS

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.

Expert Answers About HELOCs

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?

Credit & Mortgage Expert

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.

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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:

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    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.

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    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.

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    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.

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    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.

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    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.

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, 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?

What fees are commonly associated with HELOCs in Arizona?

How do HELOC rates in Arizona compare to home equity loan rates?

How do HELOC Rates in Arizona vary between banks and credit unions?

What's the best HELOC rate in Phoenix? How does it compare to the current HELOC rate in 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.

55Lenders Analyzed

About Zachary Romeo, CBCA


Zachary Romeo, CBCA headshot

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.