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
Best HELOC Rates in Arizona
Updated: November 19, 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 8.5%, compared with 8.9% for a 90% LTV.
HELOC rates vary by city in Arizona. Show Low has an average APR of 8.0%, whereas Litchfield Park's is 9.9%.
Different lenders offer varying rates for the same loan types. Tradition Capital Bank's average APR is 7.8%, whereas Meadows Bank's is 10.5%.
Current HELOC Rates in Arizona
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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:
Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000
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.
Data filtered by:Results filtered by:
City:
City:Phoenix
| $100,000 | 8.7% |
| $50,000 | 8.7% |
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.
| Tradition Capital Bank | 7.8% |
| Iowa State Bank | 7.8% |
| American Airlines Federal Credit Union | 8.0% |
| Arizona Central Credit Union | 8.0% |
| KS StateBank | 8.0% |
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.
Data filtered by:Results filtered by:
City:
City:Phoenix
| Iowa State Bank | Commercial Bank | 7.8% |
| American Airlines Federal Credit Union | Credit Union | 8.0% |
| KS StateBank | Commercial Bank | 8.0% |
| Mayo Employees Federal Credit Union | Credit Union | 8.0% |
| Zions Bancorporation | Commercial Bank | 8.0% |
| Western State Bank | Commercial Bank | 8.0% |
| Western Alliance Bank | Commercial Bank | 8.0% |
| Vantage West Credit Union | Credit Union | 8.0% |
| Notre Dame Federal Credit Union Corporation | Credit Union | 8.0% |
| BOKF | Commercial Bank | 8.1% |
| OneAZ Credit Union | Credit Union | 8.1% |
| Banner Federal Credit Union | Credit Union | 8.3% |
| Pima Federal 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% |
| Desert Financial Credit Union | Credit Union | 8.5% |
| First National Bank Texas | Commercial Bank | 8.5% |
| Mountain America Federal Credit Union | Credit Union | 8.5% |
| Umpqua Bank | Commercial Bank | 8.8% |
| Bankers Trust Company | Commercial Bank | 8.8% |
| Arizona Financial Credit Union | Credit Union | 8.8% |
| Southwest Airlines Federal Credit Union | Credit Union | 8.9% |
| Copper State Credit Union | Credit Union | 9.0% |
| Global Federal 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% |
COMPARING HELOC RATES IN ARIZONA: BANKS VS. CREDIT UNIONS
HELOC rates in Arizona vary between banks and credit unions, with banks typically offering higher rates. Currently, the best HELOC rate at commercial banks in Arizona averages 8.7%, compared to an average APR of 8.6% at credit unions. Credit unions are not-for-profit institutions that often offer competitive rates due to their structure.
When deciding between the two, consider more than just rates. Banks may provide greater convenience with more locations and services, while credit unions often offer lower fees and personalized customer service. Be sure to check membership requirements for credit unions and review 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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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 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 8.6%, slightly higher than the 8.0% for home equity loans. This difference arises from the variable rate structure of HELOCs compared to the fixed rates of home equity loans.
- HELOCs are flexible, revolving credit lines with variable interest rates that can rise over time. In rising interest rate environments, this can lead to increased costs for homeowners.
- Home equity loans provide a lump sum at a fixed rate, offering more stable payments. They are preferable when you need predictability, such as for large, one-time expenses.
When deciding between these options, consider whether you value the flexibility of borrowing as needed or the predictability of fixed payments. Evaluate your financial situation and goals to determine which aligns better with your needs.
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?
The average HELOC rate in Arizona is 8.6%, which is slightly higher than the national average of 8.4%. Arizona's HELOC rates reflect local market conditions.
What fees are commonly associated with HELOCs in Arizona?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in Arizona compare to home equity loan rates?
HELOC rates in Arizona average 8.6%, while home equity loan rates are lower at around 8.0%. Those with bad credit might find HELOCs more accessible.
How do HELOC Rates in Arizona vary between banks and credit unions?
Commercial banks in Arizona offer HELOC rates averaging 8.7%, while credit unions offer lower rates at 8.6%.
What's the best HELOC rate in Phoenix? How does it compare to the current HELOC rate in Arizona?
The average HELOC rate in Arizona is 8.6%, while Phoenix's rates are slightly higher, averaging 8.7%.
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 November 15, 2024.
55Lenders 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.