HELOC rates in Arkansas increased from 4.2% in early 2022 to 8.6% by November 2024. If this trend continues, homeowners may face higher costs. Consider locking in rates now to mitigate future increases.
HELOC
Best HELOC Rates in Arkansas (January 2025)
Updated: January 18, 2025
Advertising & Editorial Disclosure
Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Arkansas with an 80% LTV is 8.4%, compared with 8.5% for a 90% LTV.
HELOC rates vary by city in Arkansas. Damascus has an average APR of 6.5%, whereas Pine Bluff's is 9.7%.
Different lenders offer varying rates for the same loan types. Barksdale Federal Credit Union's average APR is 6.5%, whereas Firstar Bank's is 11.5%.
Current HELOC Rates in Arkansas
Loading...
HELOC Rates in Arkansas by LTV Ratio
HELOC rates in Arkansas vary based on your loan-to-value (LTV) ratio and line limit. A lower LTV ratio is less risky for lenders, as it indicates more home equity. For instance, an 80% LTV means you've borrowed less against your home's value than 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:
Select
Line Limit:$100,000
| 8.5% | 8.6% |
HELOC Rates in Arkansas by City
HELOC rates in Arkansas differ by city due to local housing markets and lender competition. For instance, a city with a stable real estate market might offer lower rates, reducing lender risk.
Use the table below to filter by your city and view average APRs for $50K and $100K HELOCs.
Data filtered by:Results filtered by:
Select
City:Little Rock
| $100,000 | 8.7% |
| $50,000 | 8.6% |
HELOC Rates in Arkansas by Lender
HELOC interest rates in Arkansas vary due to each lender's pricing strategies and risk assessments. The table below highlights the five lenders in Arkansas offering the lowest average APRs, helping you compare competitive rates.
| Success Federal Credit Union | 6.3% |
| Great Southern Bank | 7.3% |
| The First National Bank of Fort Smith | 7.8% |
| Eaton Family Credit Union | 7.8% |
| BOKF | 7.9% |
HELOC rates today can vary significantly between lenders in 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:
Select
City:Little Rock
| Orion Federal Credit Union | Credit Union | 8.0% |
| Barksdale Federal Credit Union | Credit Union | 8.0% |
| Arvest Bank | Commercial Bank | 8.3% |
| Stone Bank | Commercial Bank | 8.3% |
| UARK Federal Credit Union | Credit Union | 8.3% |
| Bank of Little Rock | Commercial Bank | 8.5% |
| First Horizon Bank | Commercial Bank | 8.5% |
| First National Bank Texas | Commercial Bank | 8.5% |
| Regions Bank | Commercial Bank | 8.5% |
| First Community Bank | Commercial Bank | 9.0% |
| Arkansas Federal Credit Union | Credit Union | 9.1% |
| Simmons Bank | Commercial Bank | 9.2% |
| Relyance Bank | Commercial Bank | 10.8% |
COMPARING HELOC RATES IN ARKANSAS: BANKS VS. CREDIT UNIONS
HELOC rates in Arkansas vary between banks and credit unions due to their operational differences. Commercial banks typically have higher rates, with the best HELOC rate in Arkansas for these banks averaging 8.6%. In contrast, credit unions—as not-for-profit organizations—offer slightly lower rates, averaging 8.1%.
When choosing between the two, consider more than just rates. Banks may provide more convenience, while credit unions often offer better customer service and lower fees. It's 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 lenders assess risk when setting HELOC rates for different property types (e.g., primary residence vs. investment property), and how can borrowers mitigate higher rates for non-primary homes?
Credit & Mortgage Expert
All loans are about risk. The higher the risk, the higher your rate will be. With investment properties or second homes, since they are not your primary residence the risk is inherently higher in the eyes of the lender — for example, if someone falls on hard times, they are more likely to continue making timely payments on the home they live in rather than an investment or second home.
Usually, if you are taking a HELOC on an investment property, you are using those funds to improve the property or using it to buy another investment property. Having access to cash to make more cash is what investors do. They should always take into account the higher rates when making an investment decision. If successful, the higher rate won't be a problem.
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 Tennessee 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.
Arkansas 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
Ending balance
Principal paid
Interest paid
How to Get the Best HELOC Rates in Arkansas
Finding the best HELOC rates in Arkansas 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 Arkansas is 696. Improving it can help secure better rates from lenders.
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 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 Arkansas
HELOC interest rates in Arkansas are slightly higher than home equity loan rates, with averages of 8.4% and 8.3%, respectively. This difference arises from the variable rate structure of HELOCs, which can lead to higher average APRs.
- HELOCs are flexible credit lines with variable rates, which may increase in rising interest rate environments, potentially affecting homeowners' finances over time.
- Home equity loans offer a fixed interest rate, providing stability and predictability, making them preferable for long-term financial planning.
When deciding between these options, consider whether you prioritize the flexibility of a HELOC or the stability of a home equity loan. Assess your financial goals and the equity in your home to determine the best fit for 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, giving you cash access. Unlike HELOCs or home equity loans, it creates a new primary mortgage.
For example, with a Federal Housing Administration (FHA) loan, if your home is valued at $300K and your mortgage balance is $150K, an FHA cash-out refinance for $200K could provide $50K in cash.
FAQ: Best HELOC Rates in Arkansas
What are the current HELOC rates in Arkansas and how do they compare to national rates?
Arkansas's HELOC rates average 8.4%, slightly higher than the national average of 8.2%.
What fees are commonly associated with HELOCs in Arkansas?
Common fees include application, appraisal, annual, and early closure fees, varying by lender.
How do HELOC rates in Arkansas compare to home equity loan rates?
HELOC rates in Arkansas average 8.4%, while home equity loan rates are slightly lower at 8.3%. This can be beneficial for those with bad credit.
How do HELOC Rates in Arkansas vary between banks and credit unions?
Commercial banks in Arkansas offer HELOC rates averaging 8.6%, while credit unions offer lower rates at 8.1%.
What's the best HELOC rate in Little Rock? How does it compare to the current HELOC rate in Arkansas?
Little Rock's rates average 8.4%, matching the state average.
MoneyGeek examined 36 different banks and credit unions in Arkansas 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 January 10, 2025.
36Lenders 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.