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 (December 2024)
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 Arkansas with an 80% LTV is 8.4%, compared with 8.6% for a 90% LTV.
HELOC rates vary by city in Arkansas. Walnut Ridge has an average APR of 7.8%, whereas Pine Bluff's is 9.7%.
Different lenders offer varying rates for the same loan types. Great Southern Bank's average APR is 7.3%, whereas Firstar Bank's is 11.5%.
Current HELOC Rates in Arkansas
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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:
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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.
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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.
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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, with banks typically offering higher rates. The best HELOC rate for commercial banks in the state is currently 8.6%, while credit unions offer a slightly lower average APR of 8.2%. Credit unions are not-for-profit institutions, which often allows them to provide more competitive rates than traditional banks.
When deciding between banks and credit unions, consider more than just rates. Banks might offer greater convenience, while credit unions often provide better customer service and lower fees. It's important to also check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both types of 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 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.
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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 average 8.5%, slightly higher than the 7.8% 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 revolving credit lines with variable rates that adjust with the market, potentially increasing in rising interest rate environments. This can affect long-term financial planning for homeowners.
- Home equity loans provide a fixed-rate lump sum, ideal for situations needing financial certainty, such as large, planned expenses.
When deciding between these options, consider your financial goals and risk tolerance. If you value flexibility and can manage rate fluctuations, a HELOC might suit you. If you prefer stable payments, borrowing against your home's equity through a home equity loan could be better.
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 8.5%, slightly higher than the national average of 8.3%.
What fees are commonly associated with HELOCs in Arkansas?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, though specifics vary by lender.
How do HELOC rates in Arkansas compare to home equity loan rates?
HELOC rates in Arkansas average 8.5%, while home equity loan rates are lower at 7.8%, making them a viable option 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 8.2%.
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 8.5%, aligning with the state average HELOC rate in Arkansas.
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 December 13, 2024.
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.