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
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 Arkansas with an 80% LTV is 8.5%, compared with 8.6% for a 90% LTV.
HELOC rates vary by city in Arkansas. Gosnell has an average APR of 6.3%, whereas Pine Bluff's is 9.7%.
Different lenders offer varying rates for the same loan types. Success Federal Credit Union's average APR is 6.3%, 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:
Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000
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:
City:
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% |
| Eaton Family Credit Union | 7.8% |
| Fedex Employees Credit Association Federal Credit Union | 8.0% |
| Barksdale Federal Credit Union | 8.0% |
| First Western Bank | 8.0% |
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:
City:
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% |
| Regions Bank | Commercial Bank | 8.5% |
| Bank of Little Rock | Commercial Bank | 8.5% |
| First Horizon Bank | Commercial Bank | 8.5% |
| First National Bank Texas | 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 commercial banks typically having higher rates. Currently, the best HELOC rate for commercial banks in the state is 8.7%, while credit unions offer a more competitive average rate of 8.2%. Credit unions are not-for-profit institutions that often provide lower rates and better customer service compared to banks.
When choosing between the two, consider more than just rates. Banks may offer more convenience and a wider range of services, while credit unions often provide lower fees and personalized service. Be sure to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Expert Answers About HELOCs
Are there any strategies homeowners can use to lock in a favorable HELOC rate in a rising interest rate environment, and how does a rate lock typically work with HELOCs?
Credit & Mortgage Expert
HELOCS often have variable interest rates, meaning they go up or down with the Federal Funds rate. So if you are worried about rates rising, you should look into a home equity loan or refinancing your home. That way you have a fixed rate that will not change over time.
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 home equity loan rates at 7.9%. This difference is due to the variable nature of HELOC rates compared to the fixed rates of home equity loans.
- HELOCs offer a revolving line of credit with variable rates that can change with market conditions. In rising interest rate environments, this can lead to increased costs over time, impacting homeowners' long-term finances.
- Home equity loans provide a lump sum with a fixed rate, ensuring consistent payments. They are ideal for those who prefer predictable expenses or need a specific amount for a large purchase.
When deciding between these options, consider whether you value the flexibility of accessing funds as needed with a HELOC or the stability of fixed payments with a home equity loan. Assess your financial goals and how each option aligns with your ability to manage equity in your home.
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 8.4%.
What fees are commonly associated with HELOCs in Arkansas?
Common fees include application, appraisal, annual, and early closure fees, but 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 7.9%, especially 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 8.7%, 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 are slightly higher, averaging 8.7%, compared to the state's average of 8.5%.
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 November 15, 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.