HELOC rates in Colorado have increased from 4.3% in 2021 to 9.0% in November 2024. If this trend continues, homeowners could face even higher borrowing costs, so lock in a rate sooner rather than later.
HELOC
Best HELOC Rates in Colorado
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 Colorado with an 80% LTV is 8.3%, compared with 8.9% for a 90% LTV.
HELOC rates vary by city in Colorado. Haxtun has an average APR of 6.8%, whereas Castle Pines' is 11.8%.
Different lenders offer varying rates for the same loan types. Rocky Mountain Law Enforcement Federal Credit Union's average APR is 6.0%, whereas KeyBank National Association's is 11.8%.
Current HELOC Rates in Colorado
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HELOC Rates in Colorado by LTV Ratio
HELOC rates in Colorado vary based on your loan-to-value (LTV) ratio and line limit. A lower LTV ratio means more home equity, which lenders view as less risky. For instance, an 80% LTV ratio signifies less borrowing against your home value compared to 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 Colorado by City
HELOC rates in Colorado differ between cities due to variations in housing markets and lender competition. For instance, cities with robust real estate markets often 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:Denver
| $100,000 | 8.6% |
| $50,000 | 8.6% |
HELOC Rates in Colorado by Lender
HELOC interest rates in Colorado differ among lenders due to varied pricing strategies and risk assessments. The table below showcases the five lenders in Colorado offering the lowest average APRs, allowing you to easily compare competitive rates.
| Rocky Mountain Law Enforcement Federal Credit Union | 6.0% |
| Points West Community Bank | 6.8% |
| Credit Union of Denver | 7.5% |
| Pentagon Federal Credit Union | 7.6% |
| Indiana Members Credit Union | 7.8% |
HELOC rates today can vary significantly among lenders in the same city. Use the table below to filter by city and compare average APRs, helping you find the most competitive rates in your area.
Data filtered by:Results filtered by:
City:
City:Denver
| Credit Union of Denver | Credit Union | 7.5% |
| First Technology Federal Credit Union | Credit Union | 7.8% |
| NBH Bank | Commercial Bank | 8.0% |
| Credit Union of Colorado, A Federal Credit Union | Credit Union | 8.0% |
| Denver Community Credit Union | Credit Union | 8.0% |
| Denver Fire Department Federal Credit Union | Credit Union | 8.0% |
| Security Service Federal Credit Union | Credit Union | 8.0% |
| Western Alliance Bank | Commercial Bank | 8.0% |
| ANB Bank | Commercial Bank | 8.0% |
| BOKF | Commercial Bank | 8.1% |
| Bellco Credit Union | Credit Union | 8.2% |
| Ent Credit Union | Credit Union | 8.3% |
| BMO BANK NATIONAL ASSOCIATION | Commercial Bank | 8.4% |
| Busey Bank | Commercial Bank | 8.4% |
| Canvas Credit Union | Credit Union | 8.4% |
| Academy Bank, N.A. | Commercial Bank | 8.5% |
| Westerra Credit Union | Credit Union | 8.5% |
| UMB Bank | Commercial Bank | 8.5% |
| Kirkpatrick Bank | Commercial Bank | 8.5% |
| First Interstate Bank | Commercial Bank | 8.5% |
| FirstBank | Commercial Bank | 8.5% |
| Customers Bank | Commercial Bank | 8.5% |
| Columbine Federal Credit Union | Credit Union | 8.5% |
| Blue Federal Credit Union | Credit Union | 8.5% |
| HTLF Bank | Commercial Bank | 8.8% |
| PNC Bank | Commercial Bank | 9.8% |
| Commerce Bank | Commercial Bank | 9.9% |
| Bank of America | Commercial Bank | 10.6% |
| KeyBank National Association | Commercial Bank | 11.8% |
COMPARING HELOC RATES IN COLORADO: BANKS VS. CREDIT UNIONS
HELOC rates in Colorado vary between banks and credit unions. Commercial banks often have higher rates, with the best HELOC rate in Colorado averaging 8.7%. In contrast, credit unions typically offer lower rates, averaging 8.2%, as they are not-for-profit institutions.
When choosing between the two, consider more than just rates. Banks might offer more convenience, while credit unions often provide better customer service and lower fees. Also, check credit union membership requirements and any hidden fees or rate adjustment clauses with both lenders.
Expert Answers About HELOCs
How do HELOC rates compare to other borrowing options like personal loans or home equity loans, and when should a homeowner choose a HELOC over these alternatives?
Credit & Mortgage Expert
Typically, a HELOC will have a lower interest rate than a personal loan from a bank or credit union. However, HELOCs often have a variable rate, so they can go up or down depending on the current Federal Funds rate. Home equity loans are a fixed rate, so when the Fed increases rates or they remain the same, that is a good time to get a home equity loan.
Personal loans are a solid option despite their higher rates because they are unsecured, meaning there is no collateral (like your home). If you come on hard times and can’t repay a personal loan, you are not at risk of losing your home like you are with a HELOC or home equity loan.
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 Colorado 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.
Colorado 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
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Repayment Period Payment
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- Graph view
- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
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How to Get the Best HELOC Rates in Colorado
Finding the best HELOC rates in Colorado 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 Colorado is 731. Improving it can help you secure more competitive HELOC rates.
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 Colorado
HELOC interest rates in Colorado average 8.5%, slightly higher than the 8.3% for home equity loans. This difference is due to the variable rate structure of HELOCs compared to the fixed rates of home equity loans.
- HELOCs offer flexible, revolving credit lines with variable rates that change with the market. In rising interest rate environments, HELOC rates can increase, potentially impacting homeowners' long-term finances.
- Home equity loans provide a lump sum at a fixed rate, offering predictability throughout the loan term. They are ideal for situations where financial certainty is prioritized over flexibility.
When deciding between these products, consider your need for flexibility versus stability. Evaluate whether you prefer the potential for fluctuating payments with a HELOC or the consistent payments of a home equity loan. Also, assess your risk tolerance and the impact of changing rates on your home's equity.
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 to access cash. Unlike HELOCs or home equity loans, cash-out refinances create a new primary mortgage.
For example, if you have a loan backed by the Federal Housing Administration (FHA) and your home is valued at $300,000 with a $150,000 mortgage balance, an FHA cash-out refinance for $200,000 could provide $50,000 in cash, with new loan payments based on $200,000.
FAQ: Best HELOC Rates in Colorado
What are the current HELOC rates in Colorado and how do they compare to national rates?
The average Colorado's HELOC rates is 8.5%, slightly higher than the national average of 8.4%.
What fees are commonly associated with HELOCs in Colorado?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in Colorado compare to home equity loan rates?
HELOC rates in Colorado average 8.5%, while home equity loan rates are lower at 8.3%, which can be beneficial for those with bad credit.
How do HELOC Rates in Colorado vary between banks and credit unions?
Commercial banks in Colorado offer HELOC rates averaging 8.7%, while credit unions offer lower rates at 8.2%.
What's the best HELOC rate in Denver? How does it compare to the current HELOC rate in Colorado?
The average HELOC rate in Colorado is 8.5%, while Denver's rates are slightly higher, averaging 8.6%.
MoneyGeek examined 74 different banks and credit unions in Colorado 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.
74Lenders 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.