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.
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Best HELOC Rates in Colorado (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 Colorado with 80% LTV is 8.3%, compared with 8.7% for 90% LTV.
HELOC rates vary by city in Colorado. Haxtun has an average APR of 6.8%, whereas Castle Pines' is 11.0%.
Different lenders offer varying rates for the same loan limits. Rocky Mountain Law Enforcement Federal Credit Union's average APR is 6.0%, whereas KeyBank National Association's is 11.0%.
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:
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Line Limit:$100,000
| 8.3% | 8.8% |
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.
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City:Denver
| $100,000 | 8.5% |
| $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% |
| First Technology Federal 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.
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City:Denver
| Credit Union of Denver | Credit Union | 7.5% |
| First Technology Federal Credit Union | Credit Union | 7.8% |
| NBH Bank | Commercial Bank | 7.8% |
| ANB Bank | Commercial Bank | 7.8% |
| Western Alliance Bank | Commercial Bank | 7.8% |
| 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% |
| Ent Credit Union | Credit Union | 8.0% |
| Security Service Federal Credit Union | Credit Union | 8.0% |
| BOKF | Commercial Bank | 8.1% |
| Bellco Credit Union | Credit Union | 8.2% |
| BMO BANK NATIONAL ASSOCIATION | Commercial Bank | 8.4% |
| Busey Bank | Commercial Bank | 8.4% |
| Canvas Credit Union | Credit Union | 8.4% |
| UMB Bank | Commercial Bank | 8.5% |
| Academy Bank, N.A. | Commercial Bank | 8.5% |
| Westerra Credit Union | Credit Union | 8.5% |
| Blue Federal Credit Union | Credit Union | 8.5% |
| Columbine Federal Credit Union | Credit Union | 8.5% |
| Customers Bank | Commercial Bank | 8.5% |
| FirstBank | Commercial Bank | 8.5% |
| First Interstate Bank | Commercial Bank | 8.5% |
| Kirkpatrick Bank | Commercial Bank | 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, with banks typically offering higher rates. For instance, the best HELOC rate among commercial banks in the state is 8.7%, while credit unions offer an average APR of 8.1%. Credit unions are not-for-profit institutions, which allows them to provide slightly lower rates compared to their commercial counterparts.
When choosing between the two, consider more than just rates. Banks might offer more convenience and a wider range of services, while credit unions often provide better customer service and lower fees. It's important to check membership requirements for credit unions and be aware of any potential hidden fees or rate adjustment clauses with both lenders.
Expert Answers About HELOCs
What are the primary factors that influence HELOC rates, and how can homeowners ensure they get the best rate?
Credit & Mortgage Expert
There are many factors that influence HELOC rates, but the most critical are the following:
Credit score is a crucial factor in determining your interest rate for a HELOC. The higher your credit score, the lower rate you will qualify for. Shoot for a 760 credit score or higher.
Debt-to-income is a vital factor. If the lender doesn’t think you have the ability to repay the debt, you will be denied. Focus on paying off as many credit cards or loans as possible before applying for a HELOC.
Loan-to-value — how much money you borrow based on how much your home is worth plays a large role in interest rate. The more you take out, the higher the risk is for the lender, which translates to a higher interest rate for your 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.
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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 are slightly higher than home equity loan rates, averaging 8.4% compared to 8.3%. The difference stems from HELOCs' variable rate structure, which can lead to higher average APRs over time.
- HELOCs are flexible, revolving credit lines with variable interest rates that adjust based on market conditions. In rising interest rate environments, HELOC rates may increase, impacting homeowners' long-term finances.
- In contrast, home equity loans provide a lump sum with a fixed interest rate, ensuring consistent payments throughout the loan term. They are ideal for situations where financial predictability is preferred over flexibility.
When deciding between these options, consider whether you prioritize the flexibility of a HELOC or the predictability of a home equity loan. Assess your financial situation and how changes in your home's equity might affect your choice.
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 are 8.4%, which is slightly higher than the national average of 8.3%.
What fees are commonly associated with HELOCs in Colorado?
Common fees include application, appraisal, annual, 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 8.4%, while home equity loan rates are slightly lower at 8.3%, especially 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 8.1%.
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 8.4%, while Denver's rates are slightly higher, averaging 8.5%.
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 December 13, 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.