Updated: November 19, 2024
Advertising & Editorial Disclosure
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Connecticut with an 80% LTV is 8.3%, compared with 8.8% for a 90% LTV.
HELOC rates vary by city in Connecticut. Essex has an average APR of 7.5%, whereas Centerbrook's is 11.8%.
Different lenders offer varying rates for the same loan types. FD Community Federal Credit Union's average APR is 7.3%, whereas KeyBank National Association's is 11.8%.
HELOC rates in Connecticut rose from 4.2% in early 2022 to 8.0% by mid-2024 for $50k terms. If this trend continues, homeowners may encounter higher borrowing costs. Consider securing a rate soon to potentially save on future interest expenses.
HELOC rates in Connecticut vary based on your loan-to-value (LTV) ratio and line limit. A lower LTV is less risky for lenders because it shows more home equity. For example, an 80% LTV means you’ve borrowed less against your home 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:
HELOC rates in Connecticut vary between cities due to differences in local housing markets and lender competition. For instance, a city with a robust real estate market may offer lower rates.
Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.
| $100,000 | 8.7% |
| $50,000 | 9.0% |
HELOC interest rates in Connecticut vary among lenders due to differing pricing strategies and risk assessments. Lenders in Connecticut offer a range of rates.
The table below highlights the five lenders in Connecticut offering the lowest average APRs, helping you compare competitive rates.
| FD Community Federal Credit Union | 7.3% |
| Webster Bank, N.A. | 7.5% |
| Charter Oak Federal Credit Union | 7.5% |
| Connex Credit Union, Inc | 7.8% |
| CorePlus Federal Credit Union | 7.8% |
HELOC rates today can vary between lenders in the same city. Use the table below to filter lenders by city and compare average APRs. This helps you find the best rate available in your area.
| Webster Bank, N.A. | Commercial Bank | 7.5% |
| General Electric Employees Federal Credit Union | Credit Union | 7.8% |
| TD Bank | Commercial Bank | 8.9% |
| Bank of America | Commercial Bank | 9.1% |
| Sikorsky Financial Credit Union, Inc. | Credit Union | 9.3% |
| Manufacturers and Traders Trust Company | Commercial Bank | 10.1% |
HELOC rates in Connecticut vary between banks and credit unions. Commercial banks typically offer higher rates, with the best rate in Connecticut being 8.8%. In contrast, credit unions, which are not-for-profit institutions, offer an average APR of 8.2%.
When deciding between the two, consider more than just rates. Banks might provide more convenience, while credit unions often excel in customer service and have lower fees. Be sure to check membership requirements for credit unions and look for any hidden fees or rate adjustment clauses with both lenders.
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.
HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home's equity. Use our Connecticut HELOC payment calculator to estimate your monthly payments based on 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 more effectively and plan for future payments.
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.
Draw Period Payment
Repayment Period Payment
YEAR
Finding the best HELOC rates in Connecticut can save you thousands over your loan's life. For instance, a lower rate can reduce monthly payments significantly. To secure the most competitive rate, consider these five strategies:
Maintain a strong credit score
Connecticut's average credit score is 726, which is good. Improving it can help you secure more competitive HELOC rates.
Compare offers from multiple lenders
Shopping around can reveal competitive rates and help you negotiate better terms for your HELOC.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show financial stability. Paying off credit card debt can improve your DTI ratio.
Increase your home equity
More equity reduces lender risk, leading to better rates. Consider paying down your mortgage or making home improvements.
Review closing costs and rate caps
Closing costs affect loan expenses. Understanding rate caps helps manage HELOC costs as rates change.
HELOC interest rates in Connecticut average 8.4%, while home equity loan rates are lower at 7.1%. This difference arises from HELOCs having variable rates, which can increase over time, unlike the fixed rates of home equity loans.
- HELOCs are flexible, revolving credit lines with variable interest rates that adjust with market conditions. In rising interest rate environments, HELOC rates may increase, impacting homeowners' finances over time.
- In contrast, home equity loans provide a lump sum with a fixed interest rate, offering stable payments. They are preferable when financial certainty is needed, such as for large, one-time expenses.
When deciding between borrowing against your home's equity, consider whether you value the flexibility of a HELOC or the predictability of a home equity loan. Assess your financial goals and the potential impact of interest rate changes on your budget.
A cash-out refinance is a HELOC alternative that replaces your existing mortgage with a new, larger loan, providing access to cash. Unlike HELOCs or home equity loans, it creates 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.
The average HELOC rate in Connecticut is 8.4%, which matches the national average.
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
Connecticut's HELOC rates average 8.4%, while home equity loan rates are lower at 7.1%, making HELOCs less favorable for those with bad credit.
Commercial banks in Connecticut offer HELOC rates averaging 8.8%, while credit unions offer lower rates at 8.2%.
Bridgeport's rates average 8.8%, slightly higher than the state average of 8.4%.
MoneyGeek examined 39 different banks and credit unions in Connecticut 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.
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.
