Updated: December 21, 2024
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Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Connecticut with an 80% LTV is 8.2%, compared with 8.7% for a 90% LTV.
HELOC rates vary by city in Connecticut. Mansfield Center has an average APR of 7.3%, whereas Centerbrook's is 11.8%.
Different lenders offer varying rates for the same loan types. Berkshire Bank'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:
| 8.2% | 8.7% |
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 | 8.8% |
| $50,000 | 9.2% |
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% |
| Charter Oak Federal Credit Union | 7.5% |
| American Airlines Federal Credit Union | 7.7% |
| 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.
| General Electric Employees Federal Credit Union | Credit Union | 7.8% |
| Webster Bank, N.A. | Commercial Bank | 8.7% |
| Bank of America | Commercial Bank | 8.9% |
| TD Bank | Commercial Bank | 8.9% |
| 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 have higher rates, with the best HELOC rate in Connecticut averaging 8.7%. In contrast, credit unions offer a slightly lower average APR of 8.2%, as they are not-for-profit institutions that often provide more competitive rates.
When choosing between the two, consider more than just rates. Banks may offer greater convenience, while credit unions often provide better customer service and lower fees. Be sure to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
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.
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
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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:
Connecticut's average credit score is 726, which is good. Improving it can help you secure more competitive HELOC rates.
Shopping around can reveal competitive rates and help you negotiate better terms for your HELOC.
Lower debt-to-income (DTI) ratios show financial stability. Paying off credit card debt can improve your DTI ratio.
More equity reduces lender risk, leading to better rates. Consider paying down your mortgage or making home improvements.
Closing costs affect loan expenses. Understanding rate caps helps manage HELOC costs as rates change.
HELOC interest rates in Connecticut average 8.3%, compared to 7.1% for home equity loans. The difference arises from their rate structures, with HELOCs having variable rates and home equity loans offering fixed rates.
- HELOCs are revolving credit lines with variable interest rates that can increase in rising interest rate environments, potentially impacting homeowners' finances over time.
- Home equity loans provide a lump sum at a fixed interest rate, making them more predictable and suitable for those seeking financial stability.
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 goals and how each product aligns with your needs, taking into account your home's equity.
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.
Connecticut's HELOC rates average 8.3%, which is on par with the national average of 8.3%.
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
Connecticut's HELOC rates average 8.3%, while home equity loan rates are lower at 7.1%. This can be especially important for those with bad credit.
Commercial banks in Connecticut offer HELOC rates averaging 8.7%, while credit unions offer lower rates at 8.2%.
Bridgeport's rates average 8.8%, which is higher than the state average of 8.3%.
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 December 13, 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.
