HELOC rates in Delaware have increased from 4.4% in early 2021 to 8.8% by November 2024. If this upward trend persists, homeowners might encounter higher borrowing costs. Consider securing a rate now to avoid future increases.
HELOC
Best HELOC Rates in Delaware (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 Delaware with an 80% LTV is 8.1%, compared with 8.3% for a 90% LTV.
HELOC rates vary by city in Delaware. Felton has an average APR of 7.8%, whereas Claymont's is 11.0%.
Different lenders offer varying rates for the same loan types. Sun East Federal Credit Union's average APR is 6.8%, whereas PNC Bank's is 10.8%.
Current HELOC Rates in Delaware
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HELOC Rates in Delaware by LTV Ratio
HELOC rates in Delaware depend on your loan-to-value ratio and line limit. A lower LTV ratio is less risky for lenders, as you have more home equity. For example, an 80% LTV means you've borrowed less against your home's value compared to a 90% LTV, reducing the risk of default on your HELOC.
The following table lets you filter between different loan amounts, providing a clearer view of what you may qualify for:
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Line Limit:$100,000
| 8.2% | 8.4% |
HELOC Rates in Delaware by City
HELOC rates in Delaware vary by city due to local housing markets and lender competition. For instance, a city with a robust real estate market might offer lower rates, reducing lender risk.
Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.
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City:Wilmington
| $100,000 | 8.5% |
| $50,000 | 8.9% |
HELOC Rates in Delaware by Lender
HELOC interest rates in Delaware vary based on lenders' pricing strategies and risk assessments.
The table below highlights the five lenders in Delaware offering the lowest average APRs, helping you compare competitive rates.
| Sun East Federal Credit Union | 7.0% |
| Dover Federal Credit Union | 7.5% |
| Community Powered Federal Credit Union | 7.8% |
| County Bank | 7.8% |
| Community Bank Delaware | 8.0% |
HELOC rates today can vary between lenders in the same city. Use the table below to filter by city and compare average APRs, helping you find the best rate in your area.
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City:Wilmington
| Sun East Federal Credit Union | Credit Union | 7.0% |
| Community Powered Federal Credit Union | Credit Union | 7.8% |
| Citizens Bank | Commercial Bank | 8.0% |
| Fulton Bank | Commercial Bank | 8.0% |
| First Citizens Community Bank | Commercial Bank | 8.0% |
| DEXSTA Federal Credit Union | Credit Union | 8.5% |
| Louviers Federal Credit Union | Credit Union | 8.5% |
| TD Bank | Commercial Bank | 9.1% |
| Bank of America | Commercial Bank | 9.4% |
| Manufacturers and Traders Trust Company | Commercial Bank | 10.1% |
| PNC Bank | Commercial Bank | 11.4% |
COMPARING HELOC RATES IN DELAWARE: BANKS VS. CREDIT UNIONS
HELOC rates in Delaware vary between banks and credit unions, with banks typically offering higher rates. For example, the best HELOC rate at commercial banks in Delaware is 8.9%, compared to 7.7% at credit unions, which are not-for-profit institutions.
When choosing between the two, consider more than just rates. Banks may offer added convenience, while credit unions often provide better customer service and lower fees. It's also important to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Ask the experts:
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 Delaware HELOC payment calculator to estimate your monthly payments based on amount draws, APR, and loan terms.
It also offers an amortization schedule, detailing principal and interest division over time. Understanding these can help you manage your HELOC and plan your finances more effectively.
Delaware 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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Repayment Period Payment
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How to Get the Best HELOC Rates in Delaware
Finding the best HELOC rates in Delaware can save you thousands over the loan's duration. For instance, a 1% difference in rates on a $50,000 HELOC could mean saving $500 annually. To secure competitive rates, consider these five strategies:
Maintain a strong credit score
The average credit score in Delaware is 715. While good, aiming for 720+ can secure better rates.
Compare offers from multiple lenders
Shopping around can help you find competitive rates and leverage offers for better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show stability. Pay off credit card debt to improve your ratio.
Increase your home equity
More equity reduces lender risk. Consider paying down your mortgage or home improvements.
Review closing costs and rate caps
Closing costs affect expenses. Compare rate caps to manage costs as rates change.
HELOC Loan Rates vs. Home Equity Loan Rates in Delaware
HELOC interest rates in Delaware average 8.3% compared to 7.8% for home equity loans. The difference arises from HELOCs having variable rates, which can lead to higher APRs.
- HELOCs are revolving credit lines with variable rates, meaning they can increase in rising interest rate environments. This can affect homeowners' finances over time as payments may rise.
- Home equity loans provide a lump sum at a fixed rate, offering stability. They are preferable when you need a set amount for a specific purpose and value predictable payments.
When deciding between these options, consider your financial goals, need for flexibility, and comfort with potential rate changes. Evaluating your home's equity can also guide your choice.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
Cash-out refinance is a HELOC alternative that replaces your existing primary mortgage with a larger loan, providing cash access. Unlike HELOCs or home equity loans, it creates a new primary mortgage.
For example, with a Federal Housing Administration (FHA) mortgage, if your home is valued at $300K and your mortgage balance is $150K, an FHA cash-out refinance for $200K can give you $50K in cash.
FAQ: Best HELOC Rates in Delaware
What are the current HELOC rates in Delaware and how do they compare to national rates?
The average Delaware's HELOC rates is 8.3%, which is the same as the national average HELOC rates of 8.3%.
What fees are commonly associated with HELOCs in Delaware?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in Delaware compare to home equity loan rates?
HELOC rates in Delaware average 8.3%, while home equity loan rates are lower at 7.8%, which can be beneficial for those with bad credit.
How do HELOC Rates in Delaware vary between banks and credit unions?
Commercial banks in Delaware offer HELOC rates averaging 8.9%, while credit unions offer lower rates at 7.7%.
What's the best HELOC rate in Wilmington? How does it compare to the current HELOC rate in Delaware?
Wilmington's rates average 8.6%, which is slightly higher than the Delaware state average of 8.3%.
MoneyGeek examined 20 different banks and credit unions in Delaware 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.
20Lenders 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.