HELOC rates in Indiana rose from 4% in early 2022 to 8.8% by late 2024. This upward trend could mean higher borrowing costs for homeowners, suggesting they consider locking in a rate sooner.
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Best HELOC Rates in Indiana (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 Indiana with an 80% LTV is 8.2%, compared with 8.6% for a 90% LTV.
HELOC rates vary by city in Indiana. Rising Sun has an average APR of 7.0%, whereas Hoagland's is 11.2%.
Different lenders offer varying rates for the same loan types. Diamond Valley Federal Credit Union's average APR is 7.0%, whereas KeyBank National Association's is 11.3%.
Current HELOC Rates in Indiana
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HELOC Rates in Indiana by LTV Ratio
HELOC rates in Indiana vary based on your loan-to-value ratio and line limit. A lower LTV is less risky for lenders, often resulting in better rates. For instance, with a 75% LTV, you borrow less against your home's value than with an 85% LTV, reducing the chance to default on your HELOC.
The table below allows you to filter different loan amounts, helping you see what you might qualify for.
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Line Limit:$100,000
| 8.3% | 8.7% |
HELOC Rates in Indiana by City
HELOC rates in Indiana vary by city due to differences in local housing markets and lender competition. For instance, cities with strong real estate markets may 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:Indianapolis
| $100,000 | 8.6% |
| $50,000 | 8.6% |
HELOC Rates in Indiana by Lender
HELOC interest rates in Indiana vary among lenders in Indiana due to differing pricing strategies and risk assessments. The table below shows the five lenders in Indiana offering the lowest average APRs, allowing you to compare competitive rates.
| The Riddell National Bank | 6.5% |
| Diamond Valley Federal Credit Union | 7.0% |
| L&N Federal Credit Union | 7.0% |
| First Financial Bank | 7.2% |
| Park Federal Credit Union | 7.2% |
HELOC rates today can vary between lenders in the same city. Use the table below to filter by city and compare APRs, helping you find the best rate in your area.
Make informed decisions by exploring local options.
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City:Indianapolis
| First Financial Bank | Commercial Bank | 7.0% |
| Community First Bank of Indiana | Commercial Bank | 7.8% |
| Financial Center First Credit Union | Credit Union | 7.8% |
| Indiana Members Credit Union | Credit Union | 7.8% |
| Stock Yards Bank & Trust Company | Commercial Bank | 7.8% |
| Elements Financial Federal Credit Union | Credit Union | 8.0% |
| Fedex Employees Credit Association Federal Credit Union | Credit Union | 8.0% |
| First Merchants Bank | Commercial Bank | 8.0% |
| Merchants Bank of Indiana | Commercial Bank | 8.0% |
| STAR Financial Bank | Commercial Bank | 8.0% |
| Everwise Credit Union | Credit Union | 8.3% |
| Financial Health Federal Credit Union | Credit Union | 8.3% |
| Centra Credit Union | Credit Union | 8.3% |
| CIBM Bank | Commercial Bank | 8.4% |
| Old National Bank | Commercial Bank | 8.5% |
| CFBank National Association | Commercial Bank | 8.5% |
| Citizens Bank | Commercial Bank | 8.5% |
| Energy Plus Credit Union | Credit Union | 8.5% |
| Harvester Financial Credit Union | Credit Union | 8.5% |
| Horizon Bank | Commercial Bank | 8.5% |
| Indiana University Credit Union | Credit Union | 8.5% |
| Regions Bank | Commercial Bank | 8.5% |
| BMO BANK NATIONAL ASSOCIATION | Commercial Bank | 8.5% |
| FORUM Credit Union | Credit Union | 8.8% |
| 1st Source Bank | Commercial Bank | 9.0% |
| The Huntington National Bank | Commercial Bank | 9.1% |
| Lake City Bank | Commercial Bank | 9.5% |
| Centier Bank | Commercial Bank | 9.6% |
| PNC Bank | Commercial Bank | 9.8% |
| Fifth Third Bank | Commercial Bank | 10.1% |
| KeyBank National Association | Commercial Bank | 11.3% |
COMPARING HELOC RATES IN INDIANA: BANKS VS. CREDIT UNIONS
HELOC rates in Indiana vary between banks and credit unions, with banks generally offering higher rates. For example, commercial banks in Indiana have an average APR of 8.6%, while credit unions offer a lower average APR of 8.1%. Credit unions are not-for-profit institutions, which often allows them to provide more competitive rates.
When deciding between the two, consider more than just rates. Banks may offer greater convenience and a wider range of services, 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.
Ask the experts:
How do lenders assess risk when setting HELOC rates for different property types (e.g., primary residence vs. investment property), and how can borrowers mitigate higher rates for non-primary homes?
Credit & Mortgage Expert
All loans are about risk. The higher the risk, the higher your rate will be. With investment properties or second homes, since they are not your primary residence the risk is inherently higher in the eyes of the lender — for example, if someone falls on hard times, they are more likely to continue making timely payments on the home they live in rather than an investment or second home.
Usually, if you are taking a HELOC on an investment property, you are using those funds to improve the property or using it to buy another investment property. Having access to cash to make more cash is what investors do. They should always take into account the higher rates when making an investment decision. If successful, the higher rate won't be a problem.
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 Indiana HELOC payment calculator to estimate 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 more effectively and plan for future payments.
Indiana 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 Indiana
Finding the best HELOC rates in Indiana can save you thousands over time. For instance, a 1% lower rate on a $50,000 HELOC can save you $500 annually. To secure the best rates, consider these five strategies:
Maintain a strong credit score
Indiana's average credit score is 713. While good, aiming for 720+ can secure better rates.
Compare offers from multiple lenders
Shopping around can reveal 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 debt to improve your rate.
Increase your home equity
More equity lowers lender risk. Consider paying down your mortgage or home improvements.
Review closing costs and rate caps
Closing costs affect expenses. Know rate caps to manage HELOC adjustments.
HELOC Loan Rates vs. Home Equity Loan Rates in Indiana
HELOC interest rates in Indiana are slightly higher than home equity loan rates, with averages of 8.4% and 8.0% respectively. This difference arises from their rate structures, impacting the average APRs.
- HELOCs are flexible, revolving credit lines with variable rates that can rise in rising interest rate environments, potentially increasing costs for homeowners over time.
- In contrast, home equity loans provide a lump sum at a fixed rate, offering stability and making them preferable for those needing predictable payments.
When deciding between these options, consider your financial goals, risk tolerance, and whether you prefer the flexibility of a HELOC or the predictability of a home equity loan. Assessing equity in your home can also guide your decision.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
A cash-out refinance is a HELOC alternative that replaces your existing primary mortgage with a new, larger loan, offering access to cash. It differs from HELOCs or home equity loans by creating a new primary mortgage.
For example, if you have a loan backed by the Federal Housing Administration (FHA) with a $150,000 balance on a home valued at $300,000, an FHA cash-out refinance for $200,000 could provide $50,000 in cash, with new payments based on $200,000.
FAQ: Best HELOC Rates in Indiana
What are the current HELOC rates in Indiana and how do they compare to national rates?
The average HELOC rate in Indiana is 8.4%, slightly higher than the national average of 8.3%.
What fees are commonly associated with HELOCs in Indiana?
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
How do HELOC rates in Indiana compare to home equity loan rates?
Indiana's HELOC rates average 8.4%, while home equity loan rates are lower at 8.0%. Those with bad credit may find these differences impactful.
How do HELOC Rates in Indiana vary between banks and credit unions?
Commercial banks in Indiana offer HELOC rates averaging 8.6%, while credit unions offer lower rates at 8.1%.
What's the best HELOC rate in Indianapolis? How does it compare to the current HELOC rate in Indiana?
The average HELOC rate in Indiana is 8.4%, while Indianapolis's rates are slightly higher, averaging 8.6%.
MoneyGeek examined 122 different banks and credit unions in Indiana 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.
122Lenders 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.