HELOC rates in Maine rose from about 3.8% in 2021 to 8.4% in November 2024. Continuing this trend may lead to higher borrowing costs for homeowners. Consider locking in a rate soon to avoid future increases.
HELOC
Best HELOC Rates in Maine
Updated: November 23, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Maine with an 80% LTV is 8.1%, compared with 8.0% for a 90% LTV.
HELOC rates vary by city in Maine. Arundel has an average APR of 6.9%, whereas Bowdoinham's is 9.5%.
Different lenders offer varying rates for the same loan types. Empeople Credit Union's average APR is 6.9%, whereas Bank of America's is 10.2%.
Current HELOC Rates in Maine
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HELOC Rates in Maine by LTV Ratio
HELOC rates in Maine can vary depending on your loan-to-value (LTV) ratio and line limit. Lenders view a lower LTV as less risky since you have more equity in your home. For instance, an 80% LTV means you've borrowed less against your home's value compared to a 90% LTV, making you less likely to default on your HELOC.
The following table lets you filter between different loan amounts, offering a clearer view of what you may qualify for:
Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000
| 8.1% | 8.0% |
HELOC Rates in Maine by City
HELOC rates in Maine vary by city due to local housing markets and lender competition. For instance, a strong real estate market may lead to lower rates, reducing lender risk.
Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.
Data filtered by:Results filtered by:
City:
City:Portland
| $100,000 | 8.1% |
| $50,000 | 8.2% |
HELOC Rates in Maine by Lender
HELOC interest rates in Maine fluctuate among lenders due to differing pricing strategies and risk evaluations. The table below highlights the five lenders in Maine offering the lowest average APRs, enabling you to compare competitive rates.
| Empeople Credit Union | 6.9% |
| Trademark Federal Credit Union | 7.0% |
| Evergreen Credit Union | 7.0% |
| Katahdin Federal Credit Union | 7.5% |
| Mascoma Bank | 7.8% |
HELOC rates today can vary between lenders in the same city. Use the table below to filter by city and compare APRs to find the best rate in your area.
Data filtered by:Results filtered by:
City:
City:Portland
| Empeople Credit Union | Credit Union | 6.9% |
| Trademark Federal Credit Union | Credit Union | 7.0% |
| Mascoma Bank | Commercial Bank | 7.8% |
| Atlantic Regional Federal Credit Union | Credit Union | 8.0% |
| cPort Credit Union | Credit Union | 8.0% |
| Town & Country Federal Credit Union | Credit Union | 8.0% |
| Maine Savings Federal Credit Union | Credit Union | 8.5% |
| Camden National Bank | Commercial Bank | 8.5% |
| University Credit Union | Credit Union | 8.5% |
| TD Bank | Commercial Bank | 8.8% |
| NBT Bank | Commercial Bank | 9.0% |
| Five County Credit Union | Credit Union | 9.5% |
| Bank of America | Commercial Bank | 10.2% |
COMPARING HELOC RATES IN MAINE: BANKS VS. CREDIT UNIONS
HELOC rates in Maine vary between banks and credit unions. Commercial banks typically have higher rates, with the best HELOC rate in Maine averaging 8.6%. In contrast, credit unions offer a more competitive average rate of 8.0% as they operate as not-for-profit institutions.
When choosing between the two, consider more than just rates. Banks may offer more convenience and a wider range of services, while credit unions often provide better customer service and lower fees. It's also wise to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Expert Answers About HELOCs
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 Maine 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.
Maine 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 Maine
Finding the best HELOC rates in Maine can save you thousands over your loan's life by reducing interest payments. To secure the most competitive rate, consider these five strategies:
Maintain a strong credit score
Maine's average credit score is 731. Although this is good, aiming higher can secure better rates from lenders.
Compare offers from multiple lenders
Shopping around for lender offers can yield competitive rates and help negotiate better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show financial stability. Paying off credit card debt can help reduce your DTI.
Increase your home equity
More equity reduces lender risk, leading to lower rates. Consider paying down your mortgage or making home improvements.
Review closing costs and rate caps
Closing costs can affect loan expenses. Understanding rate caps helps manage HELOC costs as rates adjust.
HELOC Loan Rates vs. Home Equity Loan Rates in Maine
HELOC interest rates in Maine average 8.1%, which is higher than the 7.2% average for home equity loans. This difference arises because HELOCs feature variable rates that adjust with market conditions, while home equity loans offer fixed rates.
- HELOCs are flexible, revolving credit lines with variable rate structures that can increase in rising interest rate environments, potentially impacting long-term finances.
- In contrast, home equity loans provide a lump sum at a fixed rate, offering predictability and stability, making them ideal for situations where you need consistent payments.
When deciding between these options, consider whether you prioritize the flexibility of borrowing against your home's equity with a HELOC or the stability of fixed payments with a home equity loan. Evaluate your financial goals and the potential impact of interest rate changes to make the best choice for your situation.
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 larger loan, providing cash access. Unlike HELOCs or home equity loans, it creates a new primary mortgage.
For example, if your loan is 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 payments based on $200,000.
FAQ: Best HELOC Rates in Maine
What are the current HELOC rates in Maine and how do they compare to national rates?
Maine's HELOC rates average 8.1%, which is slightly lower than the national average of 8.4%.
What fees are commonly associated with HELOCs in Maine?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in Maine compare to home equity loan rates?
HELOC rates in Maine average 8.1%, while home equity loan rates are lower at around 7.2%. This difference is significant for those with bad credit.
How do HELOC Rates in Maine vary between banks and credit unions?
Commercial banks in Maine offer HELOC rates averaging 8.6%, while credit unions offer lower rates at 8.0%.
What's the best HELOC rate in Portland? How does it compare to the current HELOC rate in Maine?
The average HELOC rate in Maine is 8.1%, while Portland's rates are slightly higher, averaging 8.2%.
MoneyGeek examined 39 different banks and credit unions in Maine 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.
39Lenders 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.