HELOC rates in Massachusetts have increased from 3.8% in 2021 to 8.4% for $50k and 8.3% for $100k loans by November 2024. If this trend persists, homeowners may encounter higher borrowing costs, so consider locking in a rate now.
HELOC
Best HELOC Rates in Massachusetts (January 2025)
Updated: January 18, 2025
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Massachusetts with an 80% LTV is 7.6%, compared with 8.5% for a 90% LTV.
HELOC rates vary by city in Massachusetts. Ayer has an average APR of 6.7%, whereas Sterling's is 9.0%.
Different lenders offer varying rates for the same loan types. First Citizens Federal Credit Union's average APR is 6.0%, whereas KeyBank National Association's is 10.8%.
Current HELOC Rates in Massachusetts
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HELOC Rates in Massachusetts by LTV Ratio
HELOC rates in Massachusetts vary depending on your loan-to-value (LTV) ratio and line limit. A lower LTV ratio means you have more equity in your home, reducing lender risk. For instance, with an 80% LTV, you borrow less against your home's value than with a 90% LTV, decreasing the chance 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:
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Line Limit:$100,000
| 7.8% | 8.7% |
HELOC Rates in Massachusetts by City
HELOC rates in Massachusetts vary between cities due to local housing markets and lender competition. For instance, cities with robust real estate markets may offer lower rates.
Use the table below to filter by city and see average APRs for $50k and $100k HELOCs.
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City:Boston
| $100,000 | 7.9% |
| $50,000 | 8.0% |
HELOC Rates in Massachusetts by Lender
HELOC interest rates in Massachusetts vary due to different pricing strategies and risk assessments by lenders in Massachusetts. The table below presents the five lenders offering the lowest average APRs, aiding you in comparing competitive rates.
| First Citizens Federal Credit Union | 6.5% |
| I C Federal Credit Union | 6.6% |
| Align Credit Union | 6.8% |
| First Priority Credit Union | 7.0% |
| Mass Bay Credit Union | 7.0% |
HELOC rates today can vary between lenders in the same city. Use the table below to filter data by city, compare APRs and find the best rate available in your area.
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City:Boston
| Mass Bay Credit Union | Credit Union | 7.0% |
| Metro Credit Union | Credit Union | 7.3% |
| Salem Five Cents Savings Bank | Commercial Bank | 7.3% |
| Brookline Bank | Commercial Bank | 7.5% |
| City of Boston Credit Union | Credit Union | 7.5% |
| Harvard Federal Credit Union | Credit Union | 7.7% |
| American Airlines Federal Credit Union | Credit Union | 7.7% |
| Eastern Bank | Commercial Bank | 7.8% |
| Western Alliance Bank | Commercial Bank | 7.8% |
| Berkshire Bank | Commercial Bank | 8.0% |
| HarborOne Bank | Commercial Bank | 8.2% |
| Hanscom Federal Credit Union | Credit Union | 8.3% |
| TD Bank | Commercial Bank | 8.3% |
| Customers Bank | Commercial Bank | 8.5% |
| Webster Bank, N.A. | Commercial Bank | 8.7% |
| Bank of America | Commercial Bank | 9.2% |
COMPARING HELOC RATES IN MASSACHUSETTS: BANKS VS. CREDIT UNIONS
HELOC rates in Massachusetts vary between banks and credit unions, with banks typically offering higher rates. For example, the best HELOC rate at commercial banks in Massachusetts is 7.9%, compared to the average APR of 7.7% at credit unions. Credit unions are not-for-profit institutions that often provide more competitive rates than their for-profit counterparts.
When choosing between the two, consider more than just rates. Banks may offer wider accessibility and additional financial products, while credit unions often provide personalized service and lower fees. It's important to also check membership requirements for credit unions and be aware of any hidden fees or rate adjustment clauses with both lenders.
Expert Answers About HELOCs
How do changes in the Federal Reserve’s interest rates impact HELOC rates, and what should homeowners expect if rates rise or fall?
Credit & Mortgage Expert
The current Federal Fund rate has a direct impact on the rate you get or have on a HELOC. So if rates increase or decrease, your HELOC rate will follow. Recently the Federal Reserve decreased the Federal Fund rate by 0.5%, and about a week or two later, the rate on my HELOC decreased by 0.5%.
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 Massachusetts HELOC payment calculator to estimate your monthly payments based on amount draws, APR and loan terms. It provides a full amortization schedule and shows how payments are divided between principal and interest. Understanding these details can help you manage your HELOC and your finances more effectively.
Massachusetts 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 Massachusetts
Finding the best HELOC rates in Massachusetts can lead to substantial savings over your loan's life. To secure a competitive rate, consider these five strategies:
Maintain a strong credit score
The average credit score in Massachusetts is 732. Improving it can help homeowners secure more competitive HELOC rates.
Compare offers from multiple lenders
Shopping around for offers can lead to competitive HELOC rates and better negotiation terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show financial stability. Paying off credit card debt can help.
Increase your home equity
More equity reduces lender risk. Paying down your mortgage or making home improvements can help.
Review closing costs and rate caps
Closing costs affect loan expenses. Understanding rate caps helps manage HELOC adjustments.
HELOC Loan Rates vs. Home Equity Loan Rates in Massachusetts
HELOC interest rates in Massachusetts average 7.8%, slightly higher than the 7.3% average for home equity loans. This difference is due to the variable rate structure of HELOCs, which can fluctuate with market conditions.
HELOCs are flexible, revolving credit lines with variable rates that can change, especially in rising interest rate environments. This variability can impact homeowners' finances over time.
Home equity loans provide a lump sum at a fixed rate, which remains constant, offering predictability. They are preferable for those needing stability and certainty.
When deciding between these options, consider your financial goals and risk tolerance. If you value flexibility and can manage potential rate increases, a HELOC might suit you. If you prefer consistent payments and predictability, a home equity loan could be a better choice for borrowing against your home's equity.
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, granting you access to cash. It differs from HELOCs or home equity loans in that 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 $300K with a $150K mortgage balance, an FHA cash-out refinance for $200K could provide $50K in cash, with new loan payments based on $200K.
FAQ: Best HELOC Rates in Massachusetts
What are the current HELOC rates in Massachusetts and how do they compare to national rates?
Massachusetts's HELOC rates average 7.8%, which is lower than the national average of 8.2%.
What fees are commonly associated with HELOCs in Massachusetts?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in Massachusetts compare to home equity loan rates?
HELOC rates in Massachusetts average 7.8%, while home equity loan rates are lower at 7.3%. Those with bad credit might find these differences impactful.
How do HELOC Rates in Massachusetts vary between banks and credit unions?
Commercial banks in Massachusetts offer HELOC rates averaging 7.9%, while credit unions offer lower rates at 7.7%.
What's the best HELOC rate in Boston? How does it compare to the current HELOC rate in Massachusetts?
Boston's rates average 7.7%, slightly lower than the Massachusetts average of 7.8%.
MoneyGeek examined 87 different banks and credit unions in Massachusetts 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 January 10, 2025.
87Lenders 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.