HELOC rates in Michigan have risen from 4% in early 2021 to 8.7% by late 2024. With rates stabilizing at 8.8% in 2024, homeowners may face higher costs if trends persist. Consider securing a rate soon to avoid potential increases.
HELOC
Best HELOC Rates in Michigan (December 2024)
Updated: December 21, 2024
Advertising & Editorial Disclosure
Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Michigan with an 80% LTV is 8.1%, compared with 8.4% for a 90% LTV.
HELOC rates vary by city in Michigan. Fostoria has an average APR of 5.6%, whereas Houghton's is 11.2%.
Different lenders offer varying rates for the same loan types. Lakestone Bank & Trust's average APR is 4.3%, whereas KeyBank National Association's is 11.8%.
Current HELOC Rates in Michigan
Loading...
HELOC Rates in Michigan by LTV Ratio
HELOC rates in Michigan vary depending on your loan-to-value (LTV) ratio and line limit. A lower LTV ratio means you have more equity in your home, which lenders view as less risky. For instance, with a 70% LTV, you're less likely to default on your HELOC than a 90% LTV.
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:
Select
Line Limit:$100,000
| 8.1% | 8.5% |
HELOC Rates in Michigan by City
HELOC rates in Michigan vary by city due to local housing markets and lender competition. For instance, a city with a stable real estate market might offer lower rates.
Use the table below to filter by your city and see average APRs for $50k and $100k HELOCs.
Data filtered by:Results filtered by:
Select
City:Detroit
| $100,000 | 8.7% |
| $50,000 | 8.8% |
HELOC Rates in Michigan by Lender
HELOC interest rates in Michigan vary among lenders due to different pricing strategies and risk assessments. In the table below, explore the lenders in Michigan offering the lowest average APRs to compare competitive rates.
| Lakestone Bank & Trust | 4.3% |
| Christian Financial Credit Union | 6.8% |
| First Financial Bank | 7.0% |
| Family Financial Credit Union | 7.0% |
| Northland Area Federal Credit Union | 7.2% |
HELOC rates today can vary significantly between lenders in the same city. The table below filters by city and compares APRs, helping you find the best rate available in your area.
Data filtered by:Results filtered by:
Select
City:Detroit
| DFCU Financial | Credit Union | 7.8% |
| Zeal Credit Union | Credit Union | 7.8% |
| First Merchants Bank | Commercial Bank | 8.0% |
| Public Service Credit Union | Credit Union | 8.0% |
| Security Credit Union | Credit Union | 8.0% |
| Community Financial Credit Union | Credit Union | 8.1% |
| Credit Union ONE | Credit Union | 8.2% |
| Alliance Catholic Credit Union | Credit Union | 8.3% |
| Citizens Bank | Commercial Bank | 8.3% |
| Diversified Members Credit Union | Credit Union | 8.3% |
| Lake Trust Credit Union | Credit Union | 8.5% |
| Michigan State University Federal Credit Union | Credit Union | 8.5% |
| Wings Financial Credit Union | Credit Union | 8.5% |
| One Detroit Credit Union | Credit Union | 9.0% |
| The Huntington National Bank | Commercial Bank | 9.1% |
| Bank of America | Commercial Bank | 9.3% |
| PNC Bank | Commercial Bank | 9.5% |
| Fifth Third Bank | Commercial Bank | 10.6% |
| Flagstar Bank | Commercial Bank | 11.2% |
| KeyBank National Association | Commercial Bank | 11.8% |
COMPARING HELOC RATES IN MICHIGAN: BANKS VS. CREDIT UNIONS
HELOC rates in Michigan vary between banks and credit unions, with banks typically offering higher rates. Currently, the best HELOC rate among commercial banks in Michigan is 8.4%, while credit unions offer an average rate of 8.1%. Credit unions are not-for-profit institutions, which often allows them to provide slightly lower rates than banks.
When choosing between the two, consider more than just rates. Banks may provide greater convenience, while credit unions often offer better customer service and lower fees. It's important to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Expert Answers About HELOCs
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 Michigan HELOC payment calculator to determine your monthly payments based on the amount drawn, APR and loan terms. The calculator also offers an amortization schedule and shows the payment division between principal and interest over time. This helps you manage your HELOC and finances effectively.
Michigan 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.
Credit Line Information
Draw Period Payment
$0
Repayment Period Payment
$0
- Graph view
- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
YEAR
Ending balance
Principal paid
Interest paid
How to Get the Best HELOC Rates in Michigan
Finding the best HELOC rates in Michigan can save you thousands over time. To achieve this, consider these five strategies:
Maintain a strong credit score
The average credit score in Michigan is 719. Improving it can help secure better rates from lenders.
Compare offers from multiple lenders
Shopping around can reveal competitive rates and provide leverage to negotiate better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios indicate 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 expenses. Understanding rate caps helps manage HELOC adjustments.
HELOC Loan Rates vs. Home Equity Loan Rates in Michigan
HELOC interest rates in Michigan average 8.2%, slightly higher than the 7.7% for home equity loans. This difference arises from their rate structures, with HELOCs typically having variable rates and home equity loans offering fixed rates.
- HELOCs are flexible, revolving lines of credit with variable interest rates that can change with market conditions. In rising interest rate environments, these rates can increase, impacting homeowners' finances over time.
- Home equity loans provide a lump sum at a fixed rate, offering predictability and stability throughout the loan term. They are often more suitable for situations where financial certainty is desired.
When deciding between these options, consider factors like your financial goals, risk tolerance, and the flexibility you need. Assessing how each option aligns with your long-term plans and how comfortable you are with potential rate changes is crucial.
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, allowing you to access cash. Unlike HELOCs or home equity loans, cash-out refinances create a new primary mortgage.
For instance, 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 give you $50K in cash, but your new loan payments will be based on $200K.
FAQ: Best HELOC Rates in Michigan
What are the current HELOC rates in Michigan and how do they compare to national rates?
Michigan's HELOC rates average 8.2%, slightly lower than the national average of 8.3%.
What fees are commonly associated with HELOCs in Michigan?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in Michigan compare to home equity loan rates?
HELOC rates in Michigan average 8.2%, while home equity loan rates are lower at 7.7%, which may be beneficial for those with bad credit.
How do HELOC Rates in Michigan vary between banks and credit unions?
Commercial banks in Michigan offer HELOC rates averaging 8.4%, while credit unions offer lower rates at 8.1%.
What's the best HELOC rate in Detroit? How does it compare to the current HELOC rate in Michigan?
Detroit's rates average 8.7%, which is higher than the Michigan average of 8.2%.
MoneyGeek examined 157 different banks and credit unions in Michigan 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.
157Lenders 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.