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
Updated: November 19, 2024
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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 8.2%, compared with 8.6% for a 90% LTV.
HELOC rates vary by city in Michigan. Attica has an average APR of 5.6%, whereas Harrison Township'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
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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:
Line Limit:
Line Limit:$100,000
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:
City:
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:
City:
City:Detroit
| DFCU Financial | 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% |
| Zeal Credit Union | Credit Union | 8.0% |
| Community Financial Credit Union | Credit Union | 8.1% |
| Alliance Catholic Credit Union | Credit Union | 8.3% |
| Citizens Bank | Commercial Bank | 8.3% |
| Diversified Members Credit Union | Credit Union | 8.3% |
| Credit Union ONE | Credit Union | 8.5% |
| 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% |
| 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, reflecting their different operational structures. Commercial banks often have higher rates, with the best HELOC rate in Michigan averaging 8.5%. In contrast, credit unions, which are not-for-profit institutions, offer more competitive rates, averaging 8.2%.
When deciding between the two, it's important to consider more than just rates. Banks might offer greater convenience and accessibility, whereas credit unions often provide better customer service and lower fees. Be sure to check membership requirements for credit unions and review any hidden fees or rate adjustment clauses with both lenders.
Expert Answers About HELOCs
How do HELOC rates compare to other borrowing options like personal loans or home equity loans, and when should a homeowner choose a HELOC over these alternatives?
Credit & Mortgage Expert
Typically, a HELOC will have a lower interest rate than a personal loan from a bank or credit union. However, HELOCs often have a variable rate, so they can go up or down depending on the current Federal Funds rate. Home equity loans are a fixed rate, so when the Fed increases rates or they remain the same, that is a good time to get a home equity loan.
Personal loans are a solid option despite their higher rates because they are unsecured, meaning there is no collateral (like your home). If you come on hard times and can’t repay a personal loan, you are not at risk of losing your home like you are with a HELOC or home equity 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.
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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 8.3%, while home equity loan rates are lower at 7.7%. This difference arises from the variable rate structure of HELOCs, which can lead to higher rates, especially in rising interest rate environments.
- HELOCs are flexible credit lines with variable rates that adjust with the market, potentially increasing financial burdens in the long run.
- In contrast, home equity loans provide a lump sum at a fixed rate, offering predictability and stability, which is beneficial for long-term financial planning.
When deciding between these options, consider your preference for flexibility versus stability. Assess your financial goals and risk tolerance, as borrowing against your home's equity requires careful planning.
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?
The average HELOC rates in Michigan are 8.3%, slightly lower than the national average of 8.4%.
What fees are commonly associated with HELOCs in Michigan?
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
How do HELOC rates in Michigan compare to home equity loan rates?
Michigan's HELOC rates average 8.3%, while home equity loan rates are lower at 7.7%, even 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 8.5%, while credit unions offer lower rates at 8.2%.
What's the best HELOC rate in Detroit? How does it compare to the current HELOC rate in Michigan?
Detroit's rates average 8.8%, which is higher than the Michigan state average of 8.3%.
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 November 15, 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.