HELOC rates in Minnesota rose from 4.3% in 2020 to 8.6% in 2024. Continued increases could mean higher borrowing costs. Consider locking in a rate now to potentially save on future expenses.
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Best HELOC Rates in Minnesota
Updated: November 23, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for HELOCs in Minnesota with 80% LTV is 8.3%, compared with 8.7% for 90% LTV.
HELOC rates vary by city in Minnesota. Plummer has an average APR of 6.3%, whereas Madison Lake's is 10.0%.
Different lenders offer varying rates for the same loan types. Superior Choice Credit Union's average APR is 5.5%, whereas Security State Bank of Marine's is 10.5%.
Current HELOC Rates in Minnesota
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HELOC Rates in Minnesota by LTV Ratio
HELOC rates in Minnesota can vary depending on your loan-to-value (LTV) ratio and line limit. Lenders view a lower LTV as less risky, as it shows 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, reducing the risk of default on your HELOC.
The following table lets you filter between different loan amounts, providing a clearer view of your potential qualifications:
Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000
| 8.3% | 8.7% |
HELOC Rates in Minnesota by City
HELOC rates in Minnesota vary between cities due to differences in local housing markets and lender competition. For instance, cities with strong real estate markets might have 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:Minneapolis
| $100,000 | 8.5% |
| $50,000 | 8.5% |
HELOC Rates in Minnesota by Lender
HELOC interest rates in Minnesota vary due to different lender pricing strategies and risk assessments. The table below shows the five lenders in Minnesota offering the lowest average APRs, allowing you to compare competitive rates.
| Superior Choice Credit Union | 5.5% |
| Northern Communities Credit Union | 6.3% |
| Ultima Bank Minnesota | 6.3% |
| North Shore Federal Credit Union | 6.5% |
| Centricity Credit Union | 7.3% |
HELOC rates today can vary significantly between lenders in the same city. Use the table below to filter by city and compare average APRs, helping you find the most competitive rate available in your area.
Data filtered by:Results filtered by:
City:
City:Minneapolis
| Affinity Plus Federal Credit Union | Credit Union | 7.5% |
| South Metro Federal Credit Union | Credit Union | 7.5% |
| Western Alliance Bank | Commercial Bank | 8.0% |
| Bremer Bank | Commercial Bank | 8.0% |
| Blaze Credit Union | Credit Union | 8.3% |
| First State Bank of Sauk Centre | Commercial Bank | 8.3% |
| Baxter Credit Union | Credit Union | 8.5% |
| Sunrise Banks | Commercial Bank | 8.5% |
| TruStone Financial Credit Union | Credit Union | 8.5% |
| Wings Financial Credit Union | Credit Union | 8.5% |
| BMO BANK NATIONAL ASSOCIATION | Commercial Bank | 8.6% |
| Connexus Credit Union | Credit Union | 8.6% |
| Park State Bank | Commercial Bank | 8.8% |
| American National Bank | Commercial Bank | 9.1% |
| Luminate Bank | Commercial Bank | 9.3% |
| Bank of America | Commercial Bank | 9.6% |
| Thrivent Federal Credit Union | Credit Union | 9.8% |
| U.S. Bank National Association | Commercial Bank | 9.9% |
COMPARING HELOC RATES IN MINNESOTA: BANKS VS. CREDIT UNIONS
HELOC rates in Minnesota vary between banks and credit unions, with banks generally offering higher rates. Currently, the best HELOC rate for commercial banks in Minnesota is 8.5%, compared to the average APR of 8.2% offered by credit unions. Credit unions are not-for-profit institutions that often provide lower rates due to their structure.
When choosing between the two, consider more than just rates. Banks may offer more convenience, but credit unions often have better customer service and lower fees. Also check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Expert Answers About HELOCs
What advice do you have for homeowners who are considering a HELOC in today’s economic climate — should they act now or wait for more favorable conditions?
Credit & Mortgage Expert
As with anything there are pros and cons. Even though rates may be higher right now, the home values are also high. This could lead to you getting approved for more of a HELOC compared to if rates are lower but housing values decrease (not saying they will). In my opinion, it’s better to get a HELOC now and have it for when you need it. Also, HELOC rates are variable — so if rates go down, so will the rate on your HELOC.
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 Minnesota 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.
Minnesota 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 Minnesota
Finding the best HELOC rates in Minnesota can save you thousands over the life of your loan. For instance, a lower rate reduces monthly payments, leaving more for other expenses. To secure the most competitive rate, consider these five strategies:
Maintain a strong credit score
Minnesota's average credit score is 742, which is good. Improving it further can help secure more competitive HELOC rates.
Compare offers from multiple lenders
Shopping around can uncover 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 reduce your DTI ratio.
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
Some lenders charge closing costs. Understanding rate caps helps manage HELOC expenses as rates adjust.
HELOC Loan Rates vs. Home Equity Loan Rates in Minnesota
HELOC interest rates in Minnesota average 8.4%, while home equity loan rates are slightly lower at 7.6%. This difference arises from their rate structures, with HELOCs having variable rates and home equity loans offering fixed rates.
- HELOCs are flexible credit lines with variable interest rates that can rise in rising interest rate environments, potentially impacting homeowners' finances over time.
- Home equity loans provide a lump sum with a fixed interest rate, making them ideal for those who prefer financial certainty over flexibility.
When deciding which option is better, consider your financial goals and risk tolerance. If you value flexibility and can manage variable rates, a HELOC might suit you. If stability and predictable payments are important, a home equity loan could be a better choice for leveraging 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, 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 $300,000 with a $150,000 mortgage balance, an FHA cash-out refinance for $200,000 could give you $50,000 in cash, but your new loan payments will be based on $200,000.
FAQ: Best HELOC Rates in Minnesota
What are the current HELOC rates in Minnesota and how do they compare to national rates?
The average HELOC rate in Minnesota is 8.4%, which matches the national average of 8.4%.
What fees are commonly associated with HELOCs in Minnesota?
Common fees include application, appraisal, annual, and early closure fees, though specifics can vary by lender.
How do HELOC rates in Minnesota compare to home equity loan rates?
Minnesota's HELOC rates average 8.4%, while home equity loan rates are lower at 7.6%, which may be beneficial for those with bad credit.
How do HELOC Rates in Minnesota vary between banks and credit unions?
Banks in Minnesota offer an average HELOC rate of 8.5%, while credit unions offer lower rates at 8.2%.
What's the best HELOC rate in Minneapolis? How does it compare to the current HELOC rate in Minnesota?
Minneapolis's rates average 8.5%, slightly higher than the Minnesota statewide average of 8.4%.
MoneyGeek examined 138 different banks and credit unions in Minnesota 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.
138Lenders 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.