HELOC rates in Missouri have risen from about 4% in early 2021 to 8.7% by November 2024. If this trend continues, homeowners might encounter higher borrowing costs. Consider locking in a rate sooner to potentially save on future expenses.
HELOC
Best HELOC Rates in Missouri (December 2024)
Updated: December 21, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Missouri with an 80% LTV is 8.3%, compared with 8.7% for a 90% LTV.
HELOC rates vary by city in Missouri. Poplar Bluff has an average APR of 5.5%, whereas Kennett's is 10.3%.
Different lenders offer varying rates for the same loan types. First Midwest Bank of the Ozarks' average APR is 5.5%, whereas PNC Bank's is 10.8%.
Current HELOC Rates in Missouri
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HELOC Rates in Missouri by LTV Ratio
HELOC rates in Missouri vary based on your loan-to-value (LTV) ratio and line limit. A lower LTV ratio indicates more home equity, reducing the risk for lenders. For instance, an 80% LTV means you've borrowed less against your home's value than 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:
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Line Limit:$100,000
| 8.3% | 8.8% |
HELOC Rates in Missouri by City
HELOC rates in Missouri vary by city due to factors like local housing markets and lender competition. For instance, cities with strong real estate markets might offer lower rates.
Use the table below to filter by your city and see average APRs for $50k and $100k HELOCs.
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City:Kansas City
| $100,000 | 8.9% |
| $50,000 | 8.9% |
HELOC Rates in Missouri by Lender
HELOC interest rates in Missouri vary among lenders in Missouri due to different pricing strategies and risk assessments. Below is a table listing the five lenders in Missouri offering the lowest average APRs, allowing you to compare competitive rates.
| First Midwest Bank of the Ozarks | 5.5% |
| Bank of Versailles | 7.0% |
| Connections Bank | 7.0% |
| Bloomsdale Bank | 7.3% |
| Blue Ridge Bank and Trust Co. | 7.3% |
HELOC rates today can differ among lenders in the same city. Use the table below to filter by city and compare average APRs, helping you find the best rate available in your area.
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City:Kansas City
| Connections Bank | Commercial Bank | 7.0% |
| Armed Forces Bank | Commercial Bank | 7.7% |
| BOKF | Commercial Bank | 7.9% |
| Kansas City Credit Union | Credit Union | 8.0% |
| The Union State Bank of Everest | Commercial Bank | 8.0% |
| Mainstreet Federal Credit Union | Credit Union | 8.3% |
| Arvest Bank | Commercial Bank | 8.3% |
| Busey Bank | Commercial Bank | 8.4% |
| UMB Bank | Commercial Bank | 8.5% |
| Academy Bank, N.A. | Commercial Bank | 8.5% |
| Security Bank of Kansas City | Commercial Bank | 8.5% |
| Clay County Savings Bank | Commercial Bank | 8.8% |
| Emprise Bank | Commercial Bank | 8.8% |
| BMO BANK NATIONAL ASSOCIATION | Commercial Bank | 8.9% |
| Mazuma Credit Union | Credit Union | 8.9% |
| CommunityAmerica Credit Union | Credit Union | 9.0% |
| The Nodaway Valley Bank | Commercial Bank | 9.0% |
| Public Safety Credit Union | Credit Union | 9.0% |
| NBKC Bank | Commercial Bank | 9.0% |
| Hawthorn Bank | Commercial Bank | 9.1% |
| Simmons Bank | Commercial Bank | 9.2% |
| Commerce Bank | Commercial Bank | 9.9% |
| U.S. Bank National Association | Commercial Bank | 10.4% |
| PNC Bank | Commercial Bank | 10.8% |
| Bank of America | Commercial Bank | 10.8% |
COMPARING HELOC RATES IN MISSOURI: BANKS VS. CREDIT UNIONS
HELOC rates in Missouri vary between banks and credit unions, with banks typically offering higher rates. The best rate among commercial banks in Missouri is 8.5%, whereas credit unions offer an average APR of 8.2%. Credit unions are not-for-profit institutions, which often allows them to provide more favorable rates.
When choosing between the two, consider more than just rates. Banks may offer more convenience, 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 Missouri 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.
Missouri 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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Repayment Period Payment
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- Graph view
- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
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How to Get the Best HELOC Rates in Missouri
Securing the best HELOC rates in Missouri can save you thousands. To achieve this, consider these five strategies:
Maintain a strong credit score
The average credit score in Missouri is 714. Improving it can help homeowners secure more competitive rates from lenders.
Compare offers from multiple lenders
Exploring various lender offers can uncover competitive rates and provide leverage for negotiating better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios indicate financial stability. Paying off credit card debt can improve your DTI ratio.
Increase your home equity
More equity reduces lender risk, leading to better 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 over time.
HELOC Loan Rates vs. Home Equity Loan Rates in Missouri
HELOC interest rates in Missouri average 8.4%, while home equity loan rates are slightly lower at 7.8%. This difference arises from the variable rate structure of HELOCs compared to the fixed rates of home equity loans.
- HELOCs are flexible, revolving credit lines with variable interest rates that can change with the market. In rising interest rate environments, HELOC rates may increase, potentially affecting homeowners' finances over time.
- Home equity loans provide a lump sum with a fixed interest rate, offering consistent payments throughout the loan term. This makes them suitable for situations where financial predictability is desired.
When deciding between these options, consider your need for flexibility versus stability. Evaluate your comfort with potential rate fluctuations and your long-term financial goals before 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, providing access to cash. Unlike HELOCs or home equity loans, 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 $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 Missouri
What are the current HELOC rates in Missouri and how do they compare to national rates?
Missouri's HELOC rates average 8.4%, slightly higher than the national average of 8.3%.
What fees are commonly associated with HELOCs in Missouri?
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
How do HELOC rates in Missouri compare to home equity loan rates?
HELOC rates in Missouri average 8.4%, while home equity loan rates are lower at around 7.8%, which might be more favorable for those with bad credit.
How do HELOC Rates in Missouri vary between banks and credit unions?
Commercial banks in Missouri offer HELOC rates averaging 8.5%, while credit unions offer lower rates at 8.2%.
What's the best HELOC rate in Kansas City? How does it compare to the current HELOC rate in Missouri?
Kansas City's rates average 8.8%, which is higher than the Missouri average of 8.4%.
MoneyGeek examined 118 different banks and credit unions in Missouri 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.
118Lenders 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.