HELOC rates in New Jersey have risen from around 4% in early 2022 to nearly 9% by late 2024. If this trend continues, homeowners may face higher borrowing costs, so consider locking in a rate now.
HELOC
Best HELOC Rates in New Jersey
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 New Jersey with an 80% LTV is 8.3%, compared with 8.7% for a 90% LTV.
HELOC rates vary by city in New Jersey. Picatinny Arsenal has an average APR of 7.6%, whereas McGuire AFB's is 11.0%.
Different lenders offer varying rates for the same loan types. Garden Savings Federal Credit Union's average APR is 6.6%, whereas Andrews Federal Credit Union's is 11.0%.
Current HELOC Rates in New Jersey
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HELOC Rates in New Jersey by LTV Ratio
HELOC rates in New Jersey vary depending on your loan-to-value (LTV) ratio and line limit. Lenders consider a lower LTV less risky, as you have more equity in your home. For instance, with an 80% LTV, you borrow less against your home's value than at 90%, reducing the risk 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:
Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000
HELOC Rates in New Jersey by City
HELOC rates in New Jersey vary by city due to local housing markets and lender competition. For instance, cities with stable housing markets may offer lower rates, reducing lender risk.
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:Newark
| $100,000 | 8.2% |
| $50,000 | 8.4% |
HELOC Rates in New Jersey by Lender
HELOC interest rates in New Jersey vary based on each lender's pricing strategies and risk assessments. The table below highlights the five lenders in New Jersey offering the lowest average APRs, making it easier for you to compare competitive rates.
| Garden Savings Federal Credit Union | 6.6% |
| Healthcare Employees Federal Credit Union | 7.0% |
| Ukrainian Selfreliance Federal Credit Union | 7.3% |
| County Excellence Federal Credit Union | 7.5% |
| The Atlantic Federal Credit Union | 7.5% |
HELOC rates today can differ significantly between lenders in the same city.
Use the table below to filter by city and compare APRs to find the most competitive rate in your area.
Data filtered by:Results filtered by:
City:
City:Newark
| Garden Savings Federal Credit Union | Credit Union | 6.6% |
| Together Credit Union | Credit Union | 7.8% |
| American Airlines Federal Credit Union | Credit Union | 8.0% |
| BCB Community Bank | Commercial Bank | 8.0% |
| Selfreliance Federal Credit Union | Credit Union | 8.3% |
| North Jersey Federal Credit Union | Credit Union | 8.5% |
| ConnectOne Bank | Commercial Bank | 8.5% |
| Manufacturers and Traders Trust Company | Commercial Bank | 8.7% |
| TD Bank | Commercial Bank | 8.8% |
| Bank of America | Commercial Bank | 10.3% |
COMPARING HELOC RATES IN NEW JERSEY: BANKS VS. CREDIT UNIONS
HELOC rates in New Jersey vary between banks and credit unions. Commercial banks typically have higher rates, with the best rate currently at 8.7%. In contrast, credit unions, which are not-for-profit institutions, offer slightly lower rates, averaging 8.3%.
When deciding between the two, consider more than just rates. Banks may offer more convenience, while credit unions often provide better customer service and lower fees. Be sure to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Ask the experts:
What are the common fees or costs associated with HELOCs that borrowers should be aware of, and how do these affect the overall cost of borrowing?
Credit & Mortgage Expert
Most banks and credit unions charge little to no fees when getting a HELOC. Typically, you will pay the cost of the appraisal — anywhere from $150 to $450 depending on the type of appraisal done. But closing costs are usually covered by the bank or credit union. This is why it’s best to shop around with at least three different lenders when applying for a HELOC to compare not only the rates but also any costs involved. Getting a rate that is 0.25% lower but having to pay a couple thousand dollars in costs may not make financial sense.
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 New Jersey HELOC payment calculator to determine your monthly payments based on amount draws, APR, and loan terms.
The calculator also provides an amortization schedule, showing the division of payments between principal and interest. Understanding these details can help you manage your HELOC effectively.
New Jersey 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
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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 New Jersey
Finding the best HELOC rates in New Jersey can save you thousands over your loan's term. For example, securing a lower rate could reduce your monthly payments significantly. To achieve this, consider these five strategies:
Maintain a strong credit score
The average credit score in New Jersey is 725. Improving it can help you secure more competitive HELOC rates.
Compare offers from multiple lenders
By comparing multiple lender offers, you can find competitive HELOC rates and use them to negotiate better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show financial stability. Paying off credit card debt can help reduce your DTI ratio.
Increase your home equity
More equity reduces lender risk, leading to better rates. Paying down your mortgage or making home improvements can increase equity.
Review closing costs and rate caps
Closing costs affect loan expenses. Knowing rate caps helps manage HELOC adjustments over time.
HELOC Loan Rates vs. Home Equity Loan Rates in New Jersey
HELOC interest rates in New Jersey average 8.4%, while the best home equity loan rates in the state are around 7.6%. This discrepancy arises from the variable rate structure of HELOCs compared to the fixed rates of home equity loans.
- HELOCs are flexible credit lines with variable rates that adjust 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, making them suitable for those who prefer certainty.
When deciding between the two, consider your financial goals and risk tolerance. Evaluate whether you value the flexibility of a HELOC or the stability of a home equity loan. Additionally, consider how borrowing against your home's equity aligns with your long-term financial plans.
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 larger loan, allowing you to access cash. Unlike HELOCs or home equity loans, it creates 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 New Jersey
What are the current HELOC rates in New Jersey and how do they compare to national rates?
New Jersey's HELOC rates average 8.4%, which is the same as the national average.
What fees are commonly associated with HELOCs in New Jersey?
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
How do HELOC rates in New Jersey compare to home equity loan rates?
HELOC rates in New Jersey average 8.4%, while home equity loan rates are lower at 7.6%, which can be beneficial for those with bad credit.
How do HELOC Rates in New Jersey vary between banks and credit unions?
Commercial banks in New Jersey offer HELOC rates averaging 8.7%, while credit unions offer lower rates at 8.3%.
What's the best HELOC rate in Newark? How does it compare to the current HELOC rate in New Jersey?
The average HELOC rate in New Jersey is 8.4%, while Newark's rates are slightly lower, averaging 8.3%.
MoneyGeek examined 64 different banks and credit unions in New Jersey 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.
64Lenders 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.