HELOC rates in North Carolina rose from 4.5% in 2020 to around 9% in 2024. If this trend continues, homeowners may face higher borrowing costs. Securing a rate now could help you avoid future increases.
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Best HELOC Rates in North Carolina (January 2025)
Updated: January 18, 2025
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in North Carolina with an 80% LTV is 8.1%, compared with 8.3% for a 90% LTV.
HELOC rates vary by city in North Carolina. Four Oaks has an average APR of 4.8%, whereas Valdese's is 10.8%.
Different lenders offer varying rates for the same loan types. United Community Bank's average APR is 4.8%, whereas Pinnacle Bank's is 11.8%.
Current HELOC Rates in North Carolina
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HELOC Rates in North Carolina by LTV Ratio
HELOC rates in North Carolina vary depending on your loan-to-value (LTV) ratio and line limit. A lower LTV is less risky for lenders, indicating more home equity. For example, an 80% LTV means less borrowing against your home's value than a 90% LTV, 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:
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Line Limit:$100,000
| 8.2% | 8.5% |
HELOC Rates in North Carolina by City
HELOC rates in North Carolina vary between cities due to local housing market conditions and lender competition. For instance, cities with strong real estate markets might offer lower rates, reducing lender risk.
Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.
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City:Charlotte
| $100,000 | 8.3% |
| $50,000 | 8.4% |
HELOC Rates in North Carolina by Lender
HELOC interest rates in North Carolina vary by lender based on pricing strategies and risk assessments. Understanding these differences can help you find competitive rates. The table below lists the five lenders in North Carolina offering the lowest average APRs, helping you compare rates.
| United Community Bank | 4.8% |
| First National Bank of Pennsylvania | 6.5% |
| Empeople Credit Union | 6.6% |
| ElecTel Cooperative Federal Credit Union | 6.8% |
| State Employees Credit Union | 7.3% |
HELOC rates today can vary between lenders in the same city. Use the table below to filter lenders by city and compare average APRs to find the best rate in your area.
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City:Charlotte
| United Community Bank | Commercial Bank | 4.8% |
| First National Bank of Pennsylvania | Commercial Bank | 6.5% |
| State Employees Credit Union | Credit Union | 7.3% |
| Clearview Federal Credit Union | Credit Union | 7.5% |
| American Airlines Federal Credit Union | Credit Union | 7.7% |
| TowneBank | Commercial Bank | 7.8% |
| Latino Community Credit Union | Credit Union | 7.8% |
| Truliant Federal Credit Union | Credit Union | 7.8% |
| Allegacy Federal Credit Union | Credit Union | 7.9% |
| First-Citizens Bank & Trust Company | Commercial Bank | 8.0% |
| Carolinas Telco Federal Credit Union | Credit Union | 8.0% |
| The Park National Bank | Commercial Bank | 8.0% |
| Skyla Federal Credit Union | Credit Union | 8.0% |
| Sharonview Federal Credit Union | Credit Union | 8.0% |
| Founders Federal Credit Union | Credit Union | 8.1% |
| Customers Bank | Commercial Bank | 8.5% |
| First Bank | Commercial Bank | 8.5% |
| First Horizon Bank | Commercial Bank | 8.5% |
| Piedmont Advantage Credit Union | Credit Union | 8.5% |
| Regions Bank | Commercial Bank | 8.5% |
| United Bank | Commercial Bank | 8.5% |
| Self-Help Credit Union | Credit Union | 9.0% |
| SouthState Bank | Commercial Bank | 9.0% |
| Local Government Federal Credit Union | Credit Union | 9.0% |
| PNC Bank | Commercial Bank | 9.5% |
| Bank of America | Commercial Bank | 9.6% |
| Fifth Third Bank | Commercial Bank | 10.1% |
| Pinnacle Bank | Commercial Bank | 11.8% |
COMPARING HELOC RATES IN NORTH CAROLINA: BANKS VS. CREDIT UNIONS
HELOC rates in North Carolina vary between banks and credit unions, with banks generally offering higher rates. For example, the best HELOC rate at commercial banks in North Carolina averages 8.5%, while credit unions offer a slightly lower average APR of 8.1%. Credit unions are not-for-profit institutions, which often allows them to provide more competitive rates.
Consider more than just rates when choosing between banks and credit unions. Banks might offer more convenience and a wider range of services, while credit unions often provide better customer service and lower fees. It's also important to check membership requirements for credit unions and any potential hidden fees or rate adjustment clauses from both types of lenders.
Ask the experts:
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 equity. Use our North Carolina HELOC payment calculator to estimate your monthly payments by entering the amount drawn, APR and loan terms. It also provides an amortization schedule, showing how payments divide between principal and interest over time. Understanding these details can help you manage your HELOC more effectively and plan for future payments.
North Carolina 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 North Carolina
Finding the best HELOC rates in North Carolina can save you thousands over time. A lower rate means smaller monthly payments. Consider these five strategies to get the most competitive rate:
Maintain a strong credit score
The average credit score in North Carolina is 709. Improving your score can help secure better rates from lenders.
Compare offers from multiple lenders
Shopping around can help you find competitive rates and use offers to negotiate better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income ratios show financial stability. Paying off credit card debt can help.
Increase your home equity
More equity reduces lender risk, leading to lower rates. Paying down your mortgage or making home improvements can help.
Review closing costs and rate caps
Closing costs affect loan expenses. Knowing rate caps helps manage HELOC adjustments.
HELOC Loan Rates vs. Home Equity Loan Rates in North Carolina
HELOC interest rates in North Carolina average 8.2%, while home equity loan rates are slightly lower at 7.7%. This difference is primarily due to 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, this variability can lead to increased costs for homeowners over time.
- Home equity loans provide a lump sum at a fixed interest rate, offering consistent payments throughout the loan term. They are better suited for situations where financial predictability is preferred.
When deciding between these options, consider your financial goals and risk tolerance. If you value the flexibility of borrowing against your home's equity, a HELOC might be suitable. However, if you prefer stable payments, a home equity loan may be the better choice.
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 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 $300K with a $150K mortgage balance, an FHA cash-out refinance for $200K could give you $50K in cash, with new payments based on $200K.
FAQ: Best HELOC Rates in North Carolina
What are the current HELOC rates in North Carolina and how do they compare to national rates?
The average HELOC rate in North Carolina's HELOC rates is 8.2%, which is the same as the national average.
What fees are commonly associated with HELOCs in North Carolina?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in North Carolina compare to home equity loan rates?
HELOC rates in North Carolina average 8.2%, while home equity loan rates are lower at around 7.7%, especially for those with bad credit.
How do HELOC Rates in North Carolina vary between banks and credit unions?
Commercial banks in North Carolina offer HELOC rates averaging 8.5%, while credit unions offer lower rates at 8.1%.
What's the best HELOC rate in Charlotte? How does it compare to the current HELOC rate in North Carolina?
The average HELOC rate in North Carolina is 8.2%, while Charlotte's rates are slightly higher, averaging 8.3%.
MoneyGeek examined 77 different banks and credit unions in North Carolina 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 January 10, 2025.
77Lenders 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.