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.
HELOC
Best HELOC Rates in North Carolina (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 North Carolina with an 80% LTV is 8.2%, compared with 8.4% 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 typically offering higher rates. Currently, commercial banks in the state have an average HELOC rate of 8.6%, while credit unions offer a slightly lower average rate of 8.2%. Credit unions are not-for-profit institutions, which often allows them to provide more competitive rates.
When choosing between the two, consider more than just rates. 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 the membership requirements for credit unions and be aware of 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 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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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 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 8.3%, which is higher than the 7.7% for home equity loans. This difference arises from HELOCs having variable rates that can increase over time, while home equity loans offer fixed rates.
- HELOCs are flexible, revolving credit lines with variable interest rates that can rise with market conditions. In rising interest rate environments, HELOC rates may increase, impacting homeowners' long-term finances.
- Home equity loans provide a lump sum at a fixed rate, offering stability. They are preferable in situations where financial predictability is needed, such as budgeting for a large, one-time expense.
When deciding between these options, consider your need for flexibility versus stability. Evaluate whether the variable rates of a HELOC align with your financial goals or if the predictability of a home equity loan better suits your needs. Assess your home's equity to determine how much you can borrow.
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?
North Carolina's HELOC rates average 8.3%, which is the same as the national average.
What fees are commonly associated with HELOCs in North Carolina?
Common fees include application, appraisal, annual, 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 8.3%, while home equity loan rates are lower at 7.7%, especially beneficial 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 8.6%, while credit unions offer lower rates at 8.2%.
What's the best HELOC rate in Charlotte? How does it compare to the current HELOC rate in North Carolina?
Charlotte's rates average 8.3%, which is the same as the overall North Carolina average.
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 December 13, 2024.
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.