HELOC rates in North Dakota rose from 3.8% in 2020 to about 8.5% in 2024. If current rates remain high, homeowners considering a HELOC might benefit from securing a rate soon to avoid higher borrowing costs.
HELOC
Best HELOC Rates in North Dakota (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 Dakota with an 80% LTV is 8.0%, compared with 8.3% for a 90% LTV.
HELOC rates vary by city in North Dakota. Elgin has an average APR of 4.0%, whereas Hatton's is 9.2%.
Different lenders offer varying rates for the same loan types. First International Bank and Trust's average APR is 4.0%, whereas U.S. Bank National Association's is 10.2%.
Current HELOC Rates in North Dakota
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HELOC Rates in North Dakota by LTV Ratio
HELOC rates in North Dakota vary depending on your loan-to-value (LTV) ratio and line limit. A lower LTV ratio means you have more equity, which is less risky for lenders. For instance, with an 80% LTV, 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, 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 Dakota by City
HELOC rates in North Dakota vary by city due to differences in local housing markets and lender competition. For instance, Fargo may offer lower rates due to a stable real estate market.
Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.
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City:Fargo
| $100,000 | 8.1% |
| $50,000 | 8.1% |
HELOC Rates in North Dakota by Lender
HELOC interest rates in North Dakota vary by lender based on pricing strategies and risk assessments. The table below shows the five lenders in North Dakota with the lowest average APRs, helping you make an informed choice.
| First International Bank and Trust | 4.0% |
| Empeople Credit Union | 6.6% |
| Capital Credit Union | 7.5% |
| Dakota Heritage Bank | 7.5% |
| Bremer Bank | 7.8% |
HELOC rates today can vary between lenders in the same city. Use the table below to filter by city and compare APRs, helping you find the best rate in your area.
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City:Fargo
| First International Bank and Trust | Commercial Bank | 4.0% |
| Empeople Credit Union | Credit Union | 6.6% |
| Capital Credit Union | Credit Union | 7.5% |
| Bremer Bank | Commercial Bank | 7.8% |
| Town & Country Credit Union | Credit Union | 7.8% |
| Western State Bank | Commercial Bank | 8.0% |
| Choice Financial Group | Commercial Bank | 8.3% |
| Bell Bank | Commercial Bank | 8.5% |
| BNC National Bank | Commercial Bank | 8.5% |
| First Community Credit Union | Credit Union | 8.5% |
| First Interstate Bank | Commercial Bank | 8.5% |
| KodaBank | Commercial Bank | 8.5% |
| BMO BANK NATIONAL ASSOCIATION | Commercial Bank | 8.5% |
| Starion Bank | Commercial Bank | 8.8% |
| Aspire Bank | Commercial Bank | 9.3% |
| U.S. Bank National Association | Commercial Bank | 10.2% |
COMPARING HELOC RATES IN NORTH DAKOTA: BANKS VS. CREDIT UNIONS
HELOC rates in North Dakota vary between banks and credit unions, with commercial banks typically offering higher rates. The best HELOC rate at commercial banks in North Dakota averages 8.2%, while credit unions offer a slightly lower average APR of 8.0%. Credit unions, being not-for-profit institutions, often provide more competitive rates than their for-profit counterparts.
When deciding between the two, consider more than just rates. Banks might offer more convenience and accessibility, whereas credit unions could provide better customer service and lower fees. It's also wise to review membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Ask the experts:
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 equity. Use our North Dakota HELOC payment calculator to find your monthly payments based on amount draws, loan terms and APR. It also provides an amortization schedule and payment breakdown between principal and interest. Understanding these details can help you manage your HELOC and improve your financial planning.
North Dakota 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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Credit Payoff Schedule for Home Equity Line
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How to Get the Best HELOC Rates in North Dakota
Finding the best HELOC rates in North Dakota can help reduce your loan costs. To achieve this, consider these five strategies:
Maintain a strong credit score
The average credit score in North Dakota is 733. Improving your score can help you secure more competitive HELOC rates.
Compare offers from multiple lenders
Shopping around for lender offers can help you find competitive rates and negotiate better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income ratios show financial stability. Paying off credit card debt can improve your ratio.
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
Some lenders charge closing costs. Compare rate caps to manage costs as rates adjust.
HELOC Loan Rates vs. Home Equity Loan Rates in North Dakota
HELOC interest rates in North Dakota average 8.1%, slightly higher than the 7.5% for home equity loans. This difference arises because HELOCs have variable rates, while home equity loans offer fixed rates.
- HELOCs are flexible, revolving credit lines with variable rates that can change with market conditions. In rising interest rate environments, these rates can increase, affecting long-term homeowner finances.
- Home equity loans provide a lump sum at a fixed rate, offering predictability throughout the loan term. They are preferable in scenarios where financial stability is prioritized over flexibility.
When choosing between these products, consider whether you prefer the flexibility of accessing funds as needed with a HELOC or the predictability of fixed payments with a home equity loan. Assess your financial situation and goals to determine which option aligns best with your needs, keeping in mind how each affects your home's equity.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
Cash-out refinance is a HELOC alternative that replaces your existing mortgage with a new, larger loan, offering 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 $300K with a $150K mortgage balance, an FHA cash-out refinance for $200K could give you $50K in cash, with new loan payments based on $200K.
FAQ: Best HELOC Rates in North Dakota
What are the current HELOC rates in North Dakota and how do they compare to national rates?
North Dakota's HELOC rates average 8.1%, slightly below the national average of 8.2%.
What fees are commonly associated with HELOCs in North Dakota?
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
How do HELOC rates in North Dakota compare to home equity loan rates?
HELOC rates in North Dakota average 8.1%, while home equity loan rates are lower at 7.5%, which can be beneficial for those with bad credit.
How do HELOC Rates in North Dakota vary between banks and credit unions?
Commercial banks in North Dakota offer HELOC rates averaging 8.2%, while credit unions offer lower rates at 8.0%.
What's the best HELOC rate in Fargo? How does it compare to the current HELOC rate in North Dakota?
The average HELOC rate in North Dakota is 8.1%, while Fargo's rates are slightly lower, averaging 8.0%.
MoneyGeek examined 25 different banks and credit unions in North Dakota 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.
25Lenders 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.