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 (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 Dakota with an 80% LTV is 8.1%, compared with 8.4% 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 banks typically offering higher rates. For example, commercial banks in the state have an average HELOC rate of 8.3%, while credit unions, which are not-for-profit institutions, offer an average rate of 8.1%. This difference can be attributed to the operational structures of these institutions.
When choosing between the two, it's important to consider more than just rates. Banks might provide more convenience and accessibility, while credit unions often offer better customer service and lower fees. Additionally, check membership requirements for credit unions and watch for any hidden fees or rate adjustment clauses from both types of lenders.
Ask the experts:
How do HELOC rates compare to other borrowing options like personal loans or home equity loans, and when should a homeowner choose a HELOC over these alternatives?
Credit & Mortgage Expert
Typically, a HELOC will have a lower interest rate than a personal loan from a bank or credit union. However, HELOCs often have a variable rate, so they can go up or down depending on the current Federal Funds rate. Home equity loans are a fixed rate, so when the Fed increases rates or they remain the same, that is a good time to get a home equity loan.
Personal loans are a solid option despite their higher rates because they are unsecured, meaning there is no collateral (like your home). If you come on hard times and can’t repay a personal loan, you are not at risk of losing your home like you are with a HELOC or home equity 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 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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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 8.2%, while home equity loan rates are lower at 7.4%. The difference arises from HELOCs having variable rates, which can increase over time, especially in rising interest rate environments.
- HELOCs are revolving credit lines with variable rates, making them flexible but potentially costly in the long run if rates rise. This can impact homeowners' finances as payments may increase.
- Home equity loans offer a lump sum at a fixed rate, providing stability and predictability, which is beneficial for managing fixed expenses.
When deciding between these options, consider your borrowing needs and risk tolerance. If you value flexibility and can handle potential rate increases, a HELOC might suit you. If predictability is key, a home equity loan could be the better choice. Both options let you borrow against 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 8.2%, slightly below the national average of 8.3%.
What fees are commonly associated with HELOCs in North Dakota?
Common fees include application fees, appraisal fees, annual fees, 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 8.2%, while home equity loan rates are lower at 7.4%, which could be more appealing 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 8.3%, while credit unions offer lower rates at 8.1%.
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 8.2%, while Fargo's rates are slightly lower, averaging 8.1%.
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 December 13, 2024.
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.