HELOC rates in Rhode Island increased from 4% in early 2022 to over 8% by late 2024. With rates stabilizing around this level, homeowners considering a HELOC might want to lock in a rate soon to avoid potential increases.
HELOC
Best HELOC Rates in Rhode Island (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 Rhode Island with an 80% LTV is 7.8%, compared with 8.9% for a 90% LTV.
HELOC rates vary by city in Rhode Island. Scituate has an average APR of 7.3%, whereas Greenville's is 8.5%.
Different lenders offer varying rates for the same loan types. Peoples Credit Union's average APR is 6.8%, whereas Bank of America's is 9.7%.
Current HELOC Rates in Rhode Island
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HELOC Rates in Rhode Island by LTV Ratio
HELOC rates in Rhode Island vary depending on the borrower's loan-to-value (LTV) ratio and line limit. Lenders consider a lower LTV less risky because you have more equity. For instance, an 80% LTV means you've borrowed less 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
| 8.0% | 9.1% |
HELOC Rates in Rhode Island by City
HELOC rates in Rhode Island vary by city, influenced by local housing markets and lender competition. For instance, cities with robust real estate markets may offer lower rates.
Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.
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City:Providence
| $100,000 | 8.1% |
| $50,000 | 8.2% |
HELOC Rates in Rhode Island by Lender
HELOC interest rates in Rhode Island vary due to different lender pricing strategies and risk assessments. The table below shows the five lenders in Rhode Island offering the lowest average APRs, helping you compare competitive rates.
| Navigant Credit Union | 7.3% |
| Peoples Credit Union | 7.3% |
| Webster Bank, N.A. | 7.5% |
| Bank Rhode Island | 7.5% |
| City of Boston Credit Union | 7.5% |
HELOC rates today can differ among 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:Providence
| Navigant Credit Union | Credit Union | 7.3% |
| Webster Bank, N.A. | Commercial Bank | 7.5% |
| Bank Rhode Island | Commercial Bank | 7.5% |
| BankNewport | Commercial Bank | 7.8% |
| The Washington Trust Company of Westerly | Commercial Bank | 7.9% |
| Coastal1 Credit Union | Credit Union | 8.1% |
| HarborOne Bank | Commercial Bank | 8.2% |
| Bristol County Savings Bank | Commercial Bank | 8.5% |
| Customers Bank | Commercial Bank | 8.5% |
| Bank of America | Commercial Bank | 10.5% |
COMPARING HELOC RATES IN RHODE ISLAND: BANKS VS. CREDIT UNIONS
HELOC rates in Rhode Island vary between banks and credit unions, with banks typically offering higher rates. Currently, the best HELOC rate for commercial banks in the state averages 8.1%, compared to the 8.0% average APR offered by credit unions. Credit unions are not-for-profit institutions that often provide slightly lower rates due to their different operational model.
When choosing between the two, consider more than just rates. Banks may offer more convenience and a wider range of services, while credit unions often provide better customer service and lower fees. It's important to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Ask the experts:
Are there any strategies homeowners can use to lock in a favorable HELOC rate in a rising interest rate environment, and how does a rate lock typically work with HELOCs?
Credit & Mortgage Expert
HELOCS often have variable interest rates, meaning they go up or down with the Federal Funds rate. So if you are worried about rates rising, you should look into a home equity loan or refinancing your home. That way you have a fixed rate that will not change over time.
HELOC Payment Calculator
HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home equity. Use our Rhode Island HELOC payment calculator to determine your monthly payments based on draws, APR and loan terms. It also provides an amortization schedule, showing the division of payments between principal and interest over time. Understanding these details can help you manage your HELOC and enhance your financial planning.
Rhode Island 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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- Table view
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Credit Payoff Schedule for Home Equity Line
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How to Get the Best HELOC Rates in Rhode Island
Finding the best HELOC rates in Rhode Island can lead to significant savings over your loan's duration. To secure competitive rates, consider these five strategies:
Maintain a strong credit score
The average credit score in Rhode Island is 722. Improving your score can help secure better rates from lenders.
Compare offers from multiple lenders
Looking at different 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 DTI ratio.
Increase your home equity
More equity reduces lender risk, leading to lower rates. Consider paying down your mortgage or making home improvements.
Review closing costs and rate caps
Closing costs affect loan expenses. Understanding rate caps helps manage HELOC costs as rates adjust.
HELOC Loan Rates vs. Home Equity Loan Rates in Rhode Island
HELOC interest rates in Rhode Island average 8.0%, while home equity loan rates are slightly lower at 7.3%. The difference arises from HELOCs having variable rates, which can increase in rising interest rate environments.
- HELOCs are flexible credit lines with variable rates that change with the market, potentially increasing costs over time. In rising interest rate environments, this variability can strain homeowners' finances.
- Home equity loans provide a fixed-rate lump sum, offering stable payments and predictability, ideal for those who prefer certainty in financial planning.
When deciding between these options, consider your financial goals and risk tolerance. If you need flexible access to your home's equity, a HELOC might suit you, but for fixed payments and stability, a home equity loan could be better.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
A cash-out refinance is a HELOC alternative that replaces your primary mortgage with a new, 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 $300K with a $150K mortgage balance, an FHA cash-out refinance for $200K could give you $50K in cash, but your new loan payments will be based on $200K.
FAQ: Best HELOC Rates in Rhode Island
What are the current HELOC rates in Rhode Island and how do they compare to national rates?
The average HELOC rate in Rhode Island is 8.0%, which is slightly lower than the national average of 8.3%.
What fees are commonly associated with HELOCs in Rhode Island?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in Rhode Island compare to home equity loan rates?
Rhode Island's HELOC rates average 8.0%, while home equity loan rates are lower at 7.3%, which may be beneficial for those with bad credit.
How do HELOC Rates in Rhode Island vary between banks and credit unions?
Commercial banks in Rhode Island offer HELOC rates averaging 8.1%, while credit unions offer lower rates at 8.0%.
What's the best HELOC rate in Providence? How does it compare to the current HELOC rate in Rhode Island?
Providence's rates average 8.1%, slightly higher than the overall Rhode Island average of 8.0%.
MoneyGeek examined 18 different banks and credit unions in Rhode Island 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.
18Lenders 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.