HELOC rates in South Dakota rose from 4.4% in early 2022 to 8.6% in 2024. If this trend continues, homeowners could face higher borrowing costs. Consider locking in the current rate to avoid potential increases.
HELOC
Best HELOC Rates in South 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 South Dakota with an 80% LTV is 8.3%, compared with 8.5% for a 90% LTV.
HELOC rates vary by city in South Dakota. Winner has an average APR of 7.3%, whereas Edgemont's is 10.3%.
Different lenders offer varying rates for the same loan types. Sentinel Federal Credit Union's average APR is 7.3%, whereas U.S. Bank National Association's is 9.7%.
Current HELOC Rates in South Dakota
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HELOC Rates in South Dakota by LTV Ratio
HELOC rates in South Dakota vary based on your loan-to-value (LTV) ratio and line limit. A lower LTV ratio indicates more equity in your home, making lenders view you as less risky. For instance, an 80% LTV means borrowing less against your home's value compared to a 90% LTV, reducing the likelihood you'll default on your HELOC.
The table below allows you to filter by different loan amounts, providing a clearer view of your potential qualifications:
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Line Limit:$100,000
| 8.4% | 8.5% |
HELOC Rates in South Dakota by City
HELOC rates in South Dakota vary by city due to differences in local housing markets and lender competition. For instance, cities with strong real estate markets might offer lower rates as homes hold value better, 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:Sioux Falls
| $100,000 | 8.5% |
| $50,000 | 8.5% |
HELOC Rates in South Dakota by Lender
HELOC interest rates in South Dakota vary among lenders due to differing pricing strategies and risk assessments. The table below highlights the five lenders in South Dakota offering the lowest average APRs, enabling you to compare competitive rates.
| Peoples Bank | 7.4% |
| Aspen Federal Credit Union | 7.5% |
| Sentinel Federal Credit Union | 7.8% |
| Levo Federal Credit Union | 8.0% |
| Bluestone Federal Credit Union | 8.0% |
HELOC rates today can vary among lenders in the same city. Use the table below to filter by city and compare average APRs, helping you find the best rate in your area.
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City:Sioux Falls
| Plains Commerce Bank | Commercial Bank | 8.0% |
| Security National Bank of South Dakota | Commercial Bank | 8.0% |
| Bluestone Federal Credit Union | Credit Union | 8.0% |
| Levo Federal Credit Union | Credit Union | 8.0% |
| Minnwest Bank | Commercial Bank | 8.1% |
| Sunrise Banks | Commercial Bank | 8.5% |
| Liberty National Bank | Commercial Bank | 8.5% |
| First State Bank Southwest | Commercial Bank | 8.5% |
| First Interstate Bank | Commercial Bank | 8.5% |
| CorTrust Bank National Association | Commercial Bank | 8.5% |
| American State Bank | Commercial Bank | 8.5% |
| The First National Bank in Sioux Falls | Commercial Bank | 8.5% |
| Voyage Federal Credit Union | Credit Union | 8.6% |
| Black Hills Federal Credit Union | Credit Union | 9.0% |
| Security Savings Bank | Commercial Bank | 9.0% |
| Service First Federal Credit Union | Credit Union | 9.0% |
| U.S. Bank National Association | Commercial Bank | 9.7% |
COMPARING HELOC RATES IN SOUTH DAKOTA: BANKS VS. CREDIT UNIONS
HELOC rates in South Dakota vary between banks and credit unions. Commercial banks often have higher rates, with the best HELOC rate in South Dakota for commercial banks averaging 8.5%. In comparison, credit unions offer a slightly lower average APR of 8.3%, as they are not-for-profit institutions.
When choosing between the two, consider more than just rates. Banks may provide more convenience, while credit unions often excel in customer service and lower fees. It's also wise to check membership requirements for credit unions and be aware of any hidden fees or rate adjustment clauses with both lenders.
Ask the experts:
What advice do you have for homeowners who are considering a HELOC in today’s economic climate — should they act now or wait for more favorable conditions?
Credit & Mortgage Expert
As with anything there are pros and cons. Even though rates may be higher right now, the home values are also high. This could lead to you getting approved for more of a HELOC compared to if rates are lower but housing values decrease (not saying they will). In my opinion, it’s better to get a HELOC now and have it for when you need it. Also, HELOC rates are variable — so if rates go down, so will the rate on your HELOC.
HELOC Payment Calculator
HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home equity. Use our South Dakota HELOC payment calculator to determine your monthly payments based on the amount drawn, 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 your finances more effectively.
South Dakota 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 South Dakota
Finding the best HELOC rates in South Dakota can save you significant amounts over your loan's term. To secure these rates, consider these strategies:
Maintain a strong credit score
South Dakota's average credit score is 734. While it's good, aiming for a higher score can secure better rates.
Compare offers from multiple lenders
Shopping around helps find competitive rates and leverage offers for better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income ratios show stability. Paying off debt can improve your rate.
Increase your home equity
More equity lowers lender risk. Paying down your mortgage or making home improvements can help.
Review closing costs and rate caps
Closing costs affect expenses. Knowing rate caps helps manage HELOC adjustments.
HELOC Loan Rates vs. Home Equity Loan Rates in South Dakota
HELOC interest rates in South Dakota are generally higher than home equity loan rates, averaging 8.4% compared with 7.8%. This difference is due to their rate structures, which influence the average APRs.
- HELOCs operate as flexible, revolving credit lines with variable interest rates that fluctuate based on market conditions. In rising interest rate environments, this can lead to increased costs, impacting homeowners' finances over time.
- By contrast, home equity loans provide a lump sum at a fixed interest rate, which stays consistent throughout the loan term. This predictability is beneficial for those who prefer stable payments and financial certainty.
Both options let you borrow against your home's equity, but your decision depends on whether you value the flexibility of a HELOC or the predictability of a home equity loan. Consider your financial goals, risk tolerance, and the potential impact of interest rate changes when choosing the best option for you.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
Cash-out refinance is a HELOC alternative that replaces your primary mortgage with a larger loan, giving you cash. It differs from HELOCs or home equity loans, which don't replace your primary loan.
For example, if your mortgage is backed by the Federal Housing Administration (FHA), and your home is valued at $300K with a $150K balance, an FHA cash-out refinance for $200K gives you $50K in cash.
FAQ: Best HELOC Rates in South Dakota
What are the current HELOC rates in South Dakota and how do they compare to national rates?
South Dakota's HELOC rates average 8.4%, slightly higher than the national average of 8.2%.
What fees are commonly associated with HELOCs in South Dakota?
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
How do HELOC rates in South Dakota compare to home equity loan rates?
HELOC rates in South Dakota average 8.4%, while home equity loan rates are lower at 7.8%, which can be beneficial for those with bad credit.
How do HELOC Rates in South Dakota vary between banks and credit unions?
Banks in South Dakota offer HELOC rates averaging 8.5%, while credit unions offer lower rates at 8.3%.
What's the best HELOC rate in Sioux Falls? How does it compare to the current HELOC rate in South Dakota?
The average HELOC rate in Sioux Falls is 8.5%, slightly higher than the state average of 8.4%.
MoneyGeek examined 29 different banks and credit unions in South 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.
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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.