Best HELOC Rates in Vermont (January 2025)

Key Takeaways

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Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Vermont with an 80% LTV is 7.9%, compared with 8.7% for a 90% LTV.

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HELOC rates vary by city in Vermont. Orleans has an average APR of 7.3%, whereas Winooski's is 9.7%.

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Different lenders offer varying rates for the same loan limits. North Country Federal Credit Union's average APR is 7.3%, whereas TD Bank's is 9.7%.

Current HELOC Rates in Vermont

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HELOC rates in Vermont rose from 3.8% in early 2022 to 8.5% by November 2024, stabilizing around 8.7% recently. Homeowners considering a HELOC should lock in current rates to avoid potential future increases.

HELOC Rates in Vermont by LTV Ratio

HELOC rates in Vermont vary based on your loan-to-value (LTV) ratio and line limit. A lower LTV is less risky for lenders, as it reflects more home equity. For instance, at 80% LTV, you borrow less against your home's value than at 90%, reducing the risk of default on your HELOC.

The table below lets you filter by loan amounts, giving you a clearer view of potential qualifications:

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Line Limit:$100,000
8.0%8.8%

HELOC Rates in Vermont by City

HELOC rates in Vermont vary by city due to differences in local housing markets and lender competition. For example, Burlington might offer lower rates due to its 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:Burlington
$100,0007.9%
$50,0007.9%

HELOC Rates in Vermont by Lender

HELOC interest rates in Vermont vary based on lenders' pricing strategies and risk assessments. This affects the rates offered by different lenders in Vermont. Below is a table showing the five lenders in Vermont with the lowest average APRs, allowing you to compare competitive rates.

Peoples Trust Company of St. Albans7.4%
North Country Federal Credit Union7.5%
Mascoma Bank7.5%
National Bank of Middlebury7.8%
Berkshire Bank8.0%

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:Burlington
Mascoma BankCommercial Bank7.5%
North Country Federal Credit UnionCredit Union7.5%
Citizens BankCommercial Bank8.0%
Community National BankCommercial Bank8.0%
EastRise Federal Credit UnionCredit Union8.3%
NBT BankCommercial Bank8.3%
COMPARING HELOC RATES IN VERMONT: BANKS VS. CREDIT UNIONS

HELOC rates in Vermont vary between banks and credit unions due to their different operational structures. Commercial banks in Vermont typically offer higher rates, with the best rate currently at an average APR of 7.9%. In contrast, credit unions, which are not-for-profit institutions, have an average APR of 8.1% and often provide more personalized service.

When choosing between the two, consider more than just rates. Banks might offer greater convenience, while credit unions can provide better customer service and potentially lower fees. It's important to also check membership requirements for credit unions and be aware of any hidden fees or rate adjustment clauses from 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's equity. Use our Vermont HELOC payment calculator to determine your monthly payments based on amount draws, loan terms and APR.

Our calculator also provides an amortization schedule and shows the division of payments between principal and interest over time. These insights can help you manage your HELOC and improve your financial planning.

Vermont 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 Vermont

Finding the best HELOC rates in Vermont can lead to considerable savings. For example, a lower rate could save you hundreds in interest each year. To secure these rates, consider these five strategies:

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    Maintain a strong credit score

    The average credit score in Vermont is 737. While good, aiming for 750 or higher can secure even better rates.

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    Compare offers from multiple lenders

    By comparing offers, you can find competitive rates and use them to negotiate better terms.

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    Reduce your debt-to-income (DTI) ratio

    Lower debt-to-income (DTI) ratios show financial stability. Paying off credit card debt can improve your DTI ratio.

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    Increase your home equity

    More equity reduces lender risk, leading to lower rates. Consider paying down your mortgage or making home improvements.

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    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 Vermont

HELOC interest rates in Vermont average 8.1%, compared to 7.6% for home equity loans. This difference stems from the variable rate structure of HELOCs, which can lead to higher costs in rising interest rate environments.

- HELOCs are revolving credit lines with variable rates that adjust with market conditions. In rising interest rate environments, HELOCs may become more expensive, impacting long-term finances.

- Home equity loans offer a lump sum at a fixed rate, providing consistent payments. They are more suitable for those who prefer financial stability and have a specific large expense.

When deciding between these options, consider your financial goals and risk tolerance. Assess whether you need the flexibility of a HELOC or the predictability of a home equity loan. Also, evaluate how changes in interest rates may affect your ability to manage payments 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 primary mortgage with a new, larger loan, allowing cash access. It differs from HELOCs or home equity loans by creating a new primary mortgage.

For example, if you have a loan backed by the Federal Housing Administration (FHA), an FHA cash-out refinance could provide cash based on your home's equity.

FAQ: Best HELOC Rates in Vermont

What are the current HELOC rates in Vermont and how do they compare to national rates?

What fees are commonly associated with HELOCs in Vermont?

How do HELOC rates in Vermont compare to home equity loan rates?

How do HELOC Rates in Vermont vary between banks and credit unions?

What's the best HELOC rate in Burlington? How does it compare to the current HELOC rate in Vermont?

MoneyGeek examined 16 different banks and credit unions in Vermont 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.

16Lenders Analyzed

About Zachary Romeo, CBCA


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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.