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
Best HELOC Rates in Vermont (December 2024)
Updated: December 21, 2024
Advertising & Editorial Disclosure
Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Vermont with an 80% LTV is 7.8%, compared with 8.8% for a 90% LTV.
HELOC rates vary by city in Vermont. Manchester Center has an average APR of 7.3%, whereas Castleton's is 8.5%.
Different lenders offer varying rates for the same loan limits. Berkshire Bank's average APR is 7.3%, whereas Green Mountain Credit Union's is 9.8%.
Current HELOC Rates in Vermont
Loading...
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:
Data filtered by:Results filtered by:
Select
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.
Data filtered by:Results filtered by:
Select
City:Burlington
| $100,000 | 7.9% |
| $50,000 | 7.9% |
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. Albans | 7.4% |
| North Country Federal Credit Union | 7.5% |
| Mascoma Bank | 7.5% |
| National Bank of Middlebury | 7.8% |
| Berkshire Bank | 8.0% |
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.
Data filtered by:Results filtered by:
Select
City:Burlington
| Mascoma Bank | Commercial Bank | 7.5% |
| North Country Federal Credit Union | Credit Union | 7.5% |
| Citizens Bank | Commercial Bank | 8.0% |
| Community National Bank | Commercial Bank | 8.0% |
| EastRise Federal Credit Union | Credit Union | 8.3% |
| NBT Bank | Commercial Bank | 8.3% |
COMPARING HELOC RATES IN VERMONT: BANKS VS. CREDIT UNIONS
HELOC rates in Vermont vary between banks and credit unions, with commercial banks typically offering lower rates due to higher overhead costs. The best HELOC rate for commercial banks in Vermont is 7.8%, while credit unions offer an average APR of 8.3%. Credit unions are not-for-profit institutions, which often allows them to provide competitive rates and personalized service.
When choosing between the two, consider more than just rates. Banks may offer more convenience and a wider range of services, but credit unions often provide better customer service and lower fees. It's important to also 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'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.
Credit Line Information
Draw Period Payment
$0
Repayment Period Payment
$0
- Graph view
- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
YEAR
Ending balance
Principal paid
Interest paid
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:
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.
Compare offers from multiple lenders
By comparing offers, you can find competitive rates and use them to negotiate better terms.
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.
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 Vermont
HELOC interest rates in Vermont average 8.1%, while home equity loan rates are slightly lower at 7.6%. This difference arises from the variable rate structure of HELOCs compared to the fixed rates of home equity loans.
- HELOCs are revolving credit lines with variable interest rates that can change over time, making them less predictable in rising interest rate environments. This variability can impact homeowners' finances over the long term.
- In contrast, home equity loans provide a lump sum at a fixed interest rate, offering stability and predictability. They are ideal for situations where you need a specific amount of money upfront.
When deciding between these products, consider your financial goals and risk tolerance. If you value the flexibility of accessing funds as needed, a HELOC might suit you. However, if you prefer consistent payments and rates, a home equity loan could be the better choice. Additionally, assess how each option aligns with your ability to manage 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?
The average HELOC rate in Vermont is 8.1%, slightly lower than the national average of 8.3%.
What fees are commonly associated with HELOCs in Vermont?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in Vermont compare to home equity loan rates?
Vermont's HELOC rates average 8.1%, while home equity loan rates are lower at 7.6%, which could be beneficial for those with bad credit.
How do HELOC Rates in Vermont vary between banks and credit unions?
Commercial banks in Vermont offer HELOC rates averaging 7.8%, while credit unions offer lower rates at 8.3%.
What's the best HELOC rate in Burlington? How does it compare to the current HELOC rate in Vermont?
Burlington's rates average 7.8%, which is slightly lower than the Vermont average of 8.1%.
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 December 13, 2024.
16Lenders 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.