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
Updated: November 19, 2024
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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 8.1%, compared with 8.9% for a 90% LTV.
HELOC rates vary by city in Vermont. East Montpelier has an average APR of 7.5%, whereas Townshend's is 8.8%.
Different lenders offer varying rates for the same loan types. Peoples Trust Company of St. Albans' average APR is 7.4%, whereas Green Mountain Credit Union's is 10.0%.
Current HELOC Rates in Vermont
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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:
Line Limit:
Line Limit:$100,000
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:
City:
City:Burlington
| $100,000 | 8.0% |
| $50,000 | 8.0% |
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 | 7.8% |
| 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:
City:
City:Burlington
| North Country Federal Credit Union | Credit Union | 7.5% |
| Mascoma Bank | Commercial Bank | 7.8% |
| 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 | 9.0% |
COMPARING HELOC RATES IN VERMONT: BANKS VS. CREDIT UNIONS
HELOC rates in Vermont vary between banks and credit unions, with banks generally offering lower rates. Currently, commercial banks in Vermont have an average APR of 8.1%, while credit unions offer an average APR of 8.4%. Credit unions are not-for-profit institutions, which often results in different rate structures compared to banks.
When choosing between the two, consider more than just rates. Banks may offer more convenience, while credit unions often provide better customer service and lower fees. It's important to also check membership requirements for credit unions and watch for 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'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
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Repayment Period Payment
$0
- Graph view
- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
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Ending balance
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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:
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 8.3%, while the best home equity loan rates are around 7.6%. The difference stems from HELOCs having variable rates, which tend to be higher due to market fluctuations.
- HELOCs are flexible, revolving credit lines with variable rates that can rise in rising interest rate environments, potentially increasing long-term costs for homeowners.
- Home equity loans provide a lump sum at a fixed rate, offering stability and predictability, making them preferable in situations requiring consistent payments.
When deciding between the two, consider your financial goals and whether you prioritize flexibility or predictability. Both options let you borrow against your home's equity, so evaluate your needs and risk tolerance carefully.
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 Vermont's HELOC rates is 8.3%, slightly below the national average of 8.4%.
What fees are commonly associated with HELOCs in Vermont?
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
How do HELOC rates in Vermont compare to home equity loan rates?
HELOC rates in Vermont average 8.3%, while home equity loan rates are lower at 7.6%, especially 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 8.1%, while credit unions offer lower rates at 8.4%.
What's the best HELOC rate in Burlington? How does it compare to the current HELOC rate in Vermont?
Burlington's rates average 8.0%, which is slightly lower than the Vermont state average of 8.3%.
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 November 15, 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.