HELOC rates in Virginia rose from 4% in early 2022 to 9% by mid-2024. If this trend persists, homeowners might encounter higher borrowing costs. Consider locking in a rate now to avoid future increases.
HELOC
Best HELOC Rates in Virginia (December 2024)
Updated: December 16, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Virginia with an 80% LTV is 8.2%, compared with 8.6% for a 90% LTV.
HELOC rates vary by city in Virginia. Melfa has an average APR of 7.6%, whereas Berryville's is 10.1%.
Different lenders offer varying rates for the same loan types. State Department Federal Credit Union's average APR is 7.3%, whereas Pinnacle Bank's is 11.8%.
Current HELOC Rates in Virginia
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HELOC Rates in Virginia by LTV Ratio
HELOC rates in Virginia vary depending on your loan-to-value (LTV) ratio and line limit. Lenders consider a lower LTV less risky, as it shows more equity in your home. For instance, an 80% LTV indicates less borrowed 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
| 8.2% | 8.7% |
HELOC Rates in Virginia by City
HELOC rates in Virginia vary by city due to differences in local housing markets and lender competition. For instance, a city with a robust real estate market may offer lower rates, 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:Virginia Beach
| $100,000 | 8.4% |
| $50,000 | 8.4% |
HELOC Rates in Virginia by Lender
HELOC interest rates in Virginia vary among lenders due to differing pricing strategies and risk assessments. Comparing rates can help you find competitive options. The table below highlights the five lenders in Virginia offering the lowest average APRs.
| First National Bank of Pennsylvania | 6.5% |
| Salem VA Medical Center Federal Credit Union | 7.5% |
| State Department Federal Credit Union | 7.5% |
| NextMark Federal Credit Union | 7.5% |
| Wright Patman Congressional Federal Credit Union | 7.5% |
HELOC rates today can vary between lenders even within the same city. Use the table below to filter by city and compare APRs, helping you find the best rate available in your area.
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City:Virginia Beach
| Pentagon Federal Credit Union | Credit Union | 7.6% |
| TowneBank | Commercial Bank | 7.8% |
| ABNB Federal Credit Union | Credit Union | 7.8% |
| The Old Point National Bank of Phoebus | Commercial Bank | 8.0% |
| Langley Federal Credit Union | Credit Union | 8.0% |
| Fulton Bank | Commercial Bank | 8.0% |
| 1st Advantage Federal Credit Union | Credit Union | 8.0% |
| Newport News Shipbuilding Employees' Credit Union, Inc. | Credit Union | 8.1% |
| Chartway Federal Credit Union | Credit Union | 8.3% |
| Beach Municipal Federal Credit Union | Credit Union | 8.5% |
| Southern Bank and Trust Company | Commercial Bank | 8.5% |
| Navy Federal Credit Union | Credit Union | 9.1% |
| Bank of America | Commercial Bank | 9.4% |
| PNC Bank | Commercial Bank | 9.7% |
COMPARING HELOC RATES IN VIRGINIA: BANKS VS. CREDIT UNIONS
HELOC rates in Virginia vary between banks and credit unions, with commercial banks typically offering higher rates. Currently, the best HELOC rate for commercial banks in Virginia averages 8.5%, compared to the average APR of 8.2% offered by credit unions. Credit unions are not-for-profit institutions, which often allows them to provide slightly lower rates.
When deciding between banks and credit unions, 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 check membership requirements for credit unions and be aware of any hidden fees or rate adjustment clauses with both lenders.
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 Virginia HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms.
It also offers a full amortization schedule, showing the division between principal and interest over time. Understanding these details can help you better manage your HELOC and plan future payments.
Virginia 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 Virginia
Finding the best HELOC rates in Virginia can save you thousands over your loan's life. For instance, securing a rate that's 1% lower can reduce your monthly payments significantly. Consider these five strategies:
Maintain a strong credit score
Virginia's average credit score is 722. Improving it can secure better rates from lenders.
Compare offers from multiple lenders
Shopping around can uncover competitive rates and help negotiate better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show financial stability. Pay off credit card debt to improve your ratio.
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. Rate caps help manage HELOC adjustments.
HELOC Loan Rates vs. Home Equity Loan Rates in Virginia
HELOC interest rates in Virginia average 8.3%, compared to 7.7% for home equity loans. The difference stems from HELOCs' variable rates, which can rise with market changes, unlike the fixed rates of home equity loans.
- HELOCs are revolving credit lines with variable rates, making them susceptible to changes in rising interest rate environments, potentially increasing costs for homeowners over time.
- Home equity loans offer a lump sum at a fixed rate, providing stability and predictability, which can be advantageous in situations where financial certainty is preferred.
When deciding between these options, consider whether you value the flexibility of a HELOC or the predictability of a home equity loan. Assess your financial goals and tolerance for rate fluctuations before borrowing 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. It differs from HELOCs or home equity loans by creating a new primary mortgage.
For example, if you have a mortgage backed by the Federal Housing Administration (FHA) and your home is valued at $300,000 with a $150,000 mortgage balance, an FHA cash-out refinance for $200,000 could provide $50,000 in cash, with new loan payments based on $200,000.
FAQ: Best HELOC Rates in Virginia
What are the current HELOC rates in Virginia and how do they compare to national rates?
The average HELOC rate in Virginia's HELOC rates is 8.3%, which matches the national average of 8.3%.
What fees are commonly associated with HELOCs in Virginia?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, though specifics can vary by lender.
How do HELOC rates in Virginia compare to home equity loan rates?
Virginia's HELOC rates average 8.3%, while home equity loan rates are lower at 7.7%, especially impacting those with bad credit.
How do HELOC Rates in Virginia vary between banks and credit unions?
Virginia's commercial banks offer HELOC rates averaging 8.5%, while credit unions offer lower rates at 8.2%.
What's the best HELOC rate in Virginia Beach? How does it compare to the current HELOC rate in Virginia?
Virginia Beach's rates average 8.3%, which is consistent with the overall state average HELOC rate of 8.3%.
MoneyGeek examined 116 different banks and credit unions in Virginia 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.
116Lenders 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.