Home Equity Loan Rates in Alaska (November 2024)

The equity in your home that you can access and borrow is known as tappable equity. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Alaska's home equity loan rates are above national averages — 8.6% APR for a 10-year term (7.7% nationally) and 8.8% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Alaska, including city-specific rates, top lenders and tips on securing the best rates for using your home's equity.

The current average APR for a 15-year home equity loan in Alaska is 8.8%, but several factors might affect what lenders offer. For instance, having a higher credit score often results in a lower APR, while opting for a larger loan amount could lead to a higher rate. Repayment terms are another consideration. The table below compares the average APRs for home equity loans in Alaska across different loan terms.

Interest rates for home equity loans change daily. Keeping up with these changes can help you pay less in interest over the life of your loan, saving you money. If you have high-interest debts, securing a home equity loan at a lower rate can help you consolidate those debts and reduce your overall interest payments.

For example, a 15-year home equity loan with an 8.8% APR results in a monthly payment of $501 and a total interest of $40,216. In comparison, a 10-year loan with an 8.5% APR has a monthly payment of $620 and a total interest of $24,391.

The rate you qualify for depends on your loan-to-value ratio. This ratio measures how much you owe on your mortgage compared to your home's appraised value. To calculate your LTV ratio, divide your current mortgage balance by your home's appraised value and multiply by 100. For example, if your home is valued at $300,000 and you owe $240,000 on your mortgage, your LTV ratio is 80%.

A higher LTV ratio presents a greater risk to lenders, leading to higher rates. In Alaska, the average APR for a 15-year equity loan with an LTV ratio of 80% is 8.8%. Check the table below to see what rates you might qualify for based on your LTV ratio and average home equity loan rates.

Average APRs also vary between cities in Alaska. Cities with higher home values or rapid appreciation often have lower rates because the loans are seen as less risky. Additionally, cities with higher living costs may see slightly higher rates, as lenders face increased operational expenses.

In Alaska, Anchorage has an average APR of 8.7%, while Sitka has an average APR of 10%. See the table below for average home equity loan rates across Alaskan cities with different terms.

Home equity loan rates in Alaska vary between lenders, influenced by each lender's policies and market strategies. For instance, Denali State Bank offers the lowest average APR at 7.5%, while Northrim Bank has the highest at 10%.

Comparing rates and terms from different lenders is essential to securing the lowest home equity loan rates. Explore the interactive table to see which lenders offer the best rates in your city.

Getting the best possible home equity interest rates can make your borrowing experience more affordable, leading to lower monthly payments and overall costs. To achieve the best home equity loan rates in Alaska, consider these strategies:

MoneyGeek answers common questions about home equity loan rates in Alaska, offering clear and reliable information to homeowners.