Home Equity Loan Rates in Alaska (January 2025)

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, a higher credit score could secure a lower APR, whereas a larger loan amount might result in a higher rate. Repayment terms also play a role in determining rates. Compare the average APRs of home equity loans in Alaska across different loan terms to see how these factors influence current home equity loan rates in Alaska.

Interest rates for home equity loans change daily. Keeping track of these changes can save you money by paying less in interest over the life of the loan. If you have high-interest debts, a home equity loan at a lower rate can help 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 8.6% APR has a monthly payment of $623 and a total interest of $24,713.

The rate you qualify for depends on your loan-to-value ratio, which 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 higher risk to lenders, resulting in higher rates. Currently, the average APR of a 15-year equity loan in Alaska with an LTV ratio of 80% is 8.8%. Use the table to see what rates you might qualify for based on your LTV ratio.

Average APRs also vary between Alaskan cities. Cities with high living costs may see slightly high rates, with lenders facing increased operational expenses. Additionally, differences in property taxes or local fees can influence rates, affecting overall borrowing costs.

In Alaska, Anchorage has an average APR of 8.8%, while Sitka has an average APR of 10.0%. Use our table to see the average home equity loan rates across Alaskan cities.

Home equity loan rates in Alaska vary significantly between lenders, influenced by their individual policies and market strategies. For instance, Denali State Bank offers the lowest average APR at 7.5%, while Northrim Bank has the highest at 10.0%.

Comparing rates and terms from different lenders is a smart way to secure the lowest home equity loan rates. Explore the interactive table below 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.