Home Equity Loan Rates in Arizona (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.

Arizona's home equity loan rates are slightly above national averages — 7.9% APR for a 10-year term (7.7% nationally) and 8.1% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Arizona, 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 Arizona is 8.1%, but several factors might affect what lenders offer. For instance, a higher credit score could secure a lower APR, while a larger loan amount might increase the rate. Repayment terms also play a role in determining rates. Compare the current home equity loan rates in Arizona across different loan terms in the table below.

Interest rates for a home equity loan change daily. Keeping track of these rates can save you money by reducing the amount of interest you pay over the life of the loan. It also helps you consolidate high-interest debts, lowering your overall interest payments.

For instance, consider a $50,000 home equity loan. A 15-year loan with an 8.2% APR results in a monthly payment of $484 and total interest of $37,051. In contrast, a 10-year loan with an 8.0% APR has a monthly payment of $607 and total interest of $22,797.

The rate you qualify for depends on your loan-to-value (LTV) ratio, which compares how much you owe on your mortgage 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, your LTV ratio is 80%.

A higher LTV ratio presents a higher risk to lenders, resulting in higher rates. In Arizona, the average APR of a 15-year equity loan with an LTV ratio of 80% is 8.0%, while it is 8.3% for an LTV ratio of 90%. Use the table to see what rates you might qualify for based on your LTV ratio.

Average APRs also vary between cities in Arizona. Cities with higher home values or rapid appreciation often have lower rates because the loans are seen as less risky. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates.

In Arizona, El Mirage has an average APR of 6.8%, while Litchfield Park has an average APR of 9.5%. Below is a table that shows the cities in Arizona and their average APRs for home equity loans with different terms.

Home equity loan rates in Arizona differ widely across lenders due to various factors like individual policies and market strategies. For instance, Southwest Airlines Federal Credit Union offers the lowest average APR at 5.5%, while PNC Bank has the highest at 10.0%.

Comparing rates and terms from various lenders is crucial to securing the lowest home equity loan rates. Explore the interactive table to see which lenders in Arizona provide the best rates in your city.

Getting the best home equity interest rates can reduce your monthly payments and overall costs, freeing up funds for other financial goals. To secure the best rates, consider these strategies:

MoneyGeek addresses common questions about home equity loan rates, providing clear, factual information to Arizona homeowners.