Home Equity Loan Rates in Arizona (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.

Arizona's home equity loan rates are slightly above national averages — 7.9% APR for a 10-year term (7.7% nationally) and 8.2% 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 8.2%, but several factors might affect what lenders offer. For instance, a higher credit score can lead to a lower APR, while a larger loan amount might result in a higher rate. Repayment terms also play a role in determining the rates. Explore the table below to compare the current home equity loan rates in Arizona across different loan terms.

Interest rates for a home equity loan change daily. Keeping track of these rates can save you money by reducing the interest you pay over the life of the loan. If you have high-interest debts, consolidating them with a home equity loan at a lower rate can also reduce your overall interest payments.

For instance, a 15-year home equity loan with an 8.2% APR results in a monthly payment of $484 and a total interest of $37,051. In contrast, a 10-year loan with a 7.9% APR has a monthly payment of $604 and a total interest of $22,480.

The rate you qualify for depends on your loan-to-value ratio, which is the amount 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 instance, if your home is valued at $300,000 and your mortgage balance is $240,000, your LTV ratio is 80%.

A higher LTV ratio indicates a greater risk to lenders, which often results in higher rates. In Arizona, the average APR for a 15-year equity loan with an LTV ratio of 80% is 8%, compared to 8.4% for an LTV ratio of 90%. Check the table below to see the average home equity loan 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. Additionally, 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 9.4%. Explore the table below to see the average home equity loan rates across Arizona cities.

Home equity loan rates in Arizona can vary significantly between lenders due to differences in policies, risk assessments 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 9.6%.

Comparing rates and terms from different lenders is essential to securing 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 home equity interest rates can lower your monthly payments and reduce overall costs, improving your financial flexibility. To secure the best home equity loan rates in Arizona, consider these strategies:

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