Home Equity Loan Rates in Arkansas (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.

Arkansas' home equity loan rates are above national averages — 8.3% APR for a 10-year term (7.7% nationally) and 8.4% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Arkansas, 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 Arkansas is 8.4%, 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 increase it. Repayment terms are another consideration. Compare the current home equity loan rates in Arkansas across different loan terms to see how these factors impact your options.

Interest rates for home equity loans change daily. Keeping track of these changes can help you pay less in interest over the life of the loan, saving you money. 

For example, a 15-year home equity loan with an 8.3% APR results in a monthly payment of $487 and a total interest of $37,575. In comparison, a 10-year loan with an 8.2% APR has a monthly payment of $612 and a total interest of $23,432.

The rate you qualify for depends on your loan-to-value (LTV) 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 instance, if your home is valued at $300,000 and you owe $240,000, your LTV ratio is 80%.

A higher LTV ratio poses a greater risk to lenders, which often results in higher rates. In Arkansas, the average APR for a 15-year equity loan with an 80% LTV ratio is 8.3%, compared to 9.3% for a 90% LTV ratio. Check the table below to see what rates you might qualify for based on your LTV ratio.

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

In Arkansas, Texarkana has an average APR of 5.3%, while Hot Springs has an average APR of 9.5%. The table below shows the average home equity loan rates across Arkansas cities for different terms.

Home equity loan rates in Arkansas vary significantly among lenders, influenced by their individual policies and market strategies. For instance, Guaranty Bank & Trust offers the lowest average APR at 5.3%, while Firstar Bank has the highest at 10.0%.

Comparing rates and terms from various lenders is key 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 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 in Arkansas, offering clear and reliable information to homeowners.