Home Equity Loan Rates in Arkansas

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's home equity loan rates are 7.9% for 10-year terms, slightly above the national average of 7.7%, and 7.9% for 15-year terms, similar to the national average of 7.9%. 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 7.9%. Several factors can affect what lenders offer, such as your credit score and the loan amount you're seeking. For instance, a better credit score might secure you a lower APR, while a larger loan amount could lead to higher rates. Repayment terms also play a role in determining your rate. Explore the table below to compare the average APRs of home equity loans in Arkansas across different loan terms.

Interest rates for a home equity loan change daily. Keeping track of these rates can save you money by allowing you to pay less in interest over the life of the loan. Favorable rates also make financing renovations or repairs more affordable, which can help boost your home's value.

For example, a $50,000 home equity loan with a 15-year term at a 7.9% APR results in a monthly payment of $475 and a total interest of $35,490. In contrast, a 10-year loan with the same 7.9% APR has a monthly payment of $604 and a total interest of $22,480. Understanding these differences can help you choose the best loan option for your financial situation.

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 instance, 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 indicates greater risk to lenders, which typically results in higher rates. For example, the average APR of a 15-year equity loan in Arkansas with an LTV ratio of 80% is 8%, whereas it's 7.4% for an LTV ratio of 90%. Use 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 Lowell has an average APR of 9.4%. Below is a table that shows the cities in Arkansas and their average APRs for home equity loans with different terms.

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

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

Securing the best home equity loan rates can lead to lower monthly payments and overall costs, freeing up funds for other financial goals. To achieve the best home equity loan rates in Arkansas, consider these strategies:

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