Home Equity Loan Rates in Colorado (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.

Colorado's home equity loan rates are above national averages — 8.2% 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 Colorado, 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 Colorado is 8.4%, but several factors might affect what lenders offer you. For instance, a higher credit score can often secure a lower APR, while a larger loan amount might lead to a higher rate. Repayment terms are another consideration that can influence your loan's overall cost. Explore the table below to compare the current home equity loan rates in Colorado across different loan terms.

Interest rates for a home equity loan change daily. By keeping an eye on these fluctuations, you can pay less in interest over the life of the loan, saving money. Favorable rates also make financing renovations or repairs more affordable, helping to increase your home's value.

For example, a 15-year home equity loan with an 8.4% APR has a monthly payment of $489 and a total interest of $38,100. In contrast, 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 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 your mortgage balance is $240,000, your LTV ratio is 80%.

A higher LTV ratio means a greater risk to lenders, resulting in higher rates. In Colorado, the average APR for a 15-year equity loan with an 80% LTV ratio is 8.3%, while it's 8.7% for a 90% LTV ratio. Use the table to see what rates you might qualify for based on your LTV ratio.

Average APRs vary between cities in Colorado due to differences in property taxes or local fees, which affect borrowing costs, and because cities with stronger job markets and lower unemployment tend to offer better rates. These factors contribute to the differences in average home equity loan rates across the state.

In Colorado, Edwards has an average APR of 6.8%, while Castle Pines has an average APR of 11.9%. Below is a table showing cities in Colorado and their average APRs for home equity loans with different terms.

Home equity loan rates in Colorado vary significantly between lenders due to differences in policies, risk assessments and market strategies. For instance, Alpine Bank offers the lowest average APR at 4.0%, while KeyBank National Association has the highest at 11.9%.

Comparing rates and terms from different lenders is essential 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 possible home equity interest rates can lower your monthly payments and reduce overall costs, enhancing your financial flexibility. For instance, a lower rate can free up funds for home improvements or debt consolidation. To secure the best home equity loan rates in Colorado, consider these strategies:

MoneyGeek addresses common questions about home equity loan rates in Colorado, offering reliable information to homeowners. By exploring factors like credit scores and lender options, we help you understand how these rates are determined. We aim to provide clear, factual insights to guide your financial decisions.