Home Equity Loan Rates in Connecticut (January 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.

Connecticut's home equity loan rates are below national averages — 7.0% APR for a 10-year term (7.7% nationally) and 7.3% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Connecticut, 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 Connecticut is 7.3%, but several factors might affect what lenders offer. For instance, a higher credit score could secure you a lower APR, while a larger loan amount might lead to a higher rate. Repayment terms are another crucial consideration. Check out the table to compare the average APRs of home equity loans in Connecticut across different loan terms.

Interest rates for a home equity loan change daily. Staying informed about these changes can help you pay less in interest over the life of your loan, saving money. With favorable rates, financing renovations or repairs becomes more affordable.

For example, a 15-year home equity loan with a 7.3% APR results in a monthly payment of $458 and a total interest of $32,412. In comparison, a 10-year loan with a 7.0% APR has a monthly payment of $581 and a total interest of $19,665.

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, your LTV ratio is 80%.

A higher LTV ratio means greater risk for lenders, leading to higher rates. In Connecticut, the average APR for a 15-year equity loan with an LTV ratio of 80% is 7.2%, compared to 7.6% for an LTV ratio of 90%. Refer to the table to see what rates you might qualify for based on your LTV ratio.

Average APRs vary between cities in Connecticut. Cities with higher home values or rapid appreciation often have lower rates, as these loans are seen as less risky. Conversely, cities with higher living costs may see slightly higher rates due to increased operational expenses for lenders.

In Connecticut, Cromwell has an average APR of 6.1%, while Old Saybrook has an average APR of 12.4%. Explore the table below to see the average home equity loan rates across Connecticut cities with different terms.

Home equity loan rates in Connecticut can vary significantly between lenders due to differences in policies, risk assessments, and market strategies. For instance, American Eagle Financial Credit Union, Inc. offers the lowest average APR at 5.4%, while KeyBank National Association has the highest at 12.4%.

Comparing rates and terms from different lenders is a smart approach 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 borrowing costs, resulting in reduced monthly payments. To achieve the best home equity loan rates in Connecticut, consider these strategies:

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