Home Equity Loan Rates in Connecticut

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 — 7.1% APR for a 10-year term (7.7% nationally) and 7.4% 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 7.4%, but several factors might affect what lenders offer. For instance, having a higher credit score can lead to a lower APR, while borrowing a larger amount might result in a higher rate. Repayment terms also play a role in determining your rate. Take a look at the table below to compare the average APRs for home equity loans in Connecticut across different loan terms.

Interest rates for a home equity loan change daily. Staying updated on these rates can help you pay less in interest over the life of the loan, saving you money. If you have high-interest debts, a home equity loan at a lower rate can help you consolidate those debts and reduce your overall interest payments.

For example, a 15-year home equity loan with a 7.4% APR results in a monthly payment of $461 and a total interest of $32,920. In comparison, a 10-year loan with a 7.1% APR has a monthly payment of $583 and a total interest of $19,975. Monitoring rates can lead to better financial decisions.

The rate you qualify for depends on your loan-to-value ratio, which is 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 example, 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 means greater potential risk to lenders, resulting in higher rates. Currently, the average APR of a 15-year equity loan in Connecticut with an LTV ratio of 80% is 7.2%, and for a 90% LTV ratio, it's 7.8%. Use the table to see what rates you might qualify for based on your LTV ratio.

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

In Connecticut, Bethel has an average APR of 6.3%, while Centerbrook has an average APR of 12.4%. See the table below for average home equity loan rates across Connecticut cities with different terms.

Home equity loan rates in Connecticut differ widely among lenders due to varying policies 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 crucial to securing the lowest home equity loan rates. Explore our 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.