Home Equity Loan Rates in Florida

The equity in your home that you can access and borrow is known as tappable equity. According to TransUnion, tappable equity averages $204,000 in Florida. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Florida's home equity loan rates are just under national averages — 7.4% APR for a 10-year term (7.7% nationally) and 7.8% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Florida, including city-specific rates, top lenders and tips on securing the best rates for using your home's equity.

Assuming you have an 80% LTV ratio, the current average APR for a 15-year home equity loan in Florida is 7.6%. Factors like repayment terms influence rates. For the same LTV ratio, a 10-year loan averages 7.3% APR, while a five-year loan averages 6.9%. The line chart below shows how current home equity loan rates in Florida compare to the national average.

Florida HEL interest rates change daily. Keeping track of rate changes can help you save thousands on interest over the life of your loan, making financing renovations or repairs more affordable. For example, a 15-year home equity loan with a 7.6% APR results in a monthly payment of $839 and a total interest of $61,098, whereas a 10-year loan with a 7.3% APR has a monthly payment of $1,059 and a total interest of $37,073.

The rate you qualify for depends on your loan-to-value (LTV) 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 Florida with an LTV ratio of 80% is 7.6%. It's 8.3% for an LTV ratio of 90%. Below is a chart showing what rates you might qualify for based on your LTV ratio.

Average APRs vary not just between states but also between cities. Cities with higher home values or rapid appreciation often have lower average rates because lenders see the loans as less risky. Additionally, cities with stronger job markets and lower unemployment usually offer better rates, as borrowers are less likely to default.

In Florida, Palm Springs has an average APR of 5.0%, while Gainesville has an average APR of 10.8%. These rates are for 15-year home equity loans with an LTV ratio of 80%. The table below shows the average HEL rates across Florida cities with 15-year terms.

Home equity loan rates in Florida can vary significantly between lenders. For instance, Miami Postal Service Credit Union offers the lowest average APR at 4.9%, while Suncoast Credit Union has the highest at 10.0%.

By comparing lenders, you can find the lowest home equity loan rates and secure favorable rates and terms. Including credit unions in your search can also be beneficial, as they typically offer lower rates but may have stricter membership requirements.

Securing a good home equity interest rate can result in lower monthly payments and reduced overall costs, possibly freeing up funds for other financial goals. To lock in the best home equity loan rate in Florida, consider these strategies:

MoneyGeek addresses common homeowner questions about home equity loan rates, providing precise and reliable information for Florida residents.