Home Equity Loan Rates in Illinois (November 2024)

The equity in your home that you can access and borrow is known as tappable equity. According to TransUnion, tappable equity averages $96,000 in Illinois. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Illinois home equity loan rates are slightly higher than national averages — 7.8% APR for a 10-year term, compared to 7.7%, and 8.2% APR for a 15-year term, compared to 7.9%. We provide detailed insights on current home equity loan rates in Illinois, including comparisons with home equity line of credit (HELOC) rates, lender options and strategies to secure the best home equity loan rates in Illinois.

The current average APR for a 15-year home equity loan in Illinois is 8.2%, but several factors might affect what lenders offer you. For instance, a higher credit score usually results in a lower APR, while a larger loan amount could lead to a higher rate. Repayment terms also play a role in determining your rate. Check out the table below to compare the average APRs of home equity loans in Illinois across different loan terms.

Interest rates for a home equity loan change daily. Monitoring these changes can save you money by reducing the interest paid over the life of the loan. It also makes financing renovations or repairs more affordable, allowing you to enhance your home's value.

For example, a 15-year home equity loan with an 8.2% APR has a monthly payment of $484 and a total interest of $37,051. In contrast, a 10-year loan with a 7.8% APR has a monthly payment of $601 and a total interest of $22,164.

The rate you qualify for depends on your loan-to-value ratio. This ratio 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 example, if your home is valued at $300,000 and you owe $240,000, your LTV ratio is 80%.

A higher LTV ratio means greater potential risk to lenders, resulting in higher rates. In Illinois, the average APR for a 15-year equity loan with an LTV ratio of 80% is 8.0%, while it's 8.6% for an LTV ratio of 90%. Check the table to see what rates you might qualify for based on your LTV ratio.

Average APRs also vary between cities in Illinois. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates. Cities with higher living costs may also see slightly higher rates as lenders face increased operational expenses.

In Illinois, Hanover has an average APR of 5.5%, while West Frankfort has an average APR of 10.8%. Below is a table showing the average home equity loan rates across cities in Illinois with different terms.

Home equity loan rates in Illinois vary significantly between lenders due to different policies, risk assessments and market strategies. For instance, Apple River State Bank offers the lowest average APR at 5.5%, while Peoples National Bank has the highest at 10.8%.

Comparing rates and terms from different lenders is essential for securing the lowest home equity loan rates. Explore the interactive table below to see which lenders offer the most competitive rates in your city.

The best home equity interest rates can significantly enhance your borrowing experience by lowering monthly payments and overall loan costs. This allows you to allocate savings towards other financial goals. To secure the best home equity loan rates in Illinois, consider these strategies:

MoneyGeek addresses common homeowner questions about home equity loan rates in Illinois, offering clear and reliable insights. Understanding these rates enables Illinois residents to evaluate their borrowing options effectively.