Home Equity Loan Rates in Illinois (January 2025)

The equity in your home that you can access and borrow is known as tappable equity. According to TransUnion, tappable equity averages $103,000 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 above national averages — 7.9% APR for a 10-year term (7.7% nationally) and 8.2% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Illinois, 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 Illinois is 8.2%, but several factors might affect what lenders offer. For instance, a higher credit score generally results in a lower APR, while a larger loan amount could increase your rate. Repayment terms are another consideration, as they can influence the overall cost of your loan. Compare the current home equity loan rates in Illinois across different loan terms to see how these factors play a role.

Interest rates for a home equity loan change daily. Staying informed on these rates can save you money by reducing the overall interest paid over the life of the loan. 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 $50,000 home equity loan with a 15-year term at an 8.2% APR results in a monthly payment of $481 and a total interest of $36,529. In contrast, a 10-year loan at a 7.9% 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, 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 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 presents a higher risk to lenders, leading to higher rates. In Illinois, the average APR for a 15-year equity loan with an LTV ratio of 80% is 8.0%, compared to 8.6% for an LTV ratio of 90%. Check the table to see what average home equity loan rates you might qualify for based on your LTV ratio.

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

In Illinois, Scales Mound has an average APR of 5.5%, while Lake in the Hills has an average APR of 10.4%. Below is a table showing the average home equity loan rates across various cities in Illinois with different terms.

Home equity loan rates in Illinois differ widely among lenders due to varying policies, risk assessments and market strategies. For instance, Apple River State Bank offers the lowest average APR at 5.5%, while First National Bank of Omaha has the highest at 10.4%.

Comparing rates and terms across different lenders is a smart way to find the lowest home equity loan rates. Explore the interactive table to see which lenders in your city offer the most competitive rates.

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.