Home Equity Loan Rates in Indiana (November 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.

Indiana's home equity loan rates are slightly higher than the national averages — 8.0% APR for a 10-year term and 8.2% APR for a 15-year term, compared to 7.7% and 7.9% nationally. We've compiled detailed insights on current home equity loan rates in Indiana, 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 Indiana is 8.2%, but several factors might affect what lenders offer. For instance, a higher credit score usually results in a lower APR, while a larger loan amount may lead to a higher rate. Repayment terms also play a role in determining your rate. Check the table below to compare the average APRs for home equity loans in Indiana across different loan terms.

Interest rates for a home equity loan change daily. Keeping track of these rates can save you money by paying less in interest over the life of the loan. Additionally, if you have high-interest debts, a home equity loan at a lower rate can help 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 has a monthly payment of $484 and a total interest cost of $37,051. In contrast, a 10-year loan with an 8.0% APR results in a monthly payment of $607 and a total interest of $22,797.

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 Indiana with an LTV ratio of 80% is 8.1%. It's 8.6% for an LTV ratio of 90%. Use the table to see what rates you might qualify for based on your LTV ratio.

Average APRs also vary between cities in Indiana. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates. Additionally, differences in property taxes or local fees can influence rates, affecting overall borrowing costs.

In Indiana, Notre Dame has an average APR of 6.5%, while Grandview has an average APR of 10.0%. Below is a table showing the average home equity loan rates across different cities in Indiana.

Home equity loan rates in Indiana vary significantly between lenders, influenced by each lender's policies and market strategies. For instance, First Trust Credit Union offers the lowest average APR at 5.3%, while KeyBank National Association has the highest at 11.9%.

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

Securing the best home equity interest rates can lower your monthly payments and reduce overall borrowing costs, allowing you to allocate funds for other financial goals. Consider a scenario where a homeowner locks in at a low rate, resulting in significant savings over time. To achieve the best home equity loan rates in Indiana, consider these strategies:

MoneyGeek addresses common questions about home equity loan rates for Indiana homeowners. We provide clear, factual insights to help you understand how these rates are determined and what factors might influence them.