Home Equity Loan Rates in Iowa (January 2025)

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.

Iowa's home equity loan rates are in line with national averages — 7.7% APR for a 10-year term and 8.0% APR for a 15-year term. We've compiled detailed insights on current home equity loan rates in Iowa, 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 Iowa is 8.0%, but several factors might affect what lenders offer. For instance, a higher credit score can lead to a lower APR, whereas a larger loan amount might increase it. Repayment terms also play a role in determining your rate. Check the table to compare the average APRs of home equity loans in Iowa across different loan terms.

Interest rates for a home equity loan change daily. Keeping track of these rate changes can help you pay less in interest over the life of the loan, saving you money. Additionally, knowing the current rates lets you accurately plan your budget and future expenses, ensuring you borrow within your means.

For example, consider a $50,000 home equity loan in Iowa. A 15-year loan with an 8.0% APR results in a monthly payment of $478 and a total interest of $36,009. In contrast, a 10-year loan with a 7.7% APR has a monthly payment of $599 and a total interest of $21,849. Monitoring rates can help you choose the most cost-effective option.

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

A higher LTV ratio indicates greater risk to lenders, leading to higher rates. In Iowa, the average APR for a 15-year equity loan with an LTV ratio of 80% is 7.9%, compared to 8.1% for a 90% LTV ratio. Check the table to see what rates you might qualify for based on your LTV ratio and average home equity loan rates.

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

Clinton's average APR is 6.3%, while Ida Grove's is 10.2%. Below is a table showing the cities in Iowa and their average home equity loan rates for different terms.

Home equity loan rates in Iowa vary significantly between lenders, reflecting differences in policies, risk assessments and market strategies. For instance, Financial Plus Credit Union offers the lowest average APR at 5.5%, while North Star Community Credit Union has the highest at 10.2%. Comparing rates and terms from different lenders is key to securing the lowest home equity loan rates.

Explore the interactive table below to see which lenders offer the lowest rates in your city. This tool can help you make informed decisions by providing a comprehensive view of available options.

Getting the best home equity interest rates can significantly enhance your borrowing experience by lowering monthly payments and overall costs. Imagine using these savings to fund a home renovation or pay off other debts. To secure the best home equity loan rates in Iowa, consider these strategies:

MoneyGeek addresses common homeowner questions about home equity loan rates in Iowa, offering clear and reliable information. Iowa residents can better understand their home financing choices by focusing on factors like lender options and credit scores.