Home Equity Loan Rates in Kentucky (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.

Kentucky's home equity loan rates are above national averages — 8.3% APR for both 10-year and 15-year terms, compared to 7.7% and 7.9% nationally. We've compiled detailed insights on current home equity loan rates in Kentucky, 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 Kentucky is 8.3%, but several factors might affect what lenders offer. For instance, a higher credit score often 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. Explore the table to compare the average APRs of home equity loans in Kentucky across different loan terms.

Interest rates for home equity loans change daily. Tracking these changes can save you money over the life of your 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 15-year home equity loan with an 8.3% APR has a monthly payment of $484 and a total interest of $37,051. Meanwhile, a 10-year loan with the same APR results in a monthly payment of $612 and a total interest of $23,432.

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 instance, 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 greater risk to lenders, resulting in higher rates. In Kentucky, the average APR for a 15-year equity loan with an LTV ratio of 80% is 8.2%, compared to 8.5% for an LTV ratio of 90%. Check the table below for the average home equity loan rates you might qualify for based on your LTV ratio.

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

In Kentucky, Monticello's average APR is 6.5%, while Crestwood's is 10.0%. Explore the table below to see Kentucky's average home equity loan rates.

Home equity loan rates in Kentucky can vary significantly between lenders, influenced by their individual policies and market strategies. For instance, Advanz Federal Credit Union offers the lowest average APR at 6.4%, while Desco Federal Credit Union has the highest at 10.2%. 

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

Getting the best possible home equity interest rates can lower your monthly payments and overall borrowing costs, allowing you to allocate funds elsewhere. Imagine saving hundreds monthly by securing a favorable rate. To achieve the best home equity loan rates in Kentucky, consider these strategies:

MoneyGeek answers common questions Kentucky homeowners have about home equity loan rates to help them understand their options and make informed decisions that can impact financial plans.