Home Equity Loan Rates in Maine (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.

Maine's home equity loan rates are below national averages — 7.1% APR for a 10-year term (7.7% nationally) and 7.3% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Maine, 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 Maine is 7.3%, 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 how these factors influence the current home equity loan rates in Maine by comparing APRs across different loan terms.

The interest rate for a home equity loan changes daily. Keeping track of these fluctuations can save you money, as a lower rate means you'll pay less in interest over the life of the loan. If you have high-interest debts, securing 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 a 7.4% APR results in a monthly payment of $461 and a total interest of $32,920. In contrast, a 10-year loan with a 7.1% APR has a monthly payment of $583 and a total interest of $19,975.

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 on your mortgage, your LTV ratio is 80%.

A higher LTV ratio presents a greater risk to lenders, resulting in higher rates. In Maine, the average APR of a 15-year equity loan with an LTV ratio of 80% is 7.3%, compared to 7.4% for a 90% LTV ratio. Use the table to see what average home equity loan rates you might qualify for based on your LTV ratio.

Average APRs vary between cities in Maine due to several factors. 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.

In Maine, Pittsfield has an average APR of 5.5%, while Bridgton has an average APR of 8.5%. See the table below for average home equity loan rates across different cities in Maine.

Home equity loan rates in Maine vary between lenders due to individual policies, risk assessments and market strategies. For instance, Bar Harbor Bank and Trust Company offers the lowest average APR at 5.6%, while First National Bank has the highest at 9.1%.

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

Getting the best possible home equity interest rates can lower your monthly payments and decrease overall borrowing costs, allowing you to allocate funds to other financial goals. To achieve the best home equity loan rates in Maine, consider these strategies:

MoneyGeek addresses common homeowner questions about home equity loan rates in Maine, offering precise and reliable insights to make informed financial decisions.