Home Equity Loan Rates in Maryland (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.

Maryland's home equity loan rates are on par with national averages — 7.7% APR for a 10-year term and 7.9% APR for a 15-year term. We've compiled detailed insights on current home equity loan rates in Maryland, 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 Maryland is 7.9%, but several factors might affect what lenders offer. A higher credit score can lead to a lower APR, while a larger loan amount might increase it. Repayment terms also play a role in determining rates. Explore the table to compare the average APRs of home equity loans in Maryland across different loan terms.

Interest rates for a home equity loan change daily. Monitoring these changes can help you pay less in interest over the loan's life, saving you money. Favorable rates also make financing renovations more affordable, increasing your home's value.

For example, a 15-year $50,000 home equity loan with a 7.9% APR results in a monthly payment of $475 and a total interest of $35,490. In contrast, a 10-year loan with a 7.7% APR has a monthly payment of $599 and total interest of $21,849.

The rate you qualify for depends on your loan-to-value ratio, which compares your current mortgage balance 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 Maryland with an LTV ratio of 80% is 7.7%. It's 8.2% for an LTV ratio of 90%. Use the table below to see what rates you might qualify for based on your LTV ratio and compare average home equity loan rates.

Average APRs also vary between cities in Maryland. Cities with higher home values or rapid appreciation often have lower rates because the loans are seen as less risky. Additionally, in larger or more densely populated cities, more lenders compete, which can lead to lower interest rates.

In Maryland, Pocomoke City has an average APR of 5.6%, while Princess Anne has an average APR of 10.9%. Explore the table below to see the average home equity loan rates across different cities in Maryland.

Home equity loan rates in Maryland can differ significantly among lenders due to variations in policies, risk assessments, and market strategies. For instance, Baltimore County Employees Federal Credit Union offers the lowest average APR at 5.4%, while Spectra Federal Credit Union has the highest at 12.5%.

Comparing rates and terms from various lenders is essential to securing the lowest home equity loan rates. Explore the interactive table below to find lenders offering the most competitive rates in your city.

Obtaining the best home equity loan rates can lead to lower monthly payments and reduced borrowing costs, enhancing your financial flexibility. Imagine using these savings to fund home improvements or consolidate debt. To achieve the best home equity loan rates in Maryland, consider these strategies:

MoneyGeek answers common questions about home equity loan rates for Maryland homeowners. We provide clear, factual information on how rates are determined and current averages in the state. Understanding these factors helps homeowners make informed decisions about their financial options.