Home Equity Loan Rates in Maryland (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.

Maryland's home equity loan rates are slightly below national averages — 7.6% APR for a 10-year term (7.7% nationally) and 7.9% APR for a 15-year term (7.9% nationally). 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. For instance, having a higher credit score usually results in a lower APR, while a larger loan amount could increase your rate. Repayment terms also play a role in determining your rate. Check out the table below to compare the average APRs of home equity loans in Maryland across different loan terms.

Interest rates for home equity loans change daily. Monitoring these rates can help you pay less in interest over the life of the loan, saving you money. 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 instance, a 15-year home equity loan with a 7.8% APR has a monthly payment of $472 and results in total interest of $34,973. In contrast, a 10-year loan with a 7.6% APR requires a monthly payment of $596, with total interest of $21,535.

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. The average APR of a 15-year equity loan in Maryland with an LTV ratio of 80% is 7.7%, compared to 8.1% for an LTV ratio of 90%. Use the table to see what rates you might qualify for based on your LTV ratio.

Average APRs vary between cities in Maryland due to several factors. 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 Maryland, Pocomoke City has an average APR of 5.6%, while Whiteford has an average APR of 9.6%. Below is a table that shows the cities in Maryland and their average home equity loan rates for different terms.

Home equity loan rates in Maryland vary widely between lenders due to differing policies and market strategies. For instance, Dover Federal Credit Union offers the lowest average APR at 5.4%, while Univest Bank and Trust Co. has the highest at 10.3%.

Comparing rates and terms from various lenders is crucial for obtaining the lowest home equity loan rates. Explore the interactive table below to see which lenders offer 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.