Home Equity Loan Rates in Massachusetts (January 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.

Massachusetts home equity loan rates are below national averages — 7.4% APR for a 10-year term (7.7% nationally) and 7.6% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Massachusetts, 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 Massachusetts is 7.6%, but several factors might affect what lenders offer. For instance, a higher credit score can result in a lower APR, while a larger loan amount might lead to a higher rate. Repayment terms also play a role. Consider the table below to compare current home equity loan rates in Massachusetts across different loan terms.

The interest rate for a home equity loan changes daily. Staying updated on these rates can save you money by reducing the interest you pay over the life of your loan. If you have high-interest debts, a home equity loan at a lower rate can help consolidate those debts, lowering your overall interest payments.

For example, a $50,000 home equity loan with a 15-year term at a 7.6% APR has a monthly payment of $466 and results in $33,943 in total interest. In comparison, a 10-year loan with a 7.4% APR requires a monthly payment of $591 and accrues $20,908 in total interest.

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 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 presents a higher risk to lenders, resulting in higher rates. In Massachusetts, the average APR of a 15-year equity loan with an LTV ratio of 80% is 7.4%, compared to 8.1% for an LTV ratio of 90%. Use the table below to see what rates you might qualify for based on your LTV ratio.

Average APRs also vary between cities in Massachusetts. 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 Massachusetts, Boxborough has an average APR of 6.3%, while Holyoke has an average APR of 8.8%. Below is a table showing the average home equity loan rates across various Massachusetts cities.

Home equity loan rates in Massachusetts vary significantly between lenders, influenced by their policies and market strategies. For instance, Arrha Credit Union offers the lowest average APR at 5.8%, while KeyBank National Association has the highest at 11.9%.

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

Getting the best home equity loan rates can lower your monthly payments, reducing overall borrowing costs and freeing up funds for other goals. For instance, a homeowner in Massachusetts might save significantly by securing a better rate, allowing for more financial flexibility. To achieve the best home equity loan rates in Massachusetts, consider these strategies:

MoneyGeek addresses common questions Massachusetts homeowners have about home equity loan rates, offering clear and reliable information. Understanding factors like credit scores and loan amounts can help you navigate your options. Our insights are designed to make the process straightforward and stress-free, ensuring you are well-informed about your financial choices.