Home Equity Loan Rates in Michigan (January 2025)

The equity in your home that you can access and borrow is known as tappable equity. According to TransUnion, tappable equity averages $120,000 in Michigan. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Michigan's home equity loan rates are on par with national averages for 10-year terms, but slightly higher for 15-year terms — 7.7% APR for a 10-year term and 8.0% APR for a 15-year term, compared to 7.7% and 7.9% nationally. We've compiled detailed insights on current home equity loan rates in Michigan, 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 Michigan is 8.0%, 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 might lead to a higher rate. Repayment terms are another factor to consider. Compare the average APRs of home equity loans in Michigan across different loan terms to find the best fit for your financial situation.

Interest rates for a home equity loan change daily. Keeping up with these changes 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 also help you consolidate those debts and reduce your overall interest payments.

For example, a 15-year home equity loan with an 8.0% APR results in a monthly payment of $478 and a total interest of $36,009. In comparison, a 10-year loan with a 7.7% APR has a monthly payment of $599 and a total interest of $21,849.

The rate you qualify for depends on your loan-to-value ratio (LTV 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, your LTV ratio is 80%.

A higher LTV ratio means greater risk to lenders, resulting in higher rates. In Michigan, the average APR for a 15-year equity loan with an LTV ratio of 80% is 7.8%, while it rises to 8.3% 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 Michigan. Differences in property taxes or local fees can influence rates, as these affect overall borrowing costs. Additionally, cities with higher living costs may see slightly higher rates, as lenders face increased operational expenses.

In Michigan, Stanton has an average APR of 5.9%, while Clawson has an average APR of 11.9%. Use our table to see the average home equity loan rates across Michigan cities.

Home equity loan rates in Michigan vary significantly between lenders due to differing policies and market strategies. For example, United Bank of Michigan offers the lowest average APR at 5.3%, while KeyBank National Association has the highest at 11.9%.

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

Securing the best possible home equity interest rates can lower your monthly payments and total borrowing costs, freeing up funds for other goals. To secure the best home equity loan rates in Michigan, consider these strategies:

MoneyGeek addresses common questions about home equity loan rates in Michigan, offering clear and reliable information to homeowners.