Home Equity Loan Rates in Minnesota (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.

Minnesota's home equity loan rates are comparable to national averages — 7.7% APR for a 10-year term, which matches the national rate, and 8.0% APR for a 15-year term, slightly above the national rate of 7.9%. We've compiled detailed insights on current home equity loan rates in Minnesota, 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 Minnesota is 8.0%, but various factors can influence lenders' rates. For instance, a strong credit score may secure a lower APR, while a larger loan amount could result in a higher rate. Repayment terms also play a role in determining the final rate. Explore the table below to compare the average APRs for home equity loans in Minnesota across different loan terms.

Interest rates for a home equity loan change daily. Staying informed about these changes can help you save money on interest and consolidate high-interest debts. For example, a 15-year home equity loan with an 8.0% APR has a monthly payment of $478 and a total interest of $36,009. In comparison, a 10-year loan with a 7.7% APR results in a monthly fee of $599 and a total interest of $21,849.

The rate you qualify for depends on your loan-to-value ratio, which is 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 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 Minnesota with an LTV ratio of 80% is 7.8%. It's 8.4% for an LTV ratio of 90%. Use the table to see what rates you might qualify for based on your LTV ratio.

Average APRs also vary between cities in Minnesota. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates. Cities with higher living costs may also see slightly higher rates as lenders face increased operational expenses.

In Minnesota, Wykoff has an average APR of 5.3%, while Stewartville has an average APR of 9.8%. Use our table to see the average home equity loan rates across Minnesota cities.

Home equity loan rates in Minnesota can vary widely between lenders due to different policies and market strategies. For instance, TruStar Federal Credit Union, Dakota Heritage Bank and Minnwest Bank offer the lowest average APRs at 5.3%. On the other hand, Security State Bank of Marine has the highest average APR at 10.5%.

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

Getting the best possible home equity interest rates can significantly improve your borrowing experience by lowering monthly payments and total costs, allowing you to allocate funds to other financial goals. To achieve the best home equity loan rates in Minnesota, consider these strategies:

MoneyGeek answers common questions Minnesota homeowners have about home equity loan rates, offering clear and reliable insights. Whether you're considering tapping into your home's equity or comparing rates, our information helps you understand the nuances of home financing.