Updated: January 14, 2025
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Tappable equity is the portion of your home’s value you can borrow. A home equity loan (HEL) lets you access this equity to fund home improvements or consolidate debt.
New Jersey's home equity loan rates match the national averages — 7.7% APR for a 10-year term and 7.9% APR for a 15-year term. We provide details on current rates in New Jersey, including city-specific averages, top lenders and tips on securing the best deal.
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a 15-year HEL in New Jersey with an 80% LTV is 7.7%, compared to 8.2% for a 90% LTV.
HEL rates vary by city in New Jersey. For 15-year loans, Saddle Brook has an average APR of 6.3%, while Martinsville's is 9.8%.
Lenders offer different rates for the same loan types. Merck Employees Federal Credit Union's average APR is 5%, while County Excellence Federal Credit Union's is 10.9%.
MoneyGeek examined 51 different banks and credit unions in New Jersey using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity loan rates.
This data is accurate as of January 2025.
The current average APR for a 15-year home equity loan in New Jersey is 7.9%, but several factors can influence lenders' rates. A higher credit score typically means a lower APR, while larger loan amounts may result in higher rates. Repayment terms also affect the APR. Use the table below to compare average APRs for home equity loans in New Jersey by loan term.
| 10Year | 7.7% |
| 15Year | 7.9% |
| 5Year | 7.3% |
New Jersey HEL interest rates change daily, so staying updated can save you money over the life of the loan. Knowing current rates also helps you plan your budget and borrow responsibly.
For example, a 15-year loan at 7.9% APR has a $475 monthly payment and $35,490 in total interest. A 10-year loan at 7.7% APR has a $596 monthly payment and $21,535 in total interest.
Home equity loans (HELs) and home equity lines of credit (HELOCs) allow homeowners to access their property's equity. HELOC rates in New Jersey are variable, averaging 8.2%, while HELs have fixed rates, averaging 7.7%.
HELs offer predictable payments with fixed rates, making budgeting easier. HELOCs start with lower variable rates but may rise, leading to higher payments over time.
The rate you qualify for depends on your loan-to-value (LTV) 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 instance, if your home is worth $300,000 and you owe $240,000, your LTV ratio is 80%.
Lenders view higher LTV ratios as riskier, which leads to higher rates. In New Jersey, the average APR for a 15-year home equity loan with an 80% LTV is 7.7%, compared to 8.2% for a 90% LTV. Use the table below to compare average rates based on LTV ratios.
| 7.7% | 8.2% |
Average APRs vary by city due to lender competition and local costs. Larger, densely populated cities often have more lenders, leading to lower rates. Property taxes and local fees also impact borrowing costs.
For example, Pennsville's average APR is 7.5%, while Martinsville's is 9.8%. The table below shows average home equity loan rates across New Jersey cities by loan term.
| 10Year | 7.1% |
| 15Year | 7.4% |
| 5Year | 6.9% |
Home equity loan rates in New Jersey differ among lenders and are shaped by their policies and market strategies. Merck Employees Federal Credit Union offers the lowest average APR at 5%, while County Excellence Federal Credit Union has the highest at 10.9%.
Compare rates and terms from different lenders to find the best deal. Use the interactive table below to discover the most competitive lenders in your city.
| North Jersey Federal Credit Union | 6.6% |
| Garden Savings Federal Credit Union | 6.6% |
| BCB Community Bank | 6.7% |
| ConnectOne Bank | 7.4% |
| Together Credit Union | 8.2% |
| TD Bank | 8.6% |
Credit unions often offer lower home equity loan rates than large banks. While commercial banks in New Jersey have an average APR of 8.1%, credit unions typically offer a lower rate of 7.4%. However, credit unions may have stricter membership requirements.
Getting the best home equity interest rates can reduce your monthly payments and overall costs, freeing up funds for other financial goals. To secure the best rates, consider these strategies:
Lenders may offer different APRs for the same loan amount and credit profile. In New Jersey, Merck Employees Federal Credit Union has an average APR of 5%, while First Hope Bank offers 6.7%. Compare home equity loan providers to find better rates.
Having more equity in your home can result in more competitive rates from lenders. New Jersey homeowners can increase their equity through bathroom remodels or home additions.
Increasing your credit score can lead to more competitive home equity loan rates. Pay bills on time and reduce credit card debt to improve your credit score. The average credit score in New Jersey is 717, according to Experian.
A lower debt-to-income (DTI) ratio — the percentage of your monthly income used to pay debts — can lead to better rates, as lenders see you as a less risky borrower.
Provide your income and recurring payments to calculate your DTI.
Enter all applicable payments to ensure accurate results.
MoneyGeek addresses common homeowner questions about home equity loan rates, providing precise and reliable information for New Jersey residents.
As of January 2025, the average APRs for home equity loans in New Jersey are 7.3% for five-year, 7.7% for 10-year and 7.9% for 15-year terms. Rates may vary based on factors such as your credit score.
To calculate your home equity, subtract your mortgage balance from your property's current market value. Understand home equity requirements to determine how much equity you have.
Yes, rates can vary. For example, Pennsville's average APR is 7.5%, while Martinsville's is 9.8% as of January 2025.
Home equity loan interest may be tax-deductible if used for home improvements.
Potential drawbacks include the risk of foreclosure if you default and the possibility of variable interest rates increasing over time.
The process typically takes two to six weeks, depending on the lender and your preparedness with necessary documentation.
To apply, assess your eligibility for a home equity loan and understand the credit score requirements. Then, compare offers from different lenders.
Funds can be used for home improvements, debt consolidation or other major expenses. Restrictions may apply based on lender policies.
While you can apply for a home equity loan on your primary residence, some lenders may allow loans on secondary properties. A cash-out refinance is another option.
Consider a HELOC or a reverse mortgage as another type of loan to access your home's equity.
A HELOC offers a revolving credit line with a draw period and may have an annual fee, while a home equity loan provides a lump sum with fixed interest rates.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
