Home Equity Loan Rates in North Carolina (November 2024)

Tappable equity is the portion of your home’s value you can borrow. According to TransUnion, tappable equity averages $139,000 in North Carolina. A home equity loan (HEL) lets you access this equity to fund home improvements or consolidate debt.

North Carolina's home equity loan rates match 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 the state, including city-specific averages and top lenders, as well as tips on securing the best deal.

The current average APR for a 15-year home equity loan in North Carolina 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 the state by loan term.

North Carolina HEL interest rates change daily. Tracking these changes can help you save money by paying less interest over the life of the loan. If you have high-interest debts, a home equity loan with a lower rate can help consolidate those debts and reduce your overall interest payments.

For example, a 15-year home equity 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.

The rate you qualify for depends on your loan-to-value (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 example, if your home is valued at $300,000 and you owe $240,000 on your mortgage, your LTV ratio is 80%.

Lenders view higher LTV ratios as riskier, leading to higher rates. In North Carolina, the average APR of a 15-year equity loan with an 80% LTV is 7.8%. It's 8.2% for a 90% LTV. Use the table below to compare average rates based on LTV ratios.

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.

In North Carolina, Four Oaks' average APR for five-year loans with an 80% LTV is 5.6%, while Spring Lake's is 10%. The table below shows average home equity loan rates across cities in North Carolina by loan term.

Home equity loan rates in North Carolina vary among lenders due to differing policies, risk assessments and market strategies. United Community Bank offers the lowest average APR at 5.6%, while Atlanta Postal Credit Union and Telco Credit Union have the highest at 9.8%.

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.

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:

MoneyGeek addresses common questions about home equity loan rates for North Carolina homeowners, offering precise and reliable information.