Updated: November 20, 2024
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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.
North Dakota's home equity loan rates are slightly below national averages — 7.5% APR for a 10-year term (7.7% nationally) and 7.7% APR for a 15-year term (7.9% nationally). 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.
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a 15-year HEL in North Dakota with an 80% LTV is 7.6%, compared to 7.9% for a 90% LTV.
HEL rates vary by city in North Dakota. For example, for 15-year loans, Stanley has an average APR of 6.5%, whereas Wahpeton's is 9.1%.
Lenders offer different rates for the same loan types. Dakota Heritage Bank's average APR is 5.3%, whereas Bell Bank's is 9.4%.
MoneyGeek examined 15 different banks and credit unions in North Dakota 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 November 2024.
The current average APR for a 15-year home equity loan in North Dakota is 7.7%, 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.
| 10Year | 7.5% |
| 15Year | 7.7% |
| 5Year | 7.0% |
North Dakota HEL interest rates change daily. Tracking these changes can help you save money by paying less interest over the life of the loan.
For example, a 15-year home equity loan at 7.7% APR has a $469 monthly payment and $34,457 in total interest. A 10-year loan at 7.5% APR has a $594 monthly payment and $21,221 in total interest.
Home equity loans (HELs) and home equity lines of credit (HELOCs) let homeowners access their property's equity. Home equity loans have fixed rates, averaging 7.5%, while HELOC rates in North Dakota are variable, averaging 8.3%.
Fixed rates offer predictable monthly payments, helping with financial planning. Variable rates, like those of HELOCs, can start lower but may increase, leading to potentially higher costs 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 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 risk to lenders, resulting in higher rates. In North Dakota, the average APR for a 15-year equity loan with an 80% LTV is 7.6%, compared to 7.9% for a 90% LTV. Use the table below to compare average rates based on LTV ratios.
| 7.6% | 7.9% |
Average APRs vary across cities in North Dakota. Cities with higher home values or faster appreciation often have lower rates, as lenders view these loans as less risky. Cities with higher living costs may see slightly higher rates due to increased lender expenses.
In North Dakota, Harvey's average APR is 5.3%, while Wahpeton's is 9.1%. Below is a table showing the cities in North Dakota and their average home equity loan rates for different terms.
| 10Year | 7.7% |
| 15Year | 8.1% |
| 5Year | 7.2% |
Home equity loan rates in North Dakota vary among lenders due to differing policies, risk assessments and market strategies. Dakota Heritage Bank offers the lowest average APR at 5.3%, while Bell Bank has the highest at 9.4%.
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.
| Empeople Credit Union | 6.1% |
| First International Bank and Trust | 6.2% |
| Cornerstone Bank | 6.2% |
| Choice Financial Group | 6.3% |
| Town & Country Credit Union | 6.5% |
| Capital Credit Union | 8.2% |
| BNC National Bank | 8.3% |
| KodaBank | 8.5% |
| BMO BANK NATIONAL ASSOCIATION | 8.8% |
| U.S. Bank National Association | 9.1% |
| Bell Bank | 9.4% |
Credit unions often offer lower home equity loan rates than large banks. Commercial banks in North Dakota have an average APR of 7.8%, while credit unions provide a lower rate of 7%. However, credit unions often 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:
Compare lenders
Lenders may offer different APRs for the same loan amount and credit profile. For instance, Empeople Credit Union has an average APR of 6.1%, while KodaBank offers 8.5%. Compare home equity loan providers to find better rates.
Increase your home's equity
Having more equity in your home can result in more competitive rates from lenders. North Dakota homeowners can increase their home's equity through insulation upgrades or basement finishing.
Improve your credit score
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 North Dakota is 733, according to Experian.
Decrease your debt-to-income ratio
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 questions about home equity loan rates for North Dakota homeowners, offering precise and reliable information.
As of November 2024, the average APRs in North Dakota are 7% for five-year, 7.5% for 10-year and 7.7% for 15-year home equity loans. Rates depend on factors like your credit score.
To calculate your home equity, subtract your mortgage balance from your home's current market value. Ensure you meet home equity requirements.
Yes, rates vary. For example, Harvey's average APR is 5.3%, while Wahpeton is 9.1%.
Home equity loan interest may be tax-deductible if the loan is used for home improvements.
Potential drawbacks include the risk of foreclosure if you default on payments and fluctuating interest rates.
The process typically takes two to six weeks, depending on the lender and the complexity of your application.
To get a home equity loan, verify your eligibility for a home equity loan and check credit score requirements. Then, apply through a lender.
Funds from a home equity loan can be used for various purposes, but some lenders may impose restrictions, such as using them for home improvements.
While you can apply for a home equity loan on your primary residence, some lenders may allow loans on secondary properties, depending on their policies.
Consider another type of loan like a HELOC or a cash-out refinance.
A HELOC typically has a draw period and may charge an annual fee, while a home equity loan offers 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.
