Home Equity Loan Rates in Rhode Island

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.

Rhode Island's home equity loan rates are below national averages — 7.3% APR for a 10-year term (7.7% nationally) and 7.5% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Rhode Island, 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 Rhode Island is 7.5%, but several factors might affect what lenders offer. For instance, having a higher credit score can secure a lower APR, while a larger loan amount might increase the rate. Repayment terms also play a role in determining your rate. Check out the table below to compare the average APRs of home equity loans in Rhode Island across different loan terms.

Interest rates for a home equity loan change daily. Keeping an eye on these rates can save you money by reducing the interest paid 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, lowering your overall interest payments.

For example, a 15-year home equity loan with a 7.5% APR results in a monthly payment of $464 and a total interest of $33,431. In comparison, a 10-year loan with a 7.4% APR has a monthly payment of $591 and a total interest of $20,908.

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 Rhode Island with an LTV ratio of 80% is 7.4%. It's 7.7% 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 Rhode Island. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates. Additionally, cities with higher living costs may see slightly higher rates, as lenders face increased operational expenses.

In Rhode Island, South Kingstown has an average APR of 6.8%, while Barrington has an average APR of 7.7%. Below is a table showing the cities in Rhode Island and their average home equity loan rates for different terms.

Home equity loan rates in Rhode Island can differ widely among lenders due to varying policies and market strategies. For instance, Chartway Federal Credit Union offers the lowest average APR at 6.5%, while TD Bank has the highest at 8.2%.

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

Getting the best possible home equity interest rates can lead to lower monthly payments and reduced overall borrowing costs, enhancing your financial flexibility. Imagine saving hundreds annually by securing a favorable rate. To achieve the best home equity loan rates in Rhode Island, consider these strategies:

MoneyGeek provides Rhode Island homeowners with clear answers to common questions about home equity loan rates. Our information is precise and reliable, ensuring you have the facts needed to understand your options. By addressing your concerns, MoneyGeek simplifies the complexities of home equity loans, making it easier for you to navigate the financial landscape.