Home Equity Loan Rates in South Dakota (January 2025)

A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

South Dakota's home equity loan rates are slightly above the national averages — 7.9% APR for a 10-year term (7.7% nationally) and 8.2% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in South Dakota, 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 South Dakota is 8.2%, but several factors might affect what lenders offer you. For instance, having a higher credit score could secure you a lower APR, while a larger loan amount might lead to a higher rate. Repayment terms also play a role in determining your rate. Take a look at the table to compare the current home equity loan rates in South Dakota across different loan terms.

The interest rate for a home equity loan changes daily. Keeping track of these rates can help you pay less in interest over the life of the loan, saving you money. If you have high-interest debts, a home equity loan at a lower rate can also help you consolidate those debts and reduce your overall interest payments.

For example, consider a $50,000 home equity loan. A 15-year term with a 7.9% APR results in a monthly payment of $475 and total interest of $35,490. In contrast, a 10-year term with a 7.8% APR has a monthly payment of $601 and total interest of $22,164.

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

A higher LTV ratio presents a greater risk to lenders, resulting in higher rates. The average APR of a 15-year equity loan in South Dakota with an LTV ratio of 80% is 8.3%, while it is 8.1% for an LTV ratio of 90%. Check the table below to see what average home equity loan rates you might qualify for based on your LTV ratio.

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

In South Dakota, Wilmot has an average APR of 5.3%, while Hot Springs has an average APR of 9.1%. Below is a table showing the average home equity loan rates for different terms across cities in South Dakota.

Home equity loan rates in South Dakota can vary significantly between lenders based on their individual policies and market strategies. For example, Minnwest Bank offers the lowest average APR at 5.3%, while Black Hills Federal Credit Union has the highest at 9.4%.

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

Getting the best home equity loan rates can significantly enhance your borrowing experience by reducing monthly payments and overall costs. For instance, securing a lower rate in South Dakota may free up funds for other financial goals. To achieve the best home equity loan rates, consider these strategies:

MoneyGeek addresses common questions South Dakota homeowners have about home equity loan rates. We offer clear, factual insights into how these rates work, helping you understand your financial options effectively. Our resources are designed to provide straightforward information without unnecessary complexity, ensuring you feel informed and confident in your home equity decisions.