Home Equity Loan Rates in South Dakota (November 2024)

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.

South Dakota's home equity loan rates are slightly higher than national averages — 7.9% APR for a 10-year term (7.7% nationally) and 8.1% 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 8.1%. However, several factors can influence the rate lenders offer you. For instance, a higher credit score might lower your APR, while taking out a larger loan could result in a higher rate. Repayment terms also play a role in determining your rate. Check the table below to compare current home equity loan rates in South Dakota across different loan terms.

Interest rates for a home equity loan change daily. Monitoring these changes can help you save money by paying less in interest over the life of the loan. It also allows for accurate budgeting and ensures you're borrowing within your means.

For example, a 15-year home equity loan with an 8.1% APR results in a monthly payment of $481 and a total interest of $36,529. In comparison, a 10-year loan with a 7.9% APR has a monthly payment of $607 and a total interest of $22,797.

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 South Dakota with an LTV ratio of 80% is 8.2% and 8.1% for an LTV ratio of 90%. Use the table to see what rates you might qualify for based on your LTV ratio.

Average home equity loan rates vary between cities in South Dakota. Cities with higher living costs may see slightly higher rates because lenders face increased operational expenses. Additionally, differences in property taxes or local fees can influence rates, affecting overall borrowing costs.

In South Dakota, Florence has an average APR of 5.3%, while Wall has an average APR of 9.1%. Below is a table showing the cities in South Dakota and their average APRs for home equity loans with different terms.

Home equity loan rates in South Dakota can vary between lenders due to differing policies and market strategies. For instance, Minnwest Bank offers the lowest average APR at 5.3%, while Black Hills Federal Credit Union has the highest at 9.4%. Understanding these differences can help you make informed decisions.

Comparing rates and terms from various lenders is essential to securing 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.