Updated: January 14, 2025
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A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.
Utah's home equity loan rates are slightly higher than national averages — 7.8% 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 Utah, including city-specific rates, top lenders and tips on securing the best rates for using your home's equity.
Higher LTV ratios lead to higher rates. The average APR for a 15-year HEL in Utah with an 80% LTV is 8.2%, compared to 8% for a 90% LTV.
HEL rates vary by city in Utah. For example, for 15-year loans, Santaquin has an average APR of 4.5%, whereas Park City's is 9.5%.
Different lenders offer varying rates for the same loan types. Utah Community Federal Credit Union's average APR is 4.5%, whereas KeyBank National Association's is 11.9%.
MoneyGeek examined 25 different banks and credit unions in Utah 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 January 2025.
The current average APR for a 15-year home equity loan in Utah is 8.1%, but several factors might affect what lenders offer. For instance, a higher credit score can secure a lower APR, while a larger loan amount might increase your rate. Repayment terms also play a role in determining the APR. Explore the table to compare current home equity loan rates in Utah across different loan terms.
| 10Year | 7.8% |
| 15Year | 8.1% |
| 5Year | 7.6% |
Interest rates for a home equity loan change daily.
Keeping track of these changes can save you money by lowering the interest you pay over the life of the loan. If you have high-interest debts, a home equity loan at a lower rate can help you consolidate those debts and reduce your overall interest payments.
For example, a 15-year home equity loan with a 7.9% APR results in a monthly payment of $475 and a total interest of $35,490. Meanwhile, a 10-year loan with a 7.8% APR has a monthly payment of $601 and a total interest of $22,164.
Home equity loans and home equity lines of credit (HELOC) are popular options for homeowners to tap into their home's equity. Home equity loan rates in Utah average 7.8%, offering fixed rates, while HELOC rates in Utah are variable, averaging 8.5%. Home equity loans have fixed rates, providing predictable payments, whereas HELOCs have variable ones.
Fixed rates mean your monthly payments remain consistent, which can simplify budgeting. In contrast, variable rates, like those of HELOCs, might start lower but can increase, leading to fluctuating payments. Understanding these differences helps you plan your finances effectively.
The rate you qualify for depends on your loan-to-value ratio, which compares your current mortgage balance to your home's appraised value. To calculate your LTV ratio, divide your mortgage balance by your home's value and multiply by 100. For instance, if your home is valued at $300,000 and you owe $240,000, your LTV ratio is 80%.
A higher LTV ratio means more risk for lenders, leading to higher rates. In Utah, the average APR for a 15-year equity loan with an LTV ratio of 80% is 8.2%, while it's 8% for an LTV ratio of 90%. Check the table to see the average home equity loan rates you might qualify for based on your LTV ratio.
| 7.7% | 8.0% |
Average APRs also vary between cities in Utah. Cities with higher home values or rapid appreciation often have lower rates because the loans are seen as less risky. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates.
In Utah, Sunnyside has an average APR of 6.5%, while Park City has an average APR of 8.7%. Below is a table showing the average home equity loan rates across different cities in Utah.
| 10Year | 7.8% |
| 15Year | 8.1% |
| 5Year | 7.7% |
Home equity loan rates in Utah vary widely between lenders, influenced by each lender's policies and market strategies. For instance, Utah Community Federal Credit Union offers the lowest average APR at 4.5%, while KeyBank National Association has the highest at 11.9%.
To secure the best possible home equity loan rates, it's important to compare rates and terms from different lenders. Use the interactive table below to see which lenders offer the lowest home equity loan rates in your city.
| Chartway Federal Credit Union | 6.5% |
| American United Federal Credit Union | 6.5% |
| Zions Bancorporation | 6.8% |
| Deseret First Federal Credit Union | 7.3% |
| Regions Bank | 7.3% |
| Utah First Federal Credit Union | 7.5% |
| Cyprus Federal Credit Union | 7.5% |
| Security Service Federal Credit Union | 7.6% |
| Delta Community Credit Union | 7.6% |
| Granite Federal Credit Union | 7.7% |
| Chevron Federal Credit Union | 7.7% |
| Mountain America Federal Credit Union | 7.7% |
| Utah Power Credit Union | 7.8% |
| University First Federal Credit Union | 7.9% |
| America First Federal Credit Union | 8.0% |
| U.S. Bank National Association | 8.2% |
| BMO BANK NATIONAL ASSOCIATION | 8.9% |
| Banner Bank | 9.6% |
| KeyBank National Association | 11.9% |
Including credit unions in your lender options can be beneficial for securing competitive home equity loan rates in Utah. Commercial banks in Utah offer an average APR of 9.0%, while credit unions provide a lower rate of 7.5%. Credit unions typically offer these lower rates but may have stricter membership requirements. Consider these factors to make a smart financial decision.
Getting the best home equity interest rates can lead to lower monthly payments and reduced overall costs, enhancing your borrowing experience and freeing up funds for other financial goals. Imagine a scenario where you secure a lower rate, significantly decreasing your financial obligations. To achieve the best home equity loan rates in Utah, consider these strategies:
Lenders may offer different APRs for the same loan amount and credit profile. For instance, Chartway Federal Credit Union advertises an average APR of 6.5%, while KeyBank National Association offers 11.9%. Comparing different home equity loan lenders in Utah can help you find better rates.
Having more equity in your home can result in more competitive rates from lenders. Utah homeowners can increase their home's equity by basement finishing or solar panel installations.
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 Utah is 719, according to Equifax.
A lower debt-to-income (DTI) ratio — the percentage of your monthly income that goes toward paying 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 Utah homeowners, offering precise and reliable information. Our guidance helps you navigate the complexities of these loans, ensuring you understand your options in the Utah market.
As of January 2025, the average APRs for home equity loans in Utah are 7.6% for a 5-year term, 7.8% for a 10-year term, and 8.1% for a 15-year term. Rates may vary based on factors like credit score.
Home equity is calculated by subtracting the outstanding mortgage balance from the current market value of your home. Understanding home equity requirements can help you determine eligibility.
Yes, they do. For example, Sunnyside has an average APR of 6.5%, while Park City has 8.7%. Rates can vary based on local economic conditions and lender policies.
Home equity loan interest may be tax-deductible if the funds are used for home improvements. Always consult a tax advisor for personalized advice.
Drawbacks may include the risk of foreclosure if you cannot repay the loan and potential fluctuations in home value affecting your equity.
The process typically takes a few weeks, depending on the lender's requirements and your financial situation.
To get a home equity loan, assess your eligibility for a home equity loan, including credit score requirements, and apply with a lender.
Funds from a home equity loan can be used for various purposes, such as home improvements or debt consolidation. However, some lenders may impose restrictions, so it's important to check with them.
While it's common to apply for a home equity loan on your primary residence, options like cash-out refinance may be available for other properties.
Besides home equity loans, consider a HELOC or a cash-out refinance as another type of loan to access your home equity.
A HELOC offers a draw period with variable rates and may include an annual fee, while a home equity loan provides a lump sum with 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.
