Home Equity Loan Rates in Utah

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.

Utah's home equity loan rates are higher than national averages — 7.9% APR for both 10-year and 15-year terms compared to 7.7% and 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.

The current average APR for a 15-year home equity loan in Utah is 7.9%, but several factors might affect what lenders offer you. For instance, a higher credit score generally results in a lower APR, while taking out a larger loan could lead to higher rates. Repayment terms are another consideration. Check out the table below to compare the average APRs for home equity loans in Utah across different loan terms.

Interest rates for home equity loans change daily. Staying informed about these rates can help you pay less in interest over the life of your loan, saving you money. Additionally, if you have high-interest debts, a home equity loan at a lower rate can consolidate those debts and reduce your overall interest payments.

For example, a $50,000 home equity loan with a 15-year term at a 7.9% APR results in a monthly payment of $475 and a total interest of $35,490. In contrast, a 10-year loan at the same 7.9% APR requires a monthly payment of $604, with a total interest of $22,480.

The rate you qualify for depends on your loan-to-value ratio, which compares the amount you owe on your mortgage 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, your LTV ratio is 80%.

A higher LTV ratio means greater risk for lenders, leading to higher rates. In Utah, the average APR for a 15-year equity loan with an 80% LTV ratio is 8.1%, compared to 7.6% for a 90% LTV ratio. Use the table below to see what rates you might qualify for based on your LTV ratio.

Average APRs also vary between cities in Utah. Cities with higher living costs may see slightly higher rates, as lenders face increased operational expenses. Additionally, differences in property taxes or local fees can influence rates, as these affect overall borrowing costs.

In Utah, Sunnyside has an average APR of 6.5%, while Park City has an average APR of 8.9%. Below is a table showing the cities in Utah and their average APRs for home equity loans with different terms.

Home equity loan rates in Utah vary significantly between lenders, influenced by their individual policies and risk assessments. 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%.

Comparing rates and terms from different lenders is the best approach to secure 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 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:

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.