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.
Home Equity Loan Rates in Utah (November 2024)
The current home equity loan rates in Utah for 10-year loans average 7.9%, slightly higher than the national rate of 7.7%. The 15-year loan rate is 7.9%, matching the national average.
Updated: December 11, 2024
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Key Takeaways
The average APR for a 15-year HEL in Utah with an 80% LTV is 8.1%, compared to 7.6% 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 9.8%.
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 November 2024.
Current Home Equity Loan Rates in Utah
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.
10Year | 7.9% |
15Year | 7.9% |
5Year | 7.7% |
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.
Home equity loans and HELOCs are popular options for homeowners. Home equity loans and home equity lines of credit (HELOC) allow homeowners to tap into their home's equity.
In Utah, home equity loans have fixed rates, averaging 7.8%, while HELOC rates in Utah are variable, averaging 8.7%. Fixed rates mean consistent monthly payments, providing financial predictability. Variable rates can start lower but may increase, leading to higher payments over time.
Home Equity Loan Rates by LTV Ratio
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.
7.8% | 8.0% |
Home Equity Loan Rates by City in Utah
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.
10Year | 7.8% |
15Year | 8.1% |
5Year | 7.7% |
Home Equity Loan Lenders in Utah
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.
American United Federal Credit Union | 6.5% |
Chartway Federal Credit Union | 6.5% |
Zions Bancorporation | 6.8% |
Regions Bank | 7.3% |
Deseret First Federal Credit Union | 7.3% |
Cyprus Federal Credit Union | 7.5% |
Utah First Federal Credit Union | 7.5% |
Delta Community Credit Union | 7.6% |
Granite Federal Credit Union | 7.7% |
Chevron Federal Credit Union | 7.7% |
Security Service Federal Credit Union | 7.7% |
University First Federal Credit Union | 7.9% |
America First Federal Credit Union | 8.0% |
Mountain America Federal Credit Union | 8.0% |
Utah Power Credit Union | 8.0% |
BMO BANK NATIONAL ASSOCIATION | 8.9% |
U.S. Bank National Association | 9.0% |
Banner Bank | 9.6% |
KeyBank National Association | 11.9% |
Including credit unions in your lender options for home equity loan rates in Utah can be advantageous. While commercial banks in Utah offer an average APR of 9.1%, credit unions provide a more competitive rate of 7.6%. Keep in mind that credit unions typically have stricter membership requirements, which might affect your eligibility.
How to Get the Best Home Equity Loan Rate in Utah
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:
Compare lenders
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.
Increase your home's equity
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.
Improve your credit score
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 731, according to Experian.
Decrease debt-to-income ratio
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.
Debt-to-Income Ratio Calculator
Provide your income and recurring payments to calculate your DTI.
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FAQ About Home Equity Loan Rates in Utah
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.
What is the interest rate on a home equity loan in Utah?
As of November 2024, the average APRs for home equity loans in Utah are 7.7% for 5-year terms, 7.9% for 10-year terms, and 7.9% for 15-year terms. The rate you qualify for may vary based on factors such as your credit score.
How do you calculate your home equity in Utah?
To calculate your home equity, subtract the remaining balance on your mortgage from your home's current market value. Understanding home equity requirements is crucial for this calculation.
Do home equity loan rates vary between cities in Utah?
Yes, home equity loan rates can vary by city. For example, Sunnyside has an average APR of 6.5%, while Park City has an average APR of 8.9%.
Does a home equity loan in Utah have tax benefits?
Home equity loans may offer tax benefits, as the interest could be tax-deductible, depending on how the loan is used.
What are possible drawbacks of securing a home equity loan in Utah?
Potential drawbacks include the risk of foreclosure if you fail to make payments, and the possibility of incurring additional debt if not managed carefully.
How long does it take to get a home equity loan in Utah?
The process to secure a home equity loan typically takes several weeks, as it involves home appraisal, credit checks, and other verifications.
How do you get a home equity loan in Utah?
To get a home equity loan, assess your eligibility for a home equity loan, meet the credit score requirements, and apply through a lender.
What can I use my funds for? Are there any home equity loan use restrictions in Utah?
Home equity loan funds can typically be used for home improvements, debt consolidation, or other major expenses. However, it's best to confirm any restrictions with your lender.
Can you only take out a home equity loan in Utah on your primary residence?
While you can apply for a home equity loan on your primary residence, options like a cash-out refinance may be available for other properties.
What other home equity products can you consider if you want to tap into your home's equity in Utah?
Besides home equity loans, consider a HELOC or a reverse mortgage as another type of loan to access your home's equity.
What's the difference between a HELOC and a home equity loan?
A HELOC offers a draw period during which you can borrow as needed, often with 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.
sources
- Experian. "What Is the Average Credit Score in the U.S.?." Accessed December 11, 2024.
- TransUnion. "Home Equity Trends Report — Q4 2023." Accessed December 11, 2024.