Home Equity Loan Rates in Vermont (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.

Vermont's home equity loan rates are slightly below national averages, with a 7.5% APR for a 10-year term (7.7% nationally) and an 8% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Vermont, 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 Vermont is 8.0%, but several factors might affect what lenders offer. For example, a higher credit score usually results in a lower APR, while a larger loan amount might increase the rate. Repayment terms also play a role in determining rates. Compare the average APRs of home equity loans in Vermont across different loan terms to find the best fit for your financial situation.

Interest rates for a home equity loan change daily. Keeping track of these rates can help you pay less in interest over the life of the loan, saving you money. Additionally, knowing the current rates lets you accurately plan your budget and future expenses, ensuring you're borrowing within your means.

For example, consider a $50,000 home equity loan. A 15-year term at an 8.0% APR results in a monthly payment of $478 and a total interest of $36,009. In contrast, a 10-year loan with a 7.5% APR has a monthly payment of $594 and a total interest of $21,221. By choosing the 10-year term, you can save on total interest paid.

The rate you qualify for depends on your loan-to-value ratio, which measures 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 instance, if your home is valued at $300,000 and your mortgage balance is $240,000, your LTV ratio is 80%.

A higher LTV ratio presents a greater risk to lenders, resulting in higher rates. In Vermont, the average APR of a 15-year equity loan with an LTV ratio of 80% is 7.6%, while it increases to 9% for an LTV ratio of 90%. Use the table to see what average home equity loan rates you might qualify for based on your LTV ratio.

Average APRs vary between cities in Vermont due to several factors. 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 Vermont, Rutland has an average APR of 5.5%, while Essex Junction has an average APR of 8.1%. Below is a table showing the cities in Vermont and their average home equity loan rates for different terms.

Home equity loan rates in Vermont can vary significantly between lenders due to differences in policies, risk assessments, and market strategies. For instance, Bar Harbor Bank and Trust Company offers the lowest average APR at 5.6%, while Sea Comm Federal Credit Union has the highest at 8.6%.

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

Securing the best possible home equity interest rates can transform your borrowing experience by lowering monthly payments and reducing overall costs. Imagine saving extra funds each month, enabling you to pursue other financial goals. To achieve the best home equity loan rates in Vermont, consider these strategies:

MoneyGeek answers common questions about home equity loan rates in Vermont, providing homeowners with clear and reliable information. By addressing these queries, MoneyGeek ensures you have the facts needed to understand your home equity options.