Home Equity Loan Rates in Vermont (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.

Vermont's home equity loan rates are directionally in line with national averages — 7.5% APR for a 10-year term compared to 7.7% nationally and 8% APR for a 15-year term compared to 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%, but several factors might affect the rates lenders offer you. For instance, a higher credit score often results in a lower APR, while a larger loan amount could increase the rate. Repayment terms also play a role, influencing the overall cost of the loan. Below is a table that allows you to compare the current home equity loan rates in Vermont across different loan terms.

The interest rate for a home equity loan changes daily. Keeping track of these rates can save you money in the long run. A lower rate means you'll pay less in interest over the life of the loan, which can be especially beneficial if you have high-interest debts to consolidate.

For example, consider a $50,000 home equity loan. A 15-year term with an 8% APR results in a monthly payment of $478 and a total interest of $36,009. In contrast, a 10-year term with a 7.5% APR has a monthly payment of $594 and a total interest of $21,221. Monitoring rates can help you choose the most cost-effective option.

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 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 presents a greater risk to lenders, resulting in higher rates. In Vermont, the average APR for a 15-year equity loan with an LTV ratio of 80% is 7.5%, compared to 9.1% for a 90% LTV ratio. Use the table to see what rates you might qualify for based on your LTV ratio and understand how it affects average home equity loan rates.

Average APRs also vary between cities in Vermont. Those with higher home values or rapid appreciation often have lower average rates because lenders see the loans as less risky. Additionally, differences in property taxes or local fees can influence rates, as these affect overall borrowing costs.

In Vermont, Pittsford has an average APR of 5.5%, while Essex Junction has an average APR of 8.3%. Use our table to see the average home equity loan rates across Vermont cities.

Home equity loan rates in Vermont vary significantly between lenders, driven by their individual 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 9.1%.

Comparing rates and terms from different lenders is essential 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.

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.