Best HELOC Rates in Arizona

Key Takeaways

blueCheck icon

Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Arizona with an 80% LTV is 8.8%, compared with 9.3% for a 90% LTV.

blueCheck icon

HELOC rates vary by city in Arizona. Springerville has an average APR of 8.3%, whereas Litchfield Park's is 10.5%.

blueCheck icon

Different lenders offer varying rates for the same loan types. Tradition Capital Bank's average APR is 7.8%, whereas PNC Bank's is 11%.

Current HELOC Rates in Arizona

Loading...

HELOC rates in Arizona increased from 4.5% in early 2021 to 9.1% by October 2024 for $50k loans, and from 4.5% to 9% for $100k loans. If this trend continues, homeowners might face higher borrowing costs; consider locking in rates now.

HELOC Rates in Arizona by LTV Ratio

HELOC rates in Arizona depend on your loan-to-value (LTV) ratio and line limit. A lower LTV ratio indicates more equity and less risk for lenders, often leading to lower rates. For example, with an 80% LTV, you’ve borrowed less against your home’s value compared with a 90% LTV, making you less likely to default on your HELOC.

The following table lets you filter between different loan amounts, offering a clearer view of what you may qualify for:

Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000
8.8%9.3%

HELOC Rates in Arizona by City

HELOC rates in Arizona vary by city due to local housing market conditions and lender competition. For instance, cities with robust real estate markets may offer lower rates.

Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.

Data filtered by:Results filtered by:
City:
City:Phoenix
$100,0009.0%
$50,0009.1%

HELOC Rates in Arizona by Lender

HELOC interest rates in Arizona fluctuate across lenders due to varying pricing strategies and risk assessments. The table below highlights the five lenders in Arizona offering the lowest average APRs, helping you compare competitive rates.

Tradition Capital Bank7.8%
TruGrocer Federal Credit Union8.0%
BOKF8.1%
Alliant Credit Union8.3%
Banner Federal Credit Union8.3%

HELOC rates today can differ among lenders within the same city. Use the table below to filter lenders by city to compare average APRs and find the best rate in your area.

Data filtered by:Results filtered by:
City:
City:Phoenix
BOKFCommercial Bank8.1%
Pima Federal Credit UnionCredit Union8.3%
Umpqua BankCommercial Bank8.3%
Banner Federal Credit UnionCredit Union8.3%
American Airlines Federal Credit UnionCredit Union8.5%
Notre Dame Federal Credit Union CorporationCredit Union8.5%
Vantage West Credit UnionCredit Union8.5%
Western Alliance BankCommercial Bank8.5%
Western State BankCommercial Bank8.5%
First National Bank TexasCommercial Bank8.5%
Iowa State BankCommercial Bank8.5%
Mayo Employees Federal Credit UnionCredit Union8.5%
OneAZ Credit UnionCredit Union8.6%
Bankers Trust CompanyCommercial Bank8.8%
UMB BankCommercial Bank9.0%
AERO Federal Credit UnionCredit Union9.0%
Copper State Credit UnionCredit Union9.0%
Desert Financial Credit UnionCredit Union9.0%
Mountain America Federal Credit UnionCredit Union9.0%
Busey BankCommercial Bank9.1%
BMO BANK NATIONAL ASSOCIATIONCommercial Bank9.2%
Arizona Financial Credit UnionCredit Union9.3%
Credit Union WestCredit Union9.3%
Zions BancorporationCommercial Bank9.3%
U.S. Bank National AssociationCommercial Bank9.5%
Farmers Insurance Group Federal Credit UnionCredit Union9.5%
Southwest Airlines Federal Credit UnionCredit Union9.5%
Global Federal Credit UnionCredit Union9.5%
Navy Federal Credit UnionCredit Union9.6%
Bank of AmericaCommercial Bank10.4%
Meadows BankCommercial Bank10.5%
PNC BankCommercial Bank11.0%
COMPARING HELOC RATES IN ARIZONA: BANKS VS. CREDIT UNIONS

HELOC rates in Arizona vary between banks and credit unions, with commercial banks typically offering higher rates. Currently, the best HELOC rate among commercial banks in Arizona averages 9%, while credit unions offer a slightly lower average of 8.9%. Credit unions, being not-for-profit institutions, generally provide more competitive rates than traditional banks.

When choosing between the two, consider more than just rates. Banks may offer more convenience, but credit unions often have better customer service and lower fees. Also check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.

Expert Answers About HELOCs

How do lenders assess risk when setting HELOC rates for different property types (e.g., primary residence vs. investment property), and how can borrowers mitigate higher rates for non-primary homes?

Credit & Mortgage Expert

All loans are about risk. The higher the risk, the higher your rate will be. With investment properties or second homes, since they are not your primary residence the risk is inherently higher in the eyes of the lender — for example, if someone falls on hard times, they are more likely to continue making timely payments on the home they live in rather than an investment or second home.

Usually, if you are taking a HELOC on an investment property, you are using those funds to improve the property or using it to buy another investment property. Having access to cash to make more cash is what investors do. They should always take into account the higher rates when making an investment decision. If successful, the higher rate won't be a problem.

HELOC Payment Calculator

HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home's equity. Use our Arizona HELOC payment calculator to determine your monthly payments based on the amount drawn, APR and loan terms. Our calculator also provides a full amortization schedule, showing how much goes toward interest and principal over time. Understanding these details can help you manage your HELOC and plan for future payments.

Arizona HELOC Payoff Calculator

This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.

$
%
years
years

Credit Line Information

Draw Period Payment

$0

Repayment Period Payment

$0

Credit Payoff Schedule for Home Equity Line

YEAR

Ending balance
Principal paid
Interest paid

How to Get the Best HELOC Rates in Arizona

Finding the best HELOC rates in Arizona can help you save thousands over the life of your loan. To secure the most competitive rate, consider these five strategies:

    excellentCredit icon

    Maintain a strong credit score

    Arizona's average credit score is 713. Improving it can help secure better rates. Aim for 720 or higher for more competitive offers.

    loanVsLoan icon

    Compare offers from multiple lenders

    Settling for the first offer you receive may be costly. By shopping around, you can find competitive rates and even use offers to negotiate better terms.

    discount icon

    Reduce your debt-to-income (DTI) ratio

    Lenders favor borrowers with lower debt-to-income (DTI) ratios because it shows financial stability. Reducing your debt can make you a more attractive candidate for a lower rate.

    house2 icon

    Increase your home equity

    The more equity you have, the less risk the lender assumes, which can lead to a lower rate. Paying down your mortgage or making home improvements can increase your equity.

    noFee icon

    Review closing costs and rate caps

    Some lenders charge closing costs between 2% and 5%, whereas others don't. Compare rate caps to limit your costs as rates adjust over time.

HELOC Loan Rates vs. Home Equity Loan Rates in Arizona

HELOC interest rates in Arizona average 9%, slightly higher than the 8% average for home equity loans. This difference is due to their rate structures, which influence the average APRs.

  • HELOCs are flexible, revolving credit lines with variable interest rates that fluctuate based on market conditions. HELOC rates can therefore increase over time, contributing to higher average APRs, especially in rising rising interest rate environments.
  • Home equity loans provide a lump sum at a fixed rate, which stays consistent throughout the loan term. This predictability results in more stable APRs, making home equity loans a better choice for those seeking financial certainty.

Both options let you borrow against your home's equity, but your decision depends on whether you value the flexibility of a HELOC or the predictability of a home equity loan.

CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE

A cash-out refinance is a HELOC alternative that replaces your existing mortgage with a new, larger loan, allowing you to access cash. Unlike HELOCs or home equity loans, cash-out refinances create a new primary mortgage.

For instance, with a Federal Housing Administration (FHA)-backed mortgage, if your home is worth $300K with a $150K balance, an FHA cash-out refinance for $200K offers $50K in cash, but payments are based on $200K.

FAQ: Best HELOC Rates in Arizona

What are the current HELOC rates in Arizona and how do they compare to national rates?
What fees are associated with HELOCs in Arizona?
How do HELOC rates in Arizona compare to home equity loan rates?
How do HELOC Rates in Arizona vary between banks and credit unions?
What's the best HELOC rate in Phoenix? How does it compare to the current HELOC rate in Arizona?

MoneyGeek examined 55 different banks and credit unions in Arizona using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity line of credit rates.

recency icon

This data is accurate as of October 16, 2024.

55Lenders Analyzed

About Zachary Romeo, CBCA


Zachary Romeo, CBCA headshot

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.