HELOC rates in Illinois rose from 4.2% in 2021 to 8.8% by November 2024. This upward trend suggests potential higher costs for homeowners considering a HELOC. Securing a rate now might be wise to avoid future increases.
HELOC
Best HELOC Rates in Illinois (December 2024)
Updated: December 7, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Illinois with an 80% LTV is 8.3%, compared with 8.7% for a 90% LTV.
HELOC rates vary by city in Illinois. Tonica has an average APR of 7.2%, whereas Elmwood Park's is 10.2%.
Different lenders offer varying rates for the same loan types. Cooperative Choice Network Credit Union's average APR is 6.0%, whereas Parkway Bank and Trust Company's is 11.0%.
Current HELOC Rates in Illinois
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HELOC Rates in Illinois by LTV Ratio
HELOC rates in Illinois vary based on your loan-to-value ratio and line limit. A lower LTV ratio indicates more equity in your home, reducing lender risk. For instance, an 80% LTV is less risky than a 90% LTV, making it less likely you'll default on your HELOC.
The table below 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
| 8.3% | 8.8% |
HELOC Rates in Illinois by City
HELOC rates in Illinois vary between cities due to local housing markets and lender competition. For instance, a city with a robust real estate market might offer lower rates, minimizing lender risk.
Use the table below to filter by your city and view average APRs for $50K and $100K HELOCs.
Data filtered by:Results filtered by:
City:
City:Chicago Heights
| $100,000 | 8.4% |
| $50,000 | 8.8% |
HELOC Rates in Illinois by Lender
HELOC interest rates in Illinois vary due to different lenders' pricing strategies and risk assessments. Understanding these differences can help you make informed decisions. Below is a table showcasing the five lenders in Illinois offering the lowest average APRs, enabling you to compare competitive rates.
| Cooperative Choice Network Credit Union | 6.0% |
| Empeople Credit Union | 6.6% |
| DuTrac Community Credit Union | 7.0% |
| Illini State Bank | 7.2% |
| CoVantage Credit Union | 7.3% |
HELOC rates today can differ among lenders in the same city. Use the table below to filter by city and compare average APRs to find the best rate in your area.
Data filtered by:Results filtered by:
City:
City:Chicago
| Great Southern Bank | Commercial Bank | 7.3% |
| Earthmover Credit Union | Credit Union | 7.6% |
| American Airlines Federal Credit Union | Credit Union | 7.7% |
| CIBC Bank USA | Commercial Bank | 7.8% |
| NuMark Credit Union | Credit Union | 7.8% |
| Waterman Bank | Commercial Bank | 7.8% |
| Western Alliance Bank | Commercial Bank | 7.8% |
| Justice Federal Credit Union | Credit Union | 7.9% |
| Chicago Patrolmens Federal Credit Union | Credit Union | 8.0% |
| First Merchants Bank | Commercial Bank | 8.0% |
| Quorum Federal Credit Union | Credit Union | 8.0% |
| Scott Credit Union | Credit Union | 8.0% |
| Vicinity Credit Union | Credit Union | 8.0% |
| First American Bank | Commercial Bank | 8.1% |
| Corporate America Family Credit Union | Credit Union | 8.3% |
| First Nations Bank | Commercial Bank | 8.3% |
| Providence Bank & Trust | Commercial Bank | 8.3% |
| Selfreliance Federal Credit Union | Credit Union | 8.3% |
| BMO BANK NATIONAL ASSOCIATION | Commercial Bank | 8.4% |
| Old National Bank | Commercial Bank | 8.5% |
| Beverly Bank & Trust Company | Commercial Bank | 8.5% |
| Customers Bank | Commercial Bank | 8.5% |
| Marquette Bank | Commercial Bank | 8.5% |
| Michigan State University Federal Credit Union | Credit Union | 8.5% |
| Old Second National Bank | Commercial Bank | 8.5% |
| Verve A Credit Union | Credit Union | 8.5% |
| Northbrook Bank & Trust Company | Commercial Bank | 8.8% |
| Self-Help Federal Credit Union | Credit Union | 9.0% |
| Peoples Bank | Commercial Bank | 9.0% |
| Credit Union 1 | Credit Union | 9.0% |
| Bank of America | Commercial Bank | 9.2% |
| Hinsdale Bank & Trust Company | Commercial Bank | 9.3% |
| Wintrust Bank | Commercial Bank | 9.3% |
| The Huntington National Bank | Commercial Bank | 9.5% |
| Great Lakes Credit Union | Credit Union | 9.5% |
| PNC Bank | Commercial Bank | 9.5% |
| HSBC Bank USA | Commercial Bank | 9.6% |
| First Northern Credit Union | Credit Union | 9.9% |
| U.S. Bank National Association | Commercial Bank | 10.0% |
| Fifth Third Bank | Commercial Bank | 10.1% |
| Belmont Bank & Trust Company | Commercial Bank | 10.8% |
COMPARING HELOC RATES IN ILLINOIS: BANKS VS. CREDIT UNIONS
HELOC rates in Illinois vary between banks and credit unions. Commercial banks often have higher rates, with the best rate currently at an average of 8.7%. In comparison, credit unions offer a slightly lower average APR of 8.1%, reflecting their not-for-profit status.
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.
Ask the experts:
What are the common fees or costs associated with HELOCs that borrowers should be aware of, and how do these affect the overall cost of borrowing?
Credit & Mortgage Expert
Most banks and credit unions charge little to no fees when getting a HELOC. Typically, you will pay the cost of the appraisal — anywhere from $150 to $450 depending on the type of appraisal done. But closing costs are usually covered by the bank or credit union. This is why it’s best to shop around with at least three different lenders when applying for a HELOC to compare not only the rates but also any costs involved. Getting a rate that is 0.25% lower but having to pay a couple thousand dollars in costs may not make financial sense.
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 Illinois HELOC payment calculator to determine your monthly payments based on amount drawn, APR, and loan terms.
The calculator provides an amortization schedule, showing payment division between principal and interest over time. Understanding these details helps you manage your HELOC more effectively and plan your finances.
Illinois 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.
Credit Line Information
Draw Period Payment
$0
Repayment Period Payment
$0
- Graph view
- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
YEAR
Ending balance
Principal paid
Interest paid
How to Get the Best HELOC Rates in Illinois
Finding the best HELOC rates in Illinois can lead to substantial savings over your loan's lifetime. Consider these five strategies to secure competitive rates:
Maintain a strong credit score
The average credit score in Illinois is 720. While good, aiming for higher can secure better rates.
Compare offers from multiple lenders
Shopping around for lender offers can lead to competitive rates and better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show stability. Paying off debt can improve your chances for better rates.
Increase your home equity
More equity reduces lender risk. Paying down your mortgage or making home improvements can help.
Review closing costs and rate caps
Closing costs impact expenses. Understanding rate caps helps manage HELOC adjustments.
HELOC Loan Rates vs. Home Equity Loan Rates in Illinois
HELOC interest rates in Illinois average 8.4%, slightly higher than the 7.8% average for home equity loans. This difference stems from HELOCs' variable rates, which tend to rise with market changes.
- HELOCs are flexible, revolving credit lines with variable rates, making them potentially more expensive in rising interest rate environments. This can strain homeowners' finances over time.
- In contrast, home equity loans offer a lump sum at a fixed rate, providing stability and predictability throughout the loan term. They are ideal for situations needing financial certainty.
When deciding between these options, consider whether you prioritize flexibility or stability. Assess your ability to manage fluctuating payments with a HELOC or if you prefer the fixed payments of a home equity loan. Additionally, evaluate your home's equity to understand your borrowing capacity.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
A cash-out refinance is a HELOC alternative that replaces your existing primary mortgage with a larger loan, providing cash access. Unlike HELOCs or home equity loans, it forms a new primary mortgage.
For example, with a Federal Housing Administration (FHA) mortgage, a home valued at $300K and a $150K balance could refinance to $200K, offering $50K cash.
FAQ: Best HELOC Rates in Illinois
What are the current HELOC rates in Illinois and how do they compare to national rates?
The average HELOC rate in Illinois is 8.4%, which is identical to the national average rate of 8.4%.
What fees are commonly associated with HELOCs in Illinois?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in Illinois compare to home equity loan rates?
Illinois's HELOC rates average 8.4%, while home equity loan rates are lower at 7.8%, which can be a better option for those with bad credit.
How do HELOC Rates in Illinois vary between banks and credit unions?
Commercial banks in Illinois offer HELOC rates averaging 8.7%, while credit unions offer lower rates at 8.1%.
What's the best HELOC rate in Chicago? How does it compare to the current HELOC rate in Illinois?
The average HELOC rate in Illinois is 8.4%, while Chicago's rates are slightly higher, averaging 8.6%.
MoneyGeek examined 193 different banks and credit unions in Illinois using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity line of credit rates.
This data is accurate as of October 29, 2024.
193Lenders Analyzed
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.