Best HELOC Rates in Illinois

Key Takeaways

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Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Illinois with an 80% LTV is 8.6%, compared with 9.0% for a 90% LTV.

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HELOC rates vary by city in Illinois. Lostant has an average APR of 6.6%, whereas Long Grove's is 10.5%.

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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 11.5%.

Current HELOC Rates in Illinois

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HELOC rates in Illinois rose from 4.2% in 2021 to 8.8% by October 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 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
8.6%9.0%

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
$100,0008.9%
$50,0009.0%

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 Union6.0%
Illini State Bank6.6%
Empeople Credit Union7.1%
Farmers National Bank7.3%
R I A Federal Credit Union7.3%

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
Quorum Federal Credit UnionCredit Union7.8%
Scott Credit UnionCredit Union8.0%
Earthmover Credit UnionCredit Union8.1%
First American BankCommercial Bank8.3%
First Nations BankCommercial Bank8.3%
Justice Federal Credit UnionCredit Union8.3%
Providence Bank & TrustCommercial Bank8.3%
BMO BANK NATIONAL ASSOCIATIONCommercial Bank8.4%
American Airlines Federal Credit UnionCredit Union8.5%
Chicago Patrolmens Federal Credit UnionCredit Union8.5%
CIBC Bank USACommercial Bank8.5%
Customers BankCommercial Bank8.5%
First Merchants BankCommercial Bank8.5%
Great Southern BankCommercial Bank8.5%
Marquette BankCommercial Bank8.5%
Old Second National BankCommercial Bank8.5%
Verve A Credit UnionCredit Union8.5%
Vicinity Credit UnionCredit Union8.5%
Waterman BankCommercial Bank8.5%
Western Alliance BankCommercial Bank8.5%
First Northern Credit UnionCredit Union8.7%
Corporate America Family Credit UnionCredit Union8.8%
Northbrook Bank & Trust CompanyCommercial Bank8.8%
Selfreliance Federal Credit UnionCredit Union8.8%
Old National BankCommercial Bank9.0%
Peoples BankCommercial Bank9.0%
Wintrust BankCommercial Bank9.3%
Beverly Bank & Trust CompanyCommercial Bank9.3%
Hinsdale Bank & Trust CompanyCommercial Bank9.3%
The Huntington National BankCommercial Bank9.5%
Self-Help Federal Credit UnionCredit Union9.5%
Credit Union 1Credit Union9.5%
HSBC Bank USACommercial Bank9.6%
Bank of AmericaCommercial Bank9.7%
NuMark Credit UnionCredit Union9.8%
U.S. Bank National AssociationCommercial Bank10.0%
Great Lakes Credit UnionCredit Union10.0%
Fifth Third BankCommercial Bank10.1%
PNC BankCommercial Bank10.5%
Belmont Bank & Trust CompanyCommercial Bank11.3%
COMPARING HELOC RATES IN ILLINOIS: BANKS VS. CREDIT UNIONS

HELOC rates in Illinois vary between banks and credit unions, with banks typically offering higher rates. For example, commercial banks in Illinois have an average APR of 8.9%, whereas credit unions offer a lower average APR of 8.5%. Credit unions are not-for-profit institutions, which often allows them to provide more competitive rates.

When deciding between the two, consider more than just rates. Banks might offer greater convenience, while credit unions often provide better customer service and lower fees. Be sure to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.

Ask the experts:

Are there any strategies homeowners can use to lock in a favorable HELOC rate in a rising interest rate environment, and how does a rate lock typically work with HELOCs?

Credit & Mortgage Expert

HELOCS often have variable interest rates, meaning they go up or down with the Federal Funds rate. So if you are worried about rates rising, you should look into a home equity loan or refinancing your home. That way you have a fixed rate that will not change over time.

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.

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Repayment Period Payment

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Credit Payoff Schedule for Home Equity Line

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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:

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    Maintain a strong credit score

    The average credit score in Illinois is 720. While good, aiming for higher can secure better rates.

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    Compare offers from multiple lenders

    Shopping around for lender offers can lead to competitive rates and better terms.

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    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.

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    Increase your home equity

    More equity reduces lender risk. Paying down your mortgage or making home improvements can help.

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    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 8.7%, slightly higher than home equity loan rates at 7.8%. This difference arises from the variable rate structure of HELOCs, which can lead to higher costs in changing market conditions.

  • HELOCs are revolving credit lines with variable interest rates that adjust based on market trends. In rising interest rate environments, these rates may increase, potentially impacting homeowners' finances over time.
  • Home equity loans provide a lump sum with a fixed interest rate, offering stability throughout the loan term. They are ideal for situations where predictability in payments is crucial.

When deciding between these options, consider whether you prefer the flexibility of a HELOC or the stability of a home equity loan. Evaluate your financial situation and risk tolerance, and think about how changes in your home's equity might influence your decision.

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

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.

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This data is accurate as of October 16, 2024.

193Lenders 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.