Updated: December 7, 2024
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Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Kentucky with an 80% LTV is 8.2%, compared with 8.5% for a 90% LTV.
HELOC rates vary by city in Kentucky. Hawesville has an average APR of 5.8%, whereas Union's is 10.1%.
Different lenders offer varying rates for the same loan types. First Financial Bank's average APR is 6.1%, whereas Pinnacle Bank's is 11.8%.
HELOC rates in Kentucky rose from 3.9% in early 2021 to around 8.6% by late 2024. With rates stabilizing at these levels, homeowners might face higher borrowing costs if trends persist. Consider locking in a rate now to potentially save on future expenses.
HELOC rates in Kentucky vary based on your loan-to-value ratio and line limit. A lower LTV means less risk for lenders, as you have more equity. For instance, with an 80% LTV, you borrow less against your home's value than at 90%, reducing the chance 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:
| 8.2% | 8.6% |
HELOC rates in Kentucky vary between cities due to local housing markets and lender competition. For example, cities with stable real estate markets might offer lower rates, reducing lender risk.
Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.
| $100,000 | 8.5% |
| $50,000 | 8.5% |
HELOC interest rates in Kentucky vary among lenders due to their unique pricing strategies and risk assessments. Compare competitive rates with the table below highlighting the five lenders in Kentucky offering the lowest average APRs.
| First Financial Bank | 6.1% |
| Metro Employees Credit Union, Inc. | 6.5% |
| University of Kentucky Federal Credit Union | 6.8% |
| L&N Federal Credit Union | 7.0% |
| Park Federal Credit Union | 7.2% |
HELOC rates today can vary significantly between lenders in the same city. Use the table below to filter by city and compare APRs, helping you find the most competitive rate available.
| First Financial Bank | Commercial Bank | 7.0% |
| L&N Federal Credit Union | Credit Union | 7.0% |
| Park Federal Credit Union | Credit Union | 7.2% |
| Eclipse Bank, Inc. | Commercial Bank | 7.3% |
| Class Act Federal Credit Union | Credit Union | 7.3% |
| Stock Yards Bank & Trust Company | Commercial Bank | 7.8% |
| Autotruck Financial Credit Union | Credit Union | 7.8% |
| Abound Federal Credit Union | Credit Union | 7.8% |
| Cumberland Valley National Bank & Trust Company | Commercial Bank | 8.0% |
| Forcht Bank | Commercial Bank | 8.0% |
| Monticello Banking Company | Commercial Bank | 8.0% |
| Peoples Bank | Commercial Bank | 8.0% |
| South Central Bank, Inc. | Commercial Bank | 8.0% |
| The Park National Bank | Commercial Bank | 8.0% |
| Transcend Credit Union | Credit Union | 8.0% |
| Liberty Federal Credit Union | Credit Union | 8.3% |
| Old National Bank | Commercial Bank | 8.5% |
| Advanz Federal Credit Union | Credit Union | 8.5% |
| Independence Bank of Kentucky | Commercial Bank | 8.5% |
| Republic Bank & Trust Company | Commercial Bank | 8.8% |
| Commonwealth Credit Union | Credit Union | 8.8% |
| Wesbanco Bank, Inc. | Commercial Bank | 9.0% |
| PNC Bank | Commercial Bank | 9.5% |
| U.S. Bank National Association | Commercial Bank | 9.6% |
| Bank of America | Commercial Bank | 10.0% |
| Truist Bank | Commercial Bank | 10.1% |
| Fifth Third Bank | Commercial Bank | 10.1% |
| Pinnacle Bank | Commercial Bank | 11.8% |
HELOC rates in Kentucky vary between banks and credit unions as they operate differently. Commercial banks typically have higher rates, with the best HELOC rate in Kentucky for commercial banks averaging 8.5%. In comparison, credit unions offer lower rates, averaging 8.0%, as they are not-for-profit institutions.
When choosing between the two, consider more than just rates. Banks may offer more convenience, while credit unions often provide better customer service and lower fees. Also, check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Typically, a HELOC will have a lower interest rate than a personal loan from a bank or credit union. However, HELOCs often have a variable rate, so they can go up or down depending on the current Federal Funds rate. Home equity loans are a fixed rate, so when the Fed increases rates or they remain the same, that is a good time to get a home equity loan.
Personal loans are a solid option despite their higher rates because they are unsecured, meaning there is no collateral (like your home). If you come on hard times and can’t repay a personal loan, you are not at risk of losing your home like you are with a HELOC or home equity loan.
HELOCs have become a popular tool for homeowners across the U.S looking to tap into their home's equity.
Use our Kentucky HELOC payment calculator to estimate your monthly payments based on 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 more effectively and plan for future payments.
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.
Draw Period Payment
Repayment Period Payment
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Finding the best HELOC rates in Kentucky can save you money by lowering your monthly payments and total interest. For example, securing a rate just 1% lower could save you hundreds annually. Consider these five strategies to obtain competitive rates:
Maintain a strong credit score
The average credit score in Kentucky is 705. Improving it can help you secure more competitive HELOC rates.
Compare offers from multiple lenders
Shopping around for lender offers can lead to better rates and terms, helping you save money.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show financial stability. Paying off debt can improve your chances for a lower rate.
Increase your home equity
More equity means less lender risk, leading to lower rates. Consider paying down your mortgage or making home improvements.
Review closing costs and rate caps
Closing costs impact loan expenses. Understanding rate caps helps manage HELOC costs as rates adjust.
HELOC interest rates in Kentucky average 8.3%, slightly higher than the 8.1% for home equity loans. This difference stems from their rate structures, with HELOCs featuring variable rates and home equity loans offering fixed rates.
- HELOCs are flexible, revolving credit lines with variable rates that adjust based on market conditions. In rising interest rate environments, these rates can increase, impacting homeowners' finances over time.
- Home equity loans provide a lump sum at a fixed rate, ensuring consistent payments. They're preferable in situations where predictability and stability are needed, such as large, one-time expenses.
When deciding between these options, consider your financial needs and risk tolerance. If you value flexibility and can manage potential rate increases, a HELOC might suit you. Conversely, if you prefer stable payments, a home equity loan is likely the better choice.
A cash-out refinance is a HELOC alternative that replaces your existing mortgage with a new, larger loan, offering cash access. Unlike HELOCs or home equity loans, it creates a new primary mortgage.
For instance, if you have a loan backed by the Federal Housing Administration (FHA) and your home is valued at $300,000 with a $150,000 mortgage balance, an FHA cash-out refinance for $200,000 provides $50,000 in cash, with new payments based on $200,000.
Kentucky's HELOC rates average 8.3%, slightly below the national average of 8.4%.
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
HELOC rates in Kentucky average 8.3%, while home equity loan rates are lower at 8.1%, which can be beneficial for those with bad credit.
Commercial banks in Kentucky offer HELOC rates averaging 8.5%, while credit unions offer lower rates at 8.0%.
Louisville's rates average 8.5%, slightly higher than the state average of 8.3%.
MoneyGeek examined 77 different banks and credit unions in Kentucky 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.
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.
