HELOC rates in Maryland rose from 4.1% in 2021 to 8.8% in 2024. Rates have stabilized recently but remain high. Homeowners should consider locking in current rates to avoid further increases.
HELOC
Best HELOC Rates in Maryland (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 Maryland with an 80% LTV is 8.2%, compared with 8.6% for a 90% LTV.
HELOC rates vary by city in Maryland. Largo has an average APR of 7.7%, whereas Centreville's is 16.0%.
Different lenders offer varying rates for the same loan types. Ukrainian Selfreliance Federal Credit Union's average APR is 7.0%, whereas Pinnacle Bank's is 11.8%.
Current HELOC Rates in Maryland
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HELOC Rates in Maryland by LTV Ratio
HELOC rates in Maryland depend on your loan-to-value (LTV) ratio and line limit. A lower LTV indicates more home equity, reducing lender risk. For instance, an 80% LTV means less borrowing against home value than a 90% LTV, decreasing the chance that you default on your HELOC.
The table below allows you to filter loan amounts, providing a clearer perspective on your eligibility:
Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000
| 8.2% | 8.7% |
HELOC Rates in Maryland by City
HELOC rates in Maryland vary between cities due to local housing market conditions and lender competition. For instance, a city with a stable real estate market might offer lower rates as homes retain value, reducing lender risk.
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:Baltimore
| $100,000 | 8.6% |
| $50,000 | 8.7% |
HELOC Rates in Maryland by Lender
HELOC interest rates in Maryland vary among lenders based on their pricing strategies and risk assessments. The table below highlights the five lenders in Maryland offering the lowest average APRs, enabling you to compare competitive rates.
| First National Bank of Pennsylvania | 6.5% |
| Baltimore County Employees Federal Credit Union | 6.8% |
| Ukrainian Selfreliance Federal Credit Union | 7.0% |
| FedFinancial Federal Credit Union | 7.2% |
| Consumers Credit Union | 7.3% |
HELOC rates today can vary significantly between lenders in the same city. Use the table below, filtering by city, to compare APRs, helping you find the best rate available in your area.
Data filtered by:Results filtered by:
City:
City:Baltimore
| First National Bank of Pennsylvania | Commercial Bank | 6.5% |
| Baltimore County Employees Federal Credit Union | Credit Union | 6.8% |
| Ukrainian Selfreliance Federal Credit Union | Credit Union | 7.0% |
| Consumers Credit Union | Credit Union | 7.3% |
| Municipal Employees Credit Union of Baltimore, Inc | Credit Union | 7.5% |
| First Eagle Federal Credit Union | Credit Union | 8.0% |
| Fulton Bank | Commercial Bank | 8.0% |
| FVCbank | Commercial Bank | 8.0% |
| Point Breeze Credit Union | Credit Union | 8.0% |
| Shore United Bank | Commercial Bank | 8.0% |
| Johns Hopkins Federal Credit Union | Credit Union | 8.1% |
| State Employees Credit Union of Maryland | Credit Union | 8.3% |
| TD Bank | Commercial Bank | 8.5% |
| Univest Bank and Trust Co. | Commercial Bank | 8.5% |
| Securityplus Federal Credit Union | Credit Union | 8.5% |
| First Financial of Maryland Federal Credit Union | Credit Union | 8.5% |
| Five Star of Maryland Federal Credit Union | Credit Union | 8.6% |
| Wesbanco Bank, Inc. | Commercial Bank | 9.0% |
| PNC Bank | Commercial Bank | 10.1% |
| Bank of America | Commercial Bank | 10.6% |
| Manufacturers and Traders Trust Company | Commercial Bank | 10.7% |
| Truist Bank | Commercial Bank | 16.0% |
COMPARING HELOC RATES IN MARYLAND: BANKS VS. CREDIT UNIONS
HELOC rates in Maryland vary between banks and credit unions, with commercial banks typically offering higher rates. Currently, the best HELOC rate for commercial banks in Maryland is 8.7%, while credit unions offer a more competitive average APR of 8.1%. Credit unions are not-for-profit institutions that generally provide lower rates due to their structure.
When considering whether to choose a bank or a credit union, it's important to look beyond just the rates. Banks may offer more convenience and a wider range of services, whereas credit unions often provide better customer service and lower fees. Be sure to check the membership requirements for credit unions and any hidden fees or rate adjustment clauses with both types of lenders.
Expert Answers About HELOCs
What are the primary factors that influence HELOC rates, and how can homeowners ensure they get the best rate?
Credit & Mortgage Expert
There are many factors that influence HELOC rates, but the most critical are the following:
Credit score is a crucial factor in determining your interest rate for a HELOC. The higher your credit score, the lower rate you will qualify for. Shoot for a 760 credit score or higher.
Debt-to-income is a vital factor. If the lender doesn’t think you have the ability to repay the debt, you will be denied. Focus on paying off as many credit cards or loans as possible before applying for a HELOC.
Loan-to-value — how much money you borrow based on how much your home is worth plays a large role in interest rate. The more you take out, the higher the risk is for the lender, which translates to a higher interest rate for your loan.
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 Maryland HELOC payment calculator to estimate 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 more effectively and plan for future payments.
Maryland 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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How to Get the Best HELOC Rates in Maryland
Finding the best HELOC rates in Maryland can lead to significant savings, allowing homeowners to fund renovations or consolidate debt efficiently. To secure a competitive rate, consider these five strategies:
Maintain a strong credit score
The average credit score in Maryland is 716. Improving it can help you secure more competitive HELOC rates.
Compare offers from multiple lenders
Exploring various offers can help you find competitive HELOC rates and leverage them for better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios indicate financial stability. Paying off debt can improve your chances for better rates.
Increase your home equity
More equity reduces lender risk, leading to lower rates. Consider paying down your mortgage or making home improvements.
Review closing costs and rate caps
Closing costs affect loan expenses. Understanding rate caps helps manage HELOC adjustments.
HELOC Loan Rates vs. Home Equity Loan Rates in Maryland
HELOC interest rates in Maryland average 8.4%, higher than the 7.6% for home equity loans. This difference arises from HELOCs' variable rate structure, which is more sensitive to market changes.
- HELOCs are revolving credit lines with variable rates, making them prone to increases in rising interest rate environments, potentially impacting homeowners' finances over time.
- Home equity loans offer a lump sum at fixed rates, providing stability and predictability, which can be advantageous for long-term budgeting.
When deciding between these options, consider whether you value the flexibility of accessing funds as needed with a HELOC or the stability of fixed payments with a home equity loan. Assess your financial goals and risk tolerance regarding borrowing against your home's equity.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
A cash-out refinance is a HELOC alternative that replaces your primary mortgage with a larger loan, providing cash access. Unlike HELOCs or home equity loans, it creates a new primary mortgage.
For example, if your loan is backed by the Federal Housing Administration (FHA), and your home is valued at $300K with a $150K mortgage balance, refinancing for $200K gives $50K cash.
FAQ: Best HELOC Rates in Maryland
What are the current HELOC rates in Maryland and how do they compare to national rates?
Maryland's HELOC rates are currently 8.4%, matching the national average of 8.4%.
What fees are commonly associated with HELOCs in Maryland?
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
How do HELOC rates in Maryland compare to home equity loan rates?
Maryland's HELOC rates average 8.4%, while home equity loan rates are lower at 7.6%, which can be advantageous for those with bad credit.
How do HELOC Rates in Maryland vary between banks and credit unions?
Commercial banks in Maryland offer HELOC rates averaging 8.7%, while credit unions offer lower rates at 8.1%.
What's the best HELOC rate in Baltimore? How does it compare to the current HELOC rate in Maryland?
Baltimore's rates average 8.7%, slightly higher than Maryland's average HELOC rate of 8.4%.
MoneyGeek examined 85 different banks and credit unions in Maryland 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.
85Lenders 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.