Best HELOC Rates in Maryland (December 2024)

Key Takeaways

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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.

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HELOC rates vary by city in Maryland. Largo has an average APR of 7.7%, whereas Centreville's is 16.0%.

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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 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 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
$100,0008.6%
$50,0008.7%

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 Pennsylvania6.5%
Baltimore County Employees Federal Credit Union6.8%
Ukrainian Selfreliance Federal Credit Union7.0%
FedFinancial Federal Credit Union7.2%
Consumers Credit Union7.3%

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 PennsylvaniaCommercial Bank6.5%
Baltimore County Employees Federal Credit UnionCredit Union6.8%
Ukrainian Selfreliance Federal Credit UnionCredit Union7.0%
Consumers Credit UnionCredit Union7.3%
Municipal Employees Credit Union of Baltimore, IncCredit Union7.5%
First Eagle Federal Credit UnionCredit Union8.0%
Fulton BankCommercial Bank8.0%
FVCbankCommercial Bank8.0%
Point Breeze Credit UnionCredit Union8.0%
Shore United BankCommercial Bank8.0%
Johns Hopkins Federal Credit UnionCredit Union8.1%
State Employees Credit Union of MarylandCredit Union8.3%
TD BankCommercial Bank8.5%
Univest Bank and Trust Co.Commercial Bank8.5%
Securityplus Federal Credit UnionCredit Union8.5%
First Financial of Maryland Federal Credit UnionCredit Union8.5%
Five Star of Maryland Federal Credit UnionCredit Union8.6%
Wesbanco Bank, Inc.Commercial Bank9.0%
PNC BankCommercial Bank10.1%
Bank of AmericaCommercial Bank10.6%
Manufacturers and Traders Trust CompanyCommercial Bank10.7%
Truist BankCommercial Bank16.0%
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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Draw Period Payment

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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 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:

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    Maintain a strong credit score

    The average credit score in Maryland is 716. Improving it can help you secure more competitive HELOC rates.

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    Compare offers from multiple lenders

    Exploring various offers can help you find competitive HELOC rates and leverage them for better terms.

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    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.

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    Increase your home equity

    More equity reduces lender risk, leading to lower rates. Consider paying down your mortgage or making home improvements.

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    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?

What fees are commonly associated with HELOCs in Maryland?

How do HELOC rates in Maryland compare to home equity loan rates?

How do HELOC Rates in Maryland vary between banks and credit unions?

What's the best HELOC rate in Baltimore? How does it compare to the current HELOC rate in Maryland?

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, 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.