Best HELOC Rates in New Jersey

Key Takeaways

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Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in New Jersey with an 80% LTV is 8.5%, compared with 9.0% for a 90% LTV.

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HELOC rates vary by city in New Jersey. Mount Holly has an average APR of 7.9%, whereas McGuire AFB's is 11.0%.

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Different lenders offer varying rates for the same loan limits. Garden Savings Federal Credit Union's average APR is 6.6%, whereas Andrews Federal Credit Union's is 11.0%.

Current HELOC Rates in New Jersey

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HELOC rates in New Jersey have risen from around 4% in early 2022 to nearly 9% by late 2024. If this trend continues, homeowners may face higher borrowing costs, so consider locking in a rate now.

HELOC Rates in New Jersey by LTV Ratio

HELOC rates in New Jersey vary depending on your loan-to-value (LTV) ratio and line limit. Lenders consider a lower LTV less risky, as you have more equity in your home. For instance, with an 80% LTV, you borrow less against your home's value than at 90%, reducing the risk of default on your HELOC.

The following table 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

HELOC Rates in New Jersey by City

HELOC rates in New Jersey vary by city due to local housing markets and lender competition. For instance, cities with stable housing markets may offer lower rates, reducing lender risk.

Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.

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City:
City:Newark

HELOC Rates in New Jersey by Lender

HELOC interest rates in New Jersey vary based on each lender's pricing strategies and risk assessments. The table below highlights the five lenders in New Jersey offering the lowest average APRs, making it easier for you to compare competitive rates.

Garden Savings Federal Credit Union6.6%
Healthcare Employees Federal Credit Union7.0%
Ukrainian Selfreliance Federal Credit Union7.3%
County Educators Federal Credit Union7.5%
Quorum Federal Credit Union7.8%

HELOC rates today can differ significantly between lenders in the same city.
Use the table below to filter by city and compare APRs to find the most competitive rate in your area.

Data filtered by:Results filtered by:
City:
City:Newark
COMPARING HELOC RATES IN NEW JERSEY: BANKS VS. CREDIT UNIONS

HELOC rates in New Jersey vary between banks and credit unions, with banks generally offering higher rates. Currently, commercial banks in New Jersey have an average APR of 8.8%, while credit unions offer a slightly lower average APR of 8.6%. Credit unions are not-for-profit institutions that often provide more competitive rates.

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:

How do HELOC rates compare to other borrowing options like personal loans or home equity loans, and when should a homeowner choose a HELOC over these alternatives?

Credit & Mortgage Expert

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.

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 New Jersey HELOC payment calculator to determine your monthly payments based on amount draws, APR, and loan terms.
The calculator also provides an amortization schedule, showing the division of payments between principal and interest. Understanding these details can help you manage your HELOC effectively.

New Jersey 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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Credit Payoff Schedule for Home Equity Line

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How to Get the Best HELOC Rates in New Jersey

Finding the best HELOC rates in New Jersey can save you thousands over your loan's term. For example, securing a lower rate could reduce your monthly payments significantly. To achieve this, consider these five strategies:

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    Maintain a strong credit score

    The average credit score in New Jersey is 725. Improving it can help you secure more competitive HELOC rates.

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    Compare offers from multiple lenders

    By comparing multiple lender offers, you can find competitive HELOC rates and use them to negotiate better terms.

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    Reduce your debt-to-income (DTI) ratio

    Lower debt-to-income (DTI) ratios show financial stability. Paying off credit card debt can help reduce your DTI ratio.

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    Increase your home equity

    More equity reduces lender risk, leading to better rates. Paying down your mortgage or making home improvements can increase equity.

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    Review closing costs and rate caps

    Closing costs affect loan expenses. Knowing rate caps helps manage HELOC adjustments over time.

HELOC Loan Rates vs. Home Equity Loan Rates in New Jersey

HELOC interest rates in New Jersey average 8.7%, while the best home equity loan rates are at 7.6%. The difference is due to HELOCs having variable rates, which fluctuate more than the fixed rates of home equity loans.

  • HELOCs are flexible credit lines with variable rates that can increase in rising interest rate environments, potentially affecting homeowners' finances over time.
  • Home equity loans provide a lump sum at a fixed rate, ideal for situations requiring financial certainty or when market stability is preferred.

When deciding between the two, consider whether you value the flexibility of a HELOC or the predictability of a home equity loan. Assess your financial goals and the potential impact on your home's equity to make the best choice.

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, allowing you to access cash. 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 could give you $50,000 in cash, but your new loan payments will be based on $200,000.

FAQ: Best HELOC Rates in New Jersey

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

MoneyGeek examined 64 different banks and credit unions in New Jersey 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.

64Lenders Analyzed

About Zachary Romeo, CBCA


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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.