HELOC rates in North Carolina rose from 4.5% in 2020 to around 9% in 2024. If this trend continues, homeowners may face higher borrowing costs. Securing a rate now could help you avoid future increases.
HELOC
Best HELOC Rates in North Carolina (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 North Carolina with an 80% LTV is 8.3%, compared with 8.5% for a 90% LTV.
HELOC rates vary by city in North Carolina. Bakersville has an average APR of 4.8%, whereas Valdese's is 10.8%.
Different lenders offer varying rates for the same loan types. United Community Bank's average APR is 4.8%, whereas Pinnacle Bank's is 11.8%.
Current HELOC Rates in North Carolina
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HELOC Rates in North Carolina by LTV Ratio
HELOC rates in North Carolina vary depending on your loan-to-value (LTV) ratio and line limit. A lower LTV is less risky for lenders, indicating more home equity. For example, an 80% LTV means less borrowing against your home's value than a 90% LTV, 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
| 8.2% | 8.5% |
HELOC Rates in North Carolina by City
HELOC rates in North Carolina vary between cities due to local housing market conditions and lender competition. For instance, cities with strong 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.
Data filtered by:Results filtered by:
City:
City:Charlotte
| $100,000 | 8.3% |
| $50,000 | 8.4% |
HELOC Rates in North Carolina by Lender
HELOC interest rates in North Carolina vary by lender based on pricing strategies and risk assessments. Understanding these differences can help you find competitive rates. The table below lists the five lenders in North Carolina offering the lowest average APRs, helping you compare rates.
| United Community Bank | 4.8% |
| First National Bank of Pennsylvania | 6.5% |
| Empeople Credit Union | 6.6% |
| ElecTel Cooperative Federal Credit Union | 6.8% |
| State Employees Credit Union | 7.3% |
HELOC rates today can vary between lenders in the same city. Use the table below to filter lenders by city and compare average APRs to find the best rate in your area.
Data filtered by:Results filtered by:
City:
City:Charlotte
| United Community Bank | Commercial Bank | 4.8% |
| First National Bank of Pennsylvania | Commercial Bank | 6.5% |
| State Employees Credit Union | Credit Union | 7.3% |
| Clearview Federal Credit Union | Credit Union | 7.5% |
| American Airlines Federal Credit Union | Credit Union | 7.7% |
| TowneBank | Commercial Bank | 7.8% |
| Latino Community Credit Union | Credit Union | 7.8% |
| Truliant Federal Credit Union | Credit Union | 7.8% |
| Allegacy Federal Credit Union | Credit Union | 7.9% |
| First-Citizens Bank & Trust Company | Commercial Bank | 8.0% |
| Carolinas Telco Federal Credit Union | Credit Union | 8.0% |
| The Park National Bank | Commercial Bank | 8.0% |
| Skyla Federal Credit Union | Credit Union | 8.0% |
| Sharonview Federal Credit Union | Credit Union | 8.0% |
| Founders Federal Credit Union | Credit Union | 8.1% |
| Customers Bank | Commercial Bank | 8.5% |
| First Bank | Commercial Bank | 8.5% |
| First Horizon Bank | Commercial Bank | 8.5% |
| Piedmont Advantage Credit Union | Credit Union | 8.5% |
| Regions Bank | Commercial Bank | 8.5% |
| United Bank | Commercial Bank | 8.5% |
| Self-Help Credit Union | Credit Union | 9.0% |
| SouthState Bank | Commercial Bank | 9.0% |
| Local Government Federal Credit Union | Credit Union | 9.0% |
| PNC Bank | Commercial Bank | 9.5% |
| Bank of America | Commercial Bank | 9.6% |
| Fifth Third Bank | Commercial Bank | 10.1% |
| Pinnacle Bank | Commercial Bank | 11.8% |
COMPARING HELOC RATES IN NORTH CAROLINA: BANKS VS. CREDIT UNIONS
HELOC rates in North Carolina vary between banks and credit unions, with commercial banks generally offering higher rates. Currently, the best HELOC rate from commercial banks in the state averages 8.6%, compared to 8.2% from credit unions. Credit unions are not-for-profit institutions that often provide lower rates due to their structure.
When selecting between the two, consider more than just rates. Banks may offer convenience, while credit unions often excel in customer service and lower fees. Be sure to check membership requirements for credit unions and be aware of any hidden fees or rate adjustment clauses with both lenders.
Ask the experts:
How do lenders assess risk when setting HELOC rates for different property types (e.g., primary residence vs. investment property), and how can borrowers mitigate higher rates for non-primary homes?
Credit & Mortgage Expert
All loans are about risk. The higher the risk, the higher your rate will be. With investment properties or second homes, since they are not your primary residence the risk is inherently higher in the eyes of the lender — for example, if someone falls on hard times, they are more likely to continue making timely payments on the home they live in rather than an investment or second home.
Usually, if you are taking a HELOC on an investment property, you are using those funds to improve the property or using it to buy another investment property. Having access to cash to make more cash is what investors do. They should always take into account the higher rates when making an investment decision. If successful, the higher rate won't be a problem.
HELOC Payment Calculator
HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home equity. Use our North Carolina HELOC payment calculator to estimate your monthly payments by entering the amount drawn, APR and loan terms. It also provides an amortization schedule, showing how payments divide between principal and interest over time. Understanding these details can help you manage your HELOC more effectively and plan for future payments.
North Carolina 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.
Credit Line Information
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Repayment Period Payment
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- Graph view
- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
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How to Get the Best HELOC Rates in North Carolina
Finding the best HELOC rates in North Carolina can save you thousands over time. A lower rate means smaller monthly payments. Consider these five strategies to get the most competitive rate:
Maintain a strong credit score
The average credit score in North Carolina is 709. Improving your score can help secure better rates from lenders.
Compare offers from multiple lenders
Shopping around can help you find competitive rates and use offers to negotiate better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income ratios show financial stability. Paying off credit card debt can help.
Increase your home equity
More equity reduces lender risk, leading to lower rates. Paying down your mortgage or making home improvements can help.
Review closing costs and rate caps
Closing costs affect loan expenses. Knowing rate caps helps manage HELOC adjustments.
HELOC Loan Rates vs. Home Equity Loan Rates in North Carolina
HELOC interest rates in North Carolina average 8.4%, while the best home equity loan rates are around 7.7%. This difference arises from HELOCs having variable rates, which can fluctuate, whereas home equity loans offer fixed rates.
- HELOCs are flexible, revolving credit lines with variable interest rates, making them susceptible to increases in rising interest rate environments, potentially affecting long-term homeowner finances.
- Home equity loans provide a lump sum at a fixed rate, ideal for stable financial planning and situations where predictability is preferred over flexibility.
When deciding between these options, consider your financial goals, risk tolerance, and whether you prioritize the flexibility of a HELOC or the predictability of a home equity loan. Assessing your equity in your home is also crucial to making an informed 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 new, larger loan, providing 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 $300K with a $150K mortgage balance, an FHA cash-out refinance for $200K could give you $50K in cash, with new payments based on $200K.
FAQ: Best HELOC Rates in North Carolina
What are the current HELOC rates in North Carolina and how do they compare to national rates?
The current North Carolina's HELOC rates average 8.4%, which aligns with the national average of 8.4%.
What fees are commonly associated with HELOCs in North Carolina?
Common fees include application, appraisal, annual, and early closure fees, though specifics can vary by lender.
How do HELOC rates in North Carolina compare to home equity loan rates?
HELOC rates in North Carolina average 8.4%, while home equity loan rates are lower at 7.7%, which may be beneficial for those with bad credit.
How do HELOC Rates in North Carolina vary between banks and credit unions?
Commercial banks in North Carolina offer HELOC rates averaging 8.6%, while credit unions offer lower rates at 8.2%.
What's the best HELOC rate in Charlotte? How does it compare to the current HELOC rate in North Carolina?
Charlotte's rates average 8.4%, which is consistent with the overall HELOC rates in North Carolina.
MoneyGeek examined 77 different banks and credit unions in North Carolina 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.
77Lenders 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.