Best HELOC Rates in Pennsylvania

Key Takeaways

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Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Pennsylvania with an 80% LTV is 8.4%, compared with 8.8% for a 90% LTV.

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HELOC rates vary by city in Pennsylvania. Davidsville has an average APR of 5.8%, whereas Red Hill's is 11.8%.

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Different lenders offer varying rates for the same loan types. Cross Valley Federal Credit Union's average APR is 5.2%, whereas KeyBank National Association's is 11.8%.

Current HELOC Rates in Pennsylvania

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HELOC rates in Pennsylvania rose from 4% in 2020 to nearly 9% in 2024. Continued increases could mean higher borrowing costs for homeowners, so consider locking in current rates.

HELOC Rates in Pennsylvania by LTV Ratio

HELOC rates in Pennsylvania vary depending on the borrower's loan-to-value (LTV) ratio and line limit. Lenders view a lower LTV as less risky, as you have more equity in your home. For instance, with an 80% LTV, you're borrowing less 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
8.4%8.8%

HELOC Rates in Pennsylvania by City

HELOC rates in Pennsylvania differ by city due to differences in local housing markets and lender competition. For instance, a city with a strong housing market might have lower rates due to reduced 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:Philadelphia
$100,0008.7%
$50,0008.8%

HELOC Rates in Pennsylvania by Lender

HELOC interest rates in Pennsylvania vary by lender due to their unique pricing strategies and risk assessments. The table below shows the five lenders in Pennsylvania offering the lowest average APRs, helping you compare competitive rates.

Cross Valley Federal Credit Union5.2%
HealthCare First Credit Union5.8%
Corry Federal Credit Union6.5%
Lehigh Valley Educators Credit Union7.0%
VAntage Trust Federal Credit Union7.1%

HELOC rates today can vary among lenders, even within the same city. Use the table below to filter by city and compare average APRs, helping you find the best rate in your area.

Data filtered by:Results filtered by:
City:
City:Philadelphia
Ukrainian Selfreliance Federal Credit UnionCredit Union7.3%
Franklin Mint Federal Credit UnionCredit Union7.5%
S&T BankCommercial Bank7.6%
FedChoice Federal Credit UnionCredit Union8.0%
Police and Fire Federal Credit UnionCredit Union8.0%
TruMark Financial Credit UnionCredit Union8.2%
Advantage Financial Federal Credit UnionCredit Union8.3%
Freedom Credit UnionCredit Union8.5%
American Airlines Federal Credit UnionCredit Union8.5%
Univest Bank and Trust Co.Commercial Bank8.5%
Tompkins Community BankCommercial Bank8.5%
Reliance Federal Credit UnionCredit Union8.5%
Fulton BankCommercial Bank8.5%
First Citizens Community BankCommercial Bank8.5%
Democracy Federal Credit UnionCredit Union8.5%
Customers BankCommercial Bank8.5%
Ardent Federal Credit UnionCredit Union8.5%
Philadelphia Federal Credit UnionCredit Union8.8%
American Heritage Federal Credit UnionCredit Union8.9%
The Bank of PrincetonCommercial Bank9.0%
Parke BankCommercial Bank9.0%
TD BankCommercial Bank9.2%
Bank of AmericaCommercial Bank10.1%
PNC BankCommercial Bank10.6%
Manufacturers and Traders Trust CompanyCommercial Bank10.6%
Truist BankCommercial Bank11.1%
KeyBank National AssociationCommercial Bank11.8%
COMPARING HELOC RATES IN PENNSYLVANIA: BANKS VS. CREDIT UNIONS

HELOC rates in Pennsylvania vary between banks and credit unions. Commercial banks in the state have an average APR of 8.7%, while credit unions offer a slightly lower average of 8.4%. Credit unions are not-for-profit institutions, often allowing them to provide more competitive rates than banks.

When choosing between the two, consider more than just rates. Banks may offer more convenience and a wider range of services, whereas credit unions often provide better customer service and lower fees. Check membership requirements for credit unions and 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 Pennsylvania HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms. It also offers an amortization schedule, showing the split between principal and interest over time. Understanding these details can help you manage your HELOC more effectively and plan your finances.

Pennsylvania 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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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 Pennsylvania

Finding the best HELOC rates in Pennsylvania can save you thousands over the loan's lifespan. Consider these five strategies to secure competitive rates:

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    Maintain a strong credit score

    The average credit score in Pennsylvania is 723. While this is good, aiming for a higher score can secure better rates.

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    Compare offers from multiple lenders

    Shopping around can help you find competitive rates and negotiate better terms.

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    Reduce your debt-to-income (DTI) ratio

    Lower debt-to-income ratios show stability. Pay off credit card debt to improve your ratio.

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    Increase your home equity

    More equity reduces lender risk. Consider paying down your mortgage or making home improvements.

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    Review closing costs and rate caps

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

HELOC Loan Rates vs. Home Equity Loan Rates in Pennsylvania

HELOC interest rates in Pennsylvania average 8.5%, higher than home equity loan rates at 7.2%. The difference stems from HELOCs' fluctuating rates versus the fixed rates of home equity loans, affecting the average APRs.

  • HELOCs are flexible, revolving credit lines with variable interest rates that can increase in rising interest rate environments, potentially raising homeowners' costs over time.
  • Home equity loans offer a lump sum at a fixed rate, providing stability throughout the loan term. They're better for those seeking financial predictability.

When deciding between these options, consider whether you prioritize a HELOC's flexibility and potential cost fluctuations or the stability and predictability of a home equity loan. Both allow borrowing against your home's equity, but your choice should align with your financial goals and risk tolerance.

CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE

A cash-out refinance is a HELOC alternative that replaces your primary mortgage with a new, larger loan, allowing you to access cash. Unlike HELOCs or home equity loans, cash-out refinances create 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, but your new loan payments will be based on $200K.

FAQ: Best HELOC Rates in Pennsylvania

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

MoneyGeek examined 149 different banks and credit unions in Pennsylvania 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.

149Lenders 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.