Home Equity Loan Rates in Arizona

The equity in your home that you can access and borrow is known as tappable equity. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Arizona's home equity loan rates are slightly above national averages — 7.9% APR for a 10-year term (7.7% nationally) and 8.2% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Arizona, including city-specific rates, top lenders and tips on securing the best rates for using your home's equity.

Key Takeaways

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Higher LTV ratios lead to higher rates. The average APR for a 15-year HEL in Arizona with an 80% LTV is 8%, compared to 8.4% for a 90% LTV.

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HEL rates vary by city in Arizona. For example, the average APR for 15-year loans in San Tan Valley is 6.8%, whereas Bullhead City's is 9.3%.

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Different lenders offer varying rates for the same loan types. Southwest Airlines Federal Credit Union's average APR is 5.5%, whereas PNC Bank's is 9.6%.

MoneyGeek examined 34 different banks and credit unions in Arizona using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity loan rates.

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This data is accurate as of November 2024.

34Lenders Analyzed

Current Home Equity Loan Rates in Arizona

The current average APR for a 15-year home equity loan in Arizona is 8.2%, but several factors might affect what lenders offer. For instance, a higher credit score can lead to a lower APR, while a larger loan amount might result in a higher rate. Repayment terms also play a role in determining the rates. Explore the table below to compare the current home equity loan rates in Arizona across different loan terms.

10Year7.9%
15Year8.2%
5Year7.8%

Interest rates for a home equity loan change daily. Keeping track of these rates can save you money by reducing the interest you pay over the life of the loan. If you have high-interest debts, consolidating them with a home equity loan at a lower rate can also reduce your overall interest payments.

For instance, a 15-year home equity loan with an 8.2% APR results in a monthly payment of $484 and a total interest of $37,051. In contrast, a 10-year loan with a 7.9% APR has a monthly payment of $604 and a total interest of $22,480.

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HOME EQUITY LOANS VS. HELOCS IN ARIZONA

Home equity loans and home equity lines of credit (HELOCs) are popular options for homeowners to tap into their home's equity. Home equity loans have fixed rates, averaging 8.0%, while the best HELOC rates in Arizona are variable, averaging 8.7%.

Fixed rates mean predictable monthly payments, making it easier to budget. In contrast, variable home equity line of credit (HELOC) rates in Arizona can start lower but may increase, leading to potentially higher payments over time.

Home Equity Loan Rates by LTV Ratio

The rate you qualify for depends on your loan-to-value ratio, which is the amount you owe on your mortgage compared to your home's appraised value. To calculate your LTV ratio, divide your current mortgage balance by your home's appraised value and multiply by 100. For instance, if your home is valued at $300,000 and your mortgage balance is $240,000, your LTV ratio is 80%.

A higher LTV ratio indicates a greater risk to lenders, which often results in higher rates. In Arizona, the average APR for a 15-year equity loan with an LTV ratio of 80% is 8%, compared to 8.4% for an LTV ratio of 90%. Check the table below to see the average home equity loan rates you might qualify for based on your LTV ratio.

Data filtered by:Results filtered by:
Repayment Terms:
Repayment Terms:10Year
7.8%8.2%

Home Equity Loan Rates by City in Arizona

Average APRs also vary between cities in Arizona. Cities with higher home values or rapid appreciation often have lower rates because the loans are seen as less risky. Additionally, in larger or more densely populated cities, more lenders compete, which can lead to lower interest rates.

In Arizona, El Mirage has an average APR of 6.8%, while Litchfield Park has an average APR of 9.4%. Explore the table below to see the average home equity loan rates across Arizona cities.

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City:
City:Phoenix
10Year8.0%
15Year8.3%
5Year7.9%

Home Equity Loan Lenders in Arizona

Home equity loan rates in Arizona can vary significantly between lenders due to differences in policies, risk assessments and market strategies. For instance, Southwest Airlines Federal Credit Union offers the lowest average APR at 5.5%, while PNC Bank has the highest at 9.6%.

Comparing rates and terms from different lenders is essential to securing the lowest home equity loan rates. Explore the interactive table below to see which lenders offer the best rates in your city.

Data filtered by:Results filtered by:
City:
City:Phoenix
Southwest Airlines Federal Credit Union5.5%
AERO Federal Credit Union6.5%
Notre Dame Federal Credit Union Corporation6.5%
Mayo Employees Federal Credit Union7.2%
Copper State Credit Union7.3%
Banner Federal Credit Union7.5%
Navy Federal Credit Union7.6%
Mountain America Federal Credit Union8.0%
Arizona Financial Credit Union8.2%
Bankers Trust Company8.3%
OneAZ Credit Union8.5%
Credit Union West8.5%
UMB Bank8.6%
Busey Bank8.8%
BMO BANK NATIONAL ASSOCIATION8.8%
U.S. Bank National Association9.0%
Farmers Insurance Group Federal Credit Union9.0%
Global Federal Credit Union9.0%
BOKF9.5%
PNC Bank9.6%
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COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Including credit unions in your lender options can be beneficial, as they typically offer lower home equity loan rates in Arizona. For instance, commercial banks have an average APR of 8.6%, while credit unions offer 7.8%. Be mindful, though, as credit unions may have stricter membership requirements.

How to Get the Best Home Equity Loan Rate in Arizona

Getting the best home equity interest rates can lower your monthly payments and reduce overall costs, improving your financial flexibility. To secure the best home equity loan rates in Arizona, consider these strategies:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For instance, Pyramid Federal Credit Union advertises an average APR of 6.0%, while Busey Bank offers 8.8%. Comparing home equity loan lenders in Arizona can help you find better rates.

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    Increase your home's equity

    Having more equity in your home can result in more competitive rates from lenders. Arizona homeowners can increase their home's equity by adding outdoor living spaces or pool installations.

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    Improve your credit score

    Increasing your credit score can lead to more competitive home equity loan rates. Pay bills on time and reduce credit card debt to improve your credit score. According to Experian, the average credit score in Arizona is 713.

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    Decrease debt-to-income ratio

    A lower debt-to-income (DTI) ratio — the percentage of your monthly income that goes toward paying debts — can lead to better rates as lenders see you as a less risky borrower.

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Debt-to-Income Ratio Calculator

Provide your income and recurring payments to calculate your DTI.

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FAQ About Home Equity Loan Rates in Arizona

MoneyGeek addresses common questions about home equity loan rates, providing clear, factual information to Arizona homeowners.

What is the interest rate on a home equity loan in Arizona?

How do you calculate your home equity in Arizona?

Do home equity loan rates vary between cities in Arizona?

Does a home equity loan in Arizona have tax benefits?

What are possible drawbacks of securing a home equity loan in Arizona?

How long does it take to get a home equity loan in Arizona?

How do you get a home equity loan in Arizona?

What can I use my funds for? Are there any home equity loan use restrictions in Arizona?

Can you only take out a home equity loan in Arizona on your primary residence?

What other home equity products can you consider if you want to tap into your home's equity in Arizona?

What's the difference between a HELOC and a home equity loan?

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.


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