Home Equity Loan Rates in Arkansas

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.

Arkansas's home equity loan rates are 7.9% for 10-year terms, slightly above the national average of 7.7%, and 7.9% for 15-year terms, similar to the national average of 7.9%. We've compiled detailed insights on current home equity loan rates in Arkansas, 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 Arkansas with an 80% LTV is 8%, compared to 7.4% for a 90% LTV.

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HEL rates vary by city in Arkansas. For example, for 15-year loans, El Dorado's average APR is 5.8%, whereas Lowell's is 9.7%.

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Different lenders offer varying rates for the same loan types. Guaranty Bank & Trust's average APR is 5.3%, whereas Firstar Bank's is 10.0%.

MoneyGeek examined 16 different banks and credit unions in Arkansas 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.

16Lenders Analyzed

Current Home Equity Loan Rates in Arkansas

The current average APR for a 15-year home equity loan in Arkansas is 7.9%. Several factors can affect what lenders offer, such as your credit score and the loan amount you're seeking. For instance, a better credit score might secure you a lower APR, while a larger loan amount could lead to higher rates. Repayment terms also play a role in determining your rate. Explore the table below to compare the average APRs of home equity loans in Arkansas across different loan terms.

10Year7.9%
15Year7.9%
5Year7.9%

Interest rates for a home equity loan change daily. Keeping track of these rates can save you money by allowing you to pay less in interest over the life of the loan. Favorable rates also make financing renovations or repairs more affordable, which can help boost your home's value.

For example, a $50,000 home equity loan with a 15-year term at a 7.9% APR results in a monthly payment of $475 and a total interest of $35,490. In contrast, a 10-year loan with the same 7.9% APR has a monthly payment of $604 and a total interest of $22,480. Understanding these differences can help you choose the best loan option for your financial situation.

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HOME EQUITY LOANS VS. HELOCS IN ARKANSAS

Home equity loans and home equity lines of credit (HELOCs) are popular options for homeowners to tap into their home's equity. Home equity loan rates in Arkansas average 7.9%, while the best HELOC rates in Arkansas are variable, averaging 8.6%. Home equity loans have fixed rates, offering financial predictability, whereas HELOCs have variable rates, which can lead to fluctuating payments.

Fixed rates mean your monthly payments remain consistent, providing stability in your budget. On the other hand, variable home equity line of credit (HELOC) rates in Arkansas can start lower but may increase over time, potentially leading to higher payments. Understanding these differences can help you choose the right option for your financial situation.

Home Equity Loan Rates by LTV Ratio

The rate you qualify for depends on your loan-to-value ratio, which measures how much 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 you owe $240,000 on your mortgage, your LTV ratio is 80%.

A higher LTV ratio indicates greater risk to lenders, which typically results in higher rates. For example, the average APR of a 15-year equity loan in Arkansas with an LTV ratio of 80% is 8%, whereas it's 7.4% for an LTV ratio of 90%. Use the table below to see what rates you might qualify for based on your LTV ratio.

Data filtered by:Results filtered by:
Repayment Terms:
Repayment Terms:10Year
7.9%7.8%

Home Equity Loan Rates by City in Arkansas

Average APRs also vary between cities in Arkansas. Cities with higher living costs may see slightly higher rates, as lenders face increased operational expenses. Additionally, differences in property taxes or local fees can influence rates, affecting overall borrowing costs.

In Arkansas, Texarkana has an average APR of 5.3%, while Lowell has an average APR of 9.4%. Below is a table that shows the cities in Arkansas and their average APRs for home equity loans with different terms.

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City:
City:Little Rock
10Year6.5%
15Year6.5%

Home Equity Loan Lenders in Arkansas

Home equity loan rates in Arkansas vary significantly between lenders, influenced by their individual policies and market strategies. For instance, Guaranty Bank & Trust offers the lowest average APR at 5.3%, whereas Firstar Bank has the highest at 10.0%.

Comparing rates and terms from different lenders is the best way to secure the lowest home equity loan rates. Explore the interactive table to see which lenders offer the most competitive rates in your city.

Data filtered by:Results filtered by:
City:
City:Little Rock
First Financial Bank5.8%
Regions Bank7.3%
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COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Considering credit unions for home equity loan rates in Arkansas can be beneficial. Both commercial banks and credit unions offer an average APR of 7.9%. Credit unions often provide competitive rates but may have stricter membership requirements. Including them in your options could lead to favorable terms.

How to Get the Best Home Equity Loan Rate in Arkansas

Securing the best home equity loan rates can lead to lower monthly payments and overall costs, freeing up funds for other financial goals. To achieve the best home equity loan rates in Arkansas, consider these strategies:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. Guaranty Bank & Trust offers an average APR of 5.3%, while Eaton Family Credit Union offers 9.5%. Comparing home equity loan lenders in Arkansas 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. Arkansas homeowners can increase their home's equity by remodeling the bathroom or finishing the basement.

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    Improve your credit score

    Improve your credit score to get better home equity loan rates. Pay bills on time and reduce credit card debt. The average credit score in Arkansas is 696, according to Experian.

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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

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FAQ About Home Equity Loan Rates in Arkansas

MoneyGeek addresses common questions about home equity loan rates in Arkansas, offering clear and reliable information to homeowners.

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

How do you calculate your home equity in Arkansas?

Do home equity loan rates vary between cities in Arkansas?

Does a home equity loan in Arkansas have tax benefits?

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

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

How do you get a home equity loan in Arkansas?

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

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

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

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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