Home Equity Loan Rates in Colorado

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.

Colorado's home equity loan rates are above national averages — 8.2% APR for a 10-year term (7.7% nationally) and 8.4% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Colorado, 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 Colorado with an 80% LTV is 8.3%, compared to 8.7% for a 90% LTV.

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HEL rates vary by city in Colorado. For example, for 15-year loans, Edwards has an average APR of 6.8%, whereas Castle Pines' is 12.0%.

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Different lenders offer varying rates for the same loan types. Alpine Bank's average APR is 4.0%, whereas KeyBank National Association's is 11.9%.

MoneyGeek examined 43 different banks and credit unions in Colorado 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.

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Current Home Equity Loan Rates in Colorado

The current average APR for a 15-year home equity loan in Colorado is 8.4%, but several factors might affect what lenders offer you. For instance, a higher credit score can often secure a lower APR, while a larger loan amount might lead to a higher rate. Repayment terms are another consideration that can influence your loan's overall cost. Explore the table below to compare the current home equity loan rates in Colorado across different loan terms.

10Year8.2%
15Year8.4%
5Year8.1%

Interest rates for a home equity loan change daily. By keeping an eye on these fluctuations, you can pay less in interest over the life of the loan, saving money. Favorable rates also make financing renovations or repairs more affordable, helping to increase your home's value.

For example, a 15-year home equity loan with an 8.4% APR has a monthly payment of $489 and a total interest of $38,100. In contrast, a 10-year loan with an 8.2% APR has a monthly payment of $612 and a total interest of $23,432.

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HOME EQUITY LOANS VS. HELOCS IN COLORADO

Home equity loans and home equity lines of credit (HELOC) are popular options for homeowners to tap into their home's equity. Home equity loan rates in Colorado average 8.3%, while HELOC rates are slightly higher at 8.5%. Home equity loans have fixed rates, providing stability, whereas HELOCs have variable rates, which fluctuate.

Fixed rates mean predictable monthly payments, which can simplify budgeting. In contrast, HELOC rates in Colorado might start lower but can increase, potentially leading to higher costs over time. Understanding the differences between home equity loans and HELOCs can help you decide which option aligns better with your financial goals.

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 your mortgage balance is $240,000, your LTV ratio is 80%.

A higher LTV ratio means a greater risk to lenders, resulting in higher rates. In Colorado, the average APR for a 15-year equity loan with an 80% LTV ratio is 8.3%, while it's 8.7% for a 90% LTV ratio. Use the table to see what rates you might qualify for based on your LTV ratio.

Data filtered by:Results filtered by:
Repayment Terms:
Repayment Terms:10Year
8.2%8.4%

Home Equity Loan Rates by City in Colorado

Average APRs vary between cities in Colorado due to differences in property taxes or local fees, which affect borrowing costs, and because cities with stronger job markets and lower unemployment tend to offer better rates. These factors contribute to the differences in average home equity loan rates across the state.

In Colorado, Edwards has an average APR of 6.8%, while Castle Pines has an average APR of 11.9%. Below is a table showing cities in Colorado and their average APRs for home equity loans with different terms.

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City:
City:Denver
10Year8.5%
15Year8.6%
5Year8.5%

Home Equity Loan Lenders in Colorado

Home equity loan rates in Colorado vary significantly between lenders due to differences in policies, risk assessments and market strategies. For instance, Alpine Bank offers the lowest average APR at 4.0%, while KeyBank National Association has the highest at 11.9%.

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

Data filtered by:Results filtered by:
City:
City:Denver
Alpine Bank4.0%
HTLF Bank6.8%
Academy Bank, N.A.6.8%
First Technology Federal Credit Union7.1%
Security Service Federal Credit Union7.6%
Credit Union of Colorado, A Federal Credit Union8.0%
Westerra Credit Union8.2%
Blue Federal Credit Union8.3%
UMB Bank8.6%
Busey Bank8.8%
BMO BANK NATIONAL ASSOCIATION8.8%
Colorado Credit Union8.9%
Commerce Bank9.0%
Credit Union of Denver9.1%
Denver Fire Department Federal Credit Union9.2%
BOKF9.5%
PNC Bank9.6%
KeyBank National Association11.9%
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COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Considering credit unions for home equity loan rates in Colorado can be beneficial. They often provide lower rates, with an average APR of 8.1% compared to 8.7% at commercial banks. Keep in mind that credit unions may have stricter membership requirements.

How to Get the Best Home Equity Loan Rate in Colorado

Getting the best possible home equity interest rates can lower your monthly payments and reduce overall costs, enhancing your financial flexibility. For instance, a lower rate can free up funds for home improvements or debt consolidation. To secure the best home equity loan rates in Colorado, consider these strategies:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For instance, Fitzsimons Federal Credit Union advertises an average APR of 6.1%, while Arapahoe Credit Union offers 8.7%. Comparing different home equity loan lenders in Colorado 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. Colorado homeowners can increase their home's equity by finishing basements or creating home offices.

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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. The average credit score in Colorado is 731, 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

Provide your income and recurring payments to calculate your DTI.

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FAQ About Home Equity Loan Rates in Colorado

MoneyGeek addresses common questions about home equity loan rates in Colorado, offering reliable information to homeowners. By exploring factors like credit scores and lender options, we help you understand how these rates are determined. We aim to provide clear, factual insights to guide your financial decisions.

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

How do you calculate your home equity in Colorado?

Do home equity loan rates vary between cities in Colorado?

Does a home equity loan in Colorado have tax benefits?

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

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

How do you get a home equity loan in Colorado?

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

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

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

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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