Home Equity Loan Rates in Connecticut

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.

Connecticut's home equity loan rates are below national averages — 7.1% APR for a 10-year term (7.7% nationally) and 7.4% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Connecticut, 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 Connecticut with an 80% LTV is 7.2%, compared to 7.8% for a 90% LTV.

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HEL rates vary by city in Connecticut. For example, for 15-year loans, Cromwell has an average APR of 6.5%, whereas Hebron's is 12.5%.

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Different lenders offer varying rates for the same loan types. American Eagle Financial Credit Union, Inc.'s average APR is 5.4%, whereas KeyBank National Association's is 12.4%.

MoneyGeek examined 24 different banks and credit unions in Connecticut 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 Connecticut

The current average APR for a 15-year home equity loan in Connecticut is 7.4%, but several factors might affect what lenders offer. For instance, having a higher credit score can lead to a lower APR, while borrowing a larger amount might result in a higher rate. Repayment terms also play a role in determining your rate. Take a look at the table below to compare the average APRs for home equity loans in Connecticut across different loan terms.

10Year7.1%
15Year7.4%
5Year6.8%

Interest rates for a home equity loan change daily. Staying updated on these rates can help you pay less in interest over the life of the loan, saving you money. If you have high-interest debts, a home equity loan at a lower rate can help you consolidate those debts and reduce your overall interest payments.

For example, a 15-year home equity loan with a 7.4% APR results in a monthly payment of $461 and a total interest of $32,920. In comparison, a 10-year loan with a 7.1% APR has a monthly payment of $583 and a total interest of $19,975. Monitoring rates can lead to better financial decisions.

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HOME EQUITY LOANS VS. HELOCS IN CONNECTICUT

Home equity loans and home equity lines of credit (HELOCs) are popular options for homeowners to tap into their home's equity. In Connecticut, home equity loans have fixed rates, averaging 7.1%, while the best HELOC rates in Connecticut are variable, averaging 8.5%. This means that home equity loan rates in Connecticut offer more predictability compared to the fluctuating HELOC rates.

Fixed rates ensure consistent monthly payments, which can help with budgeting and financial planning. On the other hand, home equity line of credit (HELOC) rates in Connecticut may start lower but can increase over time, leading to potentially higher payments. Understanding these differences can help you choose the option that best fits your financial needs.

Home Equity Loan Rates by LTV Ratio

The rate you qualify for depends on your loan-to-value ratio, which is 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 example, 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 means greater potential risk to lenders, resulting in higher rates. Currently, the average APR of a 15-year equity loan in Connecticut with an LTV ratio of 80% is 7.2%, and for a 90% LTV ratio, it's 7.8%. 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
6.9%7.5%

Home Equity Loan Rates by City in Connecticut

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

In Connecticut, Bethel has an average APR of 6.3%, while Centerbrook has an average APR of 12.4%. See the table below for average home equity loan rates across Connecticut cities with different terms.

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City:
City:Bridgeport
10Year6.7%
15Year7.1%
5Year6.5%

Home Equity Loan Lenders in Connecticut

Home equity loan rates in Connecticut differ widely among lenders due to varying policies and market strategies. For instance, American Eagle Financial Credit Union, Inc. offers the lowest average APR at 5.4%, while KeyBank National Association has the highest at 12.4%.

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

Data filtered by:Results filtered by:
City:
City:Bridgeport
General Electric Employees Federal Credit Union6.1%
Webster Bank, N.A.6.5%
Sikorsky Financial Credit Union, Inc.6.6%
TD Bank8.5%
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COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Consider credit unions when exploring lender options for home equity loan rates in Connecticut. They typically offer lower APRs, with an average of 6.9% compared to 8.0% at commercial banks. Although credit unions provide competitive rates, be aware of their stricter membership requirements. Including them in your search could result in significant savings.

How to Get the Best Home Equity Loan Rate in Connecticut

Getting the best possible home equity interest rates can lower your borrowing costs, resulting in reduced monthly payments. To achieve the best home equity loan rates in Connecticut, consider these strategies:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For instance, Seasons Federal Credit Union advertises an average APR of 5.5%, while KeyBank National Association offers 12.4%. Comparing different home equity loan lenders in Connecticut 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. Connecticut homeowners can increase their home's equity by kitchen upgrades or historical home restoration.

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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 Connecticut is 726, 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 Connecticut

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

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

How do you calculate your home equity in Connecticut?

Do home equity loan rates vary between cities in Connecticut?

Does a home equity loan in Connecticut have tax benefits?

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

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

How do you get a home equity loan in Connecticut?

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

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

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

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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