Home Equity Loan Rates in Delaware

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.

Delaware's home equity loan rates are 7.7% APR for a 10-year term, similar to the national average, and 8.1% APR for a 15-year term, slightly higher than the national average of 7.9%. We've compiled detailed insights on current home equity loan rates in Delaware, 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 Delaware with an 80% LTV is 8%, compared to 8.5% for a 90% LTV.

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HEL rates vary by city in Delaware. For example, for 15-year loans, Dagsboro has an average APR of 7.8%, whereas Claymont's is 10.2%.

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Different lenders offer varying rates for the same loan types. Dover Federal Credit Union's average APR is 5.4%, whereas PNC Bank's is 10.0%.

MoneyGeek examined 12 different banks and credit unions in Delaware 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 Delaware

The current average APR for a 15-year home equity loan in Delaware is 8.1%, but various factors can influence what lenders offer. For instance, having a higher credit score can lead to a lower APR, while a larger loan amount might result in a higher rate. It's also important to consider repayment terms. Check the table below to compare the current home equity loan rates in Delaware across different loan terms.

10Year7.7%
15Year8.1%
5Year7.6%

Interest rates for home equity loans change daily. Keeping track of these changes can save you money by reducing the interest paid over the life of the loan. Additionally, if you have high-interest debts, a home equity loan at a lower rate can help consolidate those debts and lower your overall interest payments.

For example, a 15-year home equity loan with an 8.1% APR results in a monthly payment of $481 and a total interest of $36,529. In comparison, a 10-year loan with a 7.7% APR has a monthly payment of $599 and a total interest of $21,849.

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HOME EQUITY LOANS VS. HELOCS IN DELAWARE

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 7.8%, while the best HELOC rates in Delaware are variable, averaging 8.5%. This makes home equity loan rates in Delaware more predictable compared to the fluctuating nature of HELOCs.

Fixed rates mean your monthly payments remain consistent, which can help with budgeting. On the other hand, variable home equity line of credit (HELOC) rates in Delaware may start lower but can increase, potentially raising your payments over time. Understanding these differences can help you choose the option that best aligns 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 you owe $240,000, your LTV ratio is 80%.

A higher LTV ratio presents a greater risk to lenders, resulting in higher rates. In Delaware, the average APR for a 15-year equity loan with an 80% LTV ratio is 8%, compared to 8.5% for a 90% LTV ratio. Use the table to see what average home equity loan rates you might qualify for based on your LTV ratio.

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Repayment Terms:
Repayment Terms:10Year
7.5%7.9%

Home Equity Loan Rates by City in Delaware

Average APRs also vary between cities in Delaware. 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 Delaware, Camden has an average APR of 6%, while Claymont has an average APR of 10.4%. Below is a table showing the average home equity loan rates for cities in Delaware with different terms.

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City:
City:Wilmington
10Year8.0%
15Year8.2%
5Year7.8%

Home Equity Loan Lenders in Delaware

Home equity loan rates in Delaware vary significantly among lenders due to differing policies and market strategies. For instance, Dover Federal Credit Union offers the lowest average APR at 5.4%, while PNC Bank has the highest at 10.0%.

Comparing rates and terms from various lenders is advisable to secure the best possible home equity loan rates. Explore the interactive table below to see which lenders offer the lowest rates in your city.

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City:
City:Wilmington
Community Powered Federal Credit Union6.3%
Del-One Federal Credit Union7.3%
DEXSTA Federal Credit Union7.4%
First Citizens Community Bank7.5%
Franklin Mint Federal Credit Union8.2%
TD Bank8.3%
Sun East Federal Credit Union8.6%
PNC Bank10.0%
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COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Considering credit unions in your lender options can be beneficial. In Delaware, commercial banks offer an average APR of 8.8%, while credit unions provide a lower rate of 7.3% for home equity loan rates. Credit unions typically have more competitive rates but may have stricter membership criteria.

How to Get the Best Home Equity Loan Rate in Delaware

Securing the best possible home equity interest rates can lower your monthly payments and overall costs, freeing up funds for other financial goals. To acquire the best home equity loan rates in Delaware, consider these strategies:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For instance, Community Powered Federal Credit Union advertises an average APR of 6.3%, while PNC Bank offers 10.0%. Comparing different home equity loan lenders in Delaware 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. Delaware homeowners can increase their home's equity by renovating the bathroom or adding decks.

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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 Delaware is 715, 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 Delaware

MoneyGeek answers common questions about home equity loan rates in Delaware, offering clear and reliable information to homeowners in the First State.

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

How do you calculate your home equity in Delaware?

Do home equity loan rates vary between cities in Delaware?

Does a home equity loan in Delaware have tax benefits?

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

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

How do you get a home equity loan in Delaware?

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

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

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

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

About Zachary Romeo, CBCA


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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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