Home Equity Loan Rates in Illinois

The equity in your home that you can access and borrow is known as tappable equity. According to TransUnion, tappable equity averages $96,000 in Illinois. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Illinois home equity loan rates are slightly higher than national averages — 7.8% APR for a 10-year term, compared to 7.7%, and 8.2% APR for a 15-year term, compared to 7.9%. We provide detailed insights on current home equity loan rates in Illinois, including comparisons with home equity line of credit (HELOC) rates, lender options and strategies to secure the best home equity loan rates in Illinois.

Key Takeaways

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Higher LTV ratios lead to higher rates. The average APR for a 15-year HEL in Illinois with an 80% LTV is 8.0%, compared to 8.6% for a 90% LTV.

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HEL rates vary by city in Illinois. For example, for 15-year loans, Milan has an average APR of 6.1%, whereas Harvard's is 10.6%.

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Different lenders offer varying rates for the same loan types. Apple River State Bank's average APR is 5.5%, whereas Peoples National Bank's is 10.8%.

MoneyGeek examined 90 different banks and credit unions in Illinois 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 Illinois

The current average APR for a 15-year home equity loan in Illinois is 8.2%, but several factors might affect what lenders offer you. For instance, a higher credit score usually results in a lower APR, while a larger loan amount could lead to a higher rate. Repayment terms also play a role in determining your rate. Check out the table below to compare the average APRs of home equity loans in Illinois across different loan terms.

10Year7.8%
15Year8.2%
5Year7.6%

Interest rates for a home equity loan change daily. Monitoring these changes can save you money by reducing the interest paid over the life of the loan. It also makes financing renovations or repairs more affordable, allowing you to enhance your home's value.

For example, a 15-year home equity loan with an 8.2% APR has a monthly payment of $484 and a total interest of $37,051. In contrast, a 10-year loan with a 7.8% APR has a monthly payment of $601 and a total interest of $22,164.

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HOME EQUITY LOANS VS. HELOCS IN ILLINOIS

Home equity loans and home equity lines of credit (HELOC) are popular options for homeowners to tap into their home's equity. In Illinois, home equity loan rates average 7.8%, while HELOC rates in Illinois average 8.5%. Home equity loans have fixed rates, providing stability, whereas HELOCs have variable rates, which can fluctuate over time.

Fixed rates in home equity loans mean your monthly payments remain consistent, offering financial predictability. In contrast, HELOC rates can start lower but may increase, potentially leading to higher costs as market conditions change. 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. This ratio 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 example, if your home is valued at $300,000 and you owe $240,000, your LTV ratio is 80%.

A higher LTV ratio means greater potential risk to lenders, resulting in higher rates. In Illinois, the average APR for a 15-year equity loan with an LTV ratio of 80% is 8.0%, while it's 8.6% for an LTV ratio of 90%. Check 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
7.7%8.1%

Home Equity Loan Rates by City in Illinois

Average APRs also vary between cities in Illinois. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates. Cities with higher living costs may also see slightly higher rates as lenders face increased operational expenses.

In Illinois, Hanover has an average APR of 5.5%, while West Frankfort has an average APR of 10.8%. Below is a table showing the average home equity loan rates across cities in Illinois with different terms.

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City:
City:Chicago
10Year8.4%
15Year8.5%
5Year8.2%

Home Equity Loan Lenders in Illinois

Home equity loan rates in Illinois vary significantly between lenders due to different policies, risk assessments and market strategies. For instance, Apple River State Bank offers the lowest average APR at 5.5%, while Peoples National Bank has the highest at 10.8%.

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

Data filtered by:Results filtered by:
City:
City:Chicago
Credit Union 16.6%
Providence Bank & Trust6.7%
First Northern Credit Union7.3%
Old National Bank7.5%
First Merchants Bank7.6%
Marquette Bank7.9%
Corporate America Family Credit Union8.1%
Verve A Credit Union8.3%
Justice Federal Credit Union8.4%
Old Second National Bank8.5%
Earthmover Credit Union8.6%
First American Bank8.7%
BMO BANK NATIONAL ASSOCIATION8.8%
U.S. Bank National Association9.1%
Fifth Third Bank9.1%
Great Lakes Credit Union9.7%
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 advantageous, especially for home equity loan rates in Illinois. Commercial banks in Illinois offer an average APR of 8.4%, while credit unions provide a lower rate of 7.5%. Keep in mind that credit unions often have stricter membership requirements.

How to Get the Best Home Equity Loan Rate in Illinois

The best home equity interest rates can significantly enhance your borrowing experience by lowering monthly payments and overall loan costs. This allows you to allocate savings towards other financial goals. To secure the best home equity loan rates in Illinois, consider these strategies:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For example, Empeople Credit Union offers an average APR of 6.1%, while Peoples National Bank offers 10.8%. Comparing home equity loan lenders in Illinois 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. Illinois homeowners can increase their home's equity by bathroom upgrades or basement remodels.

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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 Illinois is 720, 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 Illinois

MoneyGeek addresses common homeowner questions about home equity loan rates in Illinois, offering clear and reliable insights. Understanding these rates enables Illinois residents to evaluate their borrowing options effectively.

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

How do you calculate your home equity in Illinois?

Do home equity loan rates vary between cities in Illinois?

Does a home equity loan in Illinois have tax benefits?

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

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

How do you get a home equity loan in Illinois?

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

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

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

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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