Home Equity Loan Rates in Indiana

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.

Indiana's home equity loan rates are slightly higher than the national averages — 8.0% APR for a 10-year term and 8.2% APR for a 15-year term, compared to 7.7% and 7.9% nationally. We've compiled detailed insights on current home equity loan rates in Indiana, 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 Indiana with an 80% LTV is 8.1%, compared to 8.6% for a 90% LTV.

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HEL rates vary by city in Indiana. For example, for 15-year loans, Notre Dame has an average APR of 6.6%, whereas Plymouth's is 11.1%.

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Different lenders offer varying rates for the same loan types. First Trust Credit Union's average APR is 5.3%, whereas KeyBank National Association's is 11.9%.

MoneyGeek examined 72 different banks and credit unions in Indiana 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 Indiana

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

10Year8.0%
15Year8.2%
5Year7.7%

Interest rates for a home equity loan change daily. Keeping track of these rates can save you money by paying less in interest 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 reduce your overall interest payments.

For example, a $50,000 home equity loan with a 15-year term at an 8.2% APR has a monthly payment of $484 and a total interest cost of $37,051. In contrast, a 10-year loan with an 8.0% APR results in a monthly payment of $607 and a total interest of $22,797.

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HOME EQUITY LOANS VS. HELOCS IN INDIANA

Home equity loans and home equity lines of credit (HELOC) are popular options for homeowners to tap into their home's equity. Home equity loans have fixed rates, averaging 8.0% in Indiana, while HELOC rates in Indiana are variable, averaging 8.5%. Home equity loans have fixed rates, providing a consistent payment schedule, whereas HELOCs can fluctuate with market conditions.

Fixed rates mean your monthly payments remain the same, offering financial predictability. Variable rates, like those with HELOCs, might start lower but can increase, leading to higher costs over time. Understanding how the rate structures work for home equity loans and HELOCs can help you decide which option aligns best with your financial goals.

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 Indiana with an LTV ratio of 80% is 8.1%. It's 8.6% for an LTV ratio of 90%. 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
7.8%8.2%

Home Equity Loan Rates by City in Indiana

Average APRs also vary between cities in Indiana. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates. Additionally, differences in property taxes or local fees can influence rates, affecting overall borrowing costs.

In Indiana, Notre Dame has an average APR of 6.5%, while Grandview has an average APR of 10.0%. Below is a table showing the average home equity loan rates across different cities in Indiana.

Data filtered by:Results filtered by:
City:
City:Indianapolis
10Year8.3%
15Year8.7%
5Year8.2%

Home Equity Loan Lenders in Indiana

Home equity loan rates in Indiana vary significantly between lenders, influenced by each lender's policies and market strategies. For instance, First Trust Credit Union offers the lowest average APR at 5.3%, while KeyBank National Association has the highest at 11.9%.

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

Data filtered by:Results filtered by:
City:
City:Indianapolis
Financial Center First Credit Union5.6%
Indiana University Credit Union6.8%
Fedex Employees Credit Association Federal Credit Union7.0%
Everwise Credit Union7.3%
Regions Bank7.3%
First Financial Bank7.4%
Centra Credit Union7.4%
Indiana Members Credit Union7.5%
Old National Bank7.5%
First Merchants Bank7.6%
STAR Financial Bank8.0%
Citizens Bank8.1%
CIBM Bank8.2%
Financial Health Federal Credit Union8.3%
Elements Financial Federal Credit Union8.6%
BMO BANK NATIONAL ASSOCIATION8.6%
Fifth Third Bank8.9%
PNC Bank10.0%
FORUM Credit Union10.2%
Centier Bank10.9%
KeyBank National Association11.9%
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COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Including credit unions in your lender options can be beneficial, especially when considering home equity loan rates in Indiana. Commercial banks offer an average APR of 8.2%, while credit unions provide a more competitive rate of 7.9%. Keep in mind that credit unions may have stricter membership requirements, which could impact your eligibility.

How to Get the Best Home Equity Loan Rate in Indiana

Securing the best home equity interest rates can lower your monthly payments and reduce overall borrowing costs, allowing you to allocate funds for other financial goals. Consider a scenario where a homeowner locks in at a low rate, resulting in significant savings over time. To achieve the best home equity loan rates in Indiana, consider these strategies:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For instance, Financial Center First Credit Union offers an average APR of 5.6%, while Centier Bank offers 10.9%. Comparing different home equity loan lenders in Indiana 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. Indiana homeowners can increase their home's equity by remodeling the kitchen 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 Indiana is 713, 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 Indiana

MoneyGeek addresses common questions about home equity loan rates for Indiana homeowners. We provide clear, factual insights to help you understand how these rates are determined and what factors might influence them.

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

How do you calculate your home equity in Indiana?

Do home equity loan rates vary between cities in Indiana?

Does a home equity loan in Indiana have tax benefits?

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

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

How do you get a home equity loan in Indiana?

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

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

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

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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