Home Equity Loan Rates in Kentucky (November 2024)

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.

Kentucky's home equity loan rates are higher than national averages — 8.3% APR for a 10-year term compared to 7.7% nationally, and 8.2% APR for a 15-year term compared to 7.9% nationally. We've compiled detailed insights on current home equity loan rates in Kentucky, including city-specific rates, top lenders, and tips on securing the best rates for using your home's equity.

The current average APR for a 15-year home equity loan in Kentucky is 8.2%, yet several factors might affect what lenders offer. For instance, a higher credit score can secure a lower APR, while a larger loan amount might result in a higher rate. Repayment terms also play a role in determining rates. Take a look at the table below to compare the current home equity loan rates in Kentucky across different loan terms.

Interest rates for a home equity loan change daily. Keeping track of current rates can save you money on interest over the life of the loan and help you consolidate high-interest debts, reducing your overall interest payments.

For a $50,000 home equity loan, a 15-year term at an 8.2% APR results in a $484 monthly payment and $37,051 in total interest. In comparison, a 10-year term at an 8.3% APR has a $615 monthly payment and $23,751 in total interest.

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 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 presents a higher risk to lenders, resulting in higher rates. In Kentucky, the average APR of a 15-year equity loan with an LTV ratio of 80% is 8.2%, compared to 8.3% for an LTV ratio of 90%. Check the table below to see what rates you might qualify for based on your LTV ratio.

Average APRs vary between cities in Kentucky due to several factors. 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 Kentucky, Russell Springs has an average APR of 6.5%, while Cold Spring has an average APR of 10.2%. Below is a table showing the cities in Kentucky and their average APRs for home equity loans with different terms.

Home equity loan rates in Kentucky vary widely among lenders, influenced by each lender's policies and market strategies. For instance, Advanz Federal Credit Union offers the lowest average APR at 6.4%, while First United Bank and Trust Company, Inc. has the highest at 10.8%.

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

Getting the best possible home equity interest rates can lower your monthly payments and overall borrowing costs, allowing you to allocate funds elsewhere. Imagine saving hundreds monthly by securing a favorable rate. To achieve the best home equity loan rates in Kentucky, consider these strategies:

MoneyGeek answers common questions Kentucky homeowners have about home equity loan rates. By offering precise and reliable information, MoneyGeek helps you understand your options and make informed decisions. Explore our resources to learn more about how these rates can impact your financial plans.