Home Equity Loan Rates in Maine (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.

Maine's home equity loan rates are below national averages — 7.2% APR for a 10-year term (7.7% nationally) and 7.5% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Maine, 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 Maine is 7.5%, but several factors might affect what lenders offer. For instance, a higher credit score typically results in a lower APR, while a larger loan amount could increase the rate. Repayment terms also play a role in determining your rate. Compare the current home equity loan rates in Maine across different loan terms in the table below.

Interest rates for a home equity loan change daily. Keeping track of these changes can save you money by reducing the interest paid over the life of the loan. It also helps in consolidating high-interest debts, lowering your overall interest payments.

For instance, a $50,000 home equity loan with a 15-year term at a 7.5% APR results in a monthly payment of $464 and a total interest of $33,431. In comparison, a 10-year loan with a 7.2% APR has a monthly payment of $586 and a total interest of $20,285. Monitoring rates can help you choose the most cost-effective option.

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 Maine with an LTV ratio of 80% is 7.4%. It's 7.6% for an LTV ratio of 90%. Use the table to see what rates you might qualify for based on your LTV ratio.

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

In Maine, Mount Desert has an average APR of 5.5%, while Milo has an average APR of 8.6%. Review the table to see the average home equity loan rates across Maine cities.

Home equity loan rates in Maine vary considerably between lenders due to differences in policies, risk assessments, and market strategies. For instance, Bar Harbor Bank and Trust Company offers the lowest average APR at 5.6%, while First National Bank has the highest at 9.1%.

Comparing rates and terms from different lenders is crucial for finding 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 decrease overall borrowing costs, allowing you to allocate funds to other financial goals. Imagine reducing your loan payments significantly by securing a favorable rate. To achieve the best home equity loan rates in Maine, consider these strategies:

MoneyGeek addresses common homeowner questions about home equity loan rates in Maine, offering clear and reliable insights. Homeowners can learn about factors affecting rates, such as credit scores and lender policies, ensuring they have the information needed to make informed financial decisions.