Home Equity Loan Rates in Massachusetts (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.

Massachusetts' home equity loan rates are lower than national averages — 7.3% 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 Massachusetts, 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 Massachusetts is 7.5%, but several factors might affect what lenders offer. For instance, a higher credit score often results in a lower APR, while a larger loan amount might increase your rate. Also, consider repayment terms as they can influence your loan rate. Below, you can compare the average APRs of home equity loans in Massachusetts across different loan terms.

Interest rates for a home equity loan change daily. Monitoring these rate changes can save you money over the life of your loan and help you consolidate high-interest debts, reducing overall interest payments.

For example, in Massachusetts, a 15-year home equity loan with 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 7.3% APR has a monthly payment of $588 and a total interest of $20,596.

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 means greater potential risk to lenders, resulting in higher rates. In Massachusetts, the average APR of a 15-year equity loan with an LTV ratio of 80% is 7.3%, compared to 8.1% 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 Massachusetts due to several factors. Differences in property taxes or local fees can influence rates, affecting overall borrowing costs. Additionally, in larger or more densely populated cities, more lenders compete, which can lead to lower interest rates.

In Massachusetts, Holliston has an average APR of 6.3%, while Holyoke has an average APR of 9.0%. Below is a table showing the average home equity loan rates across Massachusetts cities for different loan terms.

Home equity loan rates in Massachusetts can differ considerably between lenders, influenced by each lender's specific policies and market strategies. For example, Arrha Credit Union offers the lowest average APR at 5.8%, while KeyBank National Association has the highest at 11.9%.

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

Getting the best home equity loan rates can lower your monthly payments, reducing overall borrowing costs and freeing up funds for other goals. For instance, a homeowner in Massachusetts might save significantly by securing a better rate, allowing for more financial flexibility. To achieve the best home equity loan rates in Massachusetts, consider these strategies:

MoneyGeek addresses common questions Massachusetts homeowners have about home equity loan rates, offering clear and reliable information. Understanding factors like credit scores and loan amounts can help you navigate your options. Our insights are designed to make the process straightforward and stress-free, ensuring you are well-informed about your financial choices.