Home Equity Loan Rates in Michigan

The equity in your home that you can access and borrow is known as tappable equity. According to TransUnion, tappable equity in Michigan averages $110,000. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Michigan's home equity loan rates are 7.7% APR for a 10-year term, the same as the national average, and 8% APR for a 15-year term, slightly higher than the national average of 7.9%. We've compiled detailed insights on current home equity loan rates in Michigan, 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 Michigan is 8%. Several factors might affect what lenders offer you. For instance, a higher credit score often 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 for home equity loans in Michigan across different loan terms.

Interest rates for a home equity loan change daily. Keeping track of these rates means you'll pay less in interest over the life of the loan, saving you money. If you have high-interest debts, a home equity loan at a lower rate can help you consolidate those debts and reduce your overall interest payments.

For example, a 15-year home equity loan with an 8% APR results in a monthly payment of $478 and a total interest of $36,009. In contrast, a 10-year loan with a 7.7% APR has a monthly payment of $599 and a total interest of $21,849.

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 Michigan with an LTV ratio of 80% is 7.9%. It's 8.3% for an LTV ratio of 90%. Use the table to see what average home equity loan rates you might qualify for based on your LTV ratio.

Average APRs vary between cities in Michigan due to factors such as lender competition in more densely populated areas, which can lead to lower interest rates. Additionally, differences in property taxes or local fees can influence rates, affecting overall borrowing costs.

In Michigan, Stanton has an average APR of 5.9%, while Clawson's average APR is 11.9%. Below is a table showing the cities in Michigan and their average home equity loan rates for different terms.

Home equity loan rates in Michigan vary considerably between lenders due to different policies and market strategies. For instance, United Bank of Michigan offers the lowest average APR at 5.3%, while KeyBank National Association has the highest at 11.9%. It's essential to compare rates and terms from various lenders to find the lowest home equity loan rates.

Explore the interactive table below to see which lenders offer the lowest home equity loan rates in your city. This will help you make a more informed decision and potentially save on your loan.

Securing the best possible home equity interest rates can lower your monthly payments and total borrowing costs, freeing up funds for other goals. To secure the best home equity loan rates in Michigan, consider these strategies:

MoneyGeek addresses common questions about home equity loan rates in Michigan, offering clear and reliable information to homeowners.