Home Equity Loan Rates in North Carolina

Tappable equity is the portion of your home’s value you can borrow. According to TransUnion, tappable equity averages $139,000 in North Carolina. A home equity loan (HEL) lets you access this equity to fund home improvements or consolidate debt.

North Carolina's home equity loan rates match national averages — 7.7% APR for a 10-year term and 7.9% APR for a 15-year term. We provide details on current rates in the state, including city-specific averages and top lenders, as well as tips on securing the best deal.

Key Takeaways

blueCheck icon

Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a 15-year HEL in North Carolina with an 80% LTV is 7.8%, compared to 8.2% for a 90% LTV.

blueCheck icon

HEL rates vary by city in North Carolina. For example, for 15-year loans, Hillsborough has an average APR of 6.6%, whereas Mount Airy's is 9.4%.

blueCheck icon

Lenders offer different rates for the same loan types. United Community Bank's average APR is 5.6%, whereas Atlanta Postal Credit Union's is 9.8%.

MoneyGeek examined 29 different banks and credit unions in North Carolina using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity loan rates.

recency icon

This data is accurate as of November 2024.

29Lenders Analyzed

Current Home Equity Loan Rates in North Carolina

The current average APR for a 15-year home equity loan in North Carolina is 7.9%, but several factors can influence lenders' rates. A higher credit score typically means a lower APR, while larger loan amounts may result in higher rates. Repayment terms also affect the APR. Use the table below to compare average APRs for home equity loans in the state by loan term.

10Year7.7%
15Year7.9%
5Year7.5%

North Carolina HEL interest rates change daily. Tracking these changes can help you save money by paying less interest over the life of the loan. If you have high-interest debts, a home equity loan with a lower rate can help consolidate those debts and reduce your overall interest payments.

For example, a 15-year home equity loan at 7.9% APR has a $475 monthly payment and $35,490 in total interest. A 10-year loan at 7.7% APR has a $596 monthly payment and $21,535 in total interest.

loanVsLoan icon
HOME EQUITY LOANS VS. HELOCS IN NORTH CAROLINA

Home equity loans (HELs) and home equity lines of credit (HELOCs) let homeowners access their property's equity. Home equity loans have fixed rates, averaging 7.7%, while HELOC rates in North Carolina are variable, averaging 8.4%.

Fixed rates offer predictable monthly payments, helping with financial planning. Variable rates, like those of HELOCs, can start lower but may increase, leading to potentially higher payments over time.

Home Equity Loan Rates by LTV Ratio

The rate you qualify for depends on your loan-to-value (LTV) 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%.

Lenders view higher LTV ratios as riskier, leading to higher rates. In North Carolina, the average APR of a 15-year equity loan with an 80% LTV is 7.8%. It's 8.2% for a 90% LTV. Use the table below to compare average rates based on LTV ratios.

Data filtered by:Results filtered by:
Repayment Terms:
Repayment Terms:15Year
7.8%8.2%

Home Equity Loan Rates by City in North Carolina

Average APRs vary by city due to lender competition and local costs. Larger, densely populated cities often have more lenders, leading to lower rates. Property taxes and local fees also impact borrowing costs.

In North Carolina, Four Oaks' average APR for five-year loans with an 80% LTV is 5.6%, while Spring Lake's is 10%. The table below shows average home equity loan rates across cities in North Carolina by loan term.

Data filtered by:Results filtered by:
City:
City:Charlotte
10Year7.7%
15Year7.8%
5Year7.7%

Home Equity Loan Lenders in North Carolina

Home equity loan rates in North Carolina vary among lenders due to differing policies, risk assessments and market strategies. United Community Bank offers the lowest average APR at 5.6%, while Atlanta Postal Credit Union and Telco Credit Union have the highest at 9.8%.

Compare rates and terms from different lenders to find the best deal. Use the interactive table below to discover the most competitive lenders in your city.

Data filtered by:Results filtered by:
City:
City:Charlotte
United Community Bank5.6%
First National Bank of Pennsylvania6.3%
Clearview Federal Credit Union6.5%
First-Citizens Bank & Trust Company6.8%
Regions Bank7.3%
Piedmont Advantage Credit Union7.3%
Fifth Third Bank7.8%
Skyla Federal Credit Union7.9%
Truliant Federal Credit Union8.2%
TD Bank8.3%
PNC Bank10.0%
vs icon
COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Including credit unions in your options can be beneficial. While commercial banks and credit unions offer an average APR of 7.6%, credit unions typically provide lower rates. However, they may have stricter membership requirements.

How to Get the Best Home Equity Loan Rate in North Carolina

Getting the best home equity interest rates can reduce your monthly payments and overall costs, freeing up funds for other financial goals. To secure the best rates, consider these strategies:

    bank icon

    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For instance, Empeople Credit Union has an average APR of 6.1%, while Telco Credit Union offers 9.8%. Compare home equity loan providers to find better rates.

    house2 icon

    Increase your home's equity

    Having more equity in your home can result in more competitive rates from lenders. North Carolina homeowners can boost their equity by adding screened porches or upgrading kitchens.

    excellentCredit icon

    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 North Carolina is 709, according to Experian.

    discount icon

    Decrease your debt-to-income ratio

    A lower debt-to-income (DTI) ratio — the percentage of your monthly income used to pay debts — can lead to better rates as lenders see you as a less risky borrower.

cash

Debt-to-Income Ratio Calculator

Provide your income and recurring payments to calculate your DTI.

Monthly Income Before Taxes

$

Recurring Monthly Debts

Enter all applicable payments to ensure accurate results.

$
$
$
$
$

FAQ About Home Equity Loan Rates in North Carolina

MoneyGeek addresses common questions about home equity loan rates for North Carolina homeowners, offering precise and reliable information.

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

How do you calculate your home equity in North Carolina?

Do home equity loan rates vary between cities in North Carolina?

Does a home equity loan in North Carolina have tax benefits?

What are possible drawbacks of securing a home equity loan in North Carolina?

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

How do you get a home equity loan in North Carolina?

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

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

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

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.


sources