Home Equity Loan Rates in Pennsylvania

The equity in your home that you can access and borrow is known as tappable equity. According to TransUnion, tappable equity averages $105,000 in Pennsylvania. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Pennsylvania's home equity loan rates are below national averages — 7.1% APR for a 10-year term (7.7% nationally) and 7.4% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Pennsylvania, including city-specific rates, top lenders, and tips on securing the best rates for using your home's equity.

Key Takeaways

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Higher LTV ratios lead to higher rates. The average APR for a 15-year home equity loan in Pennsylvania with an 80% LTV is 7.3%, compared to 7.8% for a 90% LTV.

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Home equity loan rates vary by city in Pennsylvania. For example, Portage has an average APR of 5.2% for 15-year loans, whereas Corry's is 12%.

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Different lenders offer varying rates for the same loan types. S&T Bank's average APR is 5.1%, whereas KeyBank National Association's is 11.9%.

MoneyGeek examined 127 different banks and credit unions in Pennsylvania using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity loan rates.

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This data is accurate as of November 2024.

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Current Home Equity Loan Rates in Pennsylvania

The current average APR for a 15-year home equity loan in Pennsylvania is 7.4%, but several factors might affect what lenders offer you. A higher credit score can lower your APR, while a larger loan amount might increase it. Repayment terms also play a role in determining your rate. Compare the current home equity loan rates in Pennsylvania across different loan terms in the table below.

10Year7.1%
15Year7.4%
5Year6.8%

Interest rates for a home equity loan change daily. Keeping track of these changes can help you pay less in interest over the life of the loan, saving you money. Additionally, knowing the current rates lets you accurately plan your budget and future expenses, making sure you're borrowing within your means.

For example, a $50,000 home equity loan with a 15-year term at a 7.4% APR results in a monthly payment of $461 and a total interest of $32,920. In comparison, a 10-year loan with a 7.1% APR has a monthly payment of $583 and a total interest of $19,975.

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HOME EQUITY LOANS VS. HELOCS IN PENNSYLVANIA

Home equity loans and HELOCS are popular options for homeowners. Home equity loans and home equity lines of credit (HELOC) allow homeowners to tap into their home's equity. In Pennsylvania, home equity loans have fixed rates, averaging 7.1%, while HELOC rates in Pennsylvania are variable, averaging 8.3%.

Fixed rates mean consistent monthly payments, providing financial predictability. Variable rates can start lower but may increase, leading to higher payments over time. Understanding the impact of these rate structures on your finances is crucial when considering HELOC rates in Pennsylvania.

Home Equity Loan Rates by LTV Ratio

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 instance, if your home is valued at $300,000 and you owe $240,000, your LTV ratio is 80%.

A higher LTV ratio means greater risk to lenders, leading to higher rates. In Pennsylvania, the average APR of a 15-year equity loan with an LTV ratio of 80% is 7.3%, compared to 7.8% for an LTV ratio of 90%. Check the table below to see average home equity loan rates you might qualify for based on your LTV ratio.

Data filtered by:Results filtered by:
Repayment Terms:
Repayment Terms:10Year
7.0%7.5%

Home Equity Loan Rates by City in Pennsylvania

Average APRs vary between cities in Pennsylvania. Cities with higher home values often have lower rates as the loans are seen as less risky. Additionally, cities with higher living costs may see slightly higher rates due to increased operational expenses.

In Pennsylvania, Blairsville has an average APR of 5.1%, while Red Hill has an average APR of 11.9%. Below is a table showing the cities in Pennsylvania and their average home equity loan rates for different terms.

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City:
City:Philadelphia
10Year7.8%
15Year8.0%
5Year7.4%

Home Equity Loan Lenders in Pennsylvania

Home equity loan rates in Pennsylvania vary significantly between lenders, influenced by their individual policies and market strategies. For instance, S&T Bank offers the lowest average APR at 5.1%, while KeyBank National Association has the highest at 11.9%.

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

Data filtered by:Results filtered by:
City:
City:Philadelphia
S&T Bank5.1%
Advantage Financial Federal Credit Union5.5%
Ukrainian Selfreliance Federal Credit Union6.0%
Freedom Credit Union6.3%
Democracy Federal Credit Union6.4%
TruMark Financial Credit Union6.6%
Reliance Federal Credit Union6.9%
Police and Fire Federal Credit Union7.2%
The Bank of Princeton7.4%
First Citizens Community Bank7.5%
Ardent Federal Credit Union7.5%
Navy Federal Credit Union7.6%
American Heritage Federal Credit Union7.7%
Philadelphia Federal Credit Union7.9%
Franklin Mint Federal Credit Union8.2%
TD Bank8.6%
FedChoice Federal Credit Union8.9%
Parke Bank9.3%
PNC Bank10.1%
Univest Bank and Trust Co.10.3%
KeyBank National Association11.9%
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COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Including credit unions in your lender options can be beneficial due to their competitive home equity loan rates in Pennsylvania. While commercial banks offer an average APR of 7.4%, credit unions provide a lower rate of 6.9%. Be aware that credit unions may have stricter membership requirements.

How to Get the Best Home Equity Loan Rate in Pennsylvania

Getting the best possible home equity interest rates can significantly enhance your borrowing experience by lowering monthly payments and overall costs. For instance, a homeowner in Pennsylvania could save money for other goals by securing a favorable rate. To achieve the best home equity loan rates in Pennsylvania, consider these strategies:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For instance, Freedom Credit Union has an average APR of 5.2%, while Univest Bank and Trust Co. offers 10.3%. Comparing different home equity loan lenders in Pennsylvania can help you find better rates.

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    Increase your home's equity

    Having more equity in your home can result in more competitive rates from lenders. Pennsylvania homeowners can increase their home's equity by kitchen remodels or historical restorations.

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    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 Pennsylvania is 723, according to Experian.

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    Decrease debt-to-income ratio

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

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Debt-to-Income Ratio Calculator

Provide your income and recurring payments to calculate your DTI.

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FAQ About Home Equity Loan Rates in Pennsylvania

MoneyGeek addresses common questions about home equity loan rates for Pennsylvania homeowners. By providing clear, factual information, we help you understand how these rates are determined and what factors influence them.

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

How do you calculate your home equity in Pennsylvania?

Do home equity loan rates vary between cities in Pennsylvania?

Does a home equity loan in Pennsylvania have tax benefits?

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

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

How do you get a home equity loan in Pennsylvania?

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

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

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

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.


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