Home Equity Loan Rates in Rhode Island

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.

Rhode Island's home equity loan rates are below 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 Rhode Island, 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 HEL in Rhode Island with an 80% LTV is 7.4%, compared to 7.7% for a 90% LTV.

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HEL rates vary by city in Rhode Island. For example, for 15-year loans, South Kingstown has an average APR of 6.8%, whereas North Providence's is 7.9%.

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Different lenders offer varying rates for the same loan types. Chartway Federal Credit Union's average APR is 6.5%, whereas TD Bank's is 8.2%.

MoneyGeek examined 15 different banks and credit unions in Rhode Island 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 Rhode Island

The current average APR for a 15-year home equity loan in Rhode Island is 7.5%, but several factors might affect what lenders offer. For instance, having a higher credit score can secure a lower APR, while a larger loan amount might increase the rate. Repayment terms also play a role in determining your rate. Check out the table below to compare the average APRs of home equity loans in Rhode Island across different loan terms.

10Year7.3%
15Year7.5%
5Year7.1%

Interest rates for a home equity loan change daily. Keeping an eye on these rates can save you money by reducing the interest paid 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, lowering your overall interest payments.

For example, 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 7.4% APR has a monthly payment of $591 and a total interest of $20,908.

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HOME EQUITY LOANS VS. HELOCS IN RHODE ISLAND

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.

Home equity loans have fixed rates, averaging 7.4%, while HELOC rates in Rhode Island are variable, averaging 8.3%. Fixed rates mean predictable monthly payments, which can aid in budgeting. Variable rates, like those of HELOCs, can start lower but may increase, leading to higher payments over time.

Home Equity Loan Rates by LTV Ratio

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 Rhode Island with an LTV ratio of 80% is 7.4%. It's 7.7% for an LTV ratio of 90%. Use the table to see what rates you might qualify for based on your LTV ratio.

Data filtered by:Results filtered by:
Repayment Terms:
Repayment Terms:15Year
7.4%7.7%

Home Equity Loan Rates by City in Rhode Island

Average APRs also vary between cities in Rhode Island. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates. Additionally, cities with higher living costs may see slightly higher rates, as lenders face increased operational expenses.

In Rhode Island, South Kingstown has an average APR of 6.8%, while Barrington has an average APR of 7.7%. Below is a table showing the cities in Rhode Island and their average home equity loan rates for different terms.

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City:
City:Providence
10Year7.5%
15Year7.6%
5Year7.3%

Home Equity Loan Lenders in Rhode Island

Home equity loan rates in Rhode Island can differ widely among lenders due to varying policies and market strategies. For instance, Chartway Federal Credit Union offers the lowest average APR at 6.5%, while TD Bank has the highest at 8.2%.

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

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City:
City:Providence
Bristol County Savings Bank7.0%
Webster Bank, N.A.7.3%
BankNewport7.4%
Coastal1 Credit Union7.4%
The Washington Trust Company of Westerly7.4%
Navigant Credit Union7.4%
Bank Rhode Island7.8%
TD Bank8.2%
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COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Considering credit unions for your home equity loan rates in Rhode Island can be advantageous. While commercial banks offer an average APR of 7.5%, credit unions provide a slightly lower rate of 7.2%. Keep in mind that credit unions may have stricter membership requirements, but they often offer more competitive rates.

How to Get the Best Home Equity Loan Rate in Rhode Island

Getting the best possible home equity interest rates can lead to lower monthly payments and reduced overall borrowing costs, enhancing your financial flexibility. Imagine saving hundreds annually by securing a favorable rate. To achieve the best home equity loan rates in Rhode Island, consider these strategies:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For instance, Peoples Credit Union advertises an average APR of 6.7%, while Merrimack Valley Credit Union offers 7.9%. Comparing different home equity loan lenders in Rhode Island 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. Rhode Island homeowners can increase their home's equity by bathroom upgrades or kitchen remodels.

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    Improve your credit score

    Improve your credit score to secure better home equity loan rates. Pay bills on time and reduce credit card debt. The average credit score in Rhode Island is 722, 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

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FAQ About Home Equity Loan Rates in Rhode Island

MoneyGeek provides Rhode Island homeowners with clear answers to common questions about home equity loan rates. Our information is precise and reliable, ensuring you have the facts needed to understand your options. By addressing your concerns, MoneyGeek simplifies the complexities of home equity loans, making it easier for you to navigate the financial landscape.

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

How do you calculate your home equity in Rhode Island?

Do home equity loan rates vary between cities in Rhode Island?

Does a home equity loan in Rhode Island have tax benefits?

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

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

How do you get a home equity loan in Rhode Island?

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

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

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

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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