Home Equity Loan Rates in Virginia

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.

Virginia's home equity loan rates are similar and close to the national averages — 7.7% APR for a 10-year term, while it's 8.0% for a 15-year term (7.9% for national). We've compiled detailed insights on current home equity loan rates in Virginia, including city-specific rates, top lenders and tips on securing the best rates for using your home's equity.

Key Takeaways

blueCheck icon

Higher LTV ratios lead to higher rates. The average APR for a 15-year HEL in Virginia with an 80% LTV is 7.8%, compared to 8.4% for a 90% LTV.

blueCheck icon

HEL rates vary by city in Virginia. For example, for 15-year loans, Montross has an average APR of 5.9%, whereas Farmville's is 9.9%.

blueCheck icon

Different lenders offer varying rates for the same loan types. Front Royal Federal Credit Union's average APR is 5.5%, whereas Spectra Federal Credit Union's is 12.5%.

MoneyGeek examined 60 different banks and credit unions in Virginia 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.

60Lenders Analyzed

Current Home Equity Loan Rates in Virginia

The current average APR for a 15-year home equity loan in Virginia is 7.9%, but several factors might affect what lenders offer. For instance, 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 the table below to compare the average APRs of home equity loans in Virginia across different loan terms.

10Year7.7%
15Year8.0%
5Year7.4%

Interest rates for a home equity loan change daily. Staying informed about these fluctuations 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, ensuring you're borrowing within your means.

For instance, consider a $50,000 home equity loan in Virginia. A 15-year term at 8.0% APR results in a monthly payment of $478 and a total interest of $36,009. In contrast, a 10-year term at a 7.7% APR has a monthly of $599 and a total interest of $21,849. Understanding these differences can guide you in choosing the most cost-effective loan option.

loanVsLoan icon
HOME EQUITY LOANS VS. HELOCS IN VIRGINIA

Home equity loans and home equity line of credit (HELOC) are popular options for homeowners to tap into their home's equity. Home equity loan rates in Virginia have fixed rates, averaging 7.6%, while HELOC rates in Virginia are variable, averaging 8.4%.

Fixed rates mean your monthly payments remain consistent, offering financial predictability. In contrast, variable rates can start lower but may increase, leading to higher payments over time. Understanding the differences between home equity loans and HELOCs can help you decide which option aligns better with your financial goals.

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 more risk to lenders, leading to higher rates. In Virginia, the average APR for a 15-year equity loan with an LTV ratio of 80% is 7.8%, compared to 8.4% for a 90% LTV ratio. Check the table to see the average home equity loan rates you might qualify for based on your LTV ratio.

Data filtered by:Results filtered by:
Repayment Terms:
Repayment Terms:15Year
7.7%8.5%

Home Equity Loan Rates by City in Virginia

Average APRs also vary between cities in Virginia. Cities with higher home values or rapid appreciation often experience lower rates, as lenders perceive these loans as less risky. In contrast, cities with higher living costs may see slightly higher rates because lenders face increased operational expenses.

In Virginia, Front Royal has an average APR of 5.5%, while Farmville has an average APR of 9.6%. See the table below for average home equity loan rates across Virginia cities with different terms.

Data filtered by:Results filtered by:
City:
City:Virginia Beach
10Year7.5%
15Year7.9%
5Year7.4%

Home Equity Loan Lenders in Virginia

Home equity loan rates in Virginia can differ widely among lenders, depending on their policies and market strategies. For instance, Front Royal Federal Credit Union and Citizens and Farmers Bank offer the lowest average APRs at 5.5%, while Spectra Federal Credit Union presents the highest at 12.5%.

Comparing rates and terms from different lenders is crucial to securing the lowest home equity loan rates. Explore the interactive table below to find lenders offering the most competitive rates in your city.

Data filtered by:Results filtered by:
City:
City:Virginia Beach
Beach Municipal Federal Credit Union6.3%
Chartway Federal Credit Union6.5%
1st Advantage Federal Credit Union7.3%
Navy Federal Credit Union7.6%
Newport News Shipbuilding Employees' Credit Union, Inc.7.8%
PNC Bank10.0%
vs icon
COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Including credit unions in your lender options can be beneficial due to their competitive rates. In Virginia, commercial banks have an average APR of 8.0%, while credit unions offer a lower rate of 7.6%. While credit unions typically provide better home equity loan rates in Virginia, be aware of their stricter membership requirements.

How to Get the Best Home Equity Loan Rate in Virginia

Getting the best home equity loan rates can lower your monthly payments and overall loan costs, freeing up money for other goals. Imagine saving hundreds each month by securing a favorable rate. To achieve the best home equity loan rates in Virginia, consider these strategies:

    bank icon

    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For instance, Blue Eagle Credit Union advertises an average APR of 5.8%, while Argent Federal Credit Union offers 6.8%. Comparing different home equity loan lenders in Virginia can help you find better rates.

    house2 icon

    Increase your home's equity

    Having more equity in your home can result in more competitive rates from lenders. Virginia homeowners can increase equity by modernizing homes through bathroom remodels or kitchen upgrades.

    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 Virginia is 722, according to Experian.

    discount icon

    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.

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 Virginia

MoneyGeek provides Virginia homeowners with reliable answers to frequently asked questions about home equity loan rates. By offering clear insights and factual information, we help you navigate your financial options confidently.

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

How do you calculate your home equity in Virginia?

Do home equity loan rates vary between cities in Virginia?

Does a home equity loan in Virginia have tax benefits?

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

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

How do you get a home equity loan in Virginia?

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

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

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

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