As Equity Grows, So Does the Popularity of Home Equity Loans

A LendingTree analysis of 580,298 home equity loans from the beginning of the year to July 31, covering all 50 states, found that the average loan amount came to $104,102—even though this number is in the six-figure range, not all homeowners are offered such large loans, but numbers still topped $75,000 in all 50 states. 

In fact, the average loan amount can vary by tens of thousands of dollars state by state. For example, the average offered home equity loan amount in Massachusetts of $145,788 is nearly double the average amount offered to borrowers in Mississippi ($75,228). 

Massachusetts, New York and Vermont homeowners are offered the largest average home equity loans. In Massachusetts, home equity loan borrowers are offered an average of $145,788. That’s followed by $141,951 in New York and $135,170 in Vermont. 

  • On average, Mississippi, North Dakota and Missouri borrowers receive the smallest home equity loan offers. In Mississippi, the average home equity loan amount offered is $75,228. Loan offers are comparable in North Dakota and Missouri at $75,514 and $76,791, respectively. 
  • Average offered interest rates on home equity loans can fluctuate notably by state. For example, the average rate of 9.88% offered to borrowers in Iowa — the highest in the nation — is 2 percentage points higher than the average rate of 7.88% offered in Maryland — the lowest in the nation. 
  • Like rates and loan amounts, monthly home equity loan payments differ widely by state. The highest average payment in the nation is in Hawaii, where home equity loan offers would cost borrowers an average of $1,192 a month. Meanwhile, Iowans’ average home equity loan payment would be $604 a month — the lowest in the nation. Average payments offered differ so much due to varying rates and loan amounts.

States where homeowners are offered the largest home equity loans: 

  1. Massachusetts
  • Average offered home equity loan amount: $145,788 
  • Average offered home equity loan interest rate: 8.15% 
  • Average offered home equity loan monthly payment: $1,014 
  1. New York
  • Average offered home equity loan amount: $141,951 
  • Average offered home equity loan interest rate: 8.47% 
  • Average offered home equity loan monthly payment: $1,031 
  1. Vermont
  • Average offered home equity loan amount: $135,170 
  • Average offered home equity loan interest rate: 8.41% 
  • Average offered home equity loan monthly payment: $967 

States where homeowners are offered the smallest home equity loans: 

  1. Mississippi
  • Average offered home equity loan amount: $75,228 
  • Average offered home equity loan interest rate: 9.53% 
  • Average offered home equity loan monthly payment: $801 
  1. North Dakota
  • Average offered home equity loan amount: $75,514 
  • Average offered home equity loan interest rate: 9.80% 
  • Average offered home equity loan monthly payment: $810 
  1. Missouri
  • Average offered home equity loan amount: $76,791 
  • Average offered home equity loan interest rate: 9.07% 
  • Average offered home equity loan monthly payment: $737 

This study looked exclusively at home equity loans and not home equity lines of credit (HELOCs). The methodology behind this was done because HELOCs typically have adjustable interest rates while home equity loans usually have fixed interest rates. Click here to view the study in its entirety. 

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