NEW HAMPSHIRE HOME EQUITY LOAN RATES TODAY
Current home equity loan rates in
New Hampshire.
Current home equity loan rates in
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Compare home equity loan rates in New Hampshire.
Key Points
• Home equity loans provide homeowners the opportunity to borrow against the equity accumulated in their homes.
• Home equity loan rates are influenced by the prime rate and financial market dynamics.
• Borrower-specific factors that can significantly impact home equity loan rates include credit score, loan-to-value ratio, and debt-to-income ratio.
• Home equity loans can be used for a variety of purposes, including home improvements, educational expenses, medical bills, and debt consolidation.
• Home equity loan interest payments may be tax-deductible if the loan proceeds are used for substantial home improvements, up to IRS limits.
Introduction to Home Equity Loan Rates
In this guide, you’ll find the most current information on home equity loan rates in New Hampshire, including historical rate trends and the factors that influence the rates you may be offered. We’ll help you find the best rate in the Granite State. First, let’s make sure we cover what is a home equity loan.
How Do Home Equity Loans Work?
When you secure a home equity loan, your home becomes the collateral. This often means you can borrow money at a lower interest rate than if you were to get a personal loan. But it also means you have a second mortgage (assuming you’re still paying your first mortgage). Home equity loan interest rates are usually fixed, so if you like a predictable monthly payment, this could be a good fit for you. To qualify for a home equity loan, you typically need at least 20% equity in your primary residence.
In New Hampshire, and elsewhere, you can use a home equity loan for all sorts of things, from sprucing up your space to tackling education expenses, medical bills, or consolidating debt. If you’re wondering what is a home equity line of credit (HELOC), and how it’s different from a home equity loan, stay tuned — we’ll get to that momentarily.
The Source of Home Equity Loan Interest Rates
Home equity loan interest rates drive the overall cost of your loan. These rates aren’t just pulled out of thin air. The Federal Reserve sets its rates which in turn influence the prime rate — the interest rate banks offer to their most creditworthy clients.
How Interest Rates Impact Home Equity Loan Affordability
It’s important to think about how interest rates can affect the cost of your loan over time. For example, a one-percentage-point difference in interest rates on a 20-year loan can make a difference in your monthly payment. But it also makes a difference in how much interest you’ll pay over the life of the loan. Look at how that plays out if you borrow $30,000 and repay the funds plus interest over 20 years:
• At 6.00%: The monthly payment would be $215 and the total interest paid would be $21,583.
• At 7.00%: The monthly payment would be $233 and the total interest paid would be $25,822.
• At 8.00%: The monthly payment would be $251 and the total interest paid would be $30,224.
Home Equity Loan Rate Trends
Keep an eye on the prime interest rate as you’re determining how to get equity out of your home. It’s a solid barometer for where New Hampshire home equity loan rates might be headed.
In the chart below, you’ll find some recent history, showing how rates shifted from 2018 to 2023. And then the graphic shows a much longer trajectory, over 50-plus years.
Historical Prime Interest Rates
| Date | Prime Rate |
|---|---|
| 9/17/2026 | 7.00% |
| 12/11/2025 | 6.75% |
| 9/17/2025 | 7.25% |
| 12/20/2024 | 7.50% |
| 9/19/2024 | 8.00% |
| 7/27/2023 | 8.50% |
| 5/4/2023 | 8.25% |
| 3/23/2023 | 8.00% |
| 2/2/2023 | 7.75% |
| 12/15/2022 | 7.50% |
| 11/3/2022 | 7.00% |
| 9/22/2022 | 6.25% |
| 7/28/2022 | 5.50% |
| 6/16/2022 | 4.75% |
| 5/5/2022 | 4.00% |
| 3/17/2022 | 3.50% |
| 3/16/2020 | 3.25% |
| 3/4/2020 | 4.25% |
| 10/31/2019 | 4.75% |
| 9/19/2019 | 5.00% |
| 8/1/2019 | 5.25% |
| 12/20/2018 | 5.5% |
| 9/27/2018 | 5.25% |
Source: St. Louis Fed
Source: TradingView.com
Factors Influencing Home Equity Loan Rates
The prime rate isn’t the only factor driving the interest rate you’ll be offered if you apply for a home equity loan. There’s a long list of other factors that lenders will carefully assess to determine the level of risk associated with your application and offer you a rate that reflects that risk.
Credit Score
You probably recall that your credit score was vitally important when you took out your home loan to purchase your home. If you’re someone who’s been diligent about making timely payments, you’re in luck. Lenders are more inclined to offer you better interest rates. For a home equity loan, they usually look for a credit score of 680 or higher, but many prefer to see 700 or above.
Home Value
You can expect to need a home appraisal if you apply for a home equity loan, as the market value of your property will determine how much equity you have in your home (remember, most lenders will require you have 20% equity in order to get the loan).
Loan-to-Value (LTV) Ratio
Your home value is also important for computing your loan-to-value (LTV) ratio, which helps determine how much you’ll be allowed to borrow. You can compute your personal number by adding the amount you wish to borrow to the amount you currently owe on your mortgage. Then divide that total by the appraised value of your home. Multiply the result by 100 and you’ll have what’s called a “combined LTV,” or CLTV. The maximum LTV most lenders will allow for a home equity loan is typically 85%. If you’re unsure about how much you might be allowed to borrow, you can use a home equity loan calculator to get that number.
Home Value Stability
The stability of home values is another thing that lenders consider when setting rates. When the market is on the upswing, lenders are more likely to greenlight larger loans. But when the housing market takes a turn, lenders may tighten their belts, resulting in stricter criteria and smaller loan amounts.
Property Location
If your property is located in an area that is deemed at high risk for natural disasters, higher interest rates may result, as lenders consider these areas riskier bets.
Lender Policies
Policies set by individual lenders can have a significant impact on the interest rates borrowers are offered, and each lender is unique. That’s why you’ll want to compare interest rates, fees, and closing costs from a few different lenders during the loan application process.
How to Qualify for the Lowest Rates
Take these steps and you’ll better your chances of finding your lowest available home equity loan rate in New Hampshire.
Build a Strong Credit Score
Elevating your credit score can be the key to unlocking more favorable interest rates. Keep tabs on your score. Check your credit report for inaccuracies and if you find any, request a correction. Pay your bills on time, of course. And don’t max out every credit line you have.
Manage Debt-to-Income Ratio
The debt-to-income (DTI) ratio, which compares your monthly debt obligations to your gross monthly income, is a key factor in determining your eligibility for a loan. The typical DTI limit for a New Hampshire home equity loan is 36% to 50%, so it’s important to manage your DTI to ensure you meet the lender’s requirements.
Obtain Adequate Property Insurance
It’s a standard requirement for any home loan to have proper property insurance, and home equity loans are no exception. These policies — including special flood insurance policies — are designed to protect both you and the lender from the unexpected.
Maintain Sufficient Home Equity
In New Hampshire, and across the country, you need to keep at least 20% equity in your home to qualify for a home equity loan. This will help ensure you’re not borrowing more than you can afford.
Fixed vs. Variable Interest Rates
Home equity loans typically come with fixed interest rates, which means you’ll pay the same amount every month over the life of the loan. While fixed rates offer stability, they may start out higher than variable rates.
Tools & Calculators
As you search for the best home equity loan for you, online calculators can help you estimate your future payments. Here are a few you may find useful:
Run the numbers on your home equity loan.
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Home Equity Loan Calculator
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
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HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
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HELOC Interest Only Calculator
Use SoFi’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Closing Costs and Fees
Home equity loans typically come with closing costs that hover between 2% to 5% of your loan amount. These may include appraisal, credit report, document preparation, origination, notary, title search, and title insurance fees. It’s wise to factor in these fees as you shop around and compare lenders for a New Hampshire home equity loan.
Tax Deductibility of Home Equity Loan Interest
Couples filing joint tax returns can deduct interest paid on up to $750,000 of qualified home equity loans obtained after December 15, 2017, while single filers may deduct interest paid on loans up to $375,000 — that is, provided you use the money to “buy, build, or substantially improve” a home. For the nitty-gritty on how to maximize your tax benefits, a sit-down with a tax advisor is a smart move.
Alternatives to Home Equity Loans
There are different types of home equity loans you might consider if you’re in the market for a home equity loan. You’ll still want to consider current home equity rates in New Hampshire to make an informed choice where most of these options are concerned.
Home Equity Line of Credit (HELOC)
A HELOC is a bit like a credit card, but one that’s backed by your home. It allows you to borrow up to a certain approved amount and only pay interest on the amount of the credit line you actually use. When you compare a HELOC vs. a home equity loan, this is not the only difference you should note. Unlike a home equity loan, a HELOC typically has a variable rate that can change over time, which means your monthly costs might increase, too.
Home Equity Conversion Mortgage (HECM)
An HECM, or Home Equity Conversion Mortgage, is a government-insured reverse mortgage that empowers homeowners aged 62 and older to receive payments from the lender based on their home’s value. Borrowers can opt for a lump sum, regular payments, or a line of credit. And no payments are required until you leave the home. This is in stark contrast to home equity loans and HELOCs, which demand regular payments. While HECMs may have higher closing costs and longer processing times, they offer unique benefits that may be worth exploring. (While SoFi does not offer HECMs at this time, we do offer home equity loans and HELOCs.)
Cash-Out Refinance
A cash-out refinance is a special type of mortgage refinance that allows you to pay off your old mortgage and borrow extra funds to use as you wish. As with a home equity loan, lenders usually allow you to borrow up to 80% of your home’s value. When comparing a cash-out refinance vs home equity line of credit, the main difference, of course, is that the former is a refinance — meaning you’ll be getting a completely new mortgage at current rates in New Hampshire.
The Takeaway
Understanding home equity loan rates and the various factors that influence them can empower homeowners to make smart financial decisions. Utilizing online calculators, presenting your best possible financial profile to prospective lenders, and exploring alternative options such as a HELOC or cash-out refi can help ensure a more secure financial future in New Hampshire.
SoFi now offers home equity loans. Access up to 85%, or $750,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.
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FAQ
What would my monthly payment be on a $50,000 loan?
A home equity loan of $50,000 would require a monthly payment of $587. That’s assuming an interest rate of 7.25% and a 10-year term. Changing either the rate or term would change the payment amount.
What is the monthly payment on a $100,000 HELOC?
For the most accurate estimate of the monthly payment on a $100,000 HELOC, use a HELOC monthly payment calculator. Payments can fluctuate based on the current interest rate and the amount of your credit line you’ve used.
What is the payment on a $25,000 home equity loan?
A home equity loan of $25,000 would mean a monthly payment of $297, assuming you’re able to secure a 7.50% interest rate and repay the loan over 10 years.
What would the payment be on a $30,000 home equity loan?
When you’re considering a $30,000 home equity loan, the loan term will have a big impact on your monthly payment. Borrow $30,000 at 8.00% and repay it over 10 years and you’ll pay $364 a month. With a 20-year term your payment will be $251. Remember, though, that the longer payment term results in significantly more interest paid over the life of the loan.
What could disqualify you from getting a home equity loan?
There are a number of reasons you might not qualify for a home equity loan, including a poor credit history, not enough equity in your home, a high debt-to-income ratio, and insufficient property insurance. These factors can dramatically affect your ability to get a home equity loan, so it’s important to consider them before applying.
What are the benefits of a HELOC?
HELOCs offer a variety of benefits, including flexible borrowing options, lower interest rates than credit cards, and the ability to pay interest only on the amount of money you are using. They’re a good solution if you know you need money for a project, such as a home renovation, but you don’t know exactly how much it will cost. Plus, the interest you pay on a HELOC may be tax deductible if you borrow money to substantially improve your home.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
This content is provided for informational and educational purposes only and should not be construed as financial advice.
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More home equity resources.
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What is a Home Equity Line of Credit
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Different Types of Home Equity Loans
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HELOC vs Home Equity Loan: How They Compare