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Farmers Bank of Kansas City

Home Equity Rates & HELOC Rates

Explore financing that puts your home's equity within reach. Review available home equity rates below, then request a personalized quote based on your property and borrowing goals.

Explore Current Home Equity Rates

Use the rate tool below to review the options available for your scenario. Compare the terms, costs, and disclosures associated with each option.

Need help reviewing your options? Request a personalized home equity quote.

Start with the Rate. Consider the Full Loan.

Understanding Home Equity Financing

Home equity is the difference between your home's value and the outstanding balances of loans secured by it. Home equity financing lets eligible homeowners borrow against a portion of that equity, with the home serving as collateral.

Your available rate and borrowing amount depend on the loan product, property details, and your financial qualifications. Review the rate tool's assumptions, then discuss your specific needs with Farmers Bank of Kansas City.

Home Equity Line of Credit Rates

A HELOC provides revolving access to funds up to an approved credit limit during its draw period. HELOCs commonly use variable rates, which can affect your borrowing costs and payments over time. Review the ongoing rate and any introductory rate separately.

Home Equity Loan Rates

A home equity loan generally provides a lump sum with a defined repayment term and often a fixed rate. It differs from a revolving HELOC. Ask which products are available for your property and financing needs.

Compare Beyond the Headline Rate

How to Compare HELOC Rates and Costs

A rate is only one part of the decision. Compare how each option works during the borrowing and repayment periods, along with the fees and conditions that apply.

Introductory and Ongoing Rates

If an introductory rate is offered, check how long it lasts and how the rate is calculated afterward. For variable-rate financing, review the index, margin, and any rate caps or floors.

APR and Fees

Review APR alongside closing costs, annual fees, transaction fees, and any early closure fees. HELOC APR generally reflects interest charges and may not include fees, so compare those costs separately.

Draw and Repayment Periods

Understand when you can access funds and when you must repay the balance. Payments can increase when the draw period ends, especially if earlier payments covered interest only.

Borrowing Requirements

Ask about minimum initial draws, credit limits, and any conditions required for a quoted rate. Consider whether the terms fit the amount and timing of your planned expenses.

Planning tip: For a variable-rate HELOC, consider how a higher rate would affect your payment and repayment budget before you borrow.

Your Scenario Matters

What Affects Your Home Equity Rate?

Pricing can depend on your credit profile, income, existing debts, property type, occupancy, and the amount you want to borrow. Your combined loan-to-value ratio, or CLTV, is another important consideration.

CLTV compares the total debt secured by your home, including the proposed financing, with the home's value. For a HELOC, lenders may use the full proposed credit limit when evaluating that ratio. Program requirements and permitted limits vary.

Use our home equity calculator to explore an illustrative borrowing scenario, then request a quote to discuss actual eligibility and available terms.

Consider Your Existing Mortgage

Access Equity Without Replacing Your First Mortgage

A HELOC is typically a separate loan, so it generally allows you to access equity while keeping your existing first mortgage and its interest rate. You'll have an additional repayment obligation with its own rate and terms.

A cash-out refinance takes a different approach: it replaces your existing mortgage with a larger loan and provides cash from the proceeds. Compare the combined costs and payments of each approach, including the effect of changing your current first mortgage rate.

Explore mortgage refinance options if you'd like to compare refinancing with separate home equity financing.

Common Questions

Home Equity Rates FAQs

How do I find home equity rates for my situation?

Review the rate tool above and its scenario assumptions. Request a personalized quote to discuss terms based on your property, existing mortgage balances, credit profile, and desired borrowing amount.

Are HELOC rates fixed or variable?

HELOCs commonly have variable rates. Some products may offer fixed-rate features, but availability and terms vary. Review the specific offer to understand whether your rate and payment can change.

Why can HELOC rates change?

A variable HELOC rate is generally tied to an index plus a margin. Changes in the index can change the rate, subject to the agreement's caps, floors, and adjustment terms. An introductory rate may also end after a specified period.

Is a home equity rate the same as a mortgage refinance rate?

No. A separate home equity loan or HELOC and a mortgage refinance have different structures and pricing. Compare the costs and payments for the full financing arrangement rather than the interest rates alone.

Does checking rates mean I'm approved?

No. Displayed rates and estimates are not an approval or commitment to lend. Eligibility and final terms depend on the applicable program and verification of your financial and property information.

Can I use home equity financing for debt consolidation?

Homeowners may use home equity financing to consolidate debt, subject to the loan's terms. Compare fees, repayment timelines, and total costs. Replacing unsecured debt with home-secured debt puts your home at risk if you cannot repay.

Get a Home Equity Quote Built Around Your Goals

Explore your next step with Farmers Bank of Kansas City. Request a personalized quote based on your home and the financing you need.

Get My Home Equity Quote

Rates, terms, and product availability are subject to change. Displayed information is not a credit decision, rate lock, or commitment to lend. Financing is subject to credit, collateral, and underwriting approval. Review the rate tool's disclosures for applicable assumptions, fees, and terms. Variable rates and payments may change. Home equity financing is secured by your home; failure to repay could result in foreclosure.