[HELOC Rates](/blog/best-heloc-lenders-2026) in Massachusetts: Your 2026 Guide to Home Equity Lines of Credit

Massachusetts homeowners are sitting on significant equity. With a median [home value](/blog/appraisal-process-explained) hovering around $620,000 — well above the national median of roughly $420,000 — Bay State residents have real borrowing power through home equity lines of credit (HELOCs). But navigating rates, lenders, and state-specific rules takes some homework. This guide breaks it all down.

Massachusetts Housing Market Overview

The Massachusetts real estate market remains one of the priciest in the nation. Metro Boston drives much of the appreciation, but even secondary markets like Worcester, Springfield, and the Cape have seen steady gains over the past decade. Home values across the state have appreciated roughly 35–45% since 2020, creating substantial equity positions for long-term homeowners.

That equity translates directly into HELOC borrowing power. A homeowner with a $600,000 property and a $350,000 mortgage balance could potentially access $100,000–$130,000 through a HELOC, depending on the lender's maximum combined loan-to-value (CLTV) ratio.

The state's tight housing inventory — consistently among the lowest months-of-supply figures in the country — supports property values and makes lenders relatively comfortable extending home equity credit here.

Current HELOC Rates in Massachusetts

As of early 2026, HELOC rates in Massachusetts generally range from 7.25% to 9.50% APR for most borrowers, with the best-qualified applicants (750+ credit scores, low CLTV ratios) landing introductory rates in the 6.50%–7.00% range at some local institutions.

Key rate factors to understand:

• Index rate: Most Massachusetts HELOCs are tied to the prime rate, currently around 7.50%. Your rate is typically prime plus or minus a margin.
• Margin: Ranges from -0.50% to +2.00% depending on your credit profile, CLTV, and the lender.
• Introductory rates: Many lenders offer a fixed introductory rate for 6–12 months, sometimes as low as 5.99%. Read the fine print on what the rate adjusts to afterward.
• Rate caps: Massachusetts lenders typically include periodic caps (limiting how much the rate can change per adjustment) and lifetime caps. Ask about both.

Credit unions in Massachusetts tend to offer the most competitive HELOC rates, often 0.25–0.75% below what the big national banks charge.

Lender Landscape: Who Offers HELOCs in Massachusetts

Massachusetts has a uniquely rich lending ecosystem. Beyond the usual national banks, the state is home to dozens of mutual savings banks and credit unions — institutions that often provide better terms than their larger competitors.

Best Local and Regional Lenders

DCU (Digital Federal Credit Union) One of the largest credit unions in New England, DCU consistently offers competitive HELOC rates, often with no closing costs on lines under $500,000. Membership is open to residents of most Massachusetts communities. Rates for well-qualified borrowers have been running around 7.00–7.75% APR.

Rockland Trust A solid regional bank with deep Massachusetts roots. Their HELOC product features flexible draw periods and the option to convert portions of your balance to a fixed rate. Typical rates range from 7.25–8.50% APR.

Hanscom Federal Credit Union Offers HELOCs with no closing costs, no annual fees, and competitive variable rates. They've been particularly aggressive on introductory rate offers.

Eastern Bank The largest mutual bank in the country, Eastern Bank provides HELOCs with rate-lock options and a straightforward application process. They serve most of eastern Massachusetts.

Webster Five Cents Savings Bank A smaller mutual bank offering personalized service and competitive rates, particularly for borrowers in the Worcester County area.

Best National Lenders Active in Massachusetts

Bank of America Offers rate discounts for Preferred Rewards members (up to 0.375% off). Their digital application process is streamlined, though rates tend to run slightly higher than local credit unions.

TD Bank Strong presence in Massachusetts with competitive HELOC products. They offer a no-closing-cost option and rate discounts for automatic payments from a TD checking account.

Figure A fintech lender offering a fully online HELOC process with approval in as little as five minutes. Their rates are competitive, though they operate as a fixed-rate HELOC (technically a home equity line) rather than a traditional variable-rate product.

Bethpage Federal Credit Union Though based in New York, Bethpage offers HELOCs nationwide with some of the lowest rates available. Worth checking if you're rate-shopping aggressively.

[HELOC Requirements](/blog/heloc-application-process-step-by-step) in Massachusetts

While specific requirements vary by lender, here's what most [Massachusetts HELOC](/blog/massachusetts-heloc-guide) lenders look for:

Massachusetts lenders tend to be slightly more conservative on CLTV ratios compared to Sun Belt states, largely because of higher average home values and the desire to maintain a healthy equity cushion.

Self-employed borrowers should prepare two years of tax returns and may need to document income more thoroughly. Some local credit unions are more flexible with self-employed applicants than national banks.

Massachusetts-Specific Regulations

Massachusetts has several laws and practices that affect HELOCs:

Attorney-state requirement: Massachusetts is one of a handful of states where an attorney must be involved in real estate closings, including HELOC closings. This adds to the process but provides an extra layer of legal review. Expect to pay $400–$800 for attorney closing fees.

Mortgage tax (recording fees): Massachusetts charges a recording fee when a HELOC mortgage is recorded at the Registry of Deeds. The fee varies by county but is typically modest — around $75–$155 for the recording itself. There is no mortgage tax or excise stamp on HELOCs (the excise stamp applies to purchase mortgages and refinances, not equity lines).

Right of rescission: Under both federal and Massachusetts law, you have three business days after closing to cancel a HELOC on your primary residence without penalty.

Community Reinvestment Act (CRA): Massachusetts has its own state-level CRA requirements, meaning local banks and credit unions are incentivized to lend within their communities. This can work in your favor as a local borrower.

Rate cap protections: Massachusetts General Laws provide some consumer protections around adjustable-rate lending, including disclosure requirements for rate adjustment caps and floors.

Tax Implications

The federal Tax Cuts and Jobs Act of 2017 (still in effect as of 2026) limits the mortgage interest deduction. Here's how it applies to Massachusetts HELOC borrowers:

• Deductible if used for home improvement: Interest on HELOC funds used to "buy, build, or substantially improve" the home securing the loan is generally deductible on federal taxes, up to the combined $750,000 mortgage debt limit ($375,000 if married filing separately).
• Not deductible for other uses: If you use HELOC funds to pay off credit cards, fund a vacation, or cover tuition, the interest is not federally deductible.
• Massachusetts state taxes: Massachusetts has a flat 5% income tax rate. The state generally follows federal rules on mortgage interest deductions, so the same use-based restrictions apply at the state level. HELOC interest used for home improvements is deductible on your Massachusetts return.

Keep records. If you plan to deduct HELOC interest, document how you spend the funds. Commingling HELOC money with other accounts makes it harder to substantiate the deduction.

Property Tax Context

Massachusetts property taxes average around 1.12% of assessed value — close to the national average of about 1.10%. However, this varies significantly by municipality:

• Boston: ~1.03%
• Springfield: ~1.89%
• Cambridge: ~0.58%
• Worcester: ~1.56%
• Newton: ~1.03%

For a home assessed at $600,000 in Boston, you'd pay roughly $6,180 in annual property taxes. In Springfield, a $300,000 home would run about $5,670.

Why does this matter for HELOC borrowers? Property taxes affect your overall housing expense ratio, which lenders factor into your debt-to-income calculation. Higher property taxes reduce the HELOC amount you may qualify for. Massachusetts also offers property tax exemptions for seniors, veterans, and surviving spouses, which can lower your monthly obligations and improve your DTI ratio.

Frequently Asked Questions

How long does it take to get a HELOC in Massachusetts?

Expect 3–6 weeks from application to closing. The attorney requirement can add a few days compared to states where title companies handle closings. Some fintech lenders like Figure can close in under two weeks, though they use a different legal structure.

Can I get a HELOC on a condo in Massachusetts?

Yes, but it can be trickier. Lenders will review the condo association's financial health, insurance coverage, and owner-occupancy rate. Some lenders won't extend HELOCs on condos in buildings with fewer than five units or where more than 25% of units are investor-owned.

Are there no-closing-cost HELOCs in Massachusetts?

Several lenders, including DCU and Hanscom FCU, offer no-closing-cost HELOCs. Be aware that "no closing cost" sometimes means the lender covers upfront costs but may charge a higher rate or include a clawback provision if you close the line within 2–3 years.

Can I convert my HELOC to a fixed rate?

Many Massachusetts lenders offer a rate-lock or fixed-rate conversion option that lets you lock in a fixed rate on all or part of your outstanding balance. Rockland Trust and Eastern Bank both offer this feature. It's a smart move if you've drawn a large amount and want payment predictability.

What happens to my HELOC if home values drop?

The lender can freeze or reduce your credit line if your home's value declines significantly. Massachusetts law and federal regulations allow this. If you're concerned about market volatility, draw what you need sooner rather than later, or consider a fixed home equity loan instead.

The Bottom Line

Massachusetts is a strong state for HELOC borrowing. High home values mean substantial equity, and the deep bench of local credit unions and mutual banks creates real competition that benefits consumers. Your best bet is to get quotes from at least one credit union, one regional bank, and one national lender. Pay attention to the margin over prime, closing costs, annual fees, and whether a rate-lock option is available.

The attorney-closing requirement adds a small cost but also provides legal oversight that protects you. And if you're [using HELOC funds](/blog/heloc-draw-period-explained) for home improvements, you'll likely be able to deduct the interest on both your federal and state returns — a meaningful benefit at Massachusetts tax rates.

Start by checking your equity position (recent sale comps minus your mortgage balance), pull your credit report, and reach out to two or three lenders for quotes. The whole process is more straightforward than most people expect.

Related Articles

• [[Home [Equity Explained](/blog/home-equity-explained)](/blog/what-is-home-equity): What It Is and How to Build It](/blog/home-equity-explained)
• Property Taxes Explained: How They Work and How to Reduce Them
• Blended Family Home Planning: Merging Households and Managing Home Equity