Best HELOC prices
OFFER SELECTED PARTNERS
Best for rate lock options
Fifth Third Bank
4.5
Our reviews take into account a product's benefits and coverage level. All ratings are made exclusively by our editorial team.
annual interest from
2.99% for the first 6 months, variable thereafter 4.22% to 11.15%
CLTV
90%
Min creditworthiness
660
Compare interest rates from participating lenders in your area via Bankrate.com
annual interest from
2.99% for the first 6 months, variable thereafter 4.22% to 11.15%
CLTV
90%
Min creditworthiness
660
Why we chose it
Fifth Third Bank has a good APR on HELOCs, starting at 2.99% for the first six months; and thereafter, the variable interest rate can range from 4.22% to 11.15%, depending on the current policy rate. Fifth Third's starting ratings are still below the national average.
Fifth Third also charges no closing costs with its HELOCs and offers a special rate lock feature that allows you to set a fixed rate on any amount of your loan for a $95 fee. You can also unblock the tariff at any time and block up to three tariffs at the same time.
For and against
- Offers a unique Rate Lock option, useful in a rising interest rate environment
- Homeowners can access up to 90% of their home equity
- No closing costs
- The bank has not disclosed its deadlines for closing loans
Additional details
Loan Conditions
Fifth Third is offering HELOCs from $10,000 to $500,000. The terms are a 10-year drawing period during which you only pay the interest. After that, there is a 20-year repayment period, during which you pay the outstanding amount plus interest.
Available nationwide
Fifth Third's HELOCs are available in all states.
How to apply
Borrowers can apply online. Telephone customer support is available Monday through Friday from 8:00 a.m. to 6:00 p.m. ET and Saturday 10:00am - 4:00pm ET. Fifth Third is closed on Sundays.
OFFER SELECTED PARTNERS
Best for APR discounts and cash rewards
PNC-Bank
4.0
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements, and other attributes. All ratings are made exclusively by our editorial team.
annual interest from
4,28 %
CLTV
80%
Min creditworthiness
N / A
Compare interest rates from participating lenders in your area via Bankrate.com
annual interest from
4,28 %
CLTV
80%
Min creditworthiness
N / A
Why we chose it
PNC's initial variable rate of 4.28% for a HELOC is still below the national average. While the bank doesn't publish average rates on its main page about HELOCs, a rate can be found by entering the amount you want to withdraw initially, the total loan amount, and your zip code.
In this example, the 4.28% interest rate was based on a $20,000 withdrawal for a total line of credit of $200,000 and a zip code of 33605. PNC's fixed interest rates range from 8.49% to 9.09% using the same scenario.
PNC is also offering $150 in cash to its Choice HELOC applicants through August 31, 2022 with a minimum line amount of $75,000 and meeting certain conditions and closing deadlines.
The bank offers a 0.25% APR discount when you set up automatic payments from a PNC checking account.
For and against
- PNC offers borrowers the ability to switch between variable and fixed interest rates during the life of the HELOC
- You can get a 0.25% discount on your plan by setting up automatic payments from a PNC checking account
- Does not offer online pre-qualification
- Does not offer HELOCs in every state
Additional details
Available nationwide
PNC offers HELOCs in most states except when the home is in Alaska, Hawaii, Louisiana, Mississippi, Nevada, or South Dakota.
How to apply
Borrowers can start the application process online. Telephone customer support is available Monday through Thursday from 8:00 a.m. to 10:00 p.m. ET; Friday from 8 a.m. to 6 p.m. ET; and Saturday and Sunday from 8 a.m. to 5 p.m. ET.
OFFER SELECTED PARTNERS
Best for fast turnaround times
Connexus Kreditgenossenschaft
4.5
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements, and other attributes. All ratings are made exclusively by our editorial team.
annual interest from
3.57% in the first six months, then 4.58%
CLTV
80%
Min creditworthiness
N / A
Compare interest rates from participating lenders in your area via Bankrate.com
annual interest from
3.57% in the first six months, then 4.58%
CLTV
80%
Min creditworthiness
N / A
Why we chose it
Connexus has a below average promotion rate of 3.57% for the first six months and after that the rate climbs to 4.58%. The credit union's rates were released on June 22, 2022.
Connexus also offers home equity loans and an interest-free HELOC with an effective introductory rate starting at 3.57% for the first six months and 5.08% thereafter.
Because Connexus is a credit union, you must become a member before you can access their credit products.
For and against
- Offers a variety of home loan options including home equity loans and an interest rate HELOC
- Has an introductory APR below the national average
- Can approve most home equity products online and has fast turnaround times
- Connexus does not offer HELOCs in some states
- The 80% CLTV cap is average, but some lenders allow up to 90%
Additional details
Loan Conditions
You must borrow at least $5,000 to receive the promotional APR. Connexus HELOCs have a 15-year draw period and then a 15-year redemption period. The minimum payment requirement is 1.5% of the amount borrowed (minimum $25).
Not available nationwide
Connexus home equity products are not available in Alaska, Hawaii, Maryland or Texas.
How to apply
Borrowers can start the application process online, and Connexus says most applications can be completed entirely online. Telephone customer support is available Monday, Tuesday, Wednesday, and Friday from 7:00 AM to 7:00 PM CT; Thursday 9:00 a.m. to 7:00 p.m. CT; and Saturday from 8:00 a.m. to 1:00 p.m. CT.
OFFER SELECTED PARTNERS
Best flexibility for borrowers
Citizens
4.5
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements, and other attributes. All ratings are made exclusively by our editorial team.
annual interest from
4,5 %
CLTV
80%
Min creditworthiness
N / A
Compare interest rates from participating lenders in your area via Bankrate.com
annual interest from
4,5 %
CLTV
80%
Min creditworthiness
N / A
Why we chose it
Citizens is offering HELOCs starting July 13, 2022 with APRs starting at 4.5%, which was below the national average at the time. However, Citizens does not disclose how low an applicant's credit score may be in order to qualify.
The bank does not charge an application fee or closing costs. And it offers a 0.25% interest rebate for borrowers making automatic payments from a Citizens checking account.
For and against
- No registration fee or closing costs
- 0.25% interest rebate for borrowers who automatically pay from a Citizens checking account
- Not available in all states
- Does not disclose credit requirements
Additional details
Loan Conditions
Citizens offers HELOCs starting at $17,500; However, you must have a line of credit greater than $200,000 to get the lowest APR available. The subscription period is 10 years and the repayment period is 15 years. There are no fees and some discounts are available, including for Citizens current account customers. An annual fee of $50 is waived in the first year of funding.
Not available nationwide
Citizens' HELOCs are only available in the following territories: Connecticut, Delaware, Florida, Illinois, Indiana, Kentucky, Massachusetts, Maryland, Maine, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia, or Vermont and Washington, D.C.
How to apply
Borrowers can start the application online, in person or by phone. Telephone customer support is available Monday through Friday from 7:00 AM to 10:00 PM ET and Saturday through Sunday from 9:00 AM to 6:00 PM ET.
OFFER SELECTED PARTNERS
Best for borrowers with low credit scores
Allianz Credit Union
4.5
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements, and other attributes. All ratings are made exclusively by our editorial team.
annual interest from
4,75 %
CLTV
90%
Min creditworthiness
620
Compare interest rates from participating lenders in your area via Bankrate.com
annual interest from
4,75 %
CLTV
90%
Min creditworthiness
620
Why we chose it
Alliant's HELOC APRs start at 4.75%, below the national average. It will consider an applicant with a credit score of only 620.
Alliant also waives the application fee, evaluation fee, or closing cost for HELOCs up to $250,000.
For and against
- Interest rates are still low, even for borrowers with lower credit ratings
- Online application process
- Not available in all states
Additional details
Loan Conditions
Alliant offers HELOCs starting at $10,000 and up to $250,000 to waive certain closing costs. The terms range from 15 to 30 years.
Not available nationwide
Alliant says its HELOCs are available in most states.
How to apply
Borrowers can start the application online. Telephone customer support is available Monday through Saturday from 7:00 a.m. ET to midnight ET and Sunday from 9:00 a.m. to midnight ET.
OFFER SELECTED PARTNERS
Best for large HELOC volumes
US-Bank
4.5
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements, and other attributes. All ratings are made exclusively by our editorial team.
annual interest from
4,95 %
CLTV
80%
Min creditworthiness
620
Compare interest rates from participating lenders in your area via Bankrate.com
annual interest from
4,95 %
CLTV
80%
Min creditworthiness
620
Why we chose it
The HELOCs of the U.S. Bank have APRs ranging from 4.95% to 9.35% as of July 11th. The starting rate was below the national average at the time. the us Bank also offers HELOCs to borrowers with loan values as low as 620, which is slightly below most other lenders.
In most cases, the bank does not charge an application fee or closing costs. And it offers a 0.50% interest rebate for borrowers making automatic payments from a US bank account.
For and against
- A wide variety of options for homeowners who need cash, including home equity lines of credit and loans, and payout refinances
- HELOCs have no completion cost
- Borrowers cannot fully complete an application online
Additional details
Loan Conditions
the us Bank offers HELOC amounts from $15,000 to $750,000 or up to $1 million for California real estate. The drawing period is 10 years. During this period, the U.S. Bank to lock your HELOC from an adjustable to a fixed rate on all outstanding balances.
Available nationwide
The HELOCs of the U.S. Bank are available in all states.
How to apply
Borrowers can start the application online. Telephone customer support is available 24/7.
Summary: Best HELOC prices
| Pursue | company logo | Forbes Advisor-Rating | Forbes Advisor-Rating | annual interest from | CLTV | minimum credit rating | Learn more CTA text | Learn more CTA below the text | Learn more |
|---|---|---|---|---|---|---|---|---|---|
| Fifth Third Bank |  | 4.5 |  | 2,99 %-4,22 | 90% | 660 | Compare prices | Compare interest rates from participating lenders in your area via Bankrate.com | |
| PNC-Bank |  | 4.0 |  | 4,28 % | 80% | N / A | Compare prices | Compare interest rates from participating lenders in your area via Bankrate.com | |
| connected |  | 4.5 | | 3,57 %-4,58 % | 80% | N / A | Compare prices | Compare interest rates from participating lenders in your area via Bankrate.com | |
| Citizens |  | 4.5 | | 4,5 % | 80% | N / A | Compare prices | Compare interest rates from participating lenders in your area via Bankrate.com | |
| Allianz Credit Union |  | 4.5 | | 4,75 % | 90% | 620 | Compare prices | Compare interest rates from participating lenders in your area via Bankrate.com | |
| US-Bank |  | 4.5 | | 4,95 % | 80% | 620 | Compare prices | Compare interest rates from participating lenders in your area via Bankrate.com |
methodology
We reviewed nearly 20 mortgage lenders that offer home equity lines of credit to US customers. Lenders who do not display their interest rates online are not eligible for a review.
We rated lenders primarily based on their interest rates, but added additional information that is most important to borrowers, such as:
The score is weighted equally between the following loan and lender characteristics:
- Zinsrate:20%
- Minimum credit requirements:20%
- Closing times:20%
- Accessibility:20%
- Lender Fees:20%
Bonus points:Lenders who also insure home equity loans (HELs) get five points because they offer more equity loan options
To learn more about our scoring and scoring methodology and the editorial process, read our guideHow Forbes Advisor reviews mortgage lenders.
HELOC rate forecast for 2023
HELOC interest rates are variable; H. they can rise just as easily as they fall, leading to significant increases in your monthly payment. Interest rate movement on a HELOC is tied to what the Federal Reserve does with itpolicy rate.
Considering the Fed has signaledplans to raise the price furtherBy 2023, HELOC rates are also likely to increase.
Some economists expect HELOC rates to rise about 2% in early 2023 and remain high throughout the year, peaking at nearly 8%. Theaverage HELOC rateis currently between 7% and 8%.
Frequently Asked Questions (FAQs)
What is a home equity line of credit?
A home equity line of credit (HELOC) is a loan secured by your home. The amount of loan you can get depends on how much equity is in your home. This can be determined by calculating the total current value of your home minus the outstanding balance of your mortgage.
With a HELOC, you can withdraw money as needed for a certain period of time – typically the first 10 years – and only pay interest during this time. After that, there is a repayment period in which you pay back the amount borrowed plus interest. The repayment periods are usually 20 years.
How is a HELOC different from a home equity loan?
Home equity loans are similar to HELOCs (home equity lines of credit), but they require homeowners to take all of their funds at once and pay off the balance with fixed monthly payments.
Another key difference between the two products is that HELOCs typically have variable interest rates, while home equity loans are fixed. In an environment of rising interest rates, this could make borrowing a better option.
What is equity?
The equity you have in your home is defined as the value of the home minus any debts you have on the home, such as taxes. B. a first mortgage. In order to approve you for a home loan or line of credit, a lender generally requires an appraisal from you so that they have a trusted third-party appraisal of the property's value.
How does a HELOC work?
HELOCs are revolving lines of credit; H. You can only use the amount you need, pay it back and use it again. This takes place during what is known as a draw period. Drawing periods usually last 10 years. During this time, you still have to make a monthly payment, but it's often just interest.
However, once the drawing period has expired, you are no longer allowed to use the line of credit and must begin paying back the balance, including principal and interest. Repayment periods are often 20 years, although this can vary by lender.
What is a combined loan-to-value ratio?
Your combined loan-to-value ratio (CLTV) is the sum of any loans or debt you owe on the home — such as B. a first mortgage, second mortgage, or home equity loan - divided by the value of the home. For example, if you have a $200,000 mortgage plus a $50,000 home equity line of credit and your home is worth $300,000, your CLTV is 83%.
Next in home equity
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- For those interested only HELOC Ultimate Guide
- What is a home equity line of credit?
- Ways to get the best HELOC rates
- HELOC-Rechner
The information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be appropriate for your circumstances. We do not provide financial advice, advisory or brokerage services, nor do we recommend or advise any individual or the purchase or sale of any specific stock or security. Performance information may have changed since publication. Past performance is not a guide to future results.
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