Best HELOC Rates of March 2024

A home equity line of credit (HELOC) lets homeowners borrow against the equity they’ve built in their homes. Since a HELOC can cover just about anything, from a large home repair to a dream vacation, it’s a popular financial tool used by many homeowners.

To get the best rates and terms on a HELOC, you’ll need to not only compare multiple lenders but also demonstrate proof of your financial reliability.

Best HELOC lenders

We’ve rounded up 10 of the best HELOC lenders with competitive interest rates and credit score requirements. We’ve also compared terms for each lender to help you find the perfect fit for your financial needs.

Alliant Credit Union

Alliant Credit Union is one of the largest credit unions in the nation, with over 85 years of experience serving its member-owners. Since it’s a credit union, you must become a member-owner before you can apply for a HELOC, but doing so just involves a quick application.

With a HELOC through Alliant Credit Union, you can access up to 80% of your home’s value with minimal fees, including no closing or appraisal costs for lines of credit up to $250,000.

• Rates: 8.75% to 16.00% variable APR
• Terms: 10-year draw period, followed by an up to 20-year repayment period
• Borrowing amount: $10,000 minimum ($25,001 in Washington, D.C., and Wisconsin)
• Pros: No closing or appraisal costs on HELOCs up to $250,000, lenient credit score requirements
• Cons: Variable interest rates, you must be a member-owner to apply for a HELOC

Bank of America

Bank of America (BofA) is one of the biggest names in the financial industry, offering a large range of products to its customers. One of those is a HELOC, which can give you access to up to $1,000,000, should you have enough equity to leverage.

Since Bank of America doesn’t charge application fees, closing fees, or annual fees, getting a HELOC from them is relatively affordable. Plus, you can score an even lower rate by enrolling in autopay or if you are a Bank of America Preferred Rewards member.

• Rates: Introductory 6.99% variable APR for six months, then 9.05% to 10.59% variable APR afterward (varies by state)
• Terms: 10-year draw period, 20-year repayment period
• Borrowing amount: $15,000 to $1,000,000
• Pros: Offers various discounts, large borrowing amount maximum, lower introductory rate
• Cons: Doesn’t disclose minimum credit score, best rewards reserved for BofA banking customers

Citizens

Citizens makes it easy to know what your APR and credit line could be, generating a personalized offer for you in a matter of minutes. If you’re happy with the offer, you can apply through Citizen’s FastLine® HELOC application process. If approved, you could be borrowing money against your home in as little as a couple of weeks.

If a traditional HELOC isn’t for you, Citizens also offers a nontraditional HELOC called Citizens GoalBuilder™, which is a more affordable option for those in need of a line of credit between $5,000 and $25,000.

• Rates: 2.50% to 21.00% variable APR
• Terms: 10-year draw period, 15-year repayment period
• Borrowing amount: $17,500 to $2,000,000, $5,000 to $25,000 for Citizens GoalBuilder™
• Pros: No application fee or closing costs, personalized offers ready in minutes, quick closing process
• Cons: $50 annual fee after the first year

Fifth Third Bank

Fifth Third Bank has been around since 1858. In that time, it has climbed its way up in the ranks, and is now among the top 20 largest banks in the U.S., even though it only operates in 11 states (Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, South Carolina, Tennessee, and West Virginia). If you’re in search of a HELOC, the Fifth Third Equity Flexline® can help you access a credit line of up to $500,000, with no closing costs and competitive fixed rates.

Unique to Fifth Third Bank’s HELOC is the Fifth Third Equity Flexline Mastercard®, which allows you to spend your credit line, while also earning rewards.

• Rates: 8.50% to 16.40% fixed APR
• Terms: 10-year draw period, 20-year repayment period
• Borrowing amount: $10,000 to $500,000
• Pros: Fixed interest rates, earn rewards while you spend your credit line, rate lock available
• Cons: Only available in 11 states, rate lock costs $95

Figure

Figure, an online lender that harnesses the power of blockchain technology, has helped homeowners tap into over $6 billion of equity in their homes. If you’re a borrower seeking out fast funding, Figure beats out its competition, with funding available in as little as five days. This is thanks, in part, to its unique online notary and appraisal process.

With a Figure HELOC, you have the option to redraw up to the entire original loan amount.

• Rates: 8.10% to 14.74% fixed APR
• Terms: 2-year draw period, 5-year repayment period; 3-year draw period, 10-year repayment period; 4-year draw period, 15-year repayment period; 5-year draw period, 30-year repayment term
• Borrowing amount: $15,000 ($25,001 in Alaska) to $400,000
• Pros: Online video notary to help you close on your credit line, 100% of the paid back amount can be redrawn
• Cons: One-time origination fee (0% to 4.99%)

Flagstar Bank

Flagstar Bank is among the largest regional banks in the U.S., with 420 branches scattered primarily throughout the Northeast and Midwest.

Flagstar Bank’s HELOC comes with two payment options: interest-only, or principal and interest. Both options come with a minimum monthly payment of $100.

• Rates: 8.49% to 21.00% variable APR
• Terms: 10-year line of credit followed by a 20-year repayment period
• Borrowing amount: $10,000 - $1,000,000
• Pros: No closing fees if your HELOC is open for 36 months, two payment options (interest-only and principal and interest), discount for making automatic payments from a Flagstar account
• Cons: $75 annual fee after the first year; not available in Texas, Puerto Rico, or the U.S. Virgin Islands

PenFed Credit Union

PenFed Credit Union is one of the most recognizable credit unions by name, but it is also one of the fastest at closing on HELOCs. With its PenFed HELOC Express, eligible borrowers can close in 15 days.

One of the major benefits of getting a HELOC through PenFed is the ability to change your loan’s rate from a fixed interest rate to a variable interest rate.

• Rates: 8.625% to 18.00% fixed APR
• Terms: 10-year line of credit followed by a 20-year repayment period
• Borrowing amount: $25,000 to $500,000
• Pros: Switch between variable and fixed rates, PenFed will cover most closing costs
• Cons: High appraisal fees

BMO Harris

Those with excellent credit can qualify for BMO Harris’s discounted HELOC rate, making it a strong contender right away. While the promotion is only for six months, the APR it’s possible to qualify for after that is still low. Plus, borrowers can qualify for BMO’s rate-lock service, which helps you keep your rate low even as the market fluctuates.

• Rates: As low as 6.99% APR for the first 6 months, as low as 8.24% to 14.01% APR after that (varies by state)
• Terms: 10-year draw period with a 20-year repayment period
• Borrowing amount: Not disclosed, varies by individual
• Pros: Substantial introductory discount, BMO Harris pays most closing costs; Rate-lock option
• Cons: Rate quotes are not provided online in all states, must have good credit to secure a loan

TD Bank

TD Bank checking account holders will find the most value from a TD Bank HELOC. They can qualify for a rate discount of up to 0.25 percentage points, which, on top of an already low starting APR of 8.24%, can help lower your overall borrowing costs.

• Rates: As low as 8.24% APR
• Terms: Not disclosed
• Borrowing amount: Up to $500,000, terms and conditions apply for higher amounts
• Pros: Low interest rates for qualified borrowers, qualify for a discount if you’re already a TD Bank customer
• Cons: Discount only valid for TD Bank checking account holders, many fees in the fine print

U.S. Bank

U.S. Bank offers a large borrowing range and the potential to qualify for relatively low interest rates. Borrowers who use a U.S. Bank account can also qualify for a hefty rate discount of 0.50 percentage points. Just know that only those with excellent credit are likely to qualify for the best perks.

• Rates: 8.95% to 13.10% APR
• Terms: 10-year draw period followed by a 20-year repayment period
• Borrowing amount: $15,000 to $750,000 (or up to $1 million for California homes)
• Pros: High borrowing limit, 0.50 percentage point rate discount for borrowers who use a U.S. Bank account to pay their monthly payment
• Cons: High minimum credit score and U.S. Bank account needed for lowest rates, highest borrowing limit reserved only for California residents

How do you get the best HELOC rate?

HELOC rates are based on many different factors, some of which you can control, and some of which you can’t. The two major factors that determine your rate are the current prime rate and how risky a borrower lenders judge you to be.

You can't control the prime rate, but you can improve your chances of getting a good rate. To do so, shop for rates from multiple lenders and position yourself as a desirable borrower by improving your credit score and lowering your debt-to-income ratio (DTI).

How to get a HELOC

Getting a HELOC is fairly simple. Here is what you can expect:

1. Research lenders: Start by researching HELOC lenders, including banks, credit unions, and online lenders.
2. Request rate quotes: Once you’ve compiled a list of lenders, request rate quotes from each of them. From there, choose the one that has both the best rate and the best terms for your financial situation.
3. Submit application: After deciding on a lender, you’ll need to complete an application and submit any required information. This could include proof of income, an appraisal letter, and proof of homeownership.
4. Close on the HELOC: Once your HELOC is approved, you’ll work with the lender to close on the loan. This might involve meeting with a notary to sign official loan documents.
5. Draw from your credit line: Once you have officially signed all of the loan documents, you can begin drawing from your home equity line of credit.

HELOC rates FAQ

Will HELOC rates go up or down in the future?

It is impossible to know whether HELOC rates will go up or down in the future. They will likely fluctuate depending on factors such as the current prime rate.

What are the costs and fees of a HELOC?

HELOCs can come with a variety of different costs and fees, but which ones you’ll owe will be up to your lender. Most often, you can expect to come across origination fees, appraisal fees, annual fees, application fees, and closing costs.

What are the alternatives to a HELOC?

Alternatives to HELOC loans include home equity loans, cash-out refinancing, personal loans, and reverse mortgages.

Should I get a home equity loan instead?

Whether or not you should get a home equity loan instead of a HELOC depends on your personal finances, how much equity you have in your home, and other factors. To get a better idea, check out: HELOC vs. Home Equity Loan: How to Decide.