Benzinga looks at the best home equity lines of credit, explaining how these loans provide financial flexibility for homeowners
In this Guide: Top Lenders · What Is a Home Equity Loan? · Pros and Cons · Choosing the Best Lender · Alternatives to Home Equity Loans · The Bottom Line: Best Home Equity Loan Rates
Home Equity Lender · Best for · Loan amount · Loan term · APR · Compared to National Average (8.67%)
Discover what a home equity line of credit is, how to obtain a HELOC, how they work and their benefits for homeowners.
Unlock the equity in your home by borrowing from these top banks, credit unions and online-only lenders.
Lender, Current APR, Line of Credit Amount, Best for ; Bethpage Federal Credit Union, 6.99% (fixed) / 7.75% (variable), Up to $500,000, Fixed-rate options ; BMO, 7.67% (fixed) / 8.23% (variable), $25,000-$1,000,000, Affordability ; PenFed Credit Union, Starting at 7.625%, $25,000-$500,000, Flexible membership requirements ; Third Federal Savings and Loan, Starting at 7.24%, $10,000-$300,000, Rate guarantee ; Figure, Starting at 7.70%, $15,000-$400,000, Fast funding ; U.S. Bank, Starting at 8.20%, $15,000-$750,000, Low fees at a large bank ; Aven, Starting at 7.49%, Up to $250,000, Cashback ; Quorum Federal Credit Union, Starting at 7.50%, $10,000-$1 million, Investors
With a home equity line of credit (HELOC), homeowners can borrow against their property’s value and get flexible access to cash. HELOCs offer the convenience of borrowing funds as needed, making it a good option for financing ongoing projects like home renovations. However, HELOCs have variable interest rates, which means your rate (and monthly payment) can go up depending on the overall interest rate environment. It’s always important to have a repayment plan in place when you take on debt,...
Pros · Cons · Additional Information ; Pros · Cons · Additional Information
LOAN TYPE, AVERAGE RATE, AVERAGE RATE RANGE ; Home equity loan, 8.40%, 8.08% – 9.49% ; 10-year fixed home equity loan, 8.53%, 7.78% – 9.27% ; 15-year fixed home equity loan, 8.48%, 8.14% – 9.95%
A home equity line of credit (HELOC) offers plenty of benefits to homeowners. For example, the flexibility of a HELOC makes it a great way to borrow money for any purpose. And interest rates are often lower than other types of loans and are only paid on the amount borrowed. But a HELOC comes with some risks. Variable interest rates can increase over time, making future payments unpredictable. And since your home serves as collateral, failure to repay can lead to foreclosure. There are also vario...