Best HELOC Options

While several loan providers in the market offer mortgages at competitive rates, we will look at those lenders that are the best in their category. Let's start!

Advertising Disclosure
The information shared through this website is based on our team’s personal judgements and views. We use our own comparisons to assign values, which are not intended to reflect a certain benchmark of precision. To keep our website free for use, we accept referral fees from various service providers, which have the potential to influence their respective appointed scores. A third party’s participation on is not an indication of endorsement. The information and vendors which appear on this site is subject to change at any time.The site does not include all companies offering loan products or all available loan offers.

Figure-Best for Fast Funding

Lenders Score
Loan Features Website
503 users chose this site today
Read Review >>
NMLS #1717824

  • Min. Credit Score: 620

  • APR: Starting at 3.24%
  • Loan Amount: $15000 - $400000

Figure is an online lender that offers HELOCs. A home equity line of credit lets you tap into your home equity to access cash and can be used for purposes such as debt consolidation, home improvement or major purchases. Figure lends HELOCs in 41 states and Washington, D.C. Its rates are as low as 3.24%1 APR, which includes an origination fee of up to 4.99 percent and discounts for enrolling in autopay and joining one of its partner credit unions. Its HELOC works a bit like a home equity loan in the beginning: You get the full loan amount (minus the origination fee) with a fixed rate. It then acts as a traditional HELOC in the sense that as you pay off the line of credit, you can borrow funds again up to the limit. The rate that applies to each draw is fixed at the time of the draw and won’t change over time.

While some banks and lenders have stopped offering HELOCs, Figure offers HELOC loans up to $400,000 — The amount you qualify will vary, depending on your loan-to-value ratio and credit score. There’s also an origination fee of as much as 4.99%.

Funding in as few as five business days2
Fixed interest rates
100% online application
No account opening fees, maintenance fees, or prepayment penalties
Origination fees involved

Toploansadviser is a Figure partner and may receive compensation for this content.

Figure Lending LLC dba Figure | NMLS #1717824 - For licensing information, go to Equal opportunity lender

Figure Home Equity Line is available in AK, AL, AR, AZ, CA, CO, CT, DC, FL, GA, IA, ID, IL, IN, KS, LA, MA, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, RI, SD, TN, VA, VT, WA, WI, WY with more states to come.

For Figure Home Equity Line, APRs can be as low as 3.24% for the most qualified applicants and will be higher for other applicants, depending on credit profile and the state where the property is located. For example, for a borrower with a CLTV of 45% and a credit score of 800 who is eligible for and chooses to pay a 4.99% origination fee in exchange for a reduced APR, a five-year Figure Home Equity Line with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 3.24%. The total loan amount would be $52,495. Alternatively, a borrower with the same credit profile who pays a 3% origination fee would have an APR of 4.24% and a total loan amount of $51,500. Your actual rate will depend on many factors such as your credit, combined loan to value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay an origination fee in exchange for a lower rate. Payment of origination fees in exchange for a reduced APR is not available in all states. In addition to paying the origination fee in exchange for a reduced rate, the advertised rates include a combined discount of 0.75% for opting into a credit union membership (0.50%) and enrolling in autopay (0.25%). APRs for home equity lines of credit do not include costs other than interest. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.

The Figure Home Equity Line is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw.

For the Figure Home Equity Line, approval may be granted in five minutes but is ultimately subject to verification of income and employment. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing. In addition, funding timelines may be longer if we cannot readily verify that your property is in at least average condition with no adverse external factors with a property condition report and need to order a desktop appraisal to confirm the value of your property.


PenFed-Best Credit Union

Lenders Score
Loan Features Website
Read Review >>

  • Min. Credit Score: 660

  • APR: Starting at 3.75%
  • Loan Amount: $25000 - $500000

PenFed is a credit union with low entry requirements that offers many benefits to its members, from discounts to loan repayment assistance. With an APR starting at 3.75%, PenFed offers very competitive HELOC rates and allows you to take out a line of credit of up to 90% of combined loan to value. This rate puts PenFed at the top of most lists if you’re looking for the best HELOC provider out there.

Moreover, PenFed offers a repayment period of up to 20 years after a 10 year draw period. They usually cover the closing costs, as long as you don’t pay off your line of credit too fast (within three years). In that case, you will have to repay these costs. With PenFed, you can take a line of credit ranging from $25 000 to $500 000. The minimum credit score you need to have in order to qualify for a PenFed HELOC is 660.

They allow you to borrow 90% CLTV
Flexible repayment periods.
You’ll get a penalty if you pay off the HELOC too fast.
There are membership requirements you need to meet.

TD Bank-Best for Large Home Improvement

Lenders Score
Loan Features Website
Read Review >>

  • Min. Credit Score: 620

  • APR: Starting at 3.54%
  • Loan Amount: $25000 - $500000

Although the HELOCs provided by TD Bank are only available in 15 states on the East Coast along with Washington D.C., we had to include them on the list. The best thing about TD Bank’s HELOCs is that there is no minimum draw and they offer credit lines between $25 000 and $500 000, which makes them a great choice if you need to fund large home improvement projects.

TD Bank allows you to lock in a fixed interest rate so you don’t have to worry about market fluctuations. Their APRs differ depending on your location but they start at 3.54%, which is an incredibly competitive rate. It’s important to mention that TD Bank does have an annual fee of $50 and an origination fee of $99 if you take out $50 000 or more. If you pay off your HELOC within two years, you will be charged a penalty of 2% of the entire amount. The minimum credit score for these HELOCs is 620.

Great customer service
Ability to lock in fixed rates
Competitive interest rates
There’s a number of fees involved
Limited availability based on location

PNC Bank-Best for Small Home Improvement

Lenders Score
Loan Features Website
Read Review >>

  • Min. Credit Score: 620

  • APR: 7.19% - 9.05%
  • Loan Amount: $10000 - $500000

Last but not least is the PNC bank, which is the best option for those looking to make small home improvement projects. The minimum amount you can borrow is $10 000 and you only pay interest on what you spend. However, you still get access to the funds throughout the entire draw period. The PNC Bank’s APRs range between 7.19% and 9.05%, along with the ability to choose a repayment period between 5 and 30 years.

The PNC Bank also offers users to convert their HELOCs to a fixed rate but each conversion comes with a $100 transfer fee. On the bright side, there is no application fee but you will have to pay an annual fee of $50. If you own a PNC checking account, you will receive a 0.25% rate discount as a part of their loyalty program. This option requires you to have a credit score of at least 620.

Low minimum loan amount
The ability to switch to fixed rates
Several fees involved

FAQs About Home Equity Lines of Credit

This FAQs section will guide first-time readers regarding HELOC loans.

What is a HELOC?

A HELOC is a home equity line of credit that functions like a credit card where you borrow money against your home equity. What makes HELOCs different from actual credit cards is that they have a draw period during which you can access the money. Once the draw period ends, you have to start repaying the loan. What’s great about HELOC is that it allows you to borrow only as much money as you need.

For example, if you were doing a home improvement project and you weren’t sure how much that’s going to cost, a HELOC would be a much better option than a home equity loan. That’s because you can get approved for as much as $500 000 on a HELOC but you don’t have to use all of it. You can only use the money you need and you’ll only be paying interest on the amount you spend, whereas a regular home equity loan just gives you a lump sum of money that you have to repay in interest rates entirely.

The Pros and Cons of HELOC
With a home equity line of credit, you only pay interest on the amount of money you spend. If you were approved for a HELOC of $100 000 but you only spend $60 000, you will not be paying interest for the remaining $40 000.
Depending on the lender you choose, your HELOC may come with great flexibility, including the option to make interest-only payments during the draw period in order to make the repayment period a bit easier.
In most cases, HELOCs come with variable interest rates, meaning they can go up or down in value. Although you may have an option to switch to a fixed rate (after paying an extra fee), you may also have to increase your payment if the changing interest rates grow.
HELOCs may seem tempting since you have ongoing access to funds for years without having to repay them. Without discipline, you may end up overspending, which could make the repayment period more difficult for you.
Home Equity Loan VS HELOC?

The main difference between a HELOC and a home equity loan is the way you get access to your borrowed funds. With a home equity loan, you get a large sum of money right away and you have to pay interest on all of it. With a HELOC, if you get approved for a $100 000 line of credit, you can use as much of it as you want throughout a 10 year period without making any payments back.

Then, when the repayment period starts, you only have to pay interest on the amount you spent. With home equity loans, that is not the case because you get to take out a large sum of money one time and then you start repaying it immediately. Both of these loans have their pros and cons. Which one’s better depends on your situation and financial needs.

How to Choose the Best HELOC?

The first thing you need to look at when choosing the best HELOC are the initial HELOC rates and how long they last. In some cases, lenders try to draw people in by setting extremely low introductory rates which don’t last the entire loan period. Before you settle for a specific lender, learn to understand the rate index and markup so you’ll know exactly what you’re getting yourself into.

If the lender tells you that their interest rate is based on the prime rate, that’s not likely the case. In reality, the interest rates are usually based on prime rates plus a markup, which can be as high as the prime rate itself. Make sure to double check how much money you’ll have to pay on interests before settling down for a HELOC.

Moreover, look into when the HELOC draw period is set to end. You need to know exactly when the repayment period begins so you can structure your finances accordingly. Look into whether the lender you’re interested in offers balloon payments. In some cases, you can have lower monthly payments during your repayment period if you agree to pay a large one-time payment at the end of the term. This is called a balloon payment and it can help you lower the burden of the repayment period.

Obviously, when searching for the best HELOC you need to look for the most flexible terms. Keep in mind that lenders that require a minimum withdrawal or borrowed balance amount take away from the flexibility of the HELOC. If you want more flexibility, make sure to ask for it upfront. Lastly, beware of various inactivity fees that may occur if you don’t touch your home equity line of credit at all. Ask about the inactivity fees upfront as well.

Get quick approval of home equity line

Get Started >>
Stay up to date with the lowest rate loans.

Your email is safe with us, we don't spam.