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*Available APRs range from 6.35% to 14.90%*, which includes the payment of a higher origination fee in exchange for a reduced interest rate, which is not available to all applicants or in all states. (the advertised APR includes a combined 0.25% discount for opting into a credit union membership (0%) and enrolling in autopay (0.25%) as well as payment of higher origination fee in exchange for a reduced rate, which is not available to all applicants or in all states). The lowest APRs are only available to the most qualified applicants, depending on credit profile and the state where the property is located, and those who also select five year loan terms; APRs will be higher for other applicants and those who select longer loan terms. As representative example, for a borrower with a 60% CLTV and a 740 credit score who is eligible for and chooses to pay a 4.99% origination fee in exchange for a
reduced APR on a five-year Figure Home Equity Line with an initial draw amount of $50,000 would have
a fixed annual percentage rate (APR) of 7.70%. The total loan amount would be $53,850.
Alternatively, a borrower with the same credit profile who pays a 3.99% origination fee would have an
APR of 7.80% and a total loan amount of $51,995. 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 a higher origination fee in exchange for a lower rate. Rates change frequently so
your exact APR will depend on the date you apply. APRs for home equity lines of credit do not include
costs other than interest. You will be responsible for an origination fee of up to 4.99% of your initial draw,
depending on the state in which your property is located and your credit profile. You may also be
responsible for paying the costs of valuation if an AVM is not available for your property ($180), manual
notarization if your county doesn’t permit eNotary ($380), and recording fees ($0 - $315) and recording
taxes, which vary by state and county ($0-$1,400 per one hundred thousand dollars borrowed). 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 best HELOC lenders offer high borrowing limits, long repayment terms, competitive interest rates and low fees, with availability across the U.S. Based on our research, Achieve Loans is the top HELOC company overall. This guide also walks you through how to choose the right HELOC lender and how to apply for a HELOC.
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The ConsumerAffairs Research Team compared more than 30 popular lenders to find our top picks based on consumer reviews, interest rates, loan amounts and other features.
Our picks may be Authorized Partners that compensate us, but this does not affect our recommendations. Read our full methodology for details on how we selected the best HELOC lenders.
Home Equity loans are available through our affiliate Achieve Loans (NMLS ID #1810501). Equal Housing Opportunity. Offers may vary and all loan requests are subject to eligibility requirements, application review, loan amount, loan term, income verification, and lender approval. Product terms are subject to change at any time. Offers are a line of credit. Loans are not available to residents of all states and available loan terms/fees may vary by state where offered. Line amounts are between $15,000 and $300,000 and are assigned based on product type, debt-to-income ratio and combined loan-to-value ratio. Minimum 600 credit score applies for debt consolidation requests, minimum 700 applies for cash out requests. Other terms, conditions and restrictions apply. Fixed rate APRs range from 6.74% - 14.75% and are assigned based on underwriting requirements and offer APRs assume automatic payment enrollment which may provide a discount (autopay enrollment is not a condition of loan approval). Example: average HELOC is $57,150 with an APR of 12.75% and estimated monthly payment of $852 for a 10-year loan. 10,15, 20 and 30-year terms available (20 and 30 year terms only available for cash out requests). All terms have a 5-year draw period with the remaining term being a no draw period. Payments are fully amortized during each period and determined on the outstanding principal balance each month. Closing fees range from $750 to $6,685, depending on line amount and state law requirements and typically include origination (3.5% of line amount) and underwriting ($725) fees if allowed by law. Property must be owner-occupied and combined loan-to-value ratio may not exceed 80% for debt consolidation and 85% for cash out requests, including the new loan request. Property insurance is required and flood insurance may be required if the subject property is located in a flood zone. You must pledge your home as collateral. Contact Achieve Loans for further details.
HELOC rates are usually variable, meaning they change periodically based on a benchmark rate like the prime rate, plus a margin determined by your creditworthiness.
When choosing a HELOC lender, compare interest rates, fees (including closing costs), introductory rate offers and any interest rate caps to find the best deal for your needs.
A HELOC is a type of financing that lets a homeowner borrow funds based on their home equity. With a HELOC, you can borrow money up to a certain limit and pay back your balance over a number of years. It’s a second mortgage, meaning it doesn’t replace your primary mortgage (like a refinance does).
How does a HELOC work?
A HELOC is similar to a credit card in that it’s a revolving line of credit, which means you can make withdrawals up to a specified credit limit repeatedly, pay off the debt as you go and then withdraw funds again as needed. However, there is a limit to how long you can borrow using a HELOC.
A HELOC has two phases: the draw period and the repayment period. During the draw period (typically from five to 10 years), you can withdraw money up to the credit limit. As with a credit card, you’re expected to make minimum monthly payments during the draw period, though these payments are often interest-only and don’t go toward the principal.
After the draw period closes, you’ll enter the repayment period, during which you make principal and interest payments until the balance is paid off. Repayment periods are often longer than draw periods, so a 10-year draw period could have a 20-year repayment period.
The credit limit is calculated as a percentage of the home’s appraised value minus the combined total of any principal loan balance securing the home. Most lenders typically set the percentage (called a combined loan-to-value ratio, or CLTV ratio) between 60% and 85%.
Real-world example
Say your home has a current appraisal value of $250,000 and the outstanding balance on your mortgage loan is $160,000. If you obtain a HELOC with a combined loan-to-value ratio of 80%, you may be able to borrow 80% of $250,000, minus the $160,000 you still owe on your mortgage. Your potential credit limit would equal $40,000.
Home equity loan vs. HELOC
A HELOC and a home equity loan are similar in that they both draw funds from the equity in a property. However, they differ in how and when these funds are disbursed.
With a home equity loan, the funds are distributed as a lump sum of cash upfront. Home equity loans generally come in handy for situations where the borrower has, for example, an accurate cost estimate for a project. With a HELOC, you can access funds as needed during the draw period.
Some of the most common differences between HELOCs and home equity loans:
Lump sum versus line of credit: While a home equity loan provides a one-time lump sum of cash, a HELOC provides a defined credit limit. A homeowner can borrow and repay their HELOC numerous times throughout the draw period (typically five to 10 years).
Monthly payment amount: A home equity loan has a fixed payment amount that is a combination of principal and interest. HELOCs have interest-only payments during the draw period. Once the repayment period starts, you make principal and interest payments (often over 20 years).
Interest rate: Most home equity loans lock in a fixed interest rate. HELOCs usually have a variable interest rate that can go up or down over time. In both cases, the borrower's credit profile and chosen lender can affect the rate.
Interest charges: With a home equity loan, borrowers start accruing interest on the full balance immediately, whether they're using the money or not. With a HELOC, you only pay interest on the money you draw from your credit limit. If you have a balance of zero, there are no interest charges.
Maximum LTV ratio: Some lenders have different maximum LTV ratios for home equity loans and HELOCs. This difference could affect how much of your equity you can access.
How to choose a HELOC lender
As with any borrowing decision, it’s a good idea to read customer reviews and gather quotes from multiple lenders before you make your decision. Some lenders may discount upfront fees; others may offer lower rates. You’ll want to consider the overall cost of the HELOC, including all fees and charges, as you compare lenders.
Type of interest rate
A HELOC may have a variable rate, a fixed rate or a combination of both (e.g., a variable rate that converts to a fixed rate after a certain period of time). Variable rates may start out lower than the fixed rates a lender offers, but they also have the potential to rise in the future. A variable rate may save you money in the short term, while a fixed rate may offer more predictable payments over time.
Introductory rate
HELOC lenders may offer a low introductory rate to entice you. You could find a HELOC with a 1.99% rate for the first 12 months, followed by a rate increase. Consider how long you’ll need access to funds and when you can repay. You may be able to save money using a HELOC with a low introductory rate if you can pay back the principal before the rate expires.
Some lenders also offer rate discounts if you make an initial withdrawal of at least a certain amount.
Interest rate cap
This cap limits how much your interest rate can rise during a given time frame. Lenders should disclose both periodic adjustment caps (how much the rate can increase from one adjustment period to another) and lifetime caps (how much the interest rate can increase over the life of the HELOC).
Fees and charges
Fees vary based on the lender (e.g., an annual fee, an inactivity fee or an early termination fee). Compare these fees based on how you plan to use the HELOC. You can also expect to pay some closing costs. Some lenders offer no-closing-cost HELOCs, but there are conditions you must meet (like keeping the credit line open for a certain amount of time) in order to take advantage of the savings.
HELOC closing costs typically include an appraisal fee, origination fee and title search fee. Online lenders and credit unions are most likely to waive these fees.
HELOC rates
HELOC rates can change as often as monthly. They are typically variable and tied to a benchmark interest rate, such as the prime rate. This means your interest rate can fluctuate over time. Lenders add a margin to the benchmark rate, which is influenced by your creditworthiness, loan amount and loan-to-value ratio (LTV).
As the benchmark rate changes, your HELOC rate adjusts accordingly, usually monthly. Your minimum monthly payment can change as your interest rate fluctuates.
Factors that affect HELOC rates:
Credit score: A higher credit score generally leads to a lower margin and interest rate.
Loan amount: Larger loan amounts may have higher margins.
LTV ratio: A lower LTV (meaning you have more equity in your home) can result in a lower margin.
Introductory rates: Some lenders offer low introductory rates to attract borrowers, but these rates typically increase after a set period.
While less common, some lenders offer fixed-rate HELOCs or allow you to convert a portion of your variable-rate balance to a fixed rate. For the most up-to-date information on HELOC rates, it's best to contact lenders directly or check their websites.
HELOC pros and cons
Before applying for a HELOC, make sure you know the benefits and drawbacks.
HELOC pros
Consistent availability of cash for expenses
Lower interest rates compared with credit cards
Few restrictions on how you use the funds
HELOC cons
Your home is collateral on the loan
Variable interest rates
Must pay closing costs
May have initial draw requirements
Applying for a HELOC
The application process for a HELOC is similar to the mortgage loan application process, though it may not require as much personal and financial information. You’ll need to answer questions about your current income, assets and debt. The lender will likely request proof of income and other documentation, like a W-2 and bank statements. A low DTI ratio is also ideal. Each lender may set a different DTI cap, but most look for a DTI ratio of 43% or lower.
You’ll want to also make sure you have at least 15% to 20% equity in your home based on the current appraised value, as well as a good credit score. Most lenders look for a credit score of 680 or higher for HELOC qualification.
If you get a HELOC from a lender that’s not your current mortgage lender, you may need to show proof of payment history. Lenders need to see that you can manage your existing debt effectively. The lender will then use all of this information to determine if you qualify for a HELOC. It will also use this information to determine your credit limit and interest rate.
To apply for a HELOC, cross the following items off your list:
1. Determine the purpose and timeline for the HELOC
It’s important to have a goal and purpose in mind for how you’ll use the HELOC. For example, if you plan to renovate your home, you’ll want to estimate costs and develop a timeline for the project before you apply. This can help you decide how long of a draw period you’ll need.
2. Know your numbers
It’s a good idea to assess your financial situation ahead of time so you can find the right HELOC for you. Lenders generally use your credit score, DTI ratio and equity value to determine your eligibility. Check your credit report for any inaccuracies, and request your up-to-date credit score.
You can find the estimated market value of your home on a real estate site (though your home may end up appraising for less than what is shown online). Your equity is equal to the appraised value of the home minus your current mortgage balance.
3. Research HELOC lenders to gather rate and fee information
Most lenders disclose the starting rates and fees for HELOCs directly on their websites. You can also use online calculators to estimate your payment.
4. Complete an application
When you’ve found a lender that offers a HELOC that suits your needs, you can complete an application. Be prepared to input your income, asset and debt information. The lender will also require a home appraisal.
5. Borrow only what you need and make regular monthly payments
Once you get a HELOC, ensure that you withdraw only what you need and can afford to repay. It’s also important to make on-time payments — your payment history is reported to the credit bureaus and will ultimately affect your credit score.
HELOC alternatives
If you want to use your equity without taking out a line of credit, you might consider other loan and refinancing options. Home equity loans, reverse mortgages and cash-out refinances all allow borrowers to use their equity for a variety of purposes.
Home equity loan: A home equity loan lets you borrow against the equity you have in your home. Home equity loans are typically disbursed in a single payment and are generally repaid with fixed monthly payments.
Cash-out refinance: A cash-out refinance is a type of refinancing that lets you convert some of your equity into cash. It involves taking out a new mortgage loan larger than your existing balance, paying off your old mortgage loan and keeping the balance in cash. Generally, you can choose between adjustable- and fixed-rate options.
Reverse mortgage: A reverse mortgage is generally for individuals 62 and older. It lets homeowners borrow against the equity in their homes. The lender makes a lump sum or regular payments to the homeowner or provides a line of credit, and the loan doesn’t need to be repaid until after the borrower dies or moves out of the house.
FAQ
What is home equity?
Home equity is the difference between your home’s appraised value and your outstanding mortgage balance. It reflects your ownership stake in the property.
What is negative equity?
Negative equity can occur when your home’s appraised value is less than the outstanding mortgage balance you owe. With negative equity, you owe more on your home than it’s worth.
How do I get a HELOC?
To get a HELOC, apply online through a lender’s website. Once you complete an application, the lender will pull your credit report and ask for proof of income to get the process started. The lender may also request a home appraisal before determining whether you qualify and how much you can borrow.
You can use a HELOC for a variety of purposes, like consolidating credit card debt, making home improvements, paying for education, covering medical bills, funding a special event or nearly anything else.
Is a HELOC a good idea?
A HELOC could be a good idea if you have equity in your home and need to finance a large project or consolidate debt. You should evaluate the pros and cons carefully before you make a borrowing decision, and make sure to consider all options for tapping into your home equity.
What credit score do I need for a HELOC?
For a HELOC, lenders typically look for a credit score of 680 or higher.
Methodology: How we chose the best HELOC lenders
The ConsumerAffairs Research Team analyzed thousands of verified HELOC company reviews published between Aug. 1, 2019, and July 31, 2026, to find out what matters most to HELOC borrowers. We scored companies based on customer satisfaction ratings related to:
Staff
Loan process
Punctuality and speed
Rates
Transparency
We then compared top lenders on the features that matter most when choosing a HELOC lender, including:
Maximum borrowable amounts
Typical time to close
Maximum loan-to-value ratio
Each lender received a score based on a weighted formula that measures how well it performs in each area. Top-performing companies earned a “Best for” or “Our pick for” designation.
If one lender led in multiple categories, we highlighted the next-highest performer in some cases to give readers a wider range of high-quality options.
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Offers home equity line of credit for debt consolidation. Up to $300,000 line of credit with fixed interest rate. Five-year draw period. 10-, 15-, 20- or 30-year term. Simple application process. No prepayment penalty.
Fintech mortgage lender. Online application, including document upload. Lists rates on website. Not available in all states. Covers refinancing fees after initial loan. No hard credit check until you’re ready to buy.
Provides custom quotes with no obligation to purchase or refinance. Offers conventional, FHA, VA and USDA loans. No origination fees. Minimum credit score requirement of 600 to 620. Available in 49 states.
Nonbank mortgage lender offering purchase and refinance loans, reverse mortgages and HELOCs. Low down payment options and down payment assistance available. Licensed in all states except Utah. Operates branches in 31 states.
Offers a wide array of conventional mortgages and government-backed FHA, VA and USDA loans. Home equity and refinancing options available. Shares current rates daily. Online application process.
Online bank with physical locations in the Kansas City area. Conventional, FHA, VA, new construction, home equity and refinancing. Online application process. Special programs for pilots and veterans.
Financial technology company offering up to $500,000 in home equity agreement. No interest and no monthly payments. Minimum FICO score of 500. Available in 26 states. Apply online and complete the process in as little as 30 days.
Offers conventional loans, FHA loans and VA loans. Available in all states except New Jersey, New York and West Virginia. Shows sample loan terms online. Online loan calculators and resources. Affiliated lender of Zillow.
Not-for-profit credit union serving military, veterans and their families. Offers savings and checking accounts, credit cards and loans. Low fees. Competitive interest rates. Large ATM network across the U.S. and Canada.
Offers mortgage and reverse mortgage loans. Seller and servicer of Fannie Mae, Freddie Mac and Ginnie Mae loans. Available in 49 states, with physical branches in 32 states. First-time borrowers need a 640 minimum credit score.
Large bank available in 26 states. Offers checking and savings accounts, credit cards, loans, mortgages, insurance and wealth management. Large ATM network. High fees and below-average interest rates on some savings accounts.
Online and in-store loan services. Offers fixed-rate, adjustable-rate and jumbo loans. Pre-qualification and preapproval services available. Refinancing and home equity lines of credit available.
Provides home purchase loans, refinancing and lines of credit. Offers specialty loan programs for borrowers who don’t want to put much down or have existing relationships with the company. No government-backed loans.
One of largest residential mortgage originators in the U.S. Also offers checking and savings accounts, loans, credit cards and investment services. Banking only available in California, Indiana, Michigan, Ohio and Wisconsin.
Mortgage provider with fixed-rate and variable-rate mortgage and refinancing loan options in the South and Midwest. Online application. Doesn’t post info about rates and fees. Owns and sells properties. Buyer reward program.
Offers conventional, FHA and VA loans. Specialty doctor loan program. Refinancing, home equity lines of credit and personal loans. One-on-one support and easy access to transparent pricing. Online rate-checking tool.
Online marketplace for secured and unsecured loans. Free to compare rates and quotes from lenders for mortgages, car loans, personal loans and more. Minimum credit score requirements vary. Available nationwide.
Offers conforming conventional loans, jumbo loans, interest-only loans, FHA loans, VA loans, home renovation loans and HELOCs. Online application process. Provides preapprovals in about 15 minutes. Over 500 branches nationwide.
National mortgage lender with branches in 28 states and Washington, D.C. Offers conventional and government-backed purchase and refinance loans. HELOC allows you to lock in fixed rate during draw period. Check rates online.
Online-based full-service bank. Offers a variety of loan types, including conventional, jumbo, FHA, VA, construction and home equity loans. Also offers HELOCs. Available nationwide. No physical branches.
Offers home purchase loans and refinancing. Conventional fixed-rate and adjustable-rate loans. Government-backed loans, including FHA, VA and USDA. New construction and home equity loans. Posts sample rates online.
Offers conventional and government-backed products in all states except Alaska, Arizona and Hawaii. Publishes purchase and refinance rates online. Get preapproved and apply online. Local loan officers in select states.
Offers conventional and VA loans to members. Membership limited to people with military experience or those close to them (or existing members). Provides home equity loans and HELOCs. No PMI. Rate-lock program.
Offers conventional, FHA, USDA, VA and jumbo loan programs for home purchases, refinancing options, home equity loans and HELOCs. Available in 30 states, with physical presence in 11. Loan specialist assists at each step.
Offers home purchase, refinance and HELOC loans in 34 states. Dedicated loan advisor helps you at each step of the process. Processes loans in-house in two to three weeks. VA loans available.
Offers refinancing and home purchase loans. Conventional fixed-rate and adjustable-rate loans, jumbo loans and government-backed loans, including FHA, VA and USDA. Specialty loan programs.
Offers home purchase loans, refinancing and HELOCs. Conventional fixed-rate and adjustable-rate loans and jumbo loans. Government-backed loans, including FHA and VA. Credit union membership required.
Offers refinancing and home purchase loans. Conventional fixed-rate and adjustable-rate loans. Government-backed loans, including FHA and VA. Construction loans. First-time buyer program. Down payment assistance.
Online mortgage broker. Serves Virginia, Maryland and D.C. Offers a variety of loan products, including refinancing with no closing costs and home improvement loans. Debt consolidation available. Interest rate calculator.
Commercial and consumer financial services company. HELOCs with low or no added fees. Fast closing and funding timelines for qualified borrowers. Loan options available for lower-income homeowners.
Offers home purchase and refinance loans, including conventional, jumbo, FHA, VA and USDA options. Construction loans, renovation loans, home equity lines of credit (HELOCs) and special loan programs also available.
Offers home purchase and refinance loans, including conventional, jumbo, FHA, VA and USDA options. Also does reverse mortgages, renovation loans, small business loans and HELOCs. Not available in Georgia or Massachusetts.
Offers home purchase loans, refinancing, home equity loans and HELOCs. Conventional loans and government-backed loans, including FHA, VA and USDA loans. New-construction loans. Loan officers in 11 states.
Provides financial services using blockchain technology. Offers home equity lines of credit (HELOCs) and plans to offer lines of credit secured by cryptocurrency. HELOCs not available in DE, HI, KY, MD, NY, TX and WV.
Mortgage lender based in Indiana. Offers its services across the U.S. Provides home purchase, refinancing and home equity products, including conventional, jumbo (nonconforming conventional) and government-backed loans.
Offers home purchase loans, refinancing, home equity loans and HELOCs. Conventional fixed-rate and adjustable-rate loans, including jumbo loans. Government-backed loans, including VA and FHA. Zero-down options.
Direct-to-consumer mortgage lender. Backed by Cardinal Financial. Multiple loan types available. Refinancing options. Minimal information online. Call or fill out online form to speak with specialist for free rate quote.
Conforming conventional fixed- and adjustable-rate purchase loans. Jumbo loans available. Refinance loans, home equity loans and HELOCs. Pre-qualification available. Fast-track program helps qualified borrowers close in 25 days.
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
