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Best HELOC Lenders of 2024

A HELOC lets you tap your home's equity. Compare our selections for best HELOC lenders.

Taylor Getler
By
Last updated on March 1, 2024
Edited by
✅ Fact checked and reviewed
Johanna Arnone
Edited by
✅ Fact checked and reviewed

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NerdWallet's mortgage content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in home lending. Their work has appeared in The Associated Press, USA Today, The Washington Post, MarketWatch, Newsweek and many other national, regional and local publications. They have been cited in publications including The Wall Street Journal, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.

Best HELOC Lenders

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Lender
NerdWallet Rating
National / regional
Max LTV
Min. credit score
Learn more
Bethpage Federal Credit Union

Bethpage Federal Credit Union: NMLS#449104

Top 3 most visited 🏆
Learn more
at Bethpage Federal Credit Union
at Bethpage Federal Credit Union
HELOCs
Best for fixed-rate option

National

85%

670

Guaranteed Rate

Guaranteed Rate: NMLS#2611

5.0
/5
HELOCs
Best for fixed-rate option

National

85%

620

Truist

Truist: NMLS#399803

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on NerdWallet
5.0
/5
HELOCs
Best for range of repayment terms

National

89%

660

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on NerdWallet
PNC

PNC: NMLS#446303

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on NerdWallet
5.0
/5
HELOCs
Best for fixed-rate option

National

80%

680

LEARN MORE
on NerdWallet
TD Bank

TD Bank: NMLS#399800

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on NerdWallet
5.0
/5
HELOCs
Best for no minimum draw

Regional

89.90

620

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on NerdWallet
Figure

Figure: NMLS#1717824

4.5
/5
HELOCs
Best for fast closing

National

85%

640

Explore all of our lender picks by category

Bethpage Federal Credit Union
Learn more
at Bethpage Federal Credit Union
at Bethpage Federal Credit Union
Bethpage Federal Credit Union

Bethpage Federal Credit Union: NMLS#449104

5.0
HELOCs
NerdWallet rating
National / regional

National

Max LTV

85%

Min. credit score

670

Why We Like ItGood for: borrowers seeking a solid selection of mortgages and the membership-based, not-for-profit business model of a credit union.
Pros
  • Offers a fixed-rate option.
  • No closing costs.
  • Offers a fixed introductory rate.
Cons
  • Minimum draw required for best rate.
Read Full Review
Guaranteed Rate

Guaranteed Rate: NMLS#2611

National / regional

National

Min. credit score

620

Max LTV

85%

Why We Like ItBorrowers who want to know exactly what their payments will be can benefit from Guaranteed Rate's fixed-rate option.
Pros
  • CLTV borrowing limit over 80%.
  • The initial balance and any additional draws have a fixed interest rate.
  • Offers paths for rate discounts.
Cons
  • No information about annual fees.
  • Full amount (minus origination fee) must be drawn at closing.
Truist
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on NerdWallet
Truist

Truist: NMLS#399803

National / regional

National

Min. credit score

660

Max LTV

89%

Why We Like ItTruist's fixed-rate option can be attractive for borrowers who prioritize long-term planning.
Pros
  • Offers a fixed-rate option.
  • Highly transparent about APR ranges.
Cons
  • Annual fee of $50.
  • Limited info online about how borrowers can access their HELOC.
PNC
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on NerdWallet
PNC

PNC: NMLS#446303

National / regional

National

Max LTV

80%

Min. credit score

680

Why We Like ItGood for: PNC customers and those looking to take advantage of a fixed-rate option.
Pros
  • Customizable sample rates available online.
  • Available for second homes in most states.
  • Offers a rate discount for autopay from a PNC checking account.
Cons
  • Not available in all states.
  • Charges an annual fee.
TD Bank
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on NerdWallet
TD Bank

TD Bank: NMLS#399800

National / regional

Regional

Max LTV

89.90

Min. credit score

620

Why We Like ItGood for: Borrowers on the East Coast seeking to tap into home equity with a rate discount, especially if there is no time crunch.
Pros
  • Publishes a sample HELOC rate online.
  • Offers a fixed-rate payment option.
  • Available for second homes and investment properties.
Cons
  • $50 annual fee, waived for lines of credit below $50,000.
  • Available only in states on the East Coast.
  • Early termination fee charged if the line is closed within two years.
Figure

Figure: NMLS#1717824

4.5
Max LTV

85%

Min. credit score

640

National / regional

National

Why We Like ItGood for: Borrowers who want a fast closing and to receive their full loan balance upfront.
Pros
  • Specializes in HELOCs.
  • The initial balance and any additional draws have a fixed interest rate.
  • Closing may be available in just five days.
Cons
  • Short draw period of two to five years.
  • Requires a $20,000 minimum initial draw.
  • Must draw full loan balance at closing.
Bank of America
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on NerdWallet
Bank of America

Bank of America: NMLS#399802

National / regional

National

Max LTV

85%

Min. credit score

660

Why We Like ItGood for: Borrowers who seek to tap into home equity through a national bank with several rate-discount options.
Pros
  • Charges no closing costs or annual fees.
  • Publishes sample HELOC rates online.
  • Offers rate discount for auto pay from an account with the lender.
Cons
  • There is an early termination fee if the account is closed within the first three years.
Flagstar
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on NerdWallet
Flagstar

Flagstar: NMLS#417490

National / regional

National

Max LTV

80%

Min. credit score

680

Why We Like ItGood for: borrowers who want a wide range of choices — not only among mortgage products, but also in the channel they prefer, whether a branch, online or on the phone.
Pros
  • Offers a wide range of loan types and products, including FHA, VA and USDA.
  • Borrowers can apply and track loan status online.
  • Offers customized online rate quotes with monthly payment estimates, including mortgage insurance, when applicable.
Cons
  • Home equity loans are geographically limited.
  • Origination fees are on the high side compared with other lenders, according to the latest federal data.
State Employees' Credit Union
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on NerdWallet
State Employees' Credit Union

State Employees' Credit Union: NMLS#430055

National / regional

Regional

Max LTV

90%

Min. credit score

540

Why We Like ItState Employees' Credit Union may be a strong match for qualified North Carolina borrowers who want a long window to access their equity.
Pros
  • Long draw period of 15 years.
  • Introductory offer is below the prime rate.
Cons
  • Credit union membership is limited by restrictive requirements.
Navy Federal
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on NerdWallet
Navy Federal

Navy Federal: NMLS#399807

Max LTV

95%

National / regional

National

Why We Like ItGood for: Servicemembers and their families, veterans, and civilians who work for the Department of Defense who are in no rush to access funds.
Pros
  • Long draw period of 20 years.
  • High CLTV of 95%.
  • No origination or annual fee.
Cons
  • Minimum draw of $10,000.
  • The only payback term length available is 20 years.
  • No rate discounts available.

How a HELOC works

A HELOC works similarly to a credit card: you’re able to borrow up to a certain limit as needed, rather than taking out a lump sum all at once. Unlike a credit card, however, you shouldn’t use a HELOC to pay for everyday expenses. Just like with your first mortgage, you could lose your home to foreclosure if you aren’t able to make payments. Because of this risk, it’s best to use your equity to reinvest in your home with projects that will increase its value.

The lender uses your home’s value to set the HELOC limit, and they’ll let you borrow a percentage of what you own. You may borrow during a draw period that lasts for several years (usually 10) and pay interest only on the balance. After the draw period ends, you may no longer take money out, and you pay the principal plus interest.

To obtain the best HELOC rates, make sure you comparison shop, preferably among at least three lenders. By shopping around, you're likely to find the combination of features and interest rate that make the best home equity line of credit for your needs. The best rates are also typically reserved for borrowers with excellent credit scores and low amounts of existing debt.

» MORE: Understanding home equity lines of credit

Pros and cons of HELOCs

A HELOC's main advantage is that it offers flexibility. During the draw period, the minimum monthly payment usually covers just the interest on the balance, and you aren’t required to pay principal.

A HELOC can have a variable interest rate, which means it can go up or down over time. When the interest rate rises, the minimum monthly payment may increase, too. Less commonly, some lenders offer a fixed-rate HELOC option, meaning that you can lock in some or all of the loan balance at a specific APR.

There are two major disadvantages to a HELOC: The interest rate can rise, and you can get in over your head if you're not careful. You may end up borrowing so much that you can't comfortably afford the principal and interest during the repayment period.Defaulting on a HELOC could put your home at risk of foreclosure.

Alternatives to HELOCs

A HELOC is not your only option for tapping your home's equity. If you know exactly how much you need to borrow, you may consider a home equity loan, which you receive as a lump sum and pay back at a fixed rate.

While this has less flexibility than a HELOC, payments are predictable.

If you need to borrow more money than you'd qualify for with a HELOC or home equity loan, a cash-out refinance may be the right choice for you. This replaces your original mortgage with a larger one, and you receive the difference between the value of the loan and the amount you currently owe in cash. If rates have risen since you closed on your mortgage, this is unlikely to be your best option.

Finally, if you cannot qualify for a HELOC but absolutely need cash flow, a shared appreciation agreement may be worth exploring. This transaction allows you to sell off a stake in your future equity earnings to a company in exchange for an advance on some of your current equity. This type of agreement is typically for homeowners with a lot of equity but little cash reserves, and most consumers are better served by a HELOC if they can get one. You risk losing out on equity profits by mortgaging the future value of your home, so think carefully before choosing this option.

More from NerdWallet

Last updated on March 1, 2024

Methodology

The star ratings on this page reflect each lender's performance in NerdWallet’s HELOC category. For inclusion in this roundup, lenders must offer HELOCs and achieve a star rating of 4.5 or above in the HELOC rubric from NerdWallet. We scored the category and chose lenders for this page using the following methodology:

NerdWallet reviewed more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.

All reviewed mortgage lenders that offer HELOCs were evaluated based on (1) maximum CLTV, (2) whether they offer a fixed-rate option, (3) annual fees, (4) origination fees, (5) transaction fees, (6) termination fees, (7) inactivity fees (8) initial draw requirements, (9) prepayment penalties, (10) rate discounts, (11) ease of application, (12) interest rate transparency, (13) fee transparency, (14) maximum CLTV transparency, (15) maximum APR transparency, (16) draw and repayment period transparency and (17) transparency on how borrowers access their funds. The highest scoring lenders appear on this page.

To recap our selections...

NerdWallet's Best HELOC Lenders of 2024

  • Bethpage Federal Credit Union: Best for fixed-rate option
  • Guaranteed Rate: Best for fixed-rate option
  • Truist: Best for range of repayment terms
  • PNC: Best for fixed-rate option
  • TD Bank: Best for no minimum draw
  • Figure: Best for fast closing
  • Bank of America: Best for rate transparency
  • Flagstar: Best for existing Flagstar customers
  • State Employees' Credit Union: Best for high borrowing limit
  • Navy Federal: Best for high borrowing limit

Frequently asked questions

  • Lender requirements vary, but typically you'll need a credit score of 620 or higher. Taking out a HELOC will probably reduce your credit score temporarily when it appears on your credit report.

  • The interest you pay each year on a HELOC is tax-deductible up to a limit as long as the borrowed money is used to buy, build or substantially improve your home, according to the IRS.

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