Home Equity Rates

Select a Loan Type:

HELOC
Home Equity
A Home Equity Line of Credit (HELOC) is a revolving line of credit, meaning you can continually borrow from it and pay it back over a set time frame. The credit limit is based on your home value with variable rates.
A Home Equity Loan (HELOAN) is a second mortgage that allows you to borrow against the value of your home. Funds are delivered as a lump sum, and typically have fixed rates. Your home equity is calculated by taking the appraised value of your home and subtracting how much you owe on your mortgage.

Top 3 HELOC Choices

Top 3 HELOAN Choices

HOME EQUITY LOAN LENDERSHELOC LENDERS PROMO / INTRO RATE STANDARD RATE
flagstar bank
PROMO

3.49%

STANDARD RATE

5.74%

connexus
PROMO

3.49%

STANDARD RATE

6.57%

fifth-third-bank
PROMO

3.49%

STANDARD RATE

5.40%

key bank
PROMO

N/A

STANDARD RATE

4.06%

third federal credit
PROMO

N/A

STANDARD RATE

4.87%

us bank
PROMO

N/A

STANDARD RATE

4.89%

Next Best with Good Rates

HOME EQUITY LOAN LENDERSHELOC LENDERS PROMO / INTRO RATE STANDARD RATE
beth federal credit union
PROMO

3.99%

STANDARD RATE

5.25%

citibank home equity
PROMO

3.99%

STANDARD RATE

6.34%

bank of the west
PROMO

4.49%

STANDARD RATE

6.03%

bank of america
PROMO

5.09%

STANDARD RATE

6.43%

third federal credit
PROMO

N/A

STANDARD RATE

4.49%

figure
PROMO

N/A

STANDARD RATE

4.99%

Penfed Credit
PROMO

N/A

STANDARD RATE

5.50%

spring eq
PROMO

N/A

STANDARD RATE

4.99%

discover
PROMO

N/A

STANDARD RATE

4.99%

Best HELOC lenders Flagstar Bank
PROMO

N/A

STANDARD RATE

5.30%

Penfed Credit
PROMO

N/A

STANDARD RATE

5.34%

td bank
PROMO

N/A

STANDARD RATE

5.61%

alliant credit union
PROMO

N/A

STANDARD RATE

5.75%

citimortgage
PROMO

N/A

STANDARD RATE

6.59%

Introduction to Home Equity
HELOCs vs HELOANs
HELOC Interest Rates
HELOAN Interest Rates

Introduction

If you find yourself in a position where you need to come up with a large sum of money in short order, then a home equity loan or home equity line of credit may be the ideal solution for you.

These versatile loans are drawn against the equity in your home and can be used for any purpose, such as medical, dental or long-term care expenses, college tuition and other costs related to education, debt consolidation, home improvements or the purchase or repair of a car. The amount of time that it takes for you to get your money from one of these loans will vary depending on your credit score and credit history, the amount you are borrowing and the market value of your home. Your home equity rate will also depend on these factors.

Differences Between HELOCs and Home Equity Loans

Although they are similar in nature, there are some key differences between how a home equity loan works and how home equity lines of credit work. Home equity loans issue the entire balance of the loan up front to the borrower in cash, and the borrower must immediately begin making principal and interest payments on the entire amount of the loan until it is repaid in full. The interest rate is fixed along with the dollar amount of the monthly payments. This type of loan is generally more popular with borrowers who need a single lump sum of cash to cover a specific event, such as a medical bill.

Home equity lines of credit differ from home equity loans in that the entire amount of the line of credit that is granted is not issued to the borrower up front in cash. Instead, the borrower can access the line of credit at any time by using the book of checks that is usually issued with this type of loan or a debit or credit card. Borrowers can also usually access their funds by calling the lender or appearing in person at one of the lender’s branch locations. The borrower only pays interest on the amount of funds that are actually withdrawn instead of the full amount of the line of credit.

Home equity lines of credit also charge variable rates of interest that rise and fall in tandem with a benchmark index such as the Prime Rate Index, which is published daily in The Wall Street Journal. This can be disadvantageous when interest rates are rising. For this reason many home equity lines of credit will allow the borrower to lock in some or all of their outstanding balance at a fixed annual percentage rate, thus protecting themselves from rising rates.

Because HELOC rates are variable, they are also usually lower than the rates of comparable home equity loans. Of course, if rates rise while the loans are outstanding, then the line of credit borrower may eventually end up paying a rate higher than the one charged by the home equity loan.

Home equity lines of credit have two periods of time. The draw period is the period of time during which the borrower can draw on the line of credit. This period usually lasts from 5 to 10 years. In many cases, the borrower can make interest-only payments during the draw period. Then comes the repayment period, when the borrower must begin repaying the interest and principal on the amount that was withdrawn. This period generally lasts from 10 to 20 years.

Home equity loans and lines of credit can be cheaper and simpler options than a cash-out refinance or a personal loan.

Borrowers who choose to take out one of these loans have many options to choose from in today’s competitive marketplace. Here is a list of the lenders with the best interest rates for both home equity loans and home equity lines of credit in 2019.

Home Equity Lines of Credit

US Bank

Rates may vary by region and are subject to change. Rates typically range from 4.75% APR to 8.25% APR. The variable rate for HELOCs vary due to change in Prime Rate, a credit limit below $100,000, a loan to value (LTV) above 70% and/or a credit score of less than 730. US Bank does occasionally offer special introductory rates. Most recently it was a 3.99% APR for the first 12 months followed by a variable rate of 5.64% after the introductory period, however, stipulation to apply to get deals such as this (only available 3/9/2019-5/17/2019)

PenFed

PenFed offers different rates depending on whether the home is “owner-occupied” or “non-owner occupied”.

Owner Occupied Homes

Rate 1

Loan to Value (LTV) – 80% or Less

Line Amount – $10,000- $400,000

Rate – Variable 5.50% APR (Prime +0%)


LTV – 80.01% – 85% LTV

Line Amount – $10,000 – $400,000

Rate – Variable 6.00% APR (Prime= .50%)


LTV – 85.01% to 90% LTV

Line Amount – $10,000 – $250,000

Rate -Variable 6.50% APR (Prime + 1.00%)


Non-Owner Occupied Homes

Rate 2

Loan to Value (LTV) – 80% or Less LTV

Line Amount – $10,000 – $400,000

Rate – Variable rate 6.50% APR (Prime +1.00%)

2 Prime Rate is 5.50% as of April 1, 2019. There is a minimum rate floor of 4.75% APR and a max rate of 18% APR.


Chase

Chase credit lines don’t have a “set” interest rate that they charge borrowers; they simplly assign a rate on a per-borrower basis depending on their credit scores and other data. Rates are currently ranging between 5.75% – 8.14%. They charge variable rates of interest based on the movement of the Prime Rate Index.

PNC

Highlighted as one of their key features, PNC has competitive low rates which are currently ranging between 4.78% – 6.57%. They also offer the following features and benefits:

  • Two choices of variable rate payment options (principal and interest or interest only)
  • Fixed rate lock payment option (fixed rate with terms from 5-30 years)
  • Flexible draw and repayment terms (10 year draw period, followed by a 30 year repayment period)
  • Interest only contract – 7 year draw period, followed by a 30 year repayment period.
    • 0.25% interest rate discount when your monthly ayment is automatically deducted from your PNC checking account.

SunTrust

This bank is currently offering a special 3.99% APR as an introductory rate for the first year on initial advances of $25,000 or more. Their standard rate is as follows: Prime minus 0.25% and Prime plus 1.22%. Currently the range is 5.25% to 6.72% APR which includes a 0.25% interest rate reduction for atuomatic payment from a SunTrust bank account.

Figure

Offering rates as low as 4.99% APR on home equity lines of credit, but range from 4.99% to 13.74% The lowest APR is only available to consumers with excellent credit.

  • a borrower with a combined loan to value (CLTV) of 45% and a credit score of 800, a five-year Figure Home Equity Line with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 4.99% and a 3.00% origination fee. Your total loan amount would be $51,500. Origination fees range from 0-3% of your initial draw depending on the state in which your property is located.

Flagstar

Offering a promo rate for 6 billing cycles guaranteed at 3.49% APR with a current variable rate thereafter of 5.74% – 21.00% APR. Their annual percentage rate (APR) is variable and is based on prime rate pulished in the Wall Street Journal, as of January 14, 2019.

Bethpage

No closing costs on new HELOCs up to $500,000. Loan to value restrictions(LTV) apply. Fixed rate for one year of 3.99% APR. Prime for life, thereafter is currently 5.50% APR which is based on the publishing in the Wall Street Journal, however their website is listing a rate as low as 5.25%

Bank of America

Current variable APR 6.43% (includes discounts) Bank of America offers a variety of discounts based on how much you withdraw at account opening and whether you set up automatic payments. Rates typically lower than most credit cards or personal loans. Offer a fixed-rate loan option which allows you to convert a portion of your outstanding balance from a variable interest rate to a fixed rate with fixed monthly payments.

Homeside

Rates currently starting at 5.24% APR. Annual percentage rate (APR) with this institution is based on the value of an index plus a margin which will determine your APR at the time of account opening, your credit qualifications, amount of the line of credit, Loan-To-Value ratio and the type of property. APR will not exceed 18% or drop below 4%.

Bank of the West

Offers a 10 year draw period with interest-only payments and the option of converting the balances with a fixed rate loan option within the draw period. From April 1, 2019 to June 30, 2019 they are featuring a limited-time offer of Prime minus 1.01% for 6 months. (4.49% APR on an initial advance of $25,000 or more and 5.49%APR after intro period.)

Fifth Third

This bank offers a product call Fifth Third Equity Flexline. As of 04/18/2019 Introductory Annual Percentage Rate (APR) of 3.49% for 12 month on line amounts of at least $25,000 or 6 month for lines less than $25,000. Variable APRs ranging from 5.40% to 12.45% thereafter. After the interst only period there is a possibility of the payment increasing over the remaining term of the loan.

Citibank

This national bank offers several different rates for its home equity loan products. The standard rate is currently 6.24% APR for both principal and interest loans and interest-only loans. However, this bank periodically offers home equity lines of credit with a lower teaser rate for the first year and then a higher rate thereafter. Recently it has offered HELOCs with an initial teaser rate of 3.99% APR that converts to 6.74% APR after the first year. Citibank does not charge application fees or closing costs and allows access to funds via check or transfers to other Citibank accounts.

TD Bank

This bank offers several different ranges of rates based upon factors such as the dollar amount of the line of credit, the borrower’s credit score and whether an annual fee is charged. The current rates can be broken down as follows:

With Annual Fee 

Interest rate, APR and origination fee for a primary residence or second home—including the annual fee.

Rate as low as APR as low as Annual fee Origination fee
$50,000 - $99,999 Prime +0.24% 5.74% %50 $99
$100,000 - $199,999 Prime -0.61% 4.89% $50 $99
$200,000+ Prime -0.61% 4.89% $50 $99

Without Annual Fee 

Interest rate, APR and origination fee for a primary residence or second home—without the annual fee.

Rate as low as APR as low as Annual fee Origination fee
$25,000+ Prime +1.99% 7.49% None $99

With Annual Fee 

Interest rate, APR and origination fee for an investment property—including the annual fee.

Rate as low as APR as low as Annual fee Origination fee
$25,000 - $500,000 Prime +1.74% 7.24% $50 $99

Citizens Bank

This bank does not post hard numbers for its fee schedule, but uses several factors to compute the exact rate that each borrower will pay. They do list their best rates as 4.75% to 5.24%, if you qualify. These factors include the borrower’s credit score and credit history, the loan-to-value ratio of the property and the amount of the line of credit. Their rates follow the Prime Rate and are generally competitive with other major banks. Borrowers can get an additional discount if they set up an automatic payment plan from a PNC checking account.

Figure Bank

This bank offers home equity lines of credit with an introductory rate of 4.99% APR for borrowers with the best credit scores but also ranges up to 13.74% APR. It offers lines of credit ranging from $15,000 to $150,000 with a maximum loan-to-value ratio of 95%. Borrowers must have a minimum credit score of at least 600.

Navy Federal Credit Union

This credit union offers home equity lines of credit with an APR as low as 5.75% for members of the military who qualify. Rates are based on the Prime Rate.  Loan amounts range from $10,000 to $500,000 with a maximum loan-to-value ratio of 95%. There is a 20 year draw period and a 20 year repayment period.

Third Federal Savings and Loan

This lending institution offers rates as low as 4.49% APR with a draw period of 10 years and a repayment period of 20 years. The maximum LTV is 80% and the annual fee is waived during the first year. There are no closing costs, repayment penalties or minimum draw requirements.

BB&T

This bank offers an introductory rate of 3.99% APR that goes to a variable APR of 5.24% in the second year and thereafter. The rate will always be the Prime Rate minus 0.26%. There are no closing costs or other one-time fees and during the draw period borrowers can choose between interest-only payments and interest and principal payments.

Connexus Credit Union

This credit union offers a 6-month introductory rate of 3.49% APR and a non-introductory rate of 6.57% for borrowers who qualify. A 12-month introductory rate is also available from 3.99% APR. Both the draw and repayment periods are for 15 years and payments are for 1.5% of the amount owed.

Alliant Bank

This bank offers HELOCs with interest rates as low as 4.75% and a draw and repayment period totaling 30 years. The $50 annual fee is waived the first year. Interest-only payments are available during the draw period.

Key Bank

This bank offers variable interest rates on its HELOC products with a combined loan-to-value of 100%. The rates range from 5.50% APR to 7.15% APR for first liens, depending on the size of the loan and the borrower’s credit information. Second lien loans range from 6.05% APR to 7.70% APR. Borrowers can also get a discount of up to 0.50% APR if they set up automatic payments using a Key Bank account. Borrowers get up to three options to lock in a fixed rate, and the draw period can last for up to 15 years. Borrowers can get their funds either by writing a check, in person at a Key Bank branch or on the Key Bank website. There is also a $50 annual fee and a minimum draw of $10,000.

Home Equity Loans

PNC

This bank offers the stability of a fixed rate, term and monthly payment. 0.25% interest rate discount when your monthly payment is automatically taken from your PNC checking account. Equal Monthly payments that include principal and interest. Standard fixed rate for the life of the loan (up to 30 years). Currently listing rates at 4.19% APR to 5.49% APR.

Navy Federal Credit Union

This credit union offers home equity loans with rates ranging from 5.75% APR to 9.88% APR depending on the term and amount of the loan. Terms range from 5 to 20 years, and the combined loan-to-value ratio can be as high as 100% in some cases.

Third Federal Savings and Loan

This bank offers home equity loans with both fixed and adjustable interest rates. Their fixed rates range from 4.87% to 5.49%, and loans range from $10,000 to $200,000, and the maximum LTV ratio is 80%.

PenFed Credit Union

This credit union offers a range of rates that vary according to certain criteria. Loan amounts range from $10,000 to $400,000 with terms up to 20 years. Their rates are broken down as follows:

Owner Occupied Homes: 80% or Less Loan to Value 

Month APR APPROX. PMT ($25,000)
60 Months 5.34% $475.68
120 Months 5.59% $272.43
180 Months 5.84% $208.81
240 Months 6.09% $180.41

Owner Occupied Homes: 80.01% – 85% Loan to Value

Month APR APPROX. PMT ($25,000)
60 Months 5.59% $478.57
120 Months 6.09% $278.68
180 Months 6.34% $215.58
240 Months 6.84% $191.43

Owner Occupied Homes: 85.01% – 90% Loan to Value

Month APR APPROX. PMT ($25,000)
60 Months 6.09% $484.37
120 Months 6.59% $285.02
180 Months 6.84% $222.48
240 Months 7.34% $198.96

Non-Owner Occupied Homes: 80% or Less Loan to Value

Month APR APPROX. PMT ($25,000)
60 Months 7.24% $497.87
144 Months 7.24% $260.30

BB&T

This bank doesn’t publish the rates it charges to borrowers, but they are competitive in the market today and there is no appraisal fee. It also offers flexible repayment terms with no prepayment penalty.

Connexus Credit Union

Offers home equity loan rates as low as 4.49% with an APR of 4.615%. Terms range from 5 to 20 years with a maximum LTV of 90%.

Alliant Credit Union

This CU offers home equity loans at rates ranging from 4.45% to 6.25% with terms of 5 to 30 years. The maximum LTV ratio is 90%. Their current rates are broken down as follows:

First Lien

Terms from 12 to 60 Months

Loan Amount APR as low as*
$10,000 - $24,999 4.95%
$25,000 - $49,999 4.59%
$50,000 - $99,999 4.29%
$100,000 - $249,999 4.16%

Terms from 61 to 120 Months

Loan Amount APR as low as*
$10,000 - $24,999 5.05%
$25,000 - $49,999 4.74%
$50,000 - $99,999 4.47%
$100,000 - $249,999 4.35%

Terms from 121 to 180 Months

Loan Amount APR as low as*
$10,000 - $24,999 5.12%
$25,000 - $49,999 4.83%
$50,000 - $99,999 4.56%
$100,000 - $249,999 4.45%

Terms from 181 to 240 Months

Loan Amount APR as low as*
$10,000 - $24,999 N/A
$25,000 - $49,999 4.97%
$50,000 - $99,999 4.70%
$100,000 - $249,999 4.60%

Terms from 241 to 360 Months

Loan Amount APR as low as*
$10,000 - $24,999 N/A
$25,000 - $49,999 N/A
$50,000 - $99,999 4.90%
$100,000 - $249,999 4.79%

Rates for second liens range from 5.17% to 6.21%. There is also a $125 origination fee and minimum loan amount for either type of lien of $10,000.

Discover

This lender offers home equity loans with rates ranging from 4.99% to 11.99% APR. Terms range from 10 to 30 years and there are no closing costs or application fees.

Spring EQ

This lender does not publish its exact rates on its website, but they are competitive with current market rates. They have terms for up to 30 years and the maximum LTV ratio is 100%. Spring EQ Rate Advantage is an introductory interest rate for all qualified borrowers electing a 25 or 30 year term getting them rates between 4.99% – 7.99%.