Best HELOC Rates and Lenders in District of Columbia for 2024
Updated: December 28, 2023
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A HELOC can be used for home improvements, debt consolidation, emergency funds, education and more. It’s best for borrowers with substantial home equity.
Regular HELOC rates can be as low as .99% and go up to 18%. Overall, the best HELOC lender in the District of Columbia is Bank of America, offering an APR of 4.35% variable. When applying for a HELOC, MoneyGeek recommends comparing home equity line of credit rates to find the lender that best fits your needs.
Home Equity Line of Credit (HELOC) Rates for 2024
Since comparing lenders is a crucial part of finding a HELOC, MoneyGeek gathered data from different lenders. The table below contains relevant information about various lenders, such as APRs, loan amounts and credit score requirements.
Rates and other features may have changed since the last update in May 2022. However, MoneyGeek tries to update our data with the latest information about HELOC lenders.
MoneyGeek’s Picks for Best HELOC Lenders in the District of Columbia
MoneyGeek does its research with the consumer’s needs as our top priority. Our mission is to help you make the right financial decisions, and that includes choosing the best HELOC lender based on your situation.
Lenders do not always offer HELOC loans. Usually, the ones that offer them are national banks. If your application has been rejected by a national bank, consider visiting local credit unions to ask if they offer HELOC loans.
Best Overall HELOC Lender in the District of Columbia: Bank of America
- Bank of America
Bank of America has an introductory APR of 1.99% for the first six months of your HELOC loan.
- 7.49% (introductory rate) then 9.90%APR Range
- Generally $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- NoneAnnual Fees
- UndisclosedPre-Approval Time
MoneyGeek recommends Bank of America as the best overall HELOC lender in the District of Columbia. It’s best for borrowers who want to avoid fees, earn discounts and have a low APR.
Bank of America gives discounts on the interest rate for autopay, initial withdrawals and member discounts. Borrowers can receive a 0.25% discount when they add a Bank of America checking or savings account for automatic payments.
A discount of 0.1% per $10,000 is applied for the first withdrawal, though it is capped at 1.5%. Lastly, Preferred Rewards members can receive additional discounts.
The minimum loan amount offered by this HELOC lender is $25,000, which can be a bit steep. Therefore, it may not be the best option for those who want to borrow a small amount of money.
Pros
- Offers a special introductory APR
- No annual fees, application fees and closing fees
- Has interest rate discounts for autopay
- No application fee
- Has a mobile app
Cons
- High minimum line of credit amount compared to other companies
- Potential $450 early closure fee
- No disclosure of credit score requirements
- Doesn’t disclose pre-approval times
- No clear employment or debt-to-income ratio requirements
Best HELOC Lender for Good Credit in the District of Columbia: U.S. Bank
- U.S. Bank
U.S. Bank allows borrowers to switch to a HELOC with a fixed interest rate.
- 8.95% to 12.70%APR Range
- $15,000 to $750,000 ($1 million in California)Loan Amount Range
- 10-year draw period; up to 30 years repayment periodsRepayment Terms
- Up to $75Annual Fees
- UndisclosedPre-Approval Time
With a minimum credit score requirement of 730, U.S. Bank is MoneyGeek’s top choice for HELOC lenders for borrowers with good credit. Customers can borrow $15,000 to $750,000 with an APR range of 4.20% to 9.35%.
The lender is great for borrowers who want a fixed-rate option on their HELOC. Borrowers can choose to convert a portion of their balance or all of it to have a fixed rate. However, U.S. Bank only allows the application of up to three fixed-rate options.
This lender has an annual fee of $90. If a borrower decides to close their account early, they will need to pay 1% of the original line amount but only limited to $500. As a result, a borrower who doesn’t like fees can find better terms from other lenders.
Pros
- No closing costs
- Has a fixed-rate option
- Short approval times
- Easy to apply online
- No cost to apply
Cons
- Doesn’t disclose length of repayment
- Charges an annual fee
- 730 minimum credit score required
- Charges early termination fees
- Line of credit programs vary by state
Best HELOC Lender for Bad Credit in the District of Columbia: Figure
- Figure
Figure does not charge opening fees, maintenance fees and prepayment penalties.
- 6.10% to 14.74%APR Range
- $20,000 to $400,000Loan Amount Range
- 5 to 30 yearsRepayment Terms
- NoneAnnual Fees
- 24 hoursPre-Approval Time
Figure is MoneyGeek’s pick for the best HELOC lender for bad credit in the District of Columbia. It has a minimum APR of 3.24%, which is lower than its competitors. Keep in mind that borrowers need to have a credit score of at least 620 to qualify for a HELOC from Figure.
This lender is great for borrowers who want the application process to be a breeze. The process is completed online, so you can fill out everything from the comfort of your home. Borrowers are pre-approved in 24 hours.
Funds will be released five days after the application is approved. Borrowers will also need to pay an origination fee. If you need funding with no origination fees, a HELOC from Figure may not be the best option.
Pros
- Short pre-approval time
- Receive funds in five days
- Low minimum APR
- Online application process
- Only requires fair credit
Cons
- Charges an annual fee
- Has an origination fee
- Lower maximum loan amount compared to competitors
- May incur recording fees
- Might have to pay a subordination fee
Best HELOC Lender for Competitive Rates in the District of Columbia: PenFed
- PenFed Credit Union
PenFed Credit Union has an introductory APR of 0.99%.
- Starting at 8.625%APR Range
- $25,000 to $500,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- $99Annual Fees
- UndisclosedPre-Approval Time
MoneyGeek recommends PenFed Credit Union for borrowers who are looking for competitive home equity line of credit rates. PenFed Credit Union has an introductory APR of 0.99% for six months, then 4.25% to 18% after this period. While these APRs are variable, borrowers can convert them into a fixed rate.
This lender may not be a good fit for borrowers who want a HELOC with little to no fees. PenFed Credit Union has an annual fee of $99, plus other service fees. For example, a returned check will cost you $30.
The late fee also costs 5% of the amount due, with a minimum of $20.
Pros
- Offers introductory APR
- Has a fixed-rate option
- Pay the bulk of closure costs related to HELOCs
- Only make interest payments during the draw
- Up to $1,000,000 in lines of credit
Cons
- Has an annual fee
- Doesn’t accept online applications
- Must be a PenFed member
- Could have to pay an appraisal fee
- 660 credit score minimum
HELOC vs. Home Equity Loans
While both are borrowed against your home equity, home equity loans and HELOCs differ. For instance, HELOCs have variable interest rates. This means that their rates differ every month. This changes the monthly amounts that you have to pay as well.
Additionally, a HELOC acts like a credit card. A borrower is given a credit limit that they can use within a draw period. The interest rate usually only applies to the amount that has been credited.
Home equity loans, on the other hand, have fixed interest rates. From the start until the end of the repayment term, the interest rate and the monthly amount due are consistent. These loans are also released to the borrower in a lump sum.
The table below shows a more detailed comparison.
How to Apply for a HELOC
Most home equity line of credit lenders allow online applications. Therefore, applying for one can be convenient. Before starting the application process, consider following these steps to guarantee that you find the right lender that fits your needs.
Determine how much you need
Sometimes, it’s easy to get carried away with spending money using credit, so it’s better to know exactly how much you need and set that as a limit. One way to determine the amount that you need is by evaluating the expense you’re planning to have. For example, HELOCs can be used for debt consolidation, home improvement, education and more.
Assess your financial standing
Before applying, check the requirements of each lender to know whether or not you can qualify for a loan based on your financial profile. Be mindful of interest rates as well since they help determine if the amount you have to pay every month can fit your budget.
Shop around and compare lenders
Compare different lenders and research what each of them offers. Doing this allows you to find the best lender that fits your needs.
Apply
Most lenders offer online applications for HELOCs. When applying, it’s best to be prepared with all the information and documents that you might need to prove your eligibility. Make sure to provide accurate information to avoid being denied or delayed during your application process.
Use funds wisely
Using your funds wisely could mean spending them on projects that help you maximize your space at home. It could also mean using the lower interest rate on the HELOCs to save money while consolidating debt or paying for school. No matter how you want to use it, consider keeping track of your HELOC expenses to avoid paying more in interest.
Frequently Asked Questions About HELOCs
HELOCs might seem complicated at first. Once you begin to understand them, you might realize that they can come in handy in the future. To learn more about HELOCs, MoneyGeek answered frequently asked questions about home equity lines of credit in the District of Columbia.
The best HELOC rate in the District of Columbia depends on your financial profile since every lender’s APRs vary. Consider evaluating if you want a variable interest rate or a fixed interest rate.
HELOCs are versatile in their uses. Usually, these funds are used for home improvement, debt consolidation, emergency funds and more. When you’re applying for a HELOC, take note of the lender’s permitted and prohibited uses for the funds.
The interest on a HELOC can be tax-deductible, but it is subject to certain conditions. It’s best to talk to your lender or an expert to fully understand the tax implications of your HELOC.
Different lenders offer different ranges for loan amounts. Some lenders allow you to borrow a minimum amount of $5,000, $10,000, $15,000 or $25,000. The highest possible amount that you can borrow is $1,000,000.
Whether you should get a HELOC or a HELOAN depends on you and your needs. Remember the differences between these two options to weigh the pros and the cons. This will help you determine which one works best for you.
HELOC rates are variable. This means that they change based on the prevailing market rate. However, some lenders allow borrowers to convert their rates into fixed ones.
sources
- Bank of America. "Home Equity." Accessed June 21, 2022.
- Figure. "Figure Home Equity Line FAQs." Accessed June 21, 2022.
- Figure. "Home Equity Line." Accessed June 21, 2022.
- PenFed Credit Union. "HELOC." Accessed June 21, 2022.
- PenFed Credit Union. "PenFed Service Fees." Accessed June 21, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 21, 2022.
- U.S. Bank. "Home Equity FAQs." Accessed June 21, 2022.