Best HELOC Rates and Lenders in Michigan (2024)
Updated: April 23, 2024
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Lower is the best home equity line of credit (HELOC) lender in Michigan. It stands out with an APR range from 8.75% to 13.5% and offers loan amounts between $15,000 and $500,000, supporting a breadth of financial needs. It caters to a broad spectrum of borrowers with a minimum credit score requirement of just 580 and operates solely online, offering accessible financing solutions statewide.
MoneyGeek compared 14 HELOC lenders in Michigan. While other lenders exist beyond those researched, we didn't include them in the study. For homeowners seeking alternatives, institutions like Credit Union One, Lake Michigan Credit Union and Michigan School and Government Credit Union also present distinctive HELOC options worth considering.
- Lower
- 8.75% to 13.5%APR Range
- $15,000 to $500,000Loan Amount Range
- 580Minimum Credit Score
- 10-year draw period; undisclosed repayment period Repayment Terms
- NoneAnnual Fees
Lower is the overall best HELOC lender in Michigan. It offers competitive APRs from 8.75% to 13.5% and loan amounts from $15,000 to $500,000. It accepts a credit score as low as 580. Personalized support ensures homeowners have guidance, and the absence of annual fees combined with an A+ BBB rating demonstrates reliability. Quick access to terms on its website helps Michigan homeowners easily leverage their home equity.
Pros
- No annual fee
- Accepts credit scores from 580
- Personalized post-loan support
Cons
- No rate discounts offered
- No fixed-rate HELOC conversion
- Unclear repayment period length
Overall Best HELOC Lender in Michigan
HELOC Rates in Michigan by Credit Score
Your home equity line of credit (HELOC) APR in Michigan may vary based on factors like credit scores and loan-to-value ratios. Even with a score above par and an LTV under 80%, rates differ by repayment terms. Review the provided table to see rate adjustments for various parameters.
When you shop for a HELOC in Michigan, comparing annual percentage rates (APRs) from different lenders can lead to lower monthly payments and reduced interest over the life of the loan. This careful comparison ensures you get favorable terms that can make borrowing against your home's equity more manageable.
HELOC Calculator: Do You Qualify in Michigan?
Michigan homeowners have an average total tappable equity of $110,000, as reported by TransUnion. If your home's equity is high, you might be able to borrow more. The average credit score in Michigan is 719, according to data from Experian. A score around this mark can set you up well for a HELOC.
Eligibility for a HELOC hinges on various factors, with home equity and credit score being just a couple. Use the HELOC calculator below to explore different scenarios and understand your eligibility for a HELOC.
- Aven
- 7.99% to 15.49%APR Range
- Up to $250,000Loan Amount Range
- 620Minimum Credit Score
- Unlimited draw period; 5 to 10-year repayment period for cash out;Repayment Terms
- NoneAnnual Fees
Aven is the best HELOC lender for Michigan homeowners seeking cost savings. It offers an APR range of 7.99% to 15.49% and caters to borrowers with a minimum credit score of 620. Aven's product is a hybrid HELOC; it functions like a credit card and is backed by your home's equity, but it's reported as a HELOC on your credit reports. There are no annual fees, increasing overall savings. Plus, you can secure a 0.25% rate deduction when you set up autopay. These features make Aven a sound choice for homeowners who prioritize affordability.
Pros
- Earns you 2% unlimited cash back
- No origination or annual fees
- 0.25% rate reduction for autopay
Cons
- Line limit up to $250,000 only
- Card takes 10 days to arrive
- 2.5% fee for bank cash outs
Best HELOC Lender in Michigan for Affordability
- U.S. Bank
- 8.95% to 13.1%APR Range
- $15,000 to $750,000Loan Amount Range
- 660Minimum Credit Score
- 10-year draw period; up to 20-year repayment periodRepayment Terms
- Up to $75Annual Fees
U.S. Bank is the top choice for Michigan homeowners with bad credit seeking a HELOC. Bad credit won't necessarily keep you from getting a HELOC, but terms may be less favorable. U.S. Bank requires a minimum credit score of 660, which is relatively accessible. It offers an APR range from 8.95% to 13.1% and an autopay discount of 0.5%. The provider presents a fitting option for homeowners looking to leverage their home equity without hefty upfront costs. U.S. Bank is accredited by the BBB, though currently without a rating.
Pros
- No closing costs
- Offers a fixed-rate option
- Allows for interest-only payment during the draw period
Cons
- Closing must be done in person
- Charges an early closure fee
- Does not offer hardship assistance
Best HELOC Lender in Michigan for Bad Credit
- Bank of America
- Starting at 9.82%APR Range
- $25,000 to $1,000,000Loan Amount Range
- UndisclosedMinimum Credit Score
- 10-year draw period; 20-year repayment periodRepayment Terms
- NoneAnnual Fees
Bank of America is the top HELOC lender for homeowners in Michigan seeking significant loan amounts. HELOCs can be useful for home renovations or higher education expenses. Bank of America offers up to $1 million, ensuring borrowers get the funds for big projects. With a 10-year draw period followed by a 20-year repayment period, you have ample time to repay without feeling rushed. Plus, the lender sets itself apart with no annual fees, adding to your savings throughout the loan's lifespan.
Pros
- Competitive introductory rate for 6 months
- Offers financial hardship assistance
- No application, annual or closing fees
Cons
- Closing must be done in person
- Minimum online loan amount is $25,000
- $450 early closure fee
Best HELOC Lender in Michigan for Large Loans
- PNC Bank
- 8.22% to 14.5%APR Range
- $10,000 to $1,000,000Loan Amount Range
- UndisclosedMinimum Credit Score
- Undisclosed draw period; 5-30 year repayment periodRepayment Terms
- $50Annual Fees
PNC Bank is the top pick for Michigan homeowners looking to consolidate debt with a HELOC. It offers competitive rates from 8.22% to 14.5%, making it ideal for merging amounts due on high-interest credit cards and auto loans into a single, low-interest option. Homeowners benefit from swift access to funds within three days post-closing, allowing rapid handling of existing debts. The lender's HELOC has a ceiling of $1 million, which is ample for tackling sizable consolidated debt. PNC Bank's product streamlines debt management, enables cost savings and allows flexible repayments during the undisclosed draw period, which extends up to 30 years.
Pros
- Ability to switch between rate types
- Rate reduction for autopay
- Offers large loans up to $1M
Cons
- Charges a $50 annual fee
- Does not disclose key information
- Charges a fee for rate lock changes
Best HELOC Lender in Michigan for Debt Consolidation
How to Choose a HELOC Lender in Michigan
If you would like alternatives to the Michigan lenders that MoneyGeek has highlighted, here are practical strategies for refining your search and matching with a lender tailored to your financial situation.
FAQ: HELOC Lender and Rates in Michigan
Navigating HELOC lenders in Michigan can seem tricky, but understanding key details can make the process smoother. Below, find answers to frequent questions that aim to clarify terms, interest rates and lender policies, helping you choose a HELOC that aligns with your financial goals.
A good HELOC rate in Michigan is around 7%, considering an LTV ratio of 80% or lower and a credit score of 680 to 740. Rates can fluctuate based on individual creditworthiness and the lender chosen.
Lower is considered the best overall HELOC lender in Michigan due to its competitive APR range of 8.75% to 13.5%, a minimum credit score requirement of 580 and a loan amount range of up to $500,000. These features make it significant for Michigan homeowners seeking flexible HELOC options.
Yes, homeowners with bad credit can still qualify for a HELOC in Michigan. For example, U.S. Bank offers HELOCs with a minimum credit score requirement of 660. Selecting a lender for bad credit should be based on APR range, discounts and the highest potential APR.
Bank of America stands out for large loans in Michigan, offering loan amounts of up to $1,000,000. Large loan amounts and flexible repayment terms make this lender a compelling choice for homeowners tackling significant expenses like major home renovations or investing in property.
Yes, a HELOC can be used for debt consolidation. PNC Bank is the top pick for debt consolidation. It offers an APR range of 8.22% to 14.5%, the ability to receive funds within three days of closing and a loan amount of up to $1,000,000. These factors are essential when using a HELOC to consolidate debt.
To find the right HELOC lender in Michigan, assess your intended use for the HELOC and understand your financial situation. Different priorities — whether that's lower interest rates, higher loan amounts or more lenient credit score requirements — will lead to different best matches.
sources
- Better Business Bureau. "Get Consumer Help." Accessed April 18, 2024.
- Experian. "What Is the Average Credit Score in the US?." Accessed April 18, 2024.
- Michigan Department of Insurance and Financial Services (DIFS). "License Search." Accessed April 18, 2024.
- TransUnion. "Home Equity Trends Report Q3 2023." Accessed April 18, 2024.