Best HELOC Rates and Lenders in Minnesota for 2024
Updated: April 23, 2024
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The best home equity line of credit (HELOC) lender in Minnesota is Lower. It offers a competitive range of interest rates from 8.75% to 13.5% and gives homeowners loan amounts from $15,000 to $500,000. With a minimum credit score requirement of 580, it widens access to more homeowners while maintaining service exclusively online.
MoneyGeek reviewed 14 lenders to find the finest options for homeowners. While other lenders are available in Minnesota, not all were a part of this analysis. Local lenders like TruStone Financial, MidMinnesota Federal Credit Union and Veridian Credit Union present unique offerings that are worthwhile for homeowners to explore.
- 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 Minnesota's top pick for a HELOC lender. With an APR range of 8.75% to 13.5%, Lower makes borrowing against your home's equity more accessible. Homeowners can borrow from $15,000 to $500,000, depending on their needs. Its minimum credit score requirement of 580 helps more people qualify. Lower also ensures easy access to information, further supporting homeowners looking for a flexible financial tool.
Pros
- No annual fee
- Credit scores from 580 accepted
- Personalized post-loan support
Cons
- No rate discounts offered
- No fixed-rate HELOC conversion
- Unclear repayment period length
Overall Best HELOC Lender in Minnesota
HELOC Rates in Minnesota By Credit Score
In Minnesota, the home equity line of credit (HELOC) APR is shaped by multiple factors, including your credit score and loan-to-value (LTV) ratio. Even with stellar credit and an LTV below 80%, rates may vary due to the chosen repayment terms. Homeowners should review the table to see rate adjustments for different parameters.
Examining APRs from various HELOC lenders in Minnesota can lead to significant savings. APR reflects the true cost of borrowing, combining interest rates with fees. Lower APRs mean you'll pay less over the life of the loan, making your borrowing experience more cost-effective. Always compare offers to secure the best financial deal for your needs.
HELOC Calculator: Do You Qualify in Minnesota?
In Minnesota, homeowners might be able to borrow more against their home equity if it's substantial, as suggested by a TransUnion report. When it comes to credit standings, the average credit score is 742, according to Experian, so if yours is in this ballpark, you're likely well-positioned for a HELOC.
Your eligibility for a HELOC involves more factors than just credit score and equity. By using the HELOC calculator, homeowners can experiment with various inputs to gauge their eligibility.
- 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 a leader in Minnesota for homeowners seeking HELOCs with a focus on savings. It offers a hybrid HELOC; it functions like a credit card but is reported as a HELOC to credit bureaus.
Homeowners benefit from an APR range of 7.99% to 15.49% with no annual fees, amplifying savings. The option to snag a 0.25% rate reduction through autopay further enhances affordability, making it an attractive choice for budget-conscious Minnesotans.
Pros
- Earns you 2% unlimited cashback for purchases
- 0.25% rate reduction for autopay
- No origination and annual fees
Cons
- Line limit up to $250,000 only
- Card delivery may take 10 days
- 2.5% fee for certain cashouts
Best HELOC Lender in Minnesota 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 a solid choice for Minnesota homeowners with bad credit seeking a HELOC. A credit score as low as 660 may get you in the door here. With APRs ranging from 8.95% to 13.1%, U.S. Bank also offers a chance to lower your rate by 0.5% when you opt for autopay. This helps keep costs more manageable.
You might find the $15,000 minimum on a HELOC appealing, especially if your borrowing needs are modest. Plus, U.S. Bank is accredited by the BBB, though it currently does not have a rating.
Pros
- No closing costs
- Offers a fixed-rate option
- Minimum line amount is only $15,000
Cons
- Closing in person required
- Early closure fee up to $500
- Annual fee of $75
Best HELOC Lender in Minnesota 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 best HELOC lender for large loan amounts in Minnesota. Homeowners can use a HELOC to fund high-cost projects like home renovations or educational expenses. With a maximum loan amount of $1 million, borrowers have the flexibility to withdraw substantial funds.
Bank of America offers a 10-year draw period followed by a 20-year repayment period, giving borrowers plenty of time to repay what they borrow. Additionally, it doesn't charge an annual fee, reducing the overall cost of the loan. This lender also provides assistance during financial hardships, adding a layer of security for homeowners in uncertain times.
Pros
- Max loan amount $1 million
- Competitive intro rate (6.99%)
- No annual, application or closing fees
Cons
- Must close in person at a center
- Undisclosed HELOC requirements
- Online applications start at $25,000
Best HELOC Lender in Minnesota 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 best HELOC lender for debt consolidation in Minnesota, potentially assisting in paying off debt like credit card balances or medical bills.
PNC Bank's APRs start at 8.22% APR, possibly lower with autopay. It also lends up to $1 million, with funds released as soon as three days after closing. It also offers hardship assistance and charges no has annual fees.
Pros
- Switches between variable and fixed rates
- Up to $1 million borrowing limit
- Online application tracker available
Cons
- Charges a $50 annual fee
- Does not disclose most information online
- Charges a late fee
Best HELOC Lender in Minnesota for Debt Consolidation
How to Choose a HELOC Lender in Minnesota
MoneyGeek has spotlighted standout HELOC lenders in Minnesota. Yet, if you're looking to broaden your search, these strategies will guide you to a lender that aligns with your financial needs and circumstances, ensuring a tailored fit for your home equity line of credit.
FAQ: HELOC Lenders and Rates in Minnesota
Navigating HELOC can be tricky, but the right lender makes all the difference. These frequently asked questions aim to shed light on the process of choosing a lender in Minnesota that fits your unique financial landscape.
A competitive HELOC rate in Minnesota is approximately 7%. These rates typically apply to homeowners with an LTV ratio of 80% or less and a credit score ranging from 680 to 740. Homeowners should remember that actual rates may differ based on creditworthiness and the lender chosen.
Lower is recognized as the best overall HELOC lender in Minnesota. It offers an APR range of 8.75% to 13.5%, accommodating loan amounts from $15,000 to $500,000 and accepts a minimum credit score of 580. This flexibility makes it appealing for a wide range of homeowners.
Yes, in Minnesota it is possible to qualify for a HELOC with bad credit. U.S. Bank, for instance, offers HELOCs to those with credit scores as low as 660. When considering lenders, homeowners with bad credit should examine factors like the minimum credit score, available discounts and the highest possible APR.
Bank of America is notable for large loans, offering loan amounts up to $1,000,000. Homeowners may seek such large amounts for significant home renovation projects or to invest in real estate.
When considering a HELOC for debt consolidation, factors like APR range and time to receive funds are important. PNC Bank is cited as a top choice, offering APRs from 8.22% to 14.5% and funds within three days post-closing, helping streamline the consolidation process.
To find the right HELOC lender in Minnesota, assess your intended use for the HELOC and your financial situation. Requirements for a home renovation loan might vary from those for debt consolidation. Therefore, your specific goals and financial profile will dictate the best lender for your needs.
sources
- Better Business Bureau. "Get Consumer Help." Accessed April 19, 2024.
- Experian. "What Is the Average Credit Score in the US?." Accessed April 19, 2024.
- Minnesota Department of Commerce. "Look Up a License Holder." Accessed April 19, 2024.
- TransUnion. "Home Equity Trends Report Q3 2023." Accessed April 19, 2024.