Best HELOC Lenders in Alabama (December 2024)

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Key Takeaways

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Valley National Bank is the best home equity line of credit (HELOC) lender in Alabama, with a MoneyGeek score of 96 out of 100. Regions Bank follows closely, scoring 94 out of 100.

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The average HELOC limit in Alabama is $92,005. How much you can borrow often depends on factors like home equity, outstanding mortgage balance and credit score.

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Comparing rates can help you find lenders who meet your needs. MoneyGeek compiled the best HELOC rates in Alabama, updated weekly to assist you.

Overall Best HELOC Lender in Alabama

Company logo for Valley National Bank
Valley National Bank
MoneyGeek Score:
96/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR8.00%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • Provides lines up to $1 million
  • Offers 0.25% rate discounts under certain conditions
  • Has a mobile app for account management
CONS
  • No fixed-rate HELOC option
  • $75 annual fee
  • $490 early termination fee

Runner-Up for Best HELOC Lender in Alabama

Company logo for Regions Bank
Regions Bank
MoneyGeek Score:
94/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR9.13%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • Offers a 6.99% introductory APR for six billing cycles
  • Converts variable-rate balance to fixed rate via Loan-in-a-Line
  • Provides a rate discount for automatic payments
CONS
  • $29 overlimit fee
  • $29 to $100 late fee
  • $100 Loan-in-a-Line conversion fee

Calculate Your Monthly Payment

The average HELOC balance in Alabama for the third quarter of 2023 was $36,330, according to Experian. Calculating your HELOC payments helps you manage this type of debt effectively and plan for any adjustments in your financial obligations.

Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms. The full amortization schedule shows how much of your payments go toward interest and principal over time.

Alabama HELOC Payoff Calculator

This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.

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Credit Line Information

Draw Period Payment

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Repayment Period Payment

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Credit Payoff Schedule for Home Equity Line

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Best HELOC Lender in Alabama for Affordability

Company logo for Cadence Bank
Cadence Bank
MoneyGeek Score:
94/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR8.13%
Draw PeriodUndisclosed
Repayment PeriodUndisclosed
Time to Receive FundsUndisclosed
PROS
  • Provides a mobile app for account management
  • Has a financial calculator for HELOC payments
CONS
  • Needs to schedule an appointment to apply
  • Very little HELOC information available on the website

Best HELOC Lender in Alabama for Service Quality

Company logo for PNC Bank
PNC Bank
MoneyGeek Score:
100/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR9.87%
Draw PeriodUndisclosed
Repayment Period5 to 30 years
Time to Receive FundsNext Day After Closing
PROS
  • Borrow up to $1 million
  • Provides a 0.25% interest rate discount for automatic payments
  • Allows switching between variable and fixed rates
CONS
  • $50 annual fee
  • $100 fee each time you lock or unlock your interest rate
  • Late fees apply

What You Can Use a HELOC for in Alabama

Home equity lines of credit (HELOCs) are popular in Alabama because they offer flexibility and control over line amounts and repayment timelines. Here's a list of where you can use a HELOC.

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    Home improvements

    Using a HELOC for home improvements lets you adjust costs as needed, making it easier to manage renovations without financial strain.

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    Debt consolidation

    With the average 2023 consumer debt in Alabama at $77,981, using HELOC for debt consolidation can simplify payments. It merges multiple debts into one, potentially lowering interest rates and easing financial management.

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    Funding education

    A HELOC is a better choice for funding education expenses than other debts. It can cover tuition, books and fees, offering lower interest rates and flexible repayment options.

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    Investment properties

    Using a HELOC for investment properties can yield returns. Look for the best HELOC lenders for investment property, focusing on competitive rates and flexible terms to maximize your earning potential.

How to Apply for a HELOC in Alabama

Understanding the steps to apply for a HELOC in Alabama can help you make informed financial decisions. Here’s a breakdown of the process in six simple steps to guide you.

  1. 1
    Review your financial health

    Reviewing your current financial situation is key to understanding your credit score, debt-to-income ratio and home equity. The average credit score in Alabama in the third quarter of 2023 was 692, based on Experian data. A higher score generally improves your likelihood of approval.

  2. 2
    Compare rates in Alabama

    Comparing rates can help you secure the best HELOC deal. Consider a lender's features, such as repayment terms, fees and a fixed-rate HELOC option.

  3. 3
    Prepare required documentation

    Preparing the necessary documents in advance can streamline your HELOC application. Commonly required documents include proof of income, recent tax returns, and mortgage and home value information.

  4. 4
    Submit an application

    Submit your HELOC application online or in person if your lender has a branch. Check for errors or omissions in your application to prevent delays.

  5. 5
    Undergo a home appraisal

    Some lenders may require an appraisal to determine your home's current market value. A home appraisal involves a professional assessment of your property's worth, which can influence your HELOC terms and approval.

  6. 6
    Wait for approval and closing

    A HELOC approval process can take two to six weeks. Once approved, you'll proceed to the closing process, which may involve signing documents and paying closing costs. Some lenders might offer to cover part of these costs.

Know How Much You Can Borrow in Alabama

According to Experian, the average HELOC limit in Alabama for the third quarter of 2023 was $92,005. The maximum amount you can borrow is usually tied to the equity you have in your home; the higher your equity, the higher your potential credit limit.

Check out the table below to see the range of credit lines offered by Alabama lenders. The lenders included are only those that disclosed their line amount range.

PNC Bank$10,000 to $1,000,000
Regions Bank$10,000 to $500,000
Truist BankUp to $500,000
Valley National BankUp to $1,000,000
Ask the experts:

What factors should homeowners prioritize when comparing HELOC lenders?

Credit & Mortgage Expert

When shopping for a HELOC, most people focus only on the interest rate. Instead, you should focus on the annual percentage rate (APR) as that is the true cost of what you are paying back. Also consider any fees the lender may be charging you. A lower rate with higher fees can be deceptive.

FAQ: Best HELOC Lenders in Alabama

Who is the best HELOC lender in Alabama?

How to find the best HELOC lenders for bad credit in Alabama?

What factors should I consider when choosing a HELOC lender in Alabama?

What are common fees associated with HELOCs that I should compare in Alabama?

What is the typical draw period for HELOCs, and does it vary between lenders in Alabama?

How can I find a lender with flexible repayment options in Alabama?

MoneyGeek's scoring system offers a comprehensive overview of how each lender performed in areas that matter most to borrowers. We allocated scores based on including or excluding certain desirable features in various critical categories.

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Our analysis, completed in December 2024, considered different banks and credit unions in Alabama from S&P Global's SNL Depository Rates dataset.

101Lenders Analyzed

About Zachary Romeo, CBCA


Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.


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