Best HELOC Lenders in Colorado (December 2024)

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Key Takeaways

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BMO Bank is the best home equity line of credit (HELOC) lender in Colorado, with a MoneyGeek score of 96 out of 100. The runner-up is UMB Bank, with a score of 95 out of 100.

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The average HELOC limit in Colorado is $134,544. How much you can borrow often depends on your home's equity, outstanding mortgage balance and credit score.

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Comparing rates can help you find lenders that meet your needs. MoneyGeek compiled the best HELOC rates in Colorado and updated them weekly to assist you.

Overall Best HELOC Lender in Colorado

Company logo for BMO BANK
BMO BANK
MoneyGeek Score:
96/ of 100

Minimum Credit Score650
Average HELOC APR8.38%
Draw Period10 years
Repayment Period20 years
Time to Receive Funds3 Business Days
PROS
  • Offers a 0.25% rate discount for automatic payments
  • Provides a remote closing option for HELOC applications
  • Can lock in your balance at a fixed rate
CONS
  • $75 annual fee
  • Charges a closing cost recoupment fee for accounts closed within 36 months
  • Locking in your rate costs $75 after closing

Runner-Up for Best HELOC Lender in Colorado

Company logo for UMB Bank
UMB Bank
MoneyGeek Score:
95/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR8.49%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • No annual fee
  • Waived origination fee with qualifying UMB checking account
  • Accepts joint applications
CONS
  • Doesn't advertise rate discounts
  • No hardship assistance programs
  • Other pertinent HELOC information undisclosed on its website

Calculate Your Monthly Payment

The average HELOC balance in Colorado for the third quarter of 2023 was $52,232, according to Experian. Calculate your HELOC payments to effectively manage this type of debt and plan for any changes 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.

Colorado 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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Repayment Period Payment

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Credit Payoff Schedule for Home Equity Line

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Best HELOC Lender in Colorado for Affordability

Company logo for Western Alliance Bank
Western Alliance Bank
MoneyGeek Score:
93/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR7.75%
Draw PeriodUndisclosed
Repayment PeriodUndisclosed
Time to Receive FundsUndisclosed
PROS
  • Has a mobile app for easy account management
CONS
  • Very little information about HELOC on website

Best HELOC Lender in Colorado for Service Quality

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

Minimum Credit ScoreUndisclosed
Average HELOC APR9.80%
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
  • Allows switching between variable and fixed rates
CONS
  • $50 annual fee
  • $100 fee for rate lock/unlock
  • Late fees apply

What You Can Use a HELOC for in Colorado

Home equity lines of credit (HELOCs) are popular among Colorado homeowners because they offer flexibility and control over borrowing and repayment. With a HELOC, you can decide how much to borrow and adjust your repayment timeline to suit your financial situation. Here's a list of ways to use a HELOC.

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    Home improvements or renovations

    A HELOC is great for home improvements, offering flexibility as costs change. It allows you to access funds as needed, ensuring your renovation projects can adapt to changing needs and unforeseen expenses.

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    Consolidating high-interest debt

    The average 2023 consumer debt in Colorado was $154,481. Using a HELOC for debt consolidation can simplify finances by combining multiple debts into one payment, potentially reducing interest rates and monthly payments.

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    Funding education

    Using a HELOC for education expenses is often better than using other debts. It can pay for tuition, books and fees, offering lower interest rates and flexible repayment options than traditional student loans.

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    Investment properties

    A HELOC can finance investment properties, providing capital for down payments or renovations. Shopping around for the best HELOC lenders for investment property ensures you secure the best rate and favorable terms.

How to Apply for a HELOC in Colorado

Understanding the steps to apply for a HELOC in Colorado can help you make informed financial decisions. Below, we break down the application process into six steps.

  1. 1
    Review your financial health

    Check your credit score, which can influence your approval chances. The average credit score in Colorado is 731, based on Experian data for the third quarter of 2023. A higher score may improve your approval odds. Also, evaluate your debt-to-income ratio and home equity to gauge your financial health and readiness for a HELOC.

  2. 2
    Compare rates in Colorado

    Comparing rates from different lenders can help you secure the best HELOC deal. Also, consider repayment terms, fees and the option to apply for a fixed-rate HELOC to ensure you choose a lender that aligns with your financial needs and goals.

  3. 3
    Prepare required documentation

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

  4. 4
    Submit an application

    When you're ready to apply for a HELOC, most lenders offer the convenience of online applications. If your lender has a physical branch, you can also apply in person. Ensure all information is accurate and complete to avoid errors or omissions that could delay the process.

  5. 5
    Undergo a home appraisal

    Some lenders may require an appraisal to determine your property's current market value. An appraisal involves a professional assessment of your home's worth, which helps the lender decide on the loan amount you qualify for.

  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 involves signing documents and potentially paying closing costs. Some lenders may offer to cover part of these costs, so it's worth inquiring about any available options.

Know How Much You Can Borrow in Colorado

The average HELOC limit in Colorado for the third quarter of 2023 was $134,544, according to Experian. The maximum amount you can borrow with a HELOC is typically tied to your home equity. The more equity you have, the higher your potential credit limit.

Check out the table below for the range of credit lines offered by Colorado lenders in our database.

Bank of America$15,000 to $1,000,000
KeyBank$10,000 to $500,000
PNC Bank$10,000 to $1,000,000
Pentagon Federal Credit Union$25,000 to $500,000
Ask the experts:

What risks or potential downsides should homeowners consider when choosing a lender for a HELOC?

Credit & Mortgage Expert

When choosing a lender for a HELOC, a local bank or credit union may not charge you as many fees as an online lender or mortgage broker (if they charge you any fees at all). Usually you just need to pay for the appraisal fee, which can be anywhere from $150 to $500. Although an online lender may advertise a better rate, if it’s charging thousands of dollars in fees, it may not be the best financial decision to take the perceived lower rate.

FAQ: Best HELOC Lenders in Colorado

Who is the best HELOC lender in Colorado?

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

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

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

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

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

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 Colorado 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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