Best HELOC Lenders in Colorado (October 2024)

Key Takeaways

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Pentagon Federal Credit Union is the best home equity line of credit (HELOC) lender in Colorado, with a MoneyGeek score of 94 out of 100. Bank of America follows closely with a score of 94 out of 100.

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The average HELOC limit in Colorado is $134,544. How much you can borrow often depends on factors like 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, updated weekly to assist you.

Overall Best HELOC Lender in Colorado

Company logo for Pentagon Federal Credit Union
Pentagon Federal Credit Union
MoneyGeek Score:
94/ of 100

Minimum Credit Score680
Average HELOC APR8.00%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • Can switch from variable to fixed rate
  • Allows interest-only payments during the draw period
  • No origination fee
CONS
  • $99 annual fee
  • $25,000 minimum line amount
  • Requires an appraisal for lines over $400,000

Runner-Up for Best HELOC Lender in Colorado

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

Minimum Credit ScoreUndisclosed
Average HELOC APR10.31%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • $1 million borrowing limit
  • Accepts co-applicants
  • Provides rate discounts for autopay and Preferred Rewards members
CONS
  • $25,000 minimum line amount for online applications
  • $450 early closure fee
  • Closing must be done in person at a financial center

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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Best HELOC Lender in Colorado for Affordability

Company logo for KeyBank
KeyBank
MoneyGeek Score:
91/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR11.75%
Draw PeriodUndisclosed
Repayment PeriodUndisclosed
Time to Receive FundsUndisclosed
PROS
  • $10,000 minimum line amount
  • Offers 0.25% relationship and autopay discounts
  • Allows interest-only payments during the draw period
CONS
  • Must reimburse KeyBank for third-party fees
  • No option to apply online
  • $50 annual fee

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 APR10.98%
Draw PeriodUndisclosed
Repayment Period5 to 30 years
Time to Receive FundsNext Day After Closing
PROS
  • $1 million borrowing limit
  • Provides a 0.25% interest rate discount for automatic payments
  • Can switch 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 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
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
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
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
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
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
Wait for approval and closing

The approval process for a HELOC can take anywhere from 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 the equity you have in your home. 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:

How do lenders determine how much equity a homeowner can borrow against in a HELOC?

Credit & Mortgage Expert

Most lenders will allow you to take out up to 90% of your home's equity. For example, if your home is appraised at $400,000 and you owe $200,000 on your mortgage, you could potentially take out up to $160,000 on a HELOC if you meet the requirements of that lender.

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 the inclusion or exclusion of certain desirable features in various critical categories.

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We completed our analysis in October 2024 and 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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