Best HELOC Lenders in Connecticut (October 2024)

Key Takeaways

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Bank of America is the best home equity line of credit (HELOC) lender in Connecticut with a MoneyGeek score of 96 out of 100, followed by Webster Bank with a score of 95 out of 100.

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The average HELOC limit in Connecticut is $138,914. 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 Connecticut, updated weekly to assist you.

Overall Best HELOC Lender in Connecticut

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

Minimum Credit ScoreUndisclosed
Average HELOC APR9.11%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • Borrow up to $1 million
  • Accepts co-applicants
  • Provides rate discounts for autopay and Preferred Rewards members
CONS
  • $25,000 minimum line amount online
  • $450 early closure fee
  • Closing must be done in person

Runner-Up for Best HELOC Lender in Connecticut

Company logo for Webster Bank, N.A.
Webster Bank, N.A.
MoneyGeek Score:
95/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR8.24%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • Borrow as low as $10,000
  • Can lock in a fixed interest rate
  • Allows interest-only payments during the draw period
CONS
  • $50 annual fee for other account relationships
  • $99 fee to lock in interest rate
  • No hardship assistance for HELOC

Calculate Your Monthly Payment

The average HELOC balance in Connecticut for the third quarter of 2023 was $45,193, according to Experian. Calculating your HELOC payments helps you manage this 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.

Connecticut 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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Best HELOC Lender in Connecticut for Affordability

Company logo for NBT Bank
NBT Bank
MoneyGeek Score:
92/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR9.00%
Draw PeriodUndisclosed
Repayment PeriodUndisclosed
Time to Receive FundsUndisclosed
PROS
  • Offers a rate discount of 0.50% for automatic payments
  • Allows interest-only payments during the draw period
  • Can switch from variable to fixed rate
CONS
  • Must reimburse the bank for third-party closing costs
  • $50 fee for switching to a fixed interest rate
  • Requires title insurance for lines over $250,000

Best HELOC Lender in Connecticut for Service Quality

Company logo for KeyBank
KeyBank
MoneyGeek Score:
96/ 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

What You Can Use a HELOC for in Connecticut

Home equity lines of credit (HELOCs) are popular in Connecticut because they offer homeowners flexible borrowing options and control over line amounts and repayment timelines. Here's how you can use a HELOC to meet your financial needs.

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    Home Improvements or Renovations

    A HELOC is perfect for home improvements, providing flexibility as costs change. It allows you to fund projects without final costs, making it a smart choice for renovations.

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    Consolidating High-Interest Debt

    The average 2023 consumer debt in Connecticut was $110,034. Using a HELOC for debt consolidation can simplify payments and reduce interest rates.

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    Funding Education

    A HELOC is better for covering education expenses than other debts. It can pay for tuition, books and supplies, providing a flexible funding option.

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    Investment Properties

    Using a HELOC for investment properties offers financial leverage. Shop around for the best HELOC lenders for investment property to secure favorable rates and terms.

How to Apply for a HELOC in Connecticut

Understanding the steps to apply for a HELOC in Connecticut can make the process smoother and more manageable. Below are six steps to guide you through this journey.

1
Review your financial health

Check your credit score, which can influence your approval chances. The average credit score in Connecticut is 726, 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 Connecticut

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 choosing 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 Connecticut

The average HELOC limit in Connecticut was $138,914 for the third quarter of 2023, according to Experian. The maximum HELOC amount you can borrow is typically tied to the equity you have in your home. The more equity you have, the higher your potential credit limit can be.

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

Bank of America$15,000 to $1,000,000
HSBC Bank USAUp to $500,000
KeyBank$10,000 to $500,000
Manufacturers and Traders Trust Company$15,0​00 to $1,000,000
NBT Bank$10,000 to $500,000
TD BankFrom $25,000
Webster Bank, N.A.$10,000 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 Connecticut

Who is the best HELOC lender in Connecticut?
How to find the best HELOC lenders for bad credit in Connecticut?
What factors should I consider when choosing a HELOC lender in Connecticut?
What are common fees associated with HELOCs that I should compare in Connecticut?
What is the typical draw period for HELOCs, and does it vary between lenders in Connecticut?
How can I find a lender with flexible repayment options in Connecticut?

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 Connecticut 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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