Best HELOC Lenders in Minnesota (November 2024)

Key Takeaways

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The best home equity line of credit (HELOC) lender in Minnesota is Bank of America with a MoneyGeek score of 94 out of 100, followed by BMO BANK with a MoneyGeek score of 94 out of 100.

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The average HELOC limit in Minnesota is $94,954. How much you can borrow depends on your home's equity, outstanding mortgage balance, and credit score.

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Comparing rates can help find suitable lenders. MoneyGeek compiled the best HELOC rates in Minnesota, updated weekly to assist you.

Overall Best HELOC Lender in Minnesota

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

Minimum Credit ScoreUndisclosed
Average HELOC APR9.57%
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
CONS
  • Minimum line amount is $25,000 online
  • Charges an early closure fee of $450
  • Closing must be done in person

Runner-Up for Best HELOC Lender in Minnesota

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

Minimum Credit Score650
Average HELOC APR8.88%
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
  • Option to lock in your balance at a fixed rate
CONS
  • Charges a $75 annual fee
  • Charges a closing cost recoupment fee for accounts closed within 36 months
  • Locking in your rate costs $75 after closing

Calculate Your Monthly Payment

The average HELOC balance in Minnesota for the third quarter of 2023 is $31,189, according to Experian. Calculating your HELOC payments is important to manage this type of debt effectively and plan for any financial adjustments.

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

Minnesota 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 Minnesota for Affordability

Company logo for Old National Bank
Old National Bank
MoneyGeek Score:
94/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR8.99%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • Borrow up to $1 million
  • Allows interest-only payments during the draw period
  • Offers a 0.25% rate discount for automatic payments
CONS
  • Charges a $50 annual fee
  • Accounts closed within three years incur a fee
  • Other HELOC information not disclosed on website

Best HELOC Lender in Minnesota for Service Quality

Company logo for First Interstate Bank
First Interstate Bank
MoneyGeek Score:
98/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR8.50%
Draw PeriodUndisclosed
Repayment PeriodUndisclosed
Time to Receive FundsUndisclosed
PROS
  • Offers a financial calculator for HELOC payments
CONS
  • Very little HELOC information available on website

What You Can Use a HELOC for in Minnesota

HELOCs are a popular choice for homeowners in Minnesota due to their flexibility and control over borrowing and repayment options. With a HELOC, you can decide how much of your credit line to use and when, making it a versatile financial tool.

There are several ways you can use a HELOC, from funding home improvements to consolidating debt or covering educational expenses. Understanding these options can help you maximize the benefits of your HELOC.

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    Home Improvements or Renovations

    A HELOC is ideal for home improvements, offering flexibility as costs change. It allows you to fund projects without final costs, ensuring your home evolves with your needs.

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    Consolidating High-Interest Debt

    With average 2023 consumer debt in Minnesota at $106,981, a HELOC can simplify debt consolidation, potentially lowering interest rates and streamlining payments.

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    Funding Education Expenses

    HELOCs offer better terms for education expenses like tuition, books, and supplies compared to other debts, making them a smart choice for funding your educational journey.

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    Investment Properties

    Using a HELOC for investment properties can yield returns, but it's vital to shop around for the best HELOC lenders for investment property to secure favorable rates and terms.

How to Apply for a HELOC in Minnesota

Understanding the steps to apply for a HELOC in Minnesota can make the process smoother and more manageable. Below, we've broken down this journey into six steps to guide you through.

1
Review your financial health

Reviewing your current financial situation is key to understanding your credit score, debt-to-income ratio, and home equity. In Minnesota, the average credit score is 742 in the third quarter of 2023 based on Experian data. This score can enhance your chances of HELOC approval.

2
Compare rates in Minnesota

Comparing rates in Minnesota can help you secure the best HELOC deal. Look into lender features such as repayment terms, fees, and the option for a fixed-rate HELOC. These factors can significantly impact the overall cost and flexibility of your loan.

3
Prepare required documentation

Preparing the necessary documents for a HELOC application can streamline the process. Commonly required documents include proof of income, recent tax returns, and information on your mortgage and home value. Having these ready can prevent delays and ensure a smoother application experience.

4
Submit an application

Most lenders offer the convenience of applying online, though in-person applications are also an option if your lender has a branch. Ensure all information is accurate and complete to avoid delays. Double-check for errors or omissions before submitting your application.

5
Undergo a home appraisal

Some lenders may require a home appraisal to determine your home's current market value. A home appraisal involves an assessment by a professional to establish the worth of your property, which can influence the amount you are eligible to borrow.

6
Wait for approval and closing

The approval process for a HELOC can take between 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 cover part of your closing costs, so it's worth inquiring about this option.

Know How Much You Can Borrow in Minnesota

The average HELOC limit in Minnesota is $94,954, according to Experian's data for the third quarter of 2023. The maximum amount you can borrow with a HELOC is generally 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 to see the range of credit lines offered by Minnesota lenders in our database.

Bank of America$15,000 to $1,000,000
Old National Bank$10,000 to $1,000,000
U.S. Bank$25,000 to $750,000
Ask the experts:

What fees should homeowners expect from a HELOC lender, and how can they minimize or avoid them?

Credit & Mortgage Expert

Some lenders charge much higher fees than others when it comes to HELOCS. That’s why it’s recommended to shop around when applying for a HELOC. Some banks or credit unions will not charge you any fees at all, or you may just have to pay the appraisal fee.

FAQ: Best HELOC Lenders in Minnesota

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

MoneyGeek's scoring system offers a comprehensive overview of how each lender performed in areas that matter most to borrowers. Scores were allocated based on the inclusion or exclusion of certain desirable features in various critical categories.

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Our analysis was completed in November 2024 and considered different banks and credit unions in California 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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