Best HELOC Rates and Best HELOC Lenders in Alabama (September 2024)

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Updated: October 3, 2024

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The best home equity line of credit (HELOC) lender in Alabama is Lower. It offers competitive rates ranging from 8.75% to 13.5% for loan amounts between $15,000 and $500,000. As an online-only lender, it doesn't have physical branches, making it accessible to borrowers with internet access statewide. MoneyGeek's scrutiny of various lenders took into account more than just cost to determine the best option.

MoneyGeek's study included 13 HELOC lenders in Alabama. While there's a broader market of lenders, not all were part of this analysis. Besides the best HELOC lender, local providers like Alabama Credit Union, Alabama Central Credit Union and Avadian Credit Union also offer products with unique benefits for Alabamians.

Best HELOC Lenders in Alabama

Best Overall: Lower

Best for Affordability: Aven

Best for Bad Credit: U.S. Bank

Best for Large Loan Amounts: Bank of America

Best for Debt Consolidation: PNC Bank

MoneyGeek evaluated Alabama HELOC lenders against a rubric that included APR ranges, annual fees and affordability, among other criteria.

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Our analysis was completed in September 2024 and includes lenders that do business in Alabama.

13Lenders Analyzed

    Overall Best HELOC Lender in Alabama

  • Lower
    • 8.75% to 13.5%APR Range
    • $15,000 to $500,000Loan Amount Range
    • 580Minimum Credit Score
    • 10-year draw period; undisclosed repayment period Repayment Terms
    • NoneAnnual Fees

    Lower is the best HELOC lender in Alabama for homeowners looking to use their home equity. With APRs ranging from 8.75% to 13.5%, Lower accommodates various financial situations. The loan amount range spans from $15,000 to $500,000, providing flexibility for small and large projects. A minimum credit score of 580 makes it accessible to a wider audience. Lower's no annual fee and an A+ rating from the BBB offer additional peace of mind, while personalized support ensures that homeowners get the help they need once they start the application process online.

    Pros

    • No annual fee
    • Credit scores from 580 accepted
    • Personalized post-loan support

    Cons

    • No rate discounts offered
    • No fixed-rate HELOC conversion
    • Unclear repayment period length
    Lower

HELOC Rates in Alabama by Credit Score

When opting for a home equity line of credit (HELOC), Alabama homeowners should note that the APR can vary. Even with good credit and a loan-to-value (LTV) ratio under 80%, rates differ based on your chosen repayment terms. Refer to the provided table to see rate adjustments for different parameters.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:680 - 740
LTV Ratio:
LTV Ratio:80% - 95%
HELOC (10 year)APR6.69%
HELOC (15 year)APR6.69%
HELOC (20 year)APR6.69%

Where does this data come from?

Comparing APRs from different HELOC lenders in Alabama can save you money over the life of your loan. A lower APR means less interest paid, making your borrowing experience more cost-effective. Different lenders offer varied rates, so taking time to compare can lead to significant savings.

HELOC Calculator: Do You Qualify in Alabama?

In Alabama, your eligibility for a HELOC hinges on multiple factors, with equity and credit score playing significant roles. The average credit score in the state is 692, as indicated by Experian. If yours is in this range, securing a HELOC should be attainable.

To better understand your HELOC options, engage with the HELOC calculator. It allows for the manipulation of varying numbers, shedding light on how they influence your chances. Using this, you can fine-tune your search for an ideal HELOC lender in Alabama.

HELOC Calculator
Discover borrowing capacity, interest rates, and make informed financial choices with confidence!
You may be eligible for a HELOC. Because you have an LTV at or below 85%, you may be approved for a home equity line of credit.
10 Years Payoff Scenario
$732/mo
Eligible to Borrow
$62,500
Loan-to-Value Ratio
80%
Note: Lenders set varying limits on the acceptable Loan-to-Value (LTV) ratio, depending on the property type (owner-occupied or investment). Typically, owner-occupied homes have a higher acceptable LTV, often capped at 85%.

    Best HELOC Lender in Alabama for Affordability

  • Aven
    • 7.99% to 15.49%APR Range
    • Up to $250,000Loan Amount Range
    • 620Minimum Credit Score
    • Unlimited draw period; 5 to 10-year repayment period for cash out;Repayment Terms
    • NoneAnnual Fees

    Aven is the top pick for Alabama homeowners seeking cost savings in HELOC options. With an APR range from 7.99% to 15.49%, it doesn't charge annual fees, leading to savings. Additionally, Aven's product is a hybrid HELOC that works like a credit card backed by your home's equity. It's reported as a HELOC on your credit report to credit bureaus. Potential savings are boosted by a 0.25% rate discount for setting up autopay. This might benefit those prioritizing affordability, as there are no additional costs for origination, annual fees or prepayment.

    Pros

    • Provides a home equity-backed credit card
    • No origination or annual fees
    • Earns unlimited 2% cashback

    Cons

    • Line limit up to $250,000 max
    • 2.5% fee for certain cash outs
    • 10-day wait for card arrival
    Aven

How does MoneyGeek create this recommendation?


    Best HELOC Lender in Alabama for Bad Credit

  • U.S. Bank
    • 8.95% to 13.1%APR Range
    • $15,000 to $750,000Loan Amount Range
    • 660Minimum Credit Score
    • 10-year draw period; up to 20-year repayment periodRepayment Terms
    • Up to $75Annual Fees

    U.S. Bank is the go-to for Alabama homeowners with bad credit looking for a HELOC. Your credit score doesn't lock you out. With a minimum score of 660, U.S. Bank keeps the door open. The APR range is competitive, from 8.95% to 13.1%, and you can lower it further with a 0.5% discount for setting up autopay. Plus, there's no huge commitment — loan amounts start as low as $15,000. For those navigating financial waters with a less-than-perfect credit history, this lender offers a stable option. U.S. Bank is accredited by the BBB, though it currently does not have a rating.

    Pros

    • Offers a fixed-rate option
    • Prequalify online feature
    • 0.5% autopay discount

    Cons

    • Must close in-person at a center
    • Early closure fee up to $500
    • $75 annual fee
    U.S. Bank

How does MoneyGeek recommend lenders for those with bad credit?


    Best HELOC Lender in Alabama for Large Loans

  • Bank of America
    • Starting at 9.82%APR Range
    • $25,000 to $1,000,000Loan Amount Range
    • UndisclosedMinimum Credit Score
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • NoneAnnual Fees

    Bank of America is the best in Alabama for large HELOC needs. It offers a notable max loan limit up to $1 million and combines this with a 20-year repayment term, helping you manage payments over time. Additionally, the absence of annual fees during the loan's lifetime can save you money. Aven's product is a hybrid HELOC in that it functions like a credit card backed by your home’s equity but appears as a HELOC on credit reports. Homeowners in Alabama can fund high-cost items like home improvements or significant life events with confidence, knowing these favorable terms aid in long-term financial planning.

    Pros

    • Max loan amount is $1 million
    • No fees for application, annual or closing
    • Offers financial hardship assistance

    Cons

    • Minimum online loan is $25,000
    • Must close in-person at branch
    • Charges $450 early closure fee
    Bank of America

How does MoneyGeek recommend lenders for large loans amounts?


    Best HELOC Lender in Alabama for Debt Consolidation

  • PNC Bank
    • 8.22% to 14.5%APR Range
    • $10,000 to $1,000,000Loan Amount Range
    • UndisclosedMinimum Credit Score
    • Undisclosed draw period; 5-30 year repayment periodRepayment Terms
    • $50Annual Fees

    PNC Bank is the best HELOC lender in Alabama for consolidating high-interest debts like credit card balances and personal loans. With a HELOC, you want a lender that offers lower interest rates than your current debts, provides quick access to funds, and has a loan limit high enough to cover your balances. PNC Bank has a minimum APR of 8.22% and a maximum APR of 14.5%, which can be reduced by 0.25% when you set up autopay from a qualifying PNC checking account, allowing for potential savings over time. Homeowners in Alabama can receive their funds as quickly as three days after closing. Plus, with a maximum loan amount of $1 million, most homeowners will find their debt consolidation needs well-covered. PNC Bank's product is versatile, enabling you to switch from variable to fixed rates when needed.

    Pros

    • Borrow up to $1 million
    • Autopay rate reduction of 0.25%
    • Reimburses various fees

    Cons

    • Charges a $50 annual fee
    • Does not disclose most info
    • Charges a late fee
    PNC Bank

How does MoneyGeek recommend lenders for debt consolidation?

How to Choose a HELOC Lender in Alabama

Now that MoneyGeek has highlighted the top HELOC lenders in Alabama, you may wish to browse further. These strategies streamline your search, catering to your unique financial needs in finding a suitable lender.

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    Clarify Your HELOC Purpose

    Understanding why you need a home equity line of credit helps pinpoint the right lender. Home improvements or debt consolidation? Each purpose might fit better with specific lenders. Narrowing down your use helps find lenders with favorable terms for your situation in Alabama.

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    Inspect Lender Reputation

    Check each lender's standing with the Better Business Bureau and the State of Alabama State Banking Department. Dependable lenders have clear records and positive reviews, guiding you to safe and reliable HELOC choices in Alabama.

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    Compare Loan Details

    Don't just look at interest rates. Examine fees, including closing costs, to understand the full cost of a HELOC. In Alabama, lenders might offer varying structures, so comparing them reveals the most economical option for your home financing needs.

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    Check Community Standing

    A lender with a strong local presence in Alabama could indicate a higher commitment to customer satisfaction. Recognitions and positive local feedback are signs of reputable service. Consider these factors for a tailored and pleasant HELOC experience.

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    Evaluate Lender Flexibility

    Flexibility matters. Can lenders accommodate interest-only payments, convert HELOCs with variable rates to a fixed-rate option, or offer online prequalification? These features provide convenience and adaptability to Alabama homeowners exploring HELOCs.

FAQ: HELOC Lenders and Rates in Alabama

Confused about picking a HELOC lender in Alabama? These FAQs tackle common queries to guide you in finding a lender that matches your financial needs and goals, ensuring you make an informed decision for your home equity line of credit.

What’s a good HELOC rate in Alabama? What are the best HELOC rates in Huntsville?
Which HELOC lender is best overall in Alabama?
Can I still qualify for a HELOC in Alabama if I have bad credit?
Which HELOC lender in Alabama is best for large loans?
Can I use a HELOC to consolidate debt?
How can I ensure I find the right HELOC lender in Alabama for me?

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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