A home equity line of credit, or HELOC, is often used to finance significant expenses, including home renovations, costs for education, medical bills, debt consolidation and more. A HELOC is ideal for homeowners who have a considerable amount of home equity and are responsible with credit.
For homeowners in Alaska, MoneyGeek found that the current home equity line of credit rates range from 1.99% to 18%, and the best overall HELOC lender is Bank of America.
Before opening a home equity line of credit, it’s important to shop around and find a lender that suits your needs. Compare their rates to ensure you’re getting the best available deal.
Home Equity Line of Credit (HELOC) Rates for 2023
The table below provides an overview of equity rates, repayment terms and other important details about home equity line of credit lenders as of May 2022.
Please note that rates and information are always changing. MoneyGeek will regularly update this table with the most current information.
Lender | APR | Loan Amount | Min. Credit Score Requirement | Repayment Terms | Annual Fees | Pre-Approval Time |
|---|---|---|---|---|---|---|
3.75% to 18% | $25,000 to $1,000,000 | 660 | 10-year draw period;
| None | N/A | |
Not specified | Not specified | Not specified | Not specified | Not specified | Not specified | |
1.99% special | $25,000 to $1,000,000 | Not specified | 10-year draw period;
| Not specified | Not specified | |
4.20% to 9.35% | $15,000 to $750,000 | 730 | 10-year draw period;
| $90 | Not specified | |
Starting at 3.99% | $10,000 to $500,000 | Not specified | 10-year draw period;
| $75 | Not specified | |
Starting at 4.64% | $10,000 to $500,000 | Not specified | 10-year draw period;
| None | 24 hours | |
Starting at 3.50% | $15,000 to $400,000 | 620 | 5 to 30 years | 3% to 4.99% | 24 hours | |
Starting at Prime - 0.50% | Starting at $17,500 | Not specified | 10-year draw period;
| $50 | Not specified | |
Starting at 3.34% | Starting at $25,000 | 740 | Not specified | $50 | Not specified | |
3.49% for 6 months | Starting at $5,000 | Not specified | 15-year draw period;
| None | 24 hours | |
3.75% to 10.63% variable | $10,000 to $500,000 | Not specified | 10-year draw period;
| None | Not specified |
MoneyGeek’s Picks for Best HELOC Lenders in Alaska
MoneyGeek’s mission is to help you find the best HELOC lender based on your financial needs and goals. Keep in mind that outside of national banks, not many lenders offer home equity line of credit loans. If your application is denied by a national lender, check whether your local credit union finances HELOC loans.
Best Overall HELOC Lender in Alaska: Bank of America
- Bank of America
Bank of America offers a 1.99% introductory APR for six months.
- 7.49% (introductory rate) then 9.90%APR Range
- Generally $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- NoneAnnual Fees
- UndisclosedPre-Approval Time
Best HELOC Lender for Good Credit in Alaska: U.S. Bank
- U.S. Bank
With U.S. Bank, you can apply for a HELOC by phone, online or by visiting a branch.
- 8.95% to 12.70%APR Range
- $15,000 to $750,000 ($1 million in California)Loan Amount Range
- 10-year draw period; up to 30 years repayment periodsRepayment Terms
- Up to $75Annual Fees
- UndisclosedPre-Approval Time
Best HELOC Lender for Bad Credit in Alaska: Figure
- Figure
Among HELOC lenders, Figure has one of the lowest credit score requirements at 620.
- 6.10% to 14.74%APR Range
- $20,000 to $400,000Loan Amount Range
- 5 to 30 yearsRepayment Terms
- NoneAnnual Fees
- 24 hoursPre-Approval Time
Best HELOC Lender for Competitive Rates in Alaska: PenFed
- PenFed Credit Union
PenFed Credit Union offers a 0.99% introductory APR for your first six months.
- Starting at 8.625%APR Range
- $25,000 to $500,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- $99Annual Fees
- UndisclosedPre-Approval Time
HELOC vs. Home Equity Loans
Although a home equity loan (HELOAN) and a home equity line of credit (HELOC) sound similar, they are two different products.
Home equity loans allow a homeowner to borrow against the value of their home. Additionally, home equity loans have fixed interest rates and fixed repayment terms. Borrowers receive the money from the bank as a lump sum.
On the other hand, a HELOC acts like a credit card. Borrowers can withdraw a specified amount during the draw period, both set by the lender. HELOCs also have variable interest rates. Therefore, the borrower isn’t locked into fixed monthly payments during the repayment period.
HELOC | Home Equity Loan | |
|---|---|---|
Interest Rate | Variable, but a fixed-rate loan
| Usually have fixed interest rates |
Monthly Payment | Changes depending
| Fixed monthly payments on interest
|
Repayment Terms | Interest-only payments during | Repayment starts as soon as
|
Fund Disbursements | Borrowers can withdraw funds | Delivered in one lump sum |
How to Apply for a HELOC
Applying for a HELOC is convenient since many lenders allow you to fill out applications online. You typically need to provide your personal information and contact details, then await the lender’s approval.
Determine how much you need
Remember, a HELOC isn’t for everyone. MoneyGeek recommends a home equity line of credit for homeowners who can budget well and know the exact amount they need to borrow. Also, HELOCs are ideal for large expenses like investments, debt consolidation and education. A HELOC may not be suitable if you only need money for a small home renovation project that costs less than $1,000.
Assess your financial standing
In addition to determining how much you need to borrow, take stock of your financial situation. Are you financially stable right now? Do you have any other open lines of credit? Most lenders have minimum credit score requirements to gauge your ability to repay the loan. If you’re in a position to take minor steps that would boost your credit into a better category, doing so before applying for a HELOC could help you secure a lower interest rate.
Shop around and compare lenders
There’s value in researching lenders and comparing their offerings. This will help you find the best deal based on your unique situation and needs. With the right HELOC lender, you can avoid paying additional fees and take advantage of low rates before the loan starts.
Apply
It’s usually possible to apply for a HELOC online. Gather the information you need for your application to save time. You may have to provide verified documents like bank statements, mortgage statements and proof of income. MoneyGeek has several tips for a smooth HELOC application.
Use funds wisely
Once you start withdrawing funds from your HELOC, take note of the repayment terms and other fees. Keep track of how much you need to pay while your HELOC is open to budget for monthly expenses.
Frequently Asked Questions About HELOCs
Opening a home equity line of credit (HELOC) can be an unfamiliar process. To help you learn more, MoneyGeek answered some commonly asked questions about HELOCs.
sources
- Bank of America. "Home Equity." Accessed June 7, 2022.
- Figure. "Get a Home Equity Line." Accessed June 13, 2022.
- PenFed Credit Union. "PenFed Home Equity Line Of Credit (HELOC)." Accessed June 7, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.