The Best HELOC Rates and Lenders in Arizona

A home equity line of credit (HELOC) is a type of second mortgage that you can use against the value of your home. You can borrow money when needed up to your maximum loan amount, which can be used to pay for renovations or other expenses like debt consolidation and investments.

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Whether it be for urgent needs, like expenses, or personal needs, like home renovations, a HELOC helps borrowers reap the benefits of their home’s equity. A HELOC is a safe way to loan amounts ranging from $10,000 to $1,000,000 at a rate that works best for you.

Home equity line of credit rates in Arizona range from 0.99% to 18%, but Bank of America has the best combination of price and customer satisfaction. Still, it’s crucial to learn more about the options that are available to make sure that you get the one that works best for you.

Home Equity Line of Credit (HELOC) Rates for 2023

The table below breaks down the terms and rates of different lenders’ HELOC loans. It provides an overview and comparison of HELOC rates, along with basic minimum credit score requirements.

The information included was updated as of May 2022. Although we readily update our information, the lender’s terms and rates are subject to change, so you should always verify with their website.

  • Lender
    APR
    Loan Amount
    Min. Credit Score Requirement
    Repayment Terms
    Annual Fees
    Pre-Approval Time
  • 0.99% introductory APR
    for six months;
    4.25% to 18% thereafter

    $25,000 to $1,000,000

    660

    10-year draw period;
    20-year repayment period

    $99

    N/A

  • Not specified

    Not specified

    Not specified

    Not specified

    Not specified

    Not specified

  • 1.99% special
    introductory variable
    APR for 6 months,
    then as low as
    4.35% variable

    $25,000 to $1,000,000

    Not specified

    10-year draw period;
    20-year repayment period

    None

    Not specified

  • 4.20% to 9.35%

    $15,000 to $750,000

    730

    10-year draw period;
    unspecified repayment period

    $90

    Not specified

  • 4.65% to 9.99%

    $35,000 to $300,000

    620

    10 to 30 years

    None

    1 to 2 weeks

  • Starting at 3.99%

    $10,000 to $500,000

    Not specified

    10-year draw period;
    20-year repayment period

    $75

    Not specified

  • Starting at 4.64%

    $10,000 to $500,000

    Not specified

    10-year draw period;
    20-year repayment period

    None

    24 hours

  • Starting at 3.24%

    $15,000 to $400,000

    620

    5 to 30 years

    None

    24 hours

  • Starting at Prime - 0.50%

    Starting at $17,500

    Not specified

    10-year draw period;
    15-year repayment period

    None

    Not specified

  • Starting at 3.34%

    Starting at $25,000

    740

    Not specified

    $50

    Not specified

  • 3.49% for 6 months;
    4.08% thereafter

    Starting at $5,000

    Not specified

    15-year draw period;
    15-year repayment period

    $50

    24 hours

  • 3.75% to 10.63% variable

    $10,000 to $500,000

    Not specified

    10-year draw period;
    20-year repayment period

    None

    Not specified

MoneyGeek’s Picks for Best HELOC Lenders in Arizona

At MoneyGeek, we strive to inform consumers about the different kinds of HELOC loans available to help you select the best home equity line of credit. It’s important to note that HELOC loans are typically only available from national banks, like Bank of America or Discover. If a national lender rejects your loan application, MoneyGeek recommends checking with local credit unions for alternative options.

Best Overall HELOC Lender in Arizona: Bank of America


  • Bank of America

    Bank of America's low introductory APR of 1.99% lasts for six months.


    • 1.99% special introductory variable APR for 6 months, then as low as 4.35% variableAPR Range
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • NoneAnnual Fees
    • Not specifiedPre-Approval Time

    on Bank of America Website

Best HELOC Lender for Good Credit in Arizona: U.S. Bank


  • U.S. Bank

    Borrowers have a fixed-rate option.


    • 4.20% to 9.35%APR Range
    • $15,000 to $750,000Loan Amount Range
    • 10-year draw period; unspecified repayment periodRepayment Terms
    • $90Annual Fees
    • Not specifiedPre-Approval Time

    on U.S. Bank Website

Best HELOC Lender for Bad Credit in Arizona: Figure


  • Figure

    Figure only has a minimum credit score requirement of 620, which is one of the lowest on the market.


    • From 6.55% to 15.54%APR Range
    • $15,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time

    on Figure Website

Best HELOC Lender for Competitive Rates in Arizona: PenFed


  • PenFed Credit Union

    PenFed Credit Union offers a 0.99% introductory interest rate for six months — one of the lowest on the market.


    • 0.99% for 6 months; 4.25% to 18% thereafterAPR Range
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • $99Annual Fees
    • N/APre-Approval Time

    on PenFed Credit Union Website

HELOC vs. Home Equity Loans

Home equity lines of credit and home equity loans help you fund large expenses using your home as collateral. Knowing the differences between the two is crucial to identify the best solution for your financial situation.

A home equity loan is a one-time payment made to the borrower. Over the life of the loan, the interest and monthly payments are usually fixed. Borrowers who appreciate consistency and wish to minimize overpaying should consider this option.

A home equity line of credit, on the other hand, is a revolving credit line that functions similarly to a credit card. Like a credit card, you can withdraw money on an as-needed basis up to a specified limit and then pay it back.

To learn more about the differences between a home equity loan and a home equity line of credit, you can refer to the table below.

  • HELOC
    Home Equity Loan
  • Interest Rate

    Adjustable interest rate
    but a fixed-rate loan is also an option

    Fixed interest rate

  • Monthly Payment

    May vary depending on
    the amount of money borrowed

    Fixed monthly payments

  • Repayment Terms

    During the draw period,
    borrowers must make
    interest-only payments;
    after the draw period,
    they must repay
    principal and interest

    Repayment starts as soon as
    the money is disbursed to the borrower

  • Fund Disbursements

    Borrowers can withdraw funds
    whenever financially necessary

    Lump sum

How to Apply for a HELOC

You can easily apply for a HELOC in person, over the phone or online. The application requirements are similar to that of mortgage applications and can be even less if you have an excellent credit score or only require a small loan amount.

1

Determine how much you need

Before investing your time preparing requirements for a HELOC application, determine the amount of money you’ll need and consider if a HELOC is your best option. If you’re a financially stable homeowner in need of money to consolidate loans, renovate your house, pay for or save up for college expenses or invest in the stock market, a HELOC may be the right option for you. If you only need a small amount of money, then another type of loan may be more appropriate.

2

Assess your financial standing

You should evaluate your current financial situation before applying for a loan. Those with a stable income, good credit score and low credit-to-income ratio are more likely to be approved for a HELOC. It’s possible to increase your credit score before applying by paying off existing debt and avoiding borrowing money from banks or loaning companies.

3

Shop around and compare lenders

Once you’ve determined how much money you need and your capacity to pay off debt, it’s time to search for the right HELOC lender. Read their terms carefully and watch out for prepayment penalties and inactivity fees. Doing proper research will help you find the perfect lender for your financial situation.

4

Apply

Like we’ve mentioned earlier, applying for a HELOC is easy. The requirements vary from one lender to another, but the basic requirements are income and debt documents, personal information and property value. After submitting the documents and undergoing an interview, the lender will contact you with their application decision.

5

Use funds wisely

Despite having flexibility for how you can use your home equity line of credit, remember that it’s still a loan that must be repaid. It’s important that you only spend what you can repay so that you don’t risk losing your home.

Frequently Asked Questions About HELOCs

Borrowing money through a home equity line of credit may seem daunting and confusing, but with proper guidance, the process can be a breeze. To get you started, MoneyGeek answered some frequently asked questions about HELOCs.

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