The Best HELOC Rates and Lenders in Arkansas

A home equity line of credit (HELOC) is a second mortgage that allows you to borrow money against the value of your home. You can use it for renovations and other expenses like debt consolidation and investments.

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A HELOC can help you finance major expenses like renovations, education costs and more. It is an excellent choice for homeowners who have a lot of equity in their homes and who manage their credit responsibly.

The current home equity line of credit rates in Arkansas range from 0.99% to 18%, with Bank of America offering the best combination of price and customer satisfaction. That being said, it is important to shop around and compare available lenders before applying for a HELOC to find the best deal for your specific needs.

Home Equity Line of Credit (HELOC) Rates for 2023

Below, you will find details about home equity line of credit rates, annual fees, minimum credit score requirements and more from various lenders. MoneyGeek last updated this data in May 2022. Please note that the information in this table may change as lenders update their terms and conditions.

  • Lender
    APR
    Loan Amount
    Min. Credit Score Requirement
    Repayment Terms
    Annual Fees
    Pre-Approval Time
  • 0.99% for the
    first 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 Arkansas

At MoneyGeek, we are dedicated to helping you find the best HELOC lender for your needs. We understand that, as with any big financial decision, it's important that you learn about the different lenders offering HELOCs.

Note that only a few banks offer this type of loan, and most of them are national banks. If you can't get a HELOC from a national bank, MoneyGeek recommends that you check with your local credit union.

Best Overall HELOC Lender in Arkansas: Bank of America


  • Bank of America

    Bank of America offers home equity lines of credit up to $1,000,000.


    • 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 Arkansas: U.S. Bank


  • U.S. Bank

    The home equity line of credit includes the option to convert your variable rate into a fixed-rate loan.


    • 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 Arkansas: Figure


  • Figure

    Figure requires only a 620 credit score for its HELOCs.


    • 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 Arkansas: PenFed


  • PenFed Credit Union

    PenFed Credit Union has one of the lowest introductory APRs of 0.99%


    • 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 can both help fund large expenses, but there are distinctions between them. To identify the best solution for your financial situation, you need to understand their differences.

Home equity loans are a way to borrow money against the value of your home. Borrowers receive the money from the bank as a lump sum. The loans have fixed interest rates over a fixed period of time.

A HELOC, on the other hand, acts like a credit card and allows you to borrow up to a certain amount during a specified period of time, known as the draw period. This type of loan has variable interest rates, so you won’t be stuck with the same payment every month.

You can review the table below to learn more about the differences between HELOCs and home equity loans.

  • HELOC
    Home Equity Loan
  • Interest Rate

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

    Fixed interest rate

  • Monthly Payment

    Changes 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

Applying for a home equity line of credit can be a fairly straightforward process. Most lenders allow you to easily fill out an application online, and then wait for your lender's approval.

1

Determine how much you need

Before you apply for a home equity line of credit, make sure you understand the terms and conditions of your loan. A HELOC is not right for everyone. If you want to consolidate your loans, renovate your house or pay for or save up for college expenses, then a HELOC may be right for you. However, if you need to borrow only a small amount, then another type of loan may be more suitable.

2

Assess your financial standing

You should consider your financial stability and credit score before applying for a home equity line of credit. Lenders will examine both your credit history and your ability to repay the loan before granting you a HELOC.

3

Shop around and compare lenders

Once you've decided how much money you need and your ability to pay off debt, you should begin researching different lenders. Read each lender’s terms carefully, and look out for prepayment penalties and inactivity fees. Finding the right lender will help you pay off your debts without trouble.

4

Apply

You can apply for a home equity line of credit online or at a financial center. You'll need to gather the required application materials and fill out the form honestly, verifying your information with documents such as pay stubs and W-2 forms.

5

Use funds wisely

If you take out a home equity line of credit, remember that it’s a loan that will need to be repaid. If you fail to make payments and default on your loan, you may lose your home and end up in a poor financial situation.

Frequently Asked Questions About HELOCs

MoneyGeek is here to guide you through the process of applying for a HELOC. Below are answers to some of the most frequently asked questions.

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