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

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.


    • 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

    Bank of America

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.


    • 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

    U.S. Bank

Best HELOC Lender for Bad Credit in Arkansas: Figure


  • Figure

    Figure requires only a 620 credit score for its HELOCs.


    • 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

    Figure

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%


    • 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

    PenFed Credit Union

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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