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 | $25,000 to $1,000,000 | 660 | 10-year draw period; | $99 | 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; | None | 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 3.24% | $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; | None | 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; | $50 | 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 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
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
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
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
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, | Fixed interest rate |
Monthly Payment | Changes depending
| Fixed monthly payments |
Repayment Terms | During the draw period, borrowers | Repayment starts as soon as |
Fund Disbursements | Borrowers can withdraw funds | 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.
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.
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.
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.
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.
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.
sources
- Bank of America. "Home Equity." Accessed June 19, 2022.
- Bank of America. "Locators." Accessed June 19, 2022.
- Bank of America. "Home Equity Assumptions." Accessed June 19, 2022.
- Bank of America. "Home Equity Line of Credit Application." Accessed June 19, 2022.
- Figure. "Homeowners, We're Here for You." Accessed June 19, 2022.
- Figure. "Figure Home Equity Line FAQs." Accessed June 19, 2022.
- PenFed. "PenFed Home Equity Line of Credit (HELOC)." Accessed June 19, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 19, 2022.
- U.S. Bank. "Home Equity FAQs." Accessed June 19, 2022.