Best HELOC Loans and Rates of 2024

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Reviewed byTimothy Manni
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Updated: April 16, 2024

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APRs influence your repayments and the overall cost of a HELOC. Competitive ones can reduce your monthly payments and save money in the long term. MoneyGeek’s analysis identified Aven, PNC Bank and TD Bank as leading lenders for the best HELOC rates, with APRs starting as low as 7.99%, 8.22% and 8.34%, respectively.

While the lowest APR is a prime reason these lenders stand out, the total cost also depends on other features such as rate discounts and absent fees. Each lender has its own set of advantages and drawbacks, so review their terms to find the HELOC that best suits your financial needs.


Top HELOC Lenders With Competitive Rates


What’s a Good HELOC Rate?

As of April 2024, average HELOC interest rates are at 7% nationally. This rate measures the interest cost of borrowing, while the slightly higher national average annual percentage rate (APR) of 7.1% represents the total cost of borrowing, including additional lender fees and expenses over the loan's term. APR offers the most accurate reflection of your overall expenses at the end of the day.

Remember that the rate you receive for a HELOC can differ based on your location, credit score and loan-to-value (LTV) ratio. Use the rate table to see how these factors may influence the rates and APRs available to you.


Factors Affecting HELOC Rates

Home equity lines of credit (HELOCs) typically come with variable rates, meaning your interest rate can change over time. While some lenders might offer fixed-rate HELOCs, these are rare. Knowing what influences HELOC rates will help you find the best deal and save money.


How to Get the Most Competitive HELOC Rates

Securing a competitive HELOC rate can significantly lower your borrowing costs over time. Homeowners can take actionable steps to improve their chances of getting a favorable rate.


Check and improve your credit score

Obtain your credit report and address any inaccuracies. Improving your credit score is key as lenders offer lower rates to borrowers with higher scores due to perceived lower risk.


Lower your debt-to-income ratio

Pay down existing debts to improve your debt-to-income (DTI) ratio. A lower figure indicates that you're less of a financial risk, potentially qualifying you for better rates.


Increase home equity

The more equity you have in your home, the less risk you pose to lenders. Consider making additional payments on your mortgage to increase your equity before applying for a HELOC.


Shop around

Don't settle for the first offer. Compare HELOC rates from multiple lenders, including banks, credit unions and online lenders, to find the most competitive rates.



Use the quotes you receive as leverage to negotiate better terms. Lenders may be willing to adjust rates or fees to win or retain your business, especially if you have a solid financial profile.


Consider a co-signer

Adding a co-signer with a better financial profile can help you secure lower rates. Ensure that the co-signer understands the responsibilities at hand; they become equally accountable for loan repayment if you're unable to fulfill it.


Stay informed about market rates

Knowing the current market conditions can help you time your application for the best possible rates.


When you're ready to take the next step and begin comparing the best HELOC lenders, you'll make the most of this experience and get the biggest bang for your buck by engaging with lenders when your financial profile is at its strongest. For HELOC borrowers, if your credit report and score are strong, your debts low and manageable, and you've established significant equity in your home, you'll be better set up to have lenders compete for business, thus helping you secure the best rate and lowest fees you can. — Timothy Manni, Mortgage and Real Estate Consultant

Frequently Asked Questions About the Best HELOC Loans and Rates

Being familiar with all the details about HELOCs can empower homeowners to make informed financial decisions. We've addressed common questions, shedding light on securing the best loans and rates. Use this knowledge to ensure your financial decisions are strategic and beneficial.

A reasonable HELOC rate will depend on how strong your credit score is, whether you have low debt, the amount of equity you have in your home and more. Be sure to compare rates and fees to get the best rate you can.

Yes, lenders might adjust rates or fees to secure your business, especially if you present competitive offers from other institutions.

HELOC rates fluctuate every month, often linked to the Prime Rate, which adjusts according to the Federal Reserve's interest rate determinations.

The lender may initiate foreclosure to recover the borrowed amount. It's important to communicate with your lender early if you're facing financial difficulties.

Some lenders might allow you to switch from variable rates to fixed-rate HELOCs during the loan term. However, this is an exception rather than a standard practice. HELOCs are usually variable-rate products.

Yes, you can refinance a HELOC to get a better rate, especially if your credit score has improved and market rates have dropped since you first secured it.

HELOCs typically come with various fees, including application, appraisal and, in some cases, annual fees. Understanding the HELOC closing costs is also essential to assess the total cost of the loan.