What’s a good HELOC rate in Colorado?

Home equity line of credit rates vary depending on your financial position. In Colorado, PenFed Credit Union and Bank of America provide six-month introductory APRs that are competitively low at 0.99% and 1.99%, respectively.

What can I use a HELOC for in Colorado?

In Colorado, a HELOC may be used for important needs such as hospital costs, debt consolidation, home improvements, investments and a child's education.

Is HELOC interest tax-deductible in Colorado?

In most cases, the interest on a HELOC is tax-deductible; however, it’s always best to consult a financial advisor or specialist.

How much money can I borrow with a HELOC in Colorado?

The maximum and minimum loan amounts in Colorado differ from lender to lender. Bank of America and PenFed Credit Union offer loans up to $1,000,000. Typically, the lowest minimum borrowing amount in Colorado is $5,000.

Is HELOC better than a home equity loan (HELOAN)?

It depends on your circumstances. If you desire an open-ended credit line with flexible interest rates, HELOCs are the best option. Home equity loans, on the other hand, are issued as a lump sum and have fixed interest rates.

Are HELOC rates fixed?

Typically, HELOC rates are variable. Because a HELOC functions as a revolving line of credit, its interest rates vary based on the market and the amount borrowed.

The Best HELOC Rates and Lenders in Colorado

A home equity line of credit, or HELOC, is a specific kind of home equity loan that allows you to borrow money against the value of your property. As needed, you withdraw a portion of your equity and only repay what you borrow. HELOCs are frequently used to fund home renovation projects, educational expenses and debt reduction.

Advertising & Editorial DisclosureLast Updated: 12/6/2022

Edited By

Morgan Hull

A HELOC is frequently used to finance substantial expenses, such as home improvements, education costs, hospital bills, debt consolidation and others. It’s a great option for financially responsible homeowners that have a significant amount of home equity.

MoneyGeek’s comprehensive review discovered that lenders in Colorado have home equity line of credit rates that range from 0.99% to 18%, with Bank of America being the best HELOC lender overall.

Prior to setting up a home equity line of credit, it is essential to find a lender that meets your requirements. You should compare lenders’ rates to ensure that you're receiving the best offer for your HELOC.

WHAT WE’RE GEEKING OUT ON

Home Equity Line of Credit Rates
Best HELOC Lender Overall in Colorado
Best HELOC Lender for Good Credit in Colorado
Best HELOC Lender for Bad Credit in Colorado

Home Equity Line of Credit (HELOC) Rates for 2023

The table below displays each lender’s HELOC requirements, equity rates and repayment terms as of May 2022.

Although we at MoneyGeek frequently update our pages with the latest data, this information is subject to change. You should always verify any information with your preferred lender.

Lender
APR
Loan Amount
Min. Credit Score Requirement
Repayment Terms
Annual Fees
Pre-Approval Time
PenFed Credit Union
3.75% to 18%
$25,000 to $1,000,000
660
10-year draw period and
20-year repayment period
None
N/A
PNC Bank
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
Bank of America
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
Not specified
Not specified
U.S. Bank
3.65% to 8.80%
$15,000 to $750,000
730
10-year draw period,
unspecified repayment period
$90
Not specified
Discover
4.65% to 9.99%
$35,000 to $300,000
620
10 to 30 years
None
1 to 2 weeks
Flagstar
Starting at 3.99%
$10,000 to $500,000
Not specified
10-year draw period and
20-year repayment period
$75
Not specified
SunTrust/Truist
Starting at 4.64%
$10,000 to $500,000
Not specified
10-year draw period and
20-year repayment period
None
24 hours
Figure
Starting at 3.50%
$15,000 to $400,000
620
5 to 30 years
3% to 4.99%
24 hours
Citizens Bank
Starting at Prime - 0.50%
Starting at $17,500
Not specified
10-year draw period,
15-year repayment period
$50
Not specified
TD Bank
Starting at 3.34%
Starting at $25,000
740
Not specified
$50
Not specified
Connexus Credit Union
3.49% for 6 months
(4.08% thereafter)
Starting at $5,000
Not specified
15-year draw period with
15-year repayment period
None
24 hours
Regions Bank
3.75% to 10.63% variable
$10,000 to $500,000
Not specified
10-year draw period,
and then 20 years for repayment
None
Not specified

MoneyGeek’s Picks for Best HELOC Lenders in Colorado

MoneyGeek’s guide will help you find the best lender for a home equity line of credit depending on your financial circumstances and objectives. Aside from national banks, there aren’t many providers who offer HELOCs. If your application is denied by a national lender, you should check with your local credit union to see if they offer HELOC loans.

Best Overall HELOC Lender in Colorado: Bank of America

Bank of America
Bank of America provides an introductory APR of 1.99% 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
MoneyGeek discovered that Bank of America offers the best home equity line of credit in Colorado. This lender is ideal for homeowners that want online account management. Bank of America also offers a mobile application that allows you to make transactions from nearly any location.
At 1.99% for the first six months, Bank of America provides one of the lowest variable introductory APRs in Colorado. After six months, your rate is still relatively low at 4.35%. Bank of America is also a good option for those who need increased loan amounts since their maximum loan amount is $1,000,000.
However, Bank of America does not disclose their minimum credit score requirement to qualify for a HELOC, so you’ll have to contact Bank of America directly to determine your eligibility.
Pros
One of the lowest initial APRs
No annual fees
High loan limit
Autopay discount of 0.5%
Mobile & internet banking

Cons
No minimum credit score requirements specified online
Early closing fee of $450
No eligibility requirements specified online
High minimum line of credit of $25,000
APR: 1.99% introductory APR for six months; 4.35% thereafter
Loan Amount: $25,000 to $1,000,000
Repayment Terms: 10-year draw period; 20-year repayment period
Minimum Credit Score: Not specified
Annual Fees: None
Pre-Approval Time: Not specified
on Bank of America Website

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

U.S. Bank
U.S. Bank allows you to apply for a HELOC over the phone, online or in person.
- 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
U.S. Bank is the best HELOC lender for those with good credit in Colorado. It is also a go-to option for those that already have a personal checking account at U.S. Bank, as they will obtain the lowest interest rates. U.S. Bank also provides competitively low APRs beginning at 4.20%. This HELOC lender offers several options to apply for a home equity line of credit: you can apply in person, over the phone or online.
Although U.S. Bank is a highly regarded lender in Colorado, it may not be suitable for everyone. Those with credit scores less than 730 are not eligible. Borrowers who don’t want to pay an annual fee should also choose a different lender.
Pros
Flexible application procedures
Fixed-rate option
High loan limit
Cost-free application
No closing fees

Cons
Repayment duration is not specified
Annual fee
High minimum credit score requirement
Early closure fee of 1% of the line's original balance (maximum of $500)
Minimum monthly payment of 1% or 2% of the remaining balance required during the draw term
APR: 4.20%–9.35%
Loan Amount: $15,000 to $750,000
Repayment Terms: 10-year draw period; unspecified repayment period
Minimum Credit Score: 730
Annual Fees: $90
Pre-Approval Time: Not specified
on U.S. Bank Website

Best HELOC Lender for Bad Credit in Colorado: Figure

Figure
Figure's minimum credit score requirement of 620 is one of the lowest compared to other lenders.
- 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
MoneyGeek discovered that Figure is the best HELOC lender for those with bad credit in Colorado. The lender’s minimum credit score requirement is a relatively low 620, making it easier for those without a lengthy credit history to qualify. Figure is also suitable for borrowers who require a longer repayment period, as it offers terms of up to 30 years. Moreover, Colorado homeowners can borrow a modest amount of up to $400,000 with the lender.
However, homeowners with higher credit scores may qualify for a lender that offers lower interest rates. Additionally, those that need more than $400,000 should also seek out a different lender.
Pros
Quick funding
Fair minimum credit score requirement
Low starting APR
Pre-approval granted in 24 hours
Widely available

Cons
Annual Fee
Origination fee
Not all properties qualify
Unemployed applicants not eligible
May incur recording and subordination charges
APR: Starts at 3.24%
Loan Amount: $15,000 to $400,000
Repayment Terms: 5 to 30 years
Minimum Credit Score: 620
Fees: None
Pre-Approval Time: 24 hours
on Figure Website

Best HELOC Lender for Competitive Rates in Colorado: PenFed

PenFed Credit Union
PenFed Credit Union provides an introductory APR of 0.99% for the first six months.
- 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
According to MoneyGeek’s comprehensive analysis, PenFed Credit Union is the best HELOC lender for competitive rates in Colorado. The lender has an exceptionally low introductory APR of 0.99% for six months. The lender also provides loans of up to $1,000,000, making PenFed Credit Union perfect for homeowners who want to finance substantial expenses.
However, this lender may not work for people who wish to apply for a HELOC online, as PenFed Credit Union’s website advises prospective borrowers to schedule a call with a representative. This lender also charges an annual fee of $99, which some borrowers may not want to pay.
Pros
High loan limit
Low introductory APR
Offers a fixed-rate arrangement
Closing fees partially covered
Interest-only payments during the draw period

Cons
High minimum credit score requirement of 660
Annual fee of $99
Online application not available
Membership required to apply
APR: Introductory APR of 0.99% for six months; 4.25% to 18% thereafter
Loan Amount: $25,000 to $1,000,000
Repayment Terms: 10-year draw period; 20-year repayment period
Minimum Credit Score: 660
Annual Fees: $99
Pre-Approval Time: Not applicable
on PenFed Credit Union Website

HELOC vs. Home Equity Loans

Even though they appear to be similar, a home equity loan (HELOAN) and a home equity line of credit serve different purposes.

HELOANs permit a homeowner or borrower to lend against the equity in their home. Moreover, this type of loan contains fixed interest rates and terms of payback. The bank disburses the money to the borrower as a lump sum.

In contrast, a HELOC functions like a credit card. Borrowers can only withdraw a certain amount of money during the draw time. Additionally, HELOCs have adjustable interest rates. As a result, the borrower is not required to make regular monthly installments during the payback period.

HELOC
Home Equity Loan
Interest Rate
Adjustable interest rate,
but fixed-rate options are available
Fixed interest rate
Monthly Payment
Changes depending on the
amount of money borrowed
Fixed monthly payments
Repayment Terms
During the draw period, borrowers pay
interest on the money they borrowed;
after the draw period, they repay any
principal owed in addition to interest
Repayment starts as soon as
the money is given to the borrower
Fund Disbursements
Line of credit
Lump sum delivery

How to Apply for a HELOC

Lenders typically allow online applications for HELOCs, which makes the process easier. As part of the application, you must submit your personal information, including contact details, proof of employment and financial documentation. The steps recommended by MoneyGeek for obtaining a HELOC are listed below.

Determine how much you need

Keep in mind that a HELOC is not for everyone. Borrowers should first understand what a home equity line of credit is. MoneyGeek suggests a HELOC for financially responsible homeowners looking to fund major expenses such as investments, debt consolidation and tuition. A HELOC may not be appropriate if you need only around $1,000 for a modest home improvement project.

Assess your financial standing

In addition to estimating the amount of money you need to borrow, you should assess your financial condition. If you’re financially stable and have a steady source of income, a HELOC may be right for you. Most companies assess your credit score to determine your capacity to repay the loan. If you can improve your credit score prior to applying for a HELOC, you may be eligible for a reduced rate.

Shop around and compare lenders

Evaluating different lending institutions and analyzing their services is beneficial. This will help you find the best deals for your specific situation. With the appropriate HELOC lender, you may avoid extra charges and reap the benefits of cheap rates prior to the commencement of the loan.

Apply

Typically, you can apply for a home equity line of credit online. To save time, you should gather the necessary application information prior to applying. You may be required to provide documentation such as bank statements, mortgage statements and employment verification. MoneyGeek offers a variety of tips on how to apply for a HELOC.

Use funds wisely

After you’ve been approved for your HELOC, you should be mindful of the repayment periods and other associated fees. It’s important to keep track of the amount you pay while your HELOC is active in order to manage monthly costs.

Frequently Asked Questions About HELOCs

The procedure of establishing a HELOC can be complicated. To help you learn more about HELOCs, MoneyGeek answered some frequently asked questions.

sources

Bank of America. "Home Equity." Accessed June 7, 2022.
Bank of America. "Home Equity Assumptions." Accessed June 7, 2022.
Bank of America. "Home Equity Line of Credit Application." Accessed June 7, 2022.
U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
U.S. Bank. "Home Equity FAQs." Accessed June 7, 2022.
Figure. "Homeowners, We're Here for You." Accessed June 13, 2022.
Figure. "Figure Home Equity Line FAQs." Accessed June 13, 2022.
PenFed. "PenFed Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
Internal Revenue Service. "Publication 936 (2021), Home Mortgage Interest Deduction." Accessed June 7, 2022.