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.

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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.

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
  • 3.75% to 18%

    $25,000 to $1,000,000

    660

    10-year draw period and
    20-year repayment period

    None

    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

    Not specified

    Not specified

  • 3.65% to 8.80%

    $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 and
    20-year repayment period

    $75

    Not specified

  • Starting at 4.64%

    $10,000 to $500,000

    Not specified

    10-year draw period and
    20-year repayment period

    None

    24 hours

  • Starting at 3.50%

    $15,000 to $400,000

    620

    5 to 30 years

    3% to 4.99%

    24 hours

  • Starting at Prime - 0.50%

    Starting at $17,500

    Not specified

    10-year draw period,
    15-year repayment period

    $50

    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 with
    15-year repayment period

    None

    24 hours

  • 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

    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

    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

    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

    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.

1

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.

2

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.

3

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.

4

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.

5

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.

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