The Best HELOC Rates and Lenders in Connecticut

A home equity line of credit (HELOC) is a home loan that lets you borrow money against your property's value. When necessary, you may withdraw a percentage of your equity and only repay the amount borrowed. This loan can pay for various financial needs.

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Ideal for people with good credit and home equity, HELOCs can cover significant expenses like home improvements, tuition fees, hospital expenses or debt consolidation. How you utilize your home equity line of credit is up to you.

MoneyGeek found that the current home equity line of credit rates for Connecticut homeowners range from 0.99% to 18%, with Bank of America being the best home equity line of credit lender overall.

When applying for a HELOC, it is essential to evaluate various lenders. This can help you obtain the best price for your specific needs and circumstances.

Home Equity Line of Credit (HELOC) Rates for 2023

When looking for a HELOC in Connecticut, it is essential to evaluate rates and terms from different lenders to find the best option.

As of May 2022, the table below provides a summary of HELOC rates and other important lender details. Rates and other data may change, but MoneyGeek does its best to keep this information current.

  • 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 Connecticut

MoneyGeek compiled a list of the most reputable Connecticut home equity line of credit lenders to help you pick the best one for your needs. The right lender can vary based on your financial profile.

It’s important to note that few lenders provide HELOCs. Those that do are often national banks. If your application for a HELOC is rejected by a national lender, MoneyGeek suggests approaching local credit unions for alternate choices.

Best Overall HELOC Lender in Connecticut: Bank of America


  • Bank of America

    Ideal for borrowers looking for a low introductory APR and no closing costs.


    • 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 Connecticut: U.S. Bank


  • U.S. Bank

    A great option with fixed interest rates for those with good to exceptional credit scores.


    • 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 Connecticut: Figure


  • Figure

    An ideal choice for individuals with weak credit looking for extended payment terms.


    • 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 Connecticut: PenFed


  • PenFed Credit Union

    PenFed offers flexibility in terms of rates as well as a low introductory APR.


    • 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

Home equity loans (HELOANs) and home equity lines of credit are good ways to finance significant expenses, using your home as collateral. When deciding between two alternatives, it is essential to understand their differences.

A home equity loan is a one-time payment made to the borrower. It typically has set interest rates and monthly payments for the duration of the loan. A HELOAN is appropriate for borrowers who value stability and wish to avoid excessive expenditure.

A HELOC is a revolving credit line comparable to a credit card. You can withdraw money as often as necessary within a defined time frame, up to a given threshold, and repay the money you borrow. Typically, home equity line of credit rates are adjustable.

The table below breaks down the differences further.

  • 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

It is simple to apply for a HELOC. The majority of lenders accept online applications in which the borrower provides basic information and awaits approval. Below, MoneyGeek describes the required steps for obtaining a HELOC.

1

Determine how much you need

Remember that a HELOC is not appropriate for everyone. Borrowers must understand what a home equity line of credit is before applying for a HELOC. Then, you must determine the amount and purpose of your intended credit line. A HELOC can be used for a variety of financial goals, including debt consolidation, education costs and home improvements.

2

Assess your financial standing

Evaluate your financial profile to determine if you fulfill the minimal borrowing criteria. This includes examining your credit score, income and current debt-to-income ratio because these variables affect your interest rates. By analyzing your financial situation, you'll establish whether you have the capacity to repay your debts.

3

Shop around and compare lenders

Comparing HELOC lenders can help you locate the best option for your specific requirements and circumstances. Examine their offerings, prices and loan terms. You should also consider the annual fees, closing charges and rate discounts of each lender.

4

Apply

The majority of HELOC applications can be submitted online, but some companies require that you call or visit a physical location. Generally, the application procedure involves providing details about your income and assets.

5

Use funds wisely

Once you begin withdrawing, it is vital to live within your means to prevent incurring additional debt. Remember that if you fall behind on payments, you could lose your home.

Frequently Asked Questions About HELOCs

Understanding how a HELOC operates might be difficult for first-time borrowers. Therefore, MoneyGeek provided answers to some commonly asked questions.

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