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 | None | 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, | Not specified | Not specified | |
3.65% to 8.80% | $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 and | $75 | Not specified | |
Starting at 4.64% | $10,000 to $500,000 | Not specified | 10-year draw period and | 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, | $50 | 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 | None | 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 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.
- 6.740% for 6 months, then 9.550%APR Range
- Not specifiedMinimum Credit Score
- $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
- 730Minimum Credit Score
- $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
- 620Minimum Credit Score
- $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
- 660Minimum Credit Score
- $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- $99Annual Fees
- Not SpecifiedPre-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, | Fixed interest rate |
Monthly Payment | Changes depending | Fixed monthly payments |
Repayment Terms | During the draw period, borrowers pay | Repayment starts as soon as |
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.
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.
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.
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.
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.
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.
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.