You can use a HELOC to pay for major expenses such as home renovation projects, education fees, debt consolidation and medical bills. A HELOC is best for people with good credit and decent home equity.
MoneyGeek found that the current home equity line of credit rates for Delaware homeowners varies from 0.99% to 18.%. We also found that Bank of America is the best home equity line of credit provider overall.
When applying for a HELOC in Delaware, it is crucial to compare several lenders in order to find the best rate for your particular needs and financial profile.
Home Equity Line of Credit (HELOC) Rates for 2023
As of May 2022, the following table provides an overview of HELOC criteria, equity rates, repayment conditions and other related information for various lenders.
Please keep in mind that HELOC data and other information are subject to change at any time. This table is periodically updated by MoneyGeek to display the most recent data.
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 | None | N/A | |
Not specified | Not specified | Not specified | Not specified | Not specified | Not specified | |
1.990% 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 | $75 | Not specified | |
Starting at 4.64% | $10,000 to $500,000 | Not specified | 10-year draw 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, | $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 with | 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 Delaware
MoneyGeek's mission is to streamline the process of finding the most suitable home equity line of credit lender for you. We take into account both your current situation and your long-term financial goals.
There aren't that many companies that offer HELOCs. In fact, most of the ones that do offer them are national banks. Check with your local credit union to see whether they provide HELOCs if your application is rejected by a national lender.
Best Overall HELOC Lender in Delaware: Bank of America
- Bank of America
Bank of America is the best overall option in Delaware.
- 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 Delaware: U.S. Bank
- U.S. Bank
U.S. Bank accepts HELOC applications over the phone, online and in person.
- 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 Delaware: Figure
- Figure
Figure is an excellent option for customers with poor credit who want to extend their payment periods.
- 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 Delaware: PenFed
- PenFed Credit Union
PenFed Credit Union has the most reasonable APR for qualified homeowners.
- 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
Despite their apparent similarities, a home equity loan (HELOAN) and a home equity line of credit (HELOC) are completely different.
Home equity loans allow a borrower to borrow against the home's equity. In addition, the interest rates and terms of repayment for this category of loan are fixed. The borrower receives the full amount from the bank in one installment.
On the other hand, a HELOC functions similarly to a credit card. The lender determines the amount that borrowers can withdraw throughout the draw period. Additionally, interest rates on HELOCs are variable. Therefore, the borrower is not required to make monthly payments during the repayment time.
The table below explains 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
The application process for HELOCs is easy since a number of lenders now accept submissions online. Generally, you must provide your basic information before the lender makes a determination. Below are the steps suggested by MoneyGeek for securing a HELOC.
Determine how much you need
It is important to keep in mind that a HELOC is not the right choice for everyone. The first step for borrowers is to understand what a home equity line of credit is. Then, before applying for a HELOC, you must identify the planned credit line's amount and objective. A HELOC can be used for numerous financial purposes, such as debt consolidation, college expenses and home improvements.
Assess your financial standing
Evaluate your financial situation to determine if you meet the minimum borrowing requirements. This includes looking at your credit history, income and the current loan-to-value ratio. All of these factors have an impact on the interest rates you are offered. You can determine whether or not you have the ability to repay your obligations by conducting an analysis of your current financial status.
Shop around and compare lenders
It is advantageous to conduct research on various lending institutions and evaluate the products they offer. This will help you locate the best option based on your individual needs and conditions. With the right HELOC lender, you may avoid unnecessary fees and take advantage of low interest rates prior to the initiation of the loan.
Apply
The vast majority of applications for HELOCs can be submitted online. However, there are some lenders who require you to either call them or visit their physical location. Typically, the application process includes submitting information about your assets and income.
Use funds wisely
When you first start drawing money out of your HELOC, you need to keep in mind the payback intervals as well as any other costs that may be associated with it. Keep track of the amount you are required to pay while your HELOC is operational in order to effectively manage your monthly expenses.
Frequently Asked Questions About HELOCs
First-time borrowers may find it challenging to comprehend how a HELOC works. Consequently, MoneyGeek has provided answers to 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.