A HELOC can be used for home improvements, debt consolidation, emergency funds, education and more. It’s best for borrowers with substantial home equity.
Regular HELOC rates can be as low as .99% and go up to 18%. Overall, the best HELOC lender in the District of Columbia is Bank of America, offering an APR of 4.35% variable. When applying for a HELOC, MoneyGeek recommends comparing home equity line of credit rates to find the lender that best fits your needs.
Home Equity Line of Credit (HELOC) Rates for 2023
Since comparing lenders is a crucial part of finding a HELOC, MoneyGeek gathered data from different lenders. The table below contains relevant information about various lenders, such as APRs, loan amounts and credit score requirements.
Rates and other features may have changed since the last update in May 2022. However, MoneyGeek tries to update our data with the latest information about HELOC lenders.
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 | |
1.99% 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 | $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 | 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 the District of Columbia
MoneyGeek does its research with the consumer’s needs as our top priority. Our mission is to help you make the right financial decisions, and that includes choosing the best HELOC lender based on your situation.
Lenders do not always offer HELOC loans. Usually, the ones that offer them are national banks. If your application has been rejected by a national bank, consider visiting local credit unions to ask if they offer HELOC loans.
Best Overall HELOC Lender in the District of Columbia: Bank of America
- Bank of America
Bank of America has an introductory APR of 1.99% for the first six months of your HELOC loan.
- 7.49% (introductory rate) then 9.90%APR Range
- Generally $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- NoneAnnual Fees
- UndisclosedPre-Approval Time
Best HELOC Lender for Good Credit in the District of Columbia: U.S. Bank
- U.S. Bank
U.S. Bank allows borrowers to switch to a HELOC with a fixed interest rate.
- 8.95% to 12.70%APR Range
- $15,000 to $750,000 ($1 million in California)Loan Amount Range
- 10-year draw period; up to 30 years repayment periodsRepayment Terms
- Up to $75Annual Fees
- UndisclosedPre-Approval Time
Best HELOC Lender for Bad Credit in the District of Columbia: Figure
- Figure
Figure does not charge opening fees, maintenance fees and prepayment penalties.
- 6.10% to 14.74%APR Range
- $20,000 to $400,000Loan Amount Range
- 5 to 30 yearsRepayment Terms
- NoneAnnual Fees
- 24 hoursPre-Approval Time
Best HELOC Lender for Competitive Rates in the District of Columbia: PenFed
- PenFed Credit Union
PenFed Credit Union has an introductory APR of 0.99%.
- Starting at 8.625%APR Range
- $25,000 to $500,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- $99Annual Fees
- UndisclosedPre-Approval Time
HELOC vs. Home Equity Loans
While both are borrowed against your home equity, home equity loans and HELOCs differ. For instance, HELOCs have variable interest rates. This means that their rates differ every month. This changes the monthly amounts that you have to pay as well.
Additionally, a HELOC acts like a credit card. A borrower is given a credit limit that they can use within a draw period. The interest rate usually only applies to the amount that has been credited.
Home equity loans, on the other hand, have fixed interest rates. From the start until the end of the repayment term, the interest rate and the monthly amount due are consistent. These loans are also released to the borrower in a lump sum.
The table below shows a more detailed comparison.
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
Most home equity line of credit lenders allow online applications. Therefore, applying for one can be convenient. Before starting the application process, consider following these steps to guarantee that you find the right lender that fits your needs.
Determine how much you need
Sometimes, it’s easy to get carried away with spending money using credit, so it’s better to know exactly how much you need and set that as a limit. One way to determine the amount that you need is by evaluating the expense you’re planning to have. For example, HELOCs can be used for debt consolidation, home improvement, education and more.
Assess your financial standing
Before applying, check the requirements of each lender to know whether or not you can qualify for a loan based on your financial profile. Be mindful of interest rates as well since they help determine if the amount you have to pay every month can fit your budget.
Shop around and compare lenders
Compare different lenders and research what each of them offers. Doing this allows you to find the best lender that fits your needs.
Apply
Most lenders offer online applications for HELOCs. When applying, it’s best to be prepared with all the information and documents that you might need to prove your eligibility. Make sure to provide accurate information to avoid being denied or delayed during your application process.
Use funds wisely
Using your funds wisely could mean spending them on projects that help you maximize your space at home. It could also mean using the lower interest rate on the HELOCs to save money while consolidating debt or paying for school. No matter how you want to use it, consider keeping track of your HELOC expenses to avoid paying more in interest.
Frequently Asked Questions About HELOCs
HELOCs might seem complicated at first. Once you begin to understand them, you might realize that they can come in handy in the future. To learn more about HELOCs, MoneyGeek answered frequently asked questions about home equity lines of credit in the District of Columbia.
sources
- Bank of America. "Home Equity." Accessed June 21, 2022.
- Figure. "Figure Home Equity Line FAQs." Accessed June 21, 2022.
- Figure. "Home Equity Line." Accessed June 21, 2022.
- PenFed Credit Union. "HELOC." Accessed June 21, 2022.
- PenFed Credit Union. "PenFed Service Fees." Accessed June 21, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 21, 2022.
- U.S. Bank. "Home Equity FAQs." Accessed June 21, 2022.