Best HELOC Rates and Lenders in Idaho for 2024
Updated: December 28, 2023
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A HELOC is commonly used to fund large expenses such as home improvements, college fees, medical bills, debt consolidation and more. It’s also perfect for homeowners who have a lot of equity in their home and are good at managing credit.
MoneyGeek discovered that current home equity line of credit rates in Idaho range from 0.99% to 18%, with Bank of America being the top overall HELOC lender.
It's critical to shop around for a lender that fits your needs before applying for a HELOC. Compare their offerings to make sure that you're getting the best rate possible.
Home Equity Line of Credit (HELOC) Rates for 2024
When choosing a HELOC, it's critical to research rates and terms from several lenders to discover the best deal.
Last updated in May 2022, the table below provides an overview of the home equity line of credit rates and relevant lender information. Keep in mind that rates and other information may change over time, but MoneyGeek will update this data to keep it up to date.
MoneyGeek’s Picks for Best HELOC Lenders in Idaho
MoneyGeek's goal is to help you find the ideal HELOC lender for your specific financial requirements and objectives.
Many lenders do not provide home equity line of credit loans. Typically, national banks are the only institutions that offer HELOC loans for individuals. If a major lender turns down your application, see if your local credit union offers HELOCs.
Best Overall HELOC Lender in Idaho: Bank of America
Best HELOC Lender for Good Credit in Idaho: U.S. Bank
Best HELOC Lender for Bad Credit in Idaho: Figure
Best HELOC Lender for Competitive Rates in Idaho: PenFed
HELOC vs. Home Equity Loans
While both home equity loans and home equity lines of credit use your home equity to determine how much you can borrow, the differences between the two are substantial.
Home equity loans allow homeowners to borrow money against the value of their homes. A set interest rate and payback duration apply to a home equity loan. The borrower receives the fund in one single amount.
A HELOC, on the other hand, works similarly to a credit card in that it allows a borrower to borrow up to a certain amount during the draw period. The borrower is not trapped in a set monthly payment because the interest rate is variable.
The table below provides a more comprehensive list of differences between the two.
How to Apply for a HELOC
Most HELOC lenders provide online applications to make the process more convenient. You only have to submit various pieces of information, including personal data and contact details. Then, you wait for the approval.
Determine how much you need
Keep in mind that a HELOC isn't for everyone. For homeowners who can budget properly and know the precise amount they need to borrow, MoneyGeek advises a home equity line of credit. HELOCs are also great for big purchases like investments, debt reduction and education.
Assess your financial standing
You need to qualify before applying for any type of loan. For HELOC, this means that you must be able to fulfill the credit score requirement, earn within the income threshold, have enough home equity and more. If you’re planning to apply for a HELOC loan, try to avoid hurting your creditworthiness by applying for other credit lines.
Shop around and compare lenders
Researching lenders and comparing their rates could be beneficial. This will help you in locating the best option for your needs. You may avoid paying additional fees and take advantage of cheap rates before the loan begins if you choose the correct HELOC lender.
Apply
Most HELOC applications may be completed online and are typically less complicated than mortgage applications. Simply gather your application documents and answer the questions honestly. Verification documents, such as bank statements and asset information, must also be provided.
Use funds wisely
Be mindful of the payback terms and additional costs after you begin pulling cash from your HELOC. To budget for monthly spending, keep track of how much you need to pay while your HELOC is open.
Frequently Asked Questions About HELOCs
Taking out a HELOC loan is a long-term investment that should be carefully evaluated. To help you consider your options, below are some frequently asked questions.
The rate on your home equity line of credit is determined by various criteria, including your credit score and the loan-to-value ratio. Due to their promotional incentives, Bank of America and PenFed Credit Union provide the cheapest pricing in Idaho.
A HELOC loan in Idaho can be used to pay for big life events, including children's college fees, weddings, home improvements, debt consolidation and more.
In most situations, your HELOC interest is tax deductible. Check with your lender to see whether you qualify for interest deductions.
The size of your credit line is usually determined by your lender and creditworthiness. It may range from anything between $5,000 to $1,000,000 in Idaho.
Both HELOCs and home equity loans are good choices, but which one is best for you will depend on your circumstances. A HELOC is a type of credit line that allows you to borrow up to a certain limit as needed and only pay back the amount you take. A home equity loan, on the other hand, is a lump sum payment with a fixed interest rate and monthly installments.
HELOC rates are typically variable, which means they fluctuate according to current economic conditions. However, some lenders allow customers to move to fixed rates on their home equity line of credit.
sources
- Bank of America. "Home Equity Assumptions." Accessed June 7, 2022.
- Bank of America. "Home Equity Line of Credit from Bank of America." 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. "Get a Home Equity Line." 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.
- Internal Revenue Service. "Publication 936 (2021), Home Mortgage Interest Deduction." Accessed June 7, 2022.