A HELOC can be used to consolidate debt or to cover large costs such as home improvements, college education and medical bills.
It's important to look around and compare various lenders before applying for a HELOC to obtain the best offer for your circumstances and needs. Currently, the initial HELOC rates vary from roughly 0.99% and can go all the way to 18% after the introductory period ends. Because of its low interest rates and incentives, MoneyGeek recommends Bank of America as the best overall HELOC lender in Illinois.
Home Equity Line of Credit (HELOC) Rates for 2023
The table below summarizes rates, payback terms and other essential details about HELOC lenders as of May 2022. This can be helpful as you research lenders.
Please keep in mind that the pricing and information included are subject to change. However, MoneyGeek updates this table regularly to show the most up-to-date information.
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 Illinois
MoneyGeek is concerned about you, the customer, and it is our objective to assist you in selecting the best HELOC lender for your needs.
As a result, it's important to point out that home equity line of credit loans aren't widely available. National banks are typically the only ones that issue them. If you've been turned down by a national lender, we recommend checking with your local credit union to see if they offer HELOCs.
Best Overall HELOC Lender in Illinois: Bank of America
- Bank of America
Bank of America offers a 1.99% special introductory variable APR for six months.
- 9.55%APR Range
- $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- NoneAnnual Fees
- Not specifiedPre-Approval Time
Best HELOC Lender for Good Credit in Illinois: U.S. Bank
- U.S. Bank
You may apply for a HELOC with U.S. Bank by phone, online or in person.
- Not specifiedAPR Range
- $15,000 to $750,000Loan Amount Range
- 10-year draw period; unspecified repayment periodRepayment Terms
- $90Annual Fees
- Not specifiedPre-Approval Time
Best HELOC Lender for Bad Credit in Illinois: Figure
- Figure
Figure has one of the lowest credit score requirements for HELOCs.
- 8.25%APR Range
- $15,000 to $400,000Loan Amount Range
- 5 to 30 yearsRepayment Terms
- NoneAnnual Fees
- 24 hoursPre-Approval Time
Best HELOC Lender for Competitive Rates in Illinois: PenFed
- PenFed Credit Union
For qualifying customers, PenFed Credit Union offers the lowest APR.
- Not specifiedAPR Range
- $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- $99Annual Fees
- Not SpecifiedPre-Approval Time
HELOC vs. Home Equity Loans
Although they may seem similar, a home equity loan (HELOAN) and a home equity line of credit (HELOC) are two separate products.
A homeowner can borrow against the value of their home with a home equity loan. Home equity loans also come with set interest rates and payback durations. The money is given to borrowers in one lump payment by the bank.
Meanwhile, HELOCs function similarly to credit cards. During the draw time, borrowers can withdraw a specific amount stipulated by the lender. Variable interest rates are also available on HELOCs. As a result, the borrower is not obligated to make set monthly installments throughout the payback period.
You can find out more about their differences in the table below.
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
Many lenders enable you to fill out forms online, making it easier to apply for a HELOC. Typically, you must first supply your personal information and contact information. Then, you must wait for the lender's approval.
Determine how much you need
HELOC loans are ideal for large expenses such as investments, debt consolidation and big purchases, among others. However, before settling on HELOC, you must first determine how much money you need. This type of loan is best for candidates who know exactly how much they need to borrow. It could even turn out that other types of loans are more suitable for your financial needs.
Assess your financial standing
Examine your financial situation to determine if you meet the borrowing requirements. This includes looking at your credit score, income and existing loan-to-value ratio, as these are all key elements that go into setting your rates. You can also determine if you have the financial means to repay what you owe by analyzing your financial situation.
Shop around and compare lenders
The best way to locate the best HELOC lender for your needs and circumstances is to research multiple lenders and compare their offerings. Examine their services, fees and terms. Consider the annual charges, closing fees and rate reductions charged by each lender.
Apply
In most cases, you can apply for a HELOC online. To save time, gather the information you'll need for your application. Verified documents such as bank statements, mortgage statements and proof of income may be required. Also, read your Truth-in-Lending declaration carefully and keep an eye out for any minimum and maximum balance limits.
Use funds wisely
Staying within your budget after you start withdrawing funds is the easiest way to prevent getting further into debt. Keep in mind that if you fall behind on your payments, your house may end up in foreclosure.
Frequently Asked Questions About HELOCs
It might be confusing to understand how to get a home equity line of credit (HELOC). MoneyGeek has answered some frequently asked questions regarding HELOCs to help you learn more.
sources
- Bank of America. "Home Equity Line of Credit from Bank of America." Accessed June 21, 2022.
- Bank of America. "Home Equity Assumptions." Accessed June 21, 2022.
- Bank of America. "Home equity loan vs. line of credit?." Accessed June 21, 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.