Best HELOC Rates and Lenders in Indiana for 2024

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Edited byAshley Jacobs

Updated: December 28, 2023

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People use HELOCs for a variety of reasons, including renovations, education, investment, debt repayment, emergencies and retirement.

It's critical to compare various lenders before applying for a HELOC to discover the best offer for your needs. HELOC rates start at a special promotional variable APR of 0.99% for six months, then can go up to an 18% variable. Due to its low interest rates and discounts, MoneyGeek considers Bank of America as the top overall HELOC lender in Indiana.

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Home Equity Line of Credit (HELOC) Rates for 2024

It is highly recommended to research lenders' rates and terms when selecting a HELOC. This can help you find the best deal.

As of May 2022, the MoneyGeek table below summarizes home equity line of credit rates as well as relevant lender information. This information can change at any time, and we update it regularly to keep it current.

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MoneyGeek’s Picks for Best HELOC Lenders in Indiana

Not many lenders provide HELOCs, and those that do are primarily national banks that only lend to borrowers with good to excellent credit. If a national lender rejects your HELOC application, MoneyGeek suggests looking at local credit unions as an alternative.

Since our goal is to help consumers, we compiled a list of the best Indiana home equity line of credit lenders to assist you in finding the best option based on your needs and circumstances.

Best Overall HELOC Lender in Indiana: Bank of America

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Best HELOC Lender for Good Credit in Indiana: U.S. Bank

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Best HELOC Lender for Bad Credit in Indiana: Figure

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Best HELOC Lender for Competitive Rates in Indiana: PenFed

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HELOC vs. Home Equity Loans

While both are good solutions to fund large expenses, knowing the distinctions between home equity loans (HELOANs) and home equity lines of credit (HELOCs) is crucial when deciding which is the best option for you.

Borrowers who want dependability will benefit from a HELOAN because it is a one-time payment made to a borrower. The interest rate and monthly payments are normally fixed for the duration of the loan.

Meanwhile, borrowers who are proficient at budgeting may consider a home equity line of credit. With a HELOC, you can withdraw money as often as you need within a certain timeframe and you must repay the amount borrowed – like a credit card.

The table below outlines more differences.

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How to Apply for a HELOC

Applying for a home equity line of credit is usually simple since most lenders allow applicants to provide basic information via an online application and then wait for approval. Below, MoneyGeek discusses the processes to take when applying for a HELOC.

1

Determine how much you need

A HELOC can be utilized for a variety of financial needs, such as debt consolidation, investment and home renovations, among others. You must know your intended credit line amount and how you will use it before applying for a home equity line of credit.

2

Assess your financial standing

To discover if you meet the borrowing requirements, you will need to assess your financial standing, including your credit score, income and existing loan-to-value ratio. These are all aspects that go into setting your rates. Through this, you can also decide if you have the financial means to repay what you owe.

3

Shop around and compare lenders

The only way to find the best HELOC lender for your needs and situation is to compare the services, fees and conditions of different lending companies. You should also consider the annual fees, closing charges and rate discounts charged by each lender.

4

Apply

Although the majority of HELOC applications can be completed online, certain lenders require you to contact them by phone or visit a physical location. Typically, the application procedure requires you to submit details about your assets and income.

5

Use funds wisely

To prevent further debt, stick to your budget after you start withdrawing money. Keep in mind that if you fall behind on your payments, you risk losing your home.

Frequently Asked Questions About HELOCs

For first-time HELOC borrowers, learning how a home equity line of credit works might seem complicated. MoneyGeek answers some frequently asked questions below to help you get started.

The rate on your home equity line of credit is determined by a number of criteria, including your credit score and the loan-to-value ratio. The most competitive rates in Indiana are offered by Bank of America and PenFed Credit Union.

You can utilize your HELOC to fund major purchases, including home renovations, college tuition, investments and debt consolidation.

MoneyGeek recommends you verify that the interest on the HELOC is tax-deductible with your accountant or financial advisor. It most likely is, but it's always smart to double-check the laws in your state.

Depending on the lender and your credit and income, lenders will typically enable you to borrow up to 75% to 90% of your available equity. This can range from $5,000 to $1,000,000 in Indiana.

Both HELOCs and home equity loans are good choices, but which one is best for you depends on your needs. A HELOC is like a credit card that allows you to borrow up to a certain limit as needed and only pay back the amount you withdraw. A home equity loan is a lump sum payment with a fixed interest rate and monthly installments.

HELOC rates are variable, which means they vary depending on the specific current economic conditions. However, some lenders allow consumers to move to fixed rates on their home equity line of credit.

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